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♪ is it the look in your eyes >> good friday i'm carl quintanilla with morgan brennan, jon fortt, secelebrati four years on cnbc as this show is entering its fourth year. amazing time time goes fast. >> it does four years might sound like a long time but it goes by quickly, people. >> that's true we move on to the news, of course struggle for control at cbs continues, the board voting to slash its big egest power the outcome could have impact on the media industry we're joined by former co-chairman ben silverman, now co-ceo and chairman of propulgate we talked a few moments ago about how unprecedented this battle is in nature. it's crazy. >> it's crazy.

and also for the creative community it's really crazy, too. and this week was the upfronts in new york where all the broadcasts unveiled their shows. during the fox upfront it was all about the macro moves and mergers and acquisitions and literally during the upfront news broke on the court decision. >> i'm glad you brought that up. there's all this uncertainty around cbs and viacom, all this going on with fox, disney, comcast, our parent company and also skye. i imagine that all of this and sort of the uncertainty around all of this potential con solidation, what that means for content creators is that it will make companies like netflix, amazon and these companies look that much more attractive. >> in general the creative community is happy because there's so much opportunity to make shows, but then as somebody who has to navigate the creative side and the business side it is an absolute pain in the neck

right now. everyone has gotten so sophisticated and is vying for every angle around how to make money from content that there's less to share in as a participant and creator and also all the uncertainty as you're trying to galvanize talent, a-list talent and actors and directors to work in these places questions you never had to answer, you have to answer will they exist? who is going to run it les has been running that successfully. >> about 20 years, right take a look at the big picture for us what's really going on in terms of tech-driven change that is causing this upheaval? there was a time when viacom was seen as this jewel and cbs was stodgy, but something shifted in the over-the-top streaming era in how assets are being valued that really turned that around, similarly with fox how do you see it? >> i think what cbs did

brilliantly with its broadcast content, they held back from licensing it to other players and then they became geniuses because they had a lot of content to sell, as netflix started to buy, as hulu started to buy, as amazon started to buy, and they made fantastic deals around their content and they were also smart because they didn't sell off the international rights they're able to sell their content market by market, country by country, network by network. so they made a lot of revenue around it. the other piece that no one really talks about is show time. showtime, they're sitting on showtime at cbs, ploorobably onf the most valuable assets in the viacom/cbs discussion. it's still a small company are they merging then sell, what was a $50 billion merger that's seen as gigantic years ago looks tiny compared to amazon scale, apple scale and what will be disney/fox. >> sure.

so until this gets cleared up, do creatives pitch cbs do they wait or how does that process get changed? >> i think cbs will continue to operate as it has and you look at the cw, a network i make a lot of content for they expanded a whole other night of content and are opening up a sunday night where my show "charmed" will be on the air, at 9:00 p.m and so they clearly are not operating any differently, even in the context of this this has been going on for months, right? this has been a six-month conversation. >> sure. >> they are buying shows, putting shows into production. but it's scary, you know. >> you don't see any existential danger for shows, programs, actors, producers who want to go to cbs >> the hall at the upfront was filled with advertisers still looking to reach consumers through a safe environment with their commercial inventory

there are not a lot of outlets for that the advertisers are sitting still needing to communicate through culture to their consumers and cbs is a great platform to do that, as is cw, as is nbc. >> going back to the point you made before, even if viacom and cbs were to merge you're talking about a relatively small company. if the merger between these two companies doesn't actually happen, will they still have to merge with somebody? >> something will have to happen the overall cable industry, which is viacom's business, and without a subscription direct to consumer play is a tough business right now and you're seeing a lot of decline. and you're look at a company that owns 10, 11 channels and, you know, those ones on the edges will be harder to maintain economics around so, i think they will have to do something. and/or new capital will have to enter to double down one of the things about the disney potential acquisition of fox, they'll then spend another 30 billion to compete with

netflix after they acquire it. either way you can't sit back. you have to be investing to own the real estate for the future. >> if you're apple, if you're amazon, youtube, facebook, how do you capitalize on this upheaval >> i think the advantage for the traditional, guys, is that we're still the honest broker. there's no cambridge analytics we've self regulated for years and broadcast television viewed itself as part of the responsibility they didn't take alcohol advertising to kids. they sell selected out of cigarette advertising and i think facebook has a long way to go to improve its reputation with advertisers and they also operated not only with impunity but with real aggression in how they negotiate with advertisers so luckily even in this turmoil across the street and in the board rooms of these companies, they're still a better partner

for advertisers today. i would say you look, though, at the opportunity for google, facebook, netflix, amazon, is that they're global from day one. when you think about cbs, it's an american company. it's not a global company. >> you sound like some of our sales chiefs we never even got to whether or not there will be an office reboot. >> stay tuned. that's what she said. >> ben silverman, thanks again. >> thank you so much >> we want to check shares, meanwhile, of qualcomm and nxp chinese official in beijing says qualcomm deal looks optimistic still to come, cashing in on legal sports betting ceo of churchill downs joins us exclusively for details of their latest venture. plus pope francis taking on wall street. details of his words against the inequalities of capitalism

"squawk alley" will be right back with the dow -- it's about 36 points. we'll be right back. your company is constantly evolving. and the decisions you make have far reaching implications. the right relationship with a corporate bank who understands your industry and your world can help you make well informed choices and stay ahead of opportunities. pnc brings you the resources of one of the nation's largest banks, and a local approach

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we are getting breaking news on a school shooting in sainta if a, texas. sue herera has more details on that. >> indeed, i do, carl. it's an all-too familiar scene we're going to show you in sainta if a, texas, southeast of

houston, santa fe high school. we have reports of multiple casualties a shooter walked into the school earlier this morning, as you take a look at the high school there, you will soon see some students on the field where they were emptying their backpacks to be searched. the sheriff tells us there are multiple casualties and we are interpreting that as to be fatalities we do not know how many. some have been transported to the local hospital but santa fe high school was put on lockdown about an hour ago and there are multiple casualties there. once again, the high school southeast of houston, the president has been informed of that shooting and he tweeted out that he's watching the situation. he said school shooting in texas, early reports not looking good god bless all. the first lady also tweeted out just a short time ago, my heart goes out to sainta if a and all of texas today at the school shooting, early reports not looking good we are monitoring what is a very active situation on the ground

there. although, they are saying now that they do have the suspect in custody. so, it is no longer an active shooter situation, apparently, inside the high school, but we do have reports of multiple casualties at sainta if a high school in texas. carl, back to you. >> the sheriff's office there, sue, tweeting that it is no longer an active shooter situation. >> yeah. >> and the injured are being treated. we'll keep your eyes on that sue herera back at hq. we'll get you updates as we get them morgan >> yeah. meantime at an information session in bel-air last night, elon musk boring company, building tunnels beneath los angeles. >> the system is you have a highway and a bunch of off branch and loops connecting to the highway, like cars sort of like -- almost an autonomous underground

multi-level car system. >> they cost $1. >> $1. >> speaking alongside stephen davis, boring's project leader, musk is saying the loop system will carry people from downtown l. toonchts lax airport, an 11-mile journey, in eight minutes. tesla model three will power the pods and since muck removal comprises 20% of the costs, the dirt will be used to make bricks, ensuring the audience of 700 that the project would not be noisy and would significantly reduce traffic the boring company does face some resistance. several neighborhood groups are suing the city as officials look to let a tunnel forego -- a test tunnel forego environmental review missing from the hour-long presentation, details of the price tag and how musk plans to fund it. oh, and if you were one of the folks that brought a flame

thrower on line -- remember when that was a big frenzy a couple of weeks ago those deliveries should start in a few weeks. apparently there have been some delivery challenges, something about not being able to ship propane. they'll make custom deliveries through the boring company to home. >> elon musk having delivery problems has that ever happened >> harsh tough, but fair. >> it's friday what can i say josh lipton has details from uber from one market in san francisco. josh >> john, uber's chief product officer is leading after four years at the company despite his title a source telling cnbc that jeff holden didn't have day-to-day responsibilities for the company's products like uber eats but he was an important exec at the company, no doubt, hired by travis cal nichlt ck and overseeing its flying tax ts

he spoke about his vision for uber take a listen. >> uber does what it does based on going after a very ambitious mission. we're trying to build the operating system for the future city, the way that people and things will move around cities much more efficiently, much more safely, et cetera. >> uber telling cnbc as demonstrated by last week's uber elevate summit, we're incredibly bullish on the future of aerial ride sharing under the leadership of eric allison the team is set up for success and will continue to chart the course for this growing industry uber has had a hard time keeping top talent many of the officers have left, including saile yoo. making his mark, filling out ranks at the company, hiring new coo and general counsel but

still struggling to find a cfo, key role to help take his company public as promised air bnb's former cfo reportedly passing on that role. >> josh lipton in san francisco, thank you. when we come back, cbs's legal drama and media sector directv ceo will join us on the ripple effects the battle for control may have on the industry stay with us ♪ feel that? that's the beat of global markets, the rhythm of the world. but to us, it's the pace of tomorrow. with ingenuity, technologies, and markets expertise we create the possible. and when you do that, you don't chase the pace of tomorrow. you set it.

nasdaq. rewrite tomorrow.

tug of war for control continues at cbs the board, as you know by now, voting to slash its biggest shareholders voting power and postponing the annual meeting today. julia boorstin joins us to get

us up to speed julia? >> reporter: from 80% to less than 20% unlikely to take effect delaware judge let stand a last-minute rule change from julie redstone that any change be approved by 90% of the board. here is a look at the history of the companies. battle for control of cbs is the latest act in a long-running drama involving family infighting, corporate restructuring and one of the most powerful ceos it began as a theater operator in the 1930s they acquired viacom in 1987 and a decade later merged it with cbs. at the time it was the media industry's biggest deal ever then in 2006 national mutuals split cbs and viacom into two separate companies after a tumultuous dozen years of family fighting and corporate court battles and under the backdrop of a shifting media

landscape, sherry redstone sits in the powerful position of her family's media empire. she pushed the boards of viacom and cbs towards reuniting. that opposition led to the extraordinary attempt to limit the redstone family's voting power. despite thursday's ruling, appeals are possible, leaving the future of cbs, viacom and the redstone empire in question. after the board meeting, national mutuals issuing a statement saying it has no intention of forcing a merger between cbs and viacom that is not supported by both companies. national amusements said it is a controlling shareholder, indicating they don't want that to change while cbs said reducing national amusements control in the company is necessary to protect stockholders' best interests we could definitely assume that this battle will continue in court. back over to you. >> thank you, julia. so, what does this long and

drawn-out battle mean for these media giants joining us on the phone, michael white, former directv chairman and ceo. thanks for being with us. >> happy to be here. >> is the danger here that in the struggle the golden goose gets killed? cbs has been doing well. its management has been stable over the period of time. i guess that's the rationale for wanting to bring viacom into it. it's getting harder and harder to see how sherry redstone and les moonves could work together after this. >> i think we'll have to see hopefully, cooler heads will prevail. i think you have two interesting altering views les is a world class ceo he has done a terrific job with cbs and then you've got a controlling shareholder, who i think sherry does have tremendous respect for les but in the heat of the battle, things go on but i still think in the end

they'll find some way to work things out with les continuing to run the entity and at the right price, presumably, in a positive way for shareholders, assuming it would be supported by the independent directors, they would look to merge but there's no doubt this raises all the questions about what happens with controlled companies when you get to the founders no longer involved. and the problem is, that's a policy matter. the law is the law, i think, right now. i don't see how that changes in spite of what the independent directors may like to see change at cbs. >> michael, morgan brennan here. you mentioned bob wright last hour he suggested you could see a situation where sherry red stone and national amusements waters down or dilutes its voting power and les moonves stays on is that what you foresee as well >> not exactly that. my guess is that this issue --

the issue of control and the rights of a controlling shareholder is an important issue. i'm only saying -- i'm not sure either side is going to win that because you have economics and sherry has a vested interest in seeing both the entities grow in shareholder value. my guess is in the end, if you want the best executive in the world to run the combined entities, and that's les moonves, then you'll work something out. i find it hard to believe that sherry would, in the end, reduce her -- what she believes to be her rights as a controlling shareholder. and i don't think cbs will win in court on that issue so, my guess is there's some kind ofagreement to the status quo, you know. which is perhaps a little vague about what a controlling shareholder can and can't do and that's where it ends up. let's go back to the status quo but let's try to engineer a merger and have les run it.

>> how does that get codified in the ownership structure, michael? how does that get put into legal terms? >> the only way it gets done -- the only way it gets done -- this has always been a very complex issue. when you've got a controlling shareholder the independent shareholders have to vote on the merger and there will be all kinds of opinions and legal work to ensure that it's in their best interest. and in the end if the public shareholders voted down the merger, hard for me to see that sherry would force -- i don't think that would be in her interest to do so and i think national amusements made that clear, that whatever they're going to do has to be in the best interest of the enterprise. i'm just saying it's a multi-part play here in the short run it seems to me that probably a little bit of time, little bit of a pause in the debate between the parties and maybe a little bit of calmer

heads to simply sit down and talk about where do we go from here. >> we will continue, of course, to watch this michael white, former directv chairman and ceo. thanks for joining us. >> thank you, guys. >> when we come back, an exclusive with the ceo of churchill downs. how the company is cashing in on this move toward legal sports betting. plus we're less than 24 hours away from what is expected to be the most watched news event of 2018 that's the royal wedding we'll take you live to windsor when "squawk aeyll" comes back dow is up five [phone ringing]

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we continue to monitor this deadly school shooting in texas. sue herera has another update for us at hq sue? >> indeed, i do. pete williams is now reporting the death toll is nine nine people have been killed we do not know how many of those might be adults and how many might be students. many of the injured have been transported to area hospitals this morning we don't have a number on that, but the doctors came out a few moments ago and gave an update apparently some people have been transported to hospitals so, nine dead. that is the count. the sheriff said it is not an active situation any longer. the school was placed on lockdown about an hour and a half ago we do know that one officer was hurt and is being treated. the shooter, the alleged shooter has been taken into custody and another person has been detained, according to the sheriff. we don't know if that person was involved in the shooting or is

simply a person of interest. but the death toll has now climbed to nine, and that may change, unfortunately. that is video earlier of some of the students on the field. as you know, we've done a number of these school shootings unfortunately. and one of the routines is that the students take their backpacks sbouts empty them to make sure there are no weapons in the backpacks we did get a chance to talk to some witnesses kprc affiliate in houston did and here is what they had to say. >> we ran down we were standing out there i heard a couple of gun shots, they pushed us closer to the fence and they were making us run fast they were telling us go, go, go, and they were moving us far away from them to keep us very safe. >> i'm so scared i don't want to be around people that -- i don't know who it could be i don't feel safe in this town anymore. >> we expect a news conference

shortly. and that is actually footage, as you can imagine, parents have heard about the shooting they've been notified. they're trying to be reunited with their children. that's an overhead shot. this is santa fe high school it is southeast of houston, in between galveston and houston. it is a large high school. we'll keep you posted on any further developments we're awaiting the news conference the president may comment on this he did tweet about it. sarah sanders has said that the president is monitoring the situation. he has been informed he is going to be holding a talk on prison reform in a short while. he may address this situation. if he does, we will bring you his comments as soon as we have them once again, nbc news is reporting the death toll is now nine carl, back to you. >> sue herera, thank you for that we'll rely on you for any updates and again if the president gives remarks in the next few minutes we'll take that live as well meantime, let's get to seema mody and look at the european

close on friday. hey, seema. >> hey, carl, despite today's. we'll see gains. the energy sector has been playing a critical role. so has the currency story, weaker euro now on track for a fifth consecutive weekly decline as the u.s. dollar rallies high political drama in rome is also a factor. two populous parties, five star and the league have finally agreed on a government contract. while it doesn't call for an exit from the eurozone, it does call for increased spending and a new tax regime also mentioned a request for sanctions on russia to be lifted all of which could lead to a complicated discussion with the eu that's why we're seeing the italian ten-year yield in the midst of its biggest weekly jump since 2015 italian stocks are down almost 3%, just this week, dragged down

by the banks, including ubi, banco bpm, unicredit and monte paschi it still remains a top performer in europe of about 7% so far this year. that's the bigger story. let's also talk luxury very interesting story here. richemont, home of the cartier brand, down sharpry on disappointed earnings of excess inventory. that's become a big challenge for the company. kpt is buying back more than $200 billion euros of unsold watches from jewelers. swatch, you can see, down in sympathy as well an unprecedented challenge there. guys, back to you. >> that is a lot of inventory. >> it is they should send them my way. >> i'll join you in that. >> yes. >> seema mody back at hq, thank you. churchill downs stock after a ruling to legalize sports betting. golden nugget casino in atlantic

city to get into the gaming market joining us now for more in a cnbc exclusive churchill downs ceo bill karstanjen. >> what are the details of that partnership and are you speaking to other companies about similar collaborations >> the case in new jersey, brick and mortar license since we don't, we need a skin deal to get access to somebody else's license that's how we'll enter the new jersey market. when it comes to other jurisdictions we'll have to see how sports wagering is legalized. in other jufrds we may need other ways to access the market. pennsylvania is an example of a

jurisdiction that's passed sports wagering and online wagering and we're in the process of closing a casino purchase there. >> and you mentioned that it's really a state-by-state case right now. what markets, in addition to pennsylvania and in addition to new jersey are really the most attractive right now and making moves to jump into legalized sports betting >> i think it will move pretty fast right now the landscape is mississippi has already passed legislation. there will need to be regulation and follow-up before the market is accessible. we've got two casinos there. so we'll move into that state. pennsylvania, as i mentioned, we're in the process of regulating the process to get license there and new jersey is active with online wagering. as they finalize legislation for sports wagering and we get license in that jurisdiction, hopefully we'll be active as soon as possible there those are the big states that

are active right now, or most active other than, of course, nevada and las vegas but there are many states looking at this right now as we speak. >> bill, how important do you expect brick and mortar presence to be? a lot of the attention is on technology, on mobile, on online but aside from the fact that there are some rules -- you mentioned new jersey requires you to have some brick and mortar presence to participate, how important is location going to be in really having a healthy and growing business and connection with the audience as wagering moves forward >> that's a really good question i think if you ask different people you might get different answers. in our case, we already have the largest legal online wagering operation in the united states it's on horse racing, which has a different set of rules than other sports and other products. so we've been active across many states in the united states for a long, long time.

and for the most part, we don't have many brick and mortar presence in various states so we rely on our online expertise and our user acquisition strategies and marketing strategies to build businesses and states where we don't have brick and mortar presence in this case, you have a slight advantage if you have a brick and mortar presence. we've been operational and built a business not expecting to have a brick and mortar presence in order to be successful. >> bill, before we let you go, you mentioned horse racing when it comes to playing the ponies, it's something you've been able to do at racetracks or otb sites. it's been the sport that's largely been exempt from the ban we've seen outside of nevada up until now. how is this going to affect that business >> you have to listen to your customers. customers have been wagering on sports for a long time in this country. it's just been offshore.

and it's very common it's a very active market now. i'm excited that it's going to be regulated and licensed now. that's a great opportunity for companies like ours, that always play by the rules, that always obtain licenses and follow the rules. so for us, this is what our customers want they've been telling us that for a long time. this is a new product and we're always going to try to give our customers exactly what they want from our perspective, this is a great thing. let's make this regulated, a licensed activity and treat it as an opportunity for companies like ours. >> great we will leave it there thank you so much for joining us bill carstanjen, ceo of churchill downs. stocks up 10% this week but up 60% over the year. stay tuned to the preakness stakes this saturday on nbc as well what the pope has to say

about capitalism and inequality. and a break on small caps, continuing to buck the market trend setting another intra-day record high. it's the third straight day. "squawk alley" will be back after this (baby crying) ♪ ♪ don't juggle your home life and work life without it. ♪ ♪ and don't forget who you're really working for without it. ♪ ♪ funding to help grow your business... ♪ ♪ another way we have your back. ♪ ♪ the powerful backing of american express. don't do business without it.

about the school shooting in texas. he did tweet a few moments ago, school shooting in texas early reports not looking good god bless all. let's listen to the president. >> thank you very much unfortunately, i have to begin by expressing our sadness and

heartbreak over the deadly shooting at santa fe high school in texas, just took place moment ago. we're closely monitoring the situation and federal authorities are coordinating with local officials this has been going on too long in our country too many years, too many decades now. we grieve for it terrible loss of life and sent our support and love to everyone affected by this absolutely horrific attack to the students, families, teachers, and personnel at santa fe high, we're with you in this tragic hour, and we will be with you forever. my administration is determined to do everything in our power to protect our students secure our schools, and to keep weapons out of the hands of those who pose a threat to

themselves and to others everyone must work together at every level of government to keep our children safe may god heal the injured and may god comfort the wounded. and may god be with the victims and with the victims' families very sad day very, very sad on another note, very positive note i'm honored to be here with so many leaders with so many leaders from across the nation, who are committed to the crucial issue of prison reform joining us today are several members of my cabinet who are working diligently on this issue. attorney general sessions,

secretary zinke. >> we'll continue to monitor the president, commenting on the shooting in texas at santa fe high school saying federal and local authorities are coordinating after the shooting. this is going on too many in our country, too many years, too many decades we're relying on sue for updates, but eamon javers is in washington, d.c. and we'releft here after a school shooting wondering if this portends any movement in policy going forward. difficult to tell. >> yeah, carl, that's right. the president here steering clear of any prescription about what to do about this. as you would expect in the first moments after the announcement of a school shooting here. the president simply offering words of condolence and support for the families surrounding santa fe high school, which has been so badly victimized today nbc new reporting as many as nine people may have been killed in this attack, although that number could change. still not entirely clear exactly who did this, how many people

were involved, or why. so the president here sylimply offering words of support and vowing authorities will work with local authorities to get to the bottom of it and do everything they can to respond steering clear of the gun control debate, the mental health debate, and all the other debates we have seen play out time and time again in the hours after a school shooting. once again, here we are, and an american president responding to at shooing in one of america's schools. >> we'll come back to you for updates later on today, i have no doubt eamon javers outside the white dow hoe. is up 43 points. "squawk alley" back in just a moment ♪ you can be sure ♪ that it will only get better ♪ you and me together ♪ through the days and nights. ♪ i don't worry 'cause

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one more way comcast is working to fit into your life, not the other way around. the catholic church pub lgish a 10,000 word document approved by the pope criticizing the world financial industry wall street has not done enough to fix the system following the 2008 housing market crash, saying on the contrary, the response seems like a return to the heights of myopic egoism joining us is the vat rn correspondent for the "wall street journal" who published a piece on the subject thanks for the time. the first take is it's a rather informed view of how finance works around the globe they go into credit default swaps and a whole lot of other things >> that's true there were a few very specific mentions it was mostly dedicated to ethic

principles it mentioned credit default swaps and securitization, derivatives and also to our offshore tax havens. >> francis, can you put this into context of how the vatican has traditionally approached these sort of structural issues around finance, around inequality a lot of people might be wondering why is the vatican weighing in on this, but maybe you can give context >> there's a long tradition of being highly critical of the financial system you know, even into the 19th century, the catholic church was still condemning lending money for interest it doesn't do that anymore but this is nothing new, to be very, very critical of capitalism and finance this pope has taken it to a new level because his rhetoric is very much more aggressive. he talks about money as the done

of the devil and this is an economy that kills and trickle-down economics the substance of what's being said isn't much different than what was being said by the previous popes but he puts a lot more rhetorical power into it. >> so from that standpoint, i mean, what is the catholic church suggesting as the right type of market to move forward if capitalism isn't it, what is? >> well, no, i wouldn't say they're saying ditch capitalism, but in this dume, they're calling for a lot more regulation they said, you know, the national regulatory systems aren't adequate in a globalized world. there needs to be more globalization. there was pullback that suggested the possibility of a world central bank and a global authority. they didn't go that far this time, but they said there needs to be more coordination. they also made sort of milder recommendations, there should be more ethics education in business schools and there

should be ethics committees. banks should have ethics committees alongside their boards of directors that will make sure they they live up to ethical standards. >> francis, we sort of knew when francis was named pope, given his background, his work with the poor, this is not out of character. but the church manages a lot of money, and sometimes gets criticized for living large in some ways. just indeed the way the church is presented, spaeltespecially vatican. do they need to look in the mirror on this >> yeah, the subject of tax havens is a sensitive subject because the vatican bank, you know, has been, well, it's not part of the italian system, and so but over the last almost ten years, they have closed thousands of accounts that they thought were inappropriate so they have been trying to clean that up. that is certainly true another point that the pope gets

criticized on is he said he doesn't seem to appreciate enough how much capitalism has done to bring people out of poverty. this document did acknowledge that it said it's true a lot of people have been pulled out of poverty in recent years but there's still a lot of poor people left and still a lot of inequality they also have a political note, which said if you get this kind of global financial class, it's not subject to regulation, it can become an oligarchy and overpower political actors >> really interesting. everyone should take a look at it we appreciate you helping us understand it. thanks, francis rocca, the vatican correspondent for the "wall street journal." >> the love of money is the root of all kinds of evil, i believe the bible says >> let's get to the cme group. rick santelli with the santelli exchange >> thanks, jon i would like to welcome dr. carmen reinhardt thank you for joining my piece today. greatly appreciated. >> thank you for having me

>> you know, in 2017, the united states had a pretty good year. the global economy had a very good year. the big phrase was synchronized global growth. i personally think the u.s. turned the global market and then all the analysts, as smart as they are, saw other opportunities with better metrics, whether it was in euro europe, whether it was in japan, and maybe more specifically, in emerging markets the dollar strength has taken some of the goodness out of the emerging market sector, but you think that maybe there are more cracks in that sector than many are aware of could you explain? >> well, the recent era for emerging markets up to 2013 wasn't just that china was growing at double digits, demand for their commodities was very high commodity prices were high

u.s. interest rates were low, and everything looked great. many emerging markets had exceptionally high growth rates in that environment and we're no longer there >> yeah. >> the tide has turned internally also. >> now, with respect to the dollar values and the dynamic that always seems to be prevalent in emerging markets when the value moves up and many things denominated in dollars create a special demand, do you see that ramping up more than in past episodes? >> well, dollar strength is tough on the emerging markets that have external dollar debt, which is the overwhelming majority of emerging markets in varying degrees. also, a stronger dollar is often goes side by side with weakness in commodities

so for the emerging markets, it's a double whammy >> now, in my final question, as we all grapple with issues of trade and all the political landscape that may find its way into the psyche of investors and influence markets, do you have any thoughts about the current growth future of the united states economy, especially post-tax cuts? >> well, i think that especially given that there are signs of renewed slowing in europe, the faster growth in the u.s. has been a major source behind the dollar strength. but i think my concern about the u.s. growth profile over the longer run has to do with its soaring debt over time and much of the work i have done with co-authors like ken rogoff,

has suggested that in over the long haul, very high levels of debt dampen growth or associated with lower growth rates. >> i completely understand all very aware of that wonderful research we hope growth will overtake some of the debt growth. thank you, doctor. carl, back to you. >> all right, rick, thank you. rick santelli. >> we're getting another update on the school shooting in texas. for that, we'll turn once again to sue hererherera >> i was listening in to the harris county sheriff's news conference to reporters. the death toll is now between eight and ten. nbc news is going with nine, but that number could go up, and the sheriff did say that number may go up. it was a mass shooting at santa fe high school in texas. one person, we now know, who is in custody, is a student he is the alleged shooter. we also know that another person also a student is in custody and

being questioned and basically, there are a number of injured as well. we know of at least four taken to two separate hospitals in the area there in the santa fe area. the students have been transported to another location to be reunited with their parents. it is still a fluid situation, but it is no longer an active shooter situation. but the death toll probably will change it's between eight and ten the majority of which are students at this point, according to the harris county sheriff. the president, obviously, was briefed on this earlier. he tweeted about it, and then he addressed it just a short while ago, calling it a horrific attack i'll send it back to you >> sue, thank you for that we're back in monta me the s. the sun goes down. you did a million things for your family today. but speaking to pnc to help handle all your investments was a very important million and one. pnc. make today the day.

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