>> wilbur frost, the news is from him and brexit. >> this song has far too much flare. >> kind of catchy, though. >> we'll hear that today >> we will a little later today let's take a look at the u.s. equity futures at this hour. you are going to see that right now it looks like things are under a little bit of pressure dow futures down by over 107 points s&p futures indicated down by over ten points, and the nasdaq indicated off by 13 points this all comes after a big day of gains for the markets yesterday, though, with the dow up by 216 points, and the s&p up by about 30 points that gave the major averages a boost too. take a look, though, about what

happened overnight in asia you are going to see, as you are looking at these things, that the nikkei was flat. hang seng was relatively flat, and so was the shanghai composite. in terms of here in the united states, the nasdaq extended its winning streak to five sixes it's the longest in a month. again, technology stocks led the way. since the fed earlier this week. also, let's see what's happening in europe. red arrows, ftse down by about .8%. so is the cac and then the dax is off by .4%. finally, the treasury market here in the united states. you'll see that the treasury, the ten-year, wow, is below 2.5% it's a 2.496%. >> i think going back to the european markets this morning, it's some weak data coming out we knew, of course, things were softening in europe, but the

german manufacturing pmi 44.7. it was expected to be at 48.0. that's obviously very weak france also fell into contractionary territory it wasn't expected to. 51.5 was the expectation it came in at 49.8 japan was out this morning as well that was unchanged, but also still in contraction territory 48.9 germany was the big miss france dropping below 50 it changes the sentiment a bit for the dovishness we've seen from central bank. the dovishness certainly playing out on bairngs here, but also very much in europe. >> you anticipate getting it together any time soon over there? negative interest rates in germany? i thought some great economy you're pulling us down so we can't even get -- now we're below 2.5% >> and things -- >> president trump said that was

the fed's fault. >> he said that first to me. it's like, okay. i mean, that came out in my interview that the very first time he said that he was mad at powell and thought it was the wrong move was, and now that's -- now it's -- he knew he would say that, though >> you are right >> yeah. you knew he would say that that's -- that's, you know, coming to the party late with that news. >> everyone was sort of feeling like the bad news in europe was priceed in and that we may have found a bottom in february this is clearly showing it was going a bit worse. we'll have to see if it's continuing further now, the european union giving u.k. prime minister theresa may more time to work out a brexit deal let's get to willem marks --

until they were expecting brexit to happen. that has now been pushed back, and what the european union offered the u.k. is essentially if theresa may can at the third attempt get her deal through the british parliament next week they'll give her until the end of may to get all the corresponding legislation around brexit through in order for the u.k. to leave the e.u. if that vote fails for the third time, and and there's no indication she's going to have that majority in parliament, then the e.u. is promising the u.k. they will have to face off with an april 12th deadline. there could be a hard brexit, though we know that no one in the u.k. parliament in terms of majority wants that to happen, or there could be some alternative options. i've asked a lot of heads of state here over the last 24 hours what those could look like theresa may, not willing to talk about them, and neither were any of the others willing to speculate and knowing we could be looking at a much longer extension. we could be looking at a softer version of brexit, and, of course, things like a second referendum, still not impossible, guys >> the prime minister said

earlier this week and last week she absolutely would not contend an extension beyond june 30th. if her deal fails next week, but parliament somehow adds an amountedment or tries to force her to seek a longer extension, what do we think happens then? she implicitly hinted that she would not as prime minister was the wording, want to see brexit extend beyond june 30th. the implicit understanding there is that she would not remain as prime minister her own conservative party can't get rid of her as leader until december because of the rules of the party. there's not been an ability so far for the house of commons to get rid of her as prime minister, but there is an implication there that if brexit is extended beynd the end of june, against her wishes, that she would be prepared to resign. >> and willem, in terms of whether or not we see another vote on her brexit deal next week, do we know when that might be, and what's the tone there in

brussels as to whether they are willing to show further flexibility than april 12th if her deal fails >> everything we heard from the leadership here in brussels. jean claude jucke and donald tusk said this is the best deal right now. in terms of what they would do if the deal falls through, and there is no idea that it will necessarily get through. in terms of what they will do in reaction to that, no real clearances the u.k. will have to come back whether theresa may is still prime minister or not. the u.k. government will have to come back to brussels potentially and say this is what we would like to do in instead this could be a much, much longer extension period, although that, again, will put theresa may under a lot of pressure from the pro-brexit wing of house of representatives own party. >> willem, thank you vch >> you know, looking for financial issues with boeing, as things play out here i wanted kneesa is cancelling a major order for the 737 -- for the max planes the country's national airline

garuda wants to scrap a nearly $5 billion deal, which would have gotten him 49 boeing max 8 jets garuda is the first major airline to cancel its boeing order following two deadly plane crashes within the past five months there are reports that garuda may change its order to another type of boeing aircraft, though, and reuters is reporting that american airlines pilots are expected to test boeing 737 max. that software fix we're talking about on simulators this weekend, the company has been working on a software upgrade for an anti-stall system right now the shares of boeing are unchanged if they're trading. it looks like they are later in the show we're going to speak with a consumer advocate ralph nader who is taking on boeing.

>> previous to that they said that they had been fully trained. and then they didn't say that they hadn't been trained yesterday, but they also didn't dispute they hadn't been trading. >> the journal piece back in december said they hadn't needed as much of the training. >> who is that >> the "wall street journal" back in december >> reported who didn't need as much >> because pilots didn't need training on this new max plane because it was still -- it was still on the same class of the 737s that's part of the issue that they brought up. i actually talked to mullenberg about that in december >> that advanced the story yesterday in the "new york times" that those pilots had not had -- >> the ones on the ethiopian airlines i guess the significance would be after the lion air crash that they didn't receive. >> the fact that they're now saying, oh, we need to are out this software update does highlight that it wasn't good enough in the first place as well, which is somewhat damning if that's all true

we don't know, again, the details quite yet. let's turn our attention to the earnings front nike reporting an earnings beat, but the stock is taking a hit this morning after reaching an all-time high on thursday. sales in north america came in weaker than expected the company seeing its weakness in the converse brand, but nike continues to see strength abroad in fact, sales in china were up 25% while the sales gains in europe, the middle east, and africa were up by 12%. let's check out the shares of the dow component. down by 4% this morning or just over 4.3%. 84.21 is the last trade. coming up, rajat gupta speaks out nearly seven years after he was convicted of insider trading, and he spent two years in prison. >> you know, i wouldn't wish it on anybody, but i had a good time >> we have that interview right after this break first, here's a look at the biggest premarket winners and losers in the dow.

we're down just over 100 points with european markets trading lower.

>> nike shares, that is one of the issues with the dow today. what is that about four points. three and a half points. that is part of that 4.3% move is dragging down the dow 110 is not up. it was weird yesterday remember we were down 100 right at the open. >> fines and fees. this all taking place at the height of the s. c.'s crackdown on wall street. the charges against gupta center around his conversations with

hedge fund manager raj about board discussions. he is currently serving an 11-year jail sentence for insider trading. now gupta is sharing his side of the story in his new book "mind without fear." recently in new york andrew ross sorkin asked gupta about his relationship with raja ratnam. >> here's a guy who against all odds had become revered in the industry as one of the smartest guys, and, in fact, i checked with hank balsam, a dear friend of mine, and gary cohen about what they thought of him they thought he was fantastic. at that point in time he was quite the trader i got to know him over time, and we made this investment together, and then he was part of when we were forming this

fund that was in the beginning and then when we were forming nsr. he was a very smart guy. i respected him for that he was very dedicated to his job. he was very different from me. we were not friends. >> was there a moment when you thought you could not trust? >> the moment is when i discovered he had taken all his equity out without giving me my share. it was just a betrayal i felt that, you know, here's a guy who is extremely wealthy i trusted him. i didn't even have a signature i just gave him the money. i mean, i always trusted people, and i didn't think he would betray me like that. >> you talk a lot about your relationship with mckinsey in the book given that your career life was about mkinsey, and it seems to me that you have always felt the mckinsey is like family

to you >> yes >> and so it read to me as if there were these moments where you felt that they had betrayed you and even moments where you felt like maybe you had betrayed them >> i owe an enormous amount to mckinsey i felt that when all this happened, you know, they should, of course, distance themselves from me. i was retired by then. it was, you know -- it wasn't like i was in the firm all these charges had nothing to do with mckinsey and nothing to do with any mckinsey clients and nothing at all i had 37 years of serving clients before them, and there was never any issue of any kind ev ever i thought it was a little bit the actions they took a little draconian from my perspective. >> you were on the board of the bill and melinda gates

foundation >> the advisory board. >> the advisory board. what's your relationship like today with bill and melinda gates? >> well, i have to say that bill was one of the most supportive people when all this happened. he refused to accept my resignation from the advisory board when i resigned from everything he said, no. you are innocent until you are proven guilty. i'm not accepting it a month later he went to india, and the only questions that reporters would ask him is why is rajat gupta still on your advisory board when i heard that, i wrote a note to bill saying, you know, this is distracting from the work of the foundation let me resign. when after my -- for my sentencing before i even asked

him, he said he got word saying he would like to write a letter on my behalf, which he did i hope the relationship is excellent. >> in the next hour -- talking about something else in the next hour mr. gupta addresses his relationship with goldman sachs and what he thinks -- really thinks -- should be interesting -- about lloyd blankfine. go to cnbc.com or stay tuned we'll have much more throughout the show when we return, the ipo parade levi is kicking off with a big jump in it is debut. now another big name is speeding up plans to try to come to market we have that story next. "squawk box" will be right back. measure up?

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>> welcome back to "squawk box", everybody. both p interests interest and uber will be listing their stocks on the new york stock exchange when they go public that's according to multiple reports quoting sources familiar with the situation, although neither of the companies, nor the exchange would comment separately, the "wall street journal" reports that pinterest is speeding up the timing of its initial public offering given what it sees as favorable market conditions that was essential the case for levi strauss as the jeans maker went public yesterday. levi strauss priced its ipo at $17 a share. that was above the expected range of $14 to $16. huge oversubscription there. it finished its first day of

trading over 32% it's up 24 cents to 22.65. that is the third biggest ever first day jump for a non-technology public offering again, if you look at the shares this morning, they're up another 1%, and jeans everywhere yesterday. >> jeans everywhere. we had stacy coming on, the president of the stock exchange to see if she's going to follow suit of the likes of goldman sachs. the stock exchange still one of the places that has pretty strict rules you have to wear a jacket. you don't actually -- >> women don't anymore it used to be that women had to wear a jacket on the floor too that's been relaxed. >> we certainly do you can't wear jeans apart from yesterday. i think you can't wear colored sneakers, and you have to wear a jacket, but she didn't suggest that back to suit and tie this afternoon. poll son and company, one of the largest shrled, says it can't support its deal under current

terms. it made its feelings known in a letter to new dumont gary goldberg syntax reported quarterly profit of $1.84 a share 13 cents above estimates its revenue was slightly short of analyst forecasts as was the full year revenue outlook. that stock is down just over 2%. when we return, we're going to get you ready for the markets ahead. futures giving up some ground this morning, and we'll talk about that, too. plus, all things health care from the biogen fall-out to the issue of medicare for all. we've got a special interview coming up with former chairman and ceo of health care insurance giant aetna. that will be in the next half hour right now, though, as we head to a break, take a look at yesterday's s&p 500 winners and losers >> that was wonderful. bravo. i love that. that was great >> pretty good >> well, it wasn't bad >> they weren't very good. >> could have been a lot better. >> i didn't really like it >> it was pretty terrible. >> it was bad. >> it was awl.fu >> terrible. >> get it away >> boo

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welcome back you're watching "squawk box" live from the nasdaq market site in times square.

>> good morning. among the stories front and center that we're following, tesla ceo elan musk has told employees that vehicle delivery should be a primary priority during the final ten days of the first quarter. the pace is more than seven times higher than its previous peak in japanese drug maker eisai has begun late stage trials of a new alzheimer's treatment. this is the day after, you might recall, eisai and u.s. partner biogen ended a study of another alzheimer's drug sending biogen shares plummeting. in fact, right on the front page of the "wall street journal" lead article, top article in the ten-point, which is, you know, journalists, professionals like us use that to describe those little things on the left-hand side.

>> the home entertainment revenue rose to $while 41.1 billion in movie tickets were sold and u.s. equity futures at this hour indicated down 109 points finishing up, you know -- i was watching basketball. before it came on, i this a little bit of the "sopranos"s on a.j., guess where his job was. >> where >> blockbuster >> just looking at it, i was watching it, and i felt like i had -- >> so dated. >> i was in a time machine i thought i opened up one of those time capsules for -- and that was 2006. i guess that is a long time after that, but -- >> it was before the iphone, actually >> was it in the --

>> 1999. that's why i was it was the 20-year anniversary. >> that's clever there gu >> that is some -- >> burn through those -- god, i have -- >> a lot of time on your hands >> nope, nope. although -- i go to bed at 8:00. wait a second. i haven't seen a network drama in 15 years. >> how would you have time with all the bingeing you're doing? >> nobody has, joe, unless they're, like, 97. >> thankfully, i haven't seen coburn or jimmy kimmel >> you just watch the highlights the next day >> i wouldn't be caught dead the austin powers dude with the teeth. >> mike myers? >> no. the guy who summarizes a week in a day on sunday night. >> john oliver >> yeah. yeah god all mighty he is not representative of --

is he? do you take credit for -- >> i think it's a good show. i like it. >> how about time for the squawk planner? on the earnings front luxury retailer tiffany expected to roll out quarterly results this morning. existing home sales for february will be released at 10:00 a.m. eastern time and president trump will be meeting with the leaders of several caribbean nations, including the bahamas, haiti, jamai jamaica, and the dominican republic that's happening this afternoon. the group is expected to discuss security and potential energy investment opportunities among other topics.

china optimism is baked in in terms of the trade accord. it's now increasingly consensus. this was our top recommendation coming into this year, joe consumer discretionary in china and chinese equities is up 32% i think, yeah, it's really time to look at realizing those profits and putting that money to work in latin america, which really has -- >> most of our viewers aren't fully invested in china at this point necessarily. obviously, there are some etf's and the like, but what does that mean for a lot of the assets that are in this country if china is recovered i mean, does that -- should we not be as concerned about a global slowdown if that's

forecasting that there's going to be a recovery in the overall chinese economy? >> go long the markets and go long the emerging markets which is a levered play on the s&p go long the s&p. go long the sectors, industrials, energy, footballs, and consumer discretionary all that has played out. really what we ask ourselves is how do we protect our profits? do we sell positions and protect them i think at it point with so much optimism baked in, it's prudent to protect profits, buying puts, going long the vix and raising a bit of a cash position what i lake e really like now, joe is looking at the defense. look at.

>> i said in the -- if trump wants to be a two-term president, he needs to come to a trade agreement with china, and then start lowering tariffs across the board that are reaccelerate this economy. it will call ceo confidence to spike resulting in a resumption of business investment. >> the trade action kind of put

a hold on that i don't think it's all that complicated. this near bear market was a policy mistake of the fed misspeaking, and trump's rhetoric, trade rhetoric, turning into trade action. you take those back. we've already taken back the fed. now you take back the tariffs. skbro i was watching on tv this weekend, on saturday, and, you know, they spent the entire morning showing the yellow vests in france, and i totally had forgotten about the yellow vests. didn't realize they're still protesting, and now they're burning back it all started with a protest on

gasoline taxes i think europe is in a malase, and the best you are going to get out of the entire region is maybe 1%, 1.5% growth. that's the best case of the three marjsz, says u.s., japan, and europe, u.s. and japan have made structural reforms. tax reform is the primary reason why you had business investment jump, which a previous guest mentioned. i think that's a critical part of the strong acceleration that we've had in the u.s. economy. the u.s. looks better, right the u.s. looks better. japan has made structural reforms as well in terms of corporate governance reform.

nooeft that we have a hard brexit, and that's not out of the cards. >> not out of the cards, but it will be 12 days later if it does happen april 12th >> the highest quality bank in the united states, if not the world, jp morgan you're getting a 3% yield. that's better than the ten-year treasury you're going to get growth of income because they're going to continue a returning cash to shareholders we like that very well >> thanks, hank smith and catherine, thank you from bull tick securities. >> thank you where. >> very careful. anyway, thanks >> still to come, a bitter beer battle has started at the super bowl now the lawyers are getting involved we have the latest developments. later former cnbc disrupter officially fashions news unicorn.

we'll have the details stay tuned we're back in a couple some things are out of

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>> u.s. equity futures down 90 not triple digits anymore. down 15 on the nasdaq. the s&p indicated down 9 check out the ten-year as we

continue to see new intermediate term lows in yield highs in price, obviously. 2.49%. we're negative >> in germany. >> just earlier today we were. earlier today we ticked negative >> is the wonderful e.u. experiment continues to play out. >> before -- >> we should -- the german manufacturing pmi 44.p the compofts was above 50, but france must have fallen below. the ecb doesn't have much ammunition left. it is a difficult position to be in >> i just had a conversation with someone recently, again, about the euro, et cetera. and the notion that it was all set up kind of to try to keep germany -- to keep them under control to some extent in terms of future. instead all these southern european countries had the same currency that didn't deserve the interest rates as low, and germany immensely benefitted, so

the whole idea was to put some constraints on germany, and it ended up making germany the -- and even as the strongest economy, you can't grow? >> i don't know if it's fair to say that was ever the particular intention in the first place, but -- >> i've read that about 1,000 times, right you have never seen that >> there's no doubt that it hasn't worked because all of them have totally different levels of productivity, and that's made it hard. >> you didn't think that was a good idea -- >> for going forward, if the ecb can find some ammunition, is that germany will want the stimulus last time around 2010 to 2012 there was a lot of political opposition in germany as to whether they should continue >> they have a good story. i'll talk to you about it. >> when we come back, biogen's decision to end late stage trials of an experimental alzheimer's therapy putting a spotlight on drug innovation we'll tackle that topic along with lots of others. drug pricing, medicare for all much more with our special guest former aetna chairman and ceo

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following their announcement to end late stage trials of an experimental alzheimer's therapy. it's one of many stories in the health care space right now. for more on all of the issues affecting health care, let's welcome mark bertolini he is the author of a book "mission driven leadership." mark, thanks for being with us >> great to be with you. >> first of all, describe radical capitalism

>> good description. >> it's disrupting the way we traditionally think about running business for years business education has been focused on sort of preserving or stewarding scarce resources and putting at risk plentiful resources. until the says last 20 years those scarce resources were capital, and the plentiful resources were people. put new people on the machine. >> 40% of the kids in the harlem schools are living in homeless shelters how were people learning what does that tha mean for us a decade from now when we get --

when these people come into the work force >> i want to explain this book it's a collection of personal stories, and it kind of shapes your view on employees and employee care and coming from aetna that makes a lot of sense, but for people who don't know you, they may not realize your own personalexperiences and ho that shaped things too you had a son who had leukemia at one point >> lymphoma. >> lymphoma. you also had an issue with the spinal cord injury yourself. you have seen up front and personal some of the problems with the health care system. i think last year you described the health care system in america as the worst possible experience of any experience you could have has that changed or what needs to happen to make that change? >> what we really have is a warranty system. when you sign up for your financing of health care, much like when you buy your car, you get a warranty card, and it says when you break, present yourself to a dealership, and we will fix you. what we don't think about is the human being in totally, and the world health organization in

1948 defined health as the social psychological, spiritual, and physical well-being of the individual and not just the absence of disease our system is foekcused on the absence of disease like a biogen yesterday. this whole idea of changing the system to focus on the so this idea of changing to the holistic view of the human to keep them away from the system to make the system more human in the community and home are a lot of things that you see going on with the tech companies today. jeff bezos last week announced hsas and fsas online through the amazon cloud that's really powerful stuff >> if you weren't somebody who had been running a major company, a major health care company for a long time, you might think of all that and say it sounds nice, but it's not a way to profit. you look at profit first and that's the way you set up your business. explain that theory. >> every 50 basis points at aetna, we reduce health care

rates. so for an individual to keep them away from using the institutional system, the arbitrage the lower pricing in the community and in the home versus what goes on in the larger institutional system creates a huge opportunity from a margins standpoint which impacts costs. and so every year i sat down with our actuaries and said give me 350 basis points of health care cost reductions we can pursue this year that's how we generated high margins for nine years while i was leading the company. >> how do yung that mind-set is across america you focus on margins that focus on top line as well. >> well, i think it's an economic fly wheel if i continue to find ways to keep people healthy and away from the investment and invest in them in their community and homes, that's going to generate lower health care cost which is going to allow me to reinvest in the business and manage my

prices >> i think the difference, though, some people look at ways of saving margins. they would say just deny people from all care. how do you come at that differently? what are some of the examples of that >> we learned at medicare advantage when the bush administration pushed it forward in 2005, they said how do we get you to take care of sick people? pay us for the risks we're taking and so they did. we created a risk adjusted program. and we found that 75-year-olds with a nurse attached to them almost every day was five times more profitable, generated five times more margin than a younger person that never used their care if we provide transportation, socialization, help them at home, keep them away from the system, we're going to generate more opportunity we're going to generate a better individual who's going to have a better life. >> is that you paying for the nurse to come in and see them on a daily basis too? >> of course.

>> but do drug companies have that same incentive to drive and think about things as you do >> no, i don't think they do if you -- there's an m.i.t. study done five years ago that showed a short return on investment that drugs that would take a long time to develop or a long time to realize results weren't getting the kind of investment that they needed companies like regeneron are doing now where you have scientists working on big issues right now they're looking for the magic bullet and the magic bullet is harder and harder to find >> should be easier. >> and requires more and more and more work with other things other than drugs themselves. >> there should be a quantum move in terms of what you just said i mean -- >> because of what we know >> yeah. the basic science would -- you know, it's building up and i can't imagine there's not a quantum leap it shouldn't be getting harder and harder for magic bullets

it should be easier and easier based on our understanding of the molecular level. >> what happened at biogen yesterday wasn't realistic it was crazy >> when did you think beta analysis didn't work >> to find a way to commercialization. that's what they should be doing. but yet we're trading on a basis that says does this drug work, did this trial pass today. so the investment model in drug development is all wrong we're focusing on things that need to show quick profit instead of the long-term impacts. which are the impacts crushing the u.s. economy today >> i have so many things i still want to ask you about. quickly i'll ask you about radical capitalism is it reasonable to think that we can pay for everybody or do you think there's another path >> let's talk about medicare for

all. i say medicare for all single payer, great populist term to throw out and say we're going to fix it all what is it nobody can tell me what it is. tell me a country that has a program like that. and most people say canada or the uk >> right >> those are not medicare for all or single payer systems. those are socialized systems where the providers and the whole provider network is part of the public program. they're funded by the government by the provinces in canada, by mhs in the uk. >> wouldn't single payer here mean it's a public option and that there aren't any private options anymore? isn't that what it means >> that's the second question i ask. who runs all of our public programs today not the federal government >> the private insurers. >> the private insurers run them all. i have the first check cut for medicaid on my wall to hartford hospital the hurricane insurance

companies are the intermediaries for the government we run medicare and medicaid the only place where we have a program that looks like the uk or canada is the va and that's not going so well. >> no. >> we want to build that out bigger >> that's not a big selling point. >> the third and last -- >> there's a lot of things in medicare, a lot of waste and fraud. >> and the third thing i would say is vermont got within three months within opening and realized the tax increase was so high, they couldn't do it. colorado killed it after they passed it in an election >> didn't we try to drive a stake into medicare advantage? it survived, though, right >> it's too big now to kill. >> that was part of obamacare, wasn't it? >> no, no. that was medicaid expansion. >> no. medicare advantage was on their

target >> sure. and back to the aca. if we allowed medicaid expansion to happen and would have means tested people down to age 50 for medicare, to go with medicare advantage, so 50 to 65, we would have covered more people than the aca did at far less cost because those programs operate effectively. >> we would love to have you back mark bertolini again he's the former ceo of aetna >> thank you >> do you know a realtor in laguna >> i do. >> will you think about my offer? >> you know we're still on air >> oh. okay 'lyway, all right. wel be right back with nike. more "squawk." a cfa charterhol. they have the investment expertise to unlock opportunities other advisers might not see. learn what a cfa charterholder can do for you, at therightquestion.org

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does your wealth a cfa charterholder does. they have the investment expertise you need for the ambitions you have for your wealth. learn what a cfa charterholder can do for you, at therightquestion.org rajat gupta goes on the record >> rajat gupta has been found guilty in four of six counts of securities fraud and conspiracy. >> after two years in prison, his first interview about his conviction, his relationship with lloyd blankfein, and the moment that changed the course of his life and ruined his reputation that interview is straight

ahead. running through nike results. we'll get reaction and a bracket update and the wealth tax debate rages on we'll hear from both sides of the aisle and how the issue could shape the 2020 presidential election as the second hour of "squawk box" begins right now ♪ live from the beating heart of business, new york, this is "squawk box. >> i don't hate this song. i just don't think it's that the original -- >> it's funny to see you though. >> i searched songs for this guy. >> he likes to drive you nuts. >> and you're ratting me out about what pants i wear on twitter. >> it's something you've said on air. >> they're not yoga pants. >> i didn't say they were. i said they were lululemon

>> i've worn these pants every day for a year no anyway, i'm joe kernen along with becky quick and wilfred frost. you should try them but they don't come in size gargantuan. what is your pants length? what is your length? is it 37 or something? >> 36. >> okay. >> wilf is very tall we make him our size by putting him in the chair >> that's kind of my waist u.s. equity futures, let's take a quick look down 116 points. hence the lululemon pants. they stretch down 93.5. the nasdaq down -- >> jeans stretch these days as well >> some of them do i have a stretchy pair

i felt embarrassed buying them they were like $250. then the s&p down 9.63 you know after the age 40, you gain a pound a year? >> is that a fact? >> yes unless you don't do anything different. you be basically gain -- and it's not in your pecks and your biceps, typically. at least it wasn't for me. all right. >> you'll see. you'll see ten years from now, young man. >> earnings just out from tiffany. profit of $1.67 a share. came in 7 cents above consensus. however, revenue fell. expecting comp sales to rise by 0.8%. boeing's software fix for the 737 max jets will be tested this weekend that is according to to a union representative separately indonesian airline is moving to cancel an order for 49 of those jets saying the public

has lost confidence in the jets following two fatal crashes in recent months. boeing shares this morning down by about 83 cents. and britain could leave the european without a brexit deal on april 12th if theresa may fails to earn backing. if lawmakers do approve that deal, they will have until may 22nd to leave the eu >> that date has gone from march 29th to april 12th there's a bit more breathing room i'd say the expectation is -- >> given how little they've managed to accomplish in a long period of time -- >> two more weeks. whoo assuming her deal fails next week which is the expectation, the reason the pound's up a bit today is people expect parliament will take control of the process and seek a longer extension which is something may doesn't want either way, they are -- >> if they want a longer

extension? >> yeah. the eu has suggested they just didn't want to give a short extension that also meant voting in the european election they kind of want a long extension. because it could lead to overturning the result the reason they weren't so certain of short extensions, it doesn't give time for the uk to legislate for a second referendum i think the eu would welcome a long extension it's inscrutable for everyone. it's very depressing >> i almost see theresa may as giving lip service to not wanting a second referendum. but then again, it just -- people keep leaving if that's an eventual thing they've got 2 million signatures for a second referendum. then i've seen maybe nonscientific polling that 70% of people just want to -- just get me out of here that they're ready for a no deal i think a second -- if there's a second one and it's stay, i

think you need a third one best out of three. you know what i mean don't you think you need that? >> the legitimacy is questioned. the really sad and depressing thing now is whatever way it goes, roughly half of the population are going to feel hard up by it. >> welcome to america. >> yeah. exactly. we have no experience with similar things here. >> no, that's what i mean. but it's -- but the fact of this with the timeline pushing back, getting an end of this purgatory. >> i like that >> it's like the in between. >> both sides now love the other side after arthur's appearance yesterday. don't you? >> before i just felt really sorry for them because they're so misguided and misinformed. but now i actually love them for

their ignorance, basically nike reported 6 ce8 cents a share. but reported slightly weaker than expected sales in north america. joining us now, matthew. a bit more than you might expect given the eps beat >> yeah. so essentially nike's going to be a victim of its own success they hit revenue that was in line with consensus. but still there was a little bit of elevated expectations beyond consensus going into the print end of the day nike's putting up double bigot revenue growth. that's in line with their long-term plan if you could name another consumer company growing at those levels, it's difficult nike hit on the top line and not

only hit their numbers, their numbers are multiples of what everybody else in the retail industry is growing today. >> and the margin impressed you as well? >> the margin was a positive surprise nike came in 130 basis points. we were initially looking for something around 70 basis points there was a beat there and that is a testament to a lot of nike's longer term initiatives, et cetera, so we do think -- we're a little bit more optimistic on supply chain, on gross margin line going forward. that's where the beat came from on eps a couple of pennies there. again, nike beat on eps. revenue in line. you can't really poke holes in this story as you look to 2020, a lot of new product. that product's coming in with lower average cost we expect the revenue to continue to drive forward. and we actually think initial expectations for next year are quite conservative >> can people poke holes in the valuation? >> yeah. that's what people try to do but poking holes in valuation of nike at 30 times forward when

they're, again, growing faster than practically any other retail company or brand out there, it's hard to do what else are you going to buy you can buy abercrombie and fitch. and tiffany is likely going to be down today. i'd rather buy at a multiple than by a retailer or consumer brand that hasn't proven that they're relevant >> did we get an update on those released in the first quarter on the call >> they talked about the air max 720. they talked highly about that. they talked about a wide range of product they talked about the adap which i know we discussed extensively yesterday. one thing they talked about a lot, and they talked about apparel. nike is heavy into apparel they see a huge opportunity to expand in athletic apparel and not just sell workout gear which is what they typically sold in the past that's an opportunity that's

well larger than the athletic footwear industry itself nike is one of the few companies that's addressing it >> hey, it's been awhile the whole kaepernick thing is there any residual effect to that either positive or negative in north american sales we can read into any of these results or is that ancient history already? >> it's ancient history at this day. yeah we did an analysis on that and while people were very either positive or negative on kaepernick at the time that that event happened, what you've seen at least by analyzing twitter feedback, et cetera, is that nike's brand view is now kind of just back to what it was before the kaepernick incident. so, you know, it's people are excited about nike the sales would indicate that. inld end odd of the day, nonevent. >> so you think florida state was trying to lure its opponents

into a false sense of security by looking so vulnerable against vermont? is that where -- did you see murray state are you scared to death at this point? because that's your next -- you're playing them next >> that ja morant guy, he looks like the real deal he looks the part completely he elevates his team. >> so you're not downgrading your call yesterday to market performer or below >> i'm sticking with it like i'm sticking with nike >> please. you've got a final four target on florida state >> yeah, you know, it's called championship right there $70. that's the 70 points they're going to score against unc in the championship game. florida state might have only won by a couple of points. that's like criticizing nike for only beating expectations by a couple of points end of the day, nike's continuing to win. florida state is going to continue to win. who's in the next round? florida state university >> that's one area of my bracket

that's good. >> my only consolation is every team i had that lost, i didn't have them winning the next game. so my total points are still -- >> i've got bigger problems than you. >> you had some half brackets busted >> marquette going to the sweet 16 >> not in this world. >> matthew, thank you very much. you could have taken that. >> you know, i've done that before and you said, look, i get up early i expect to be an equal -- >> i've never. >> you did that one -- i did one interview and you didn't get in. you said if i'm going to be here early, i want in >> you guys continue this conversation when we come back, former mckenzie chief who was convicted of insider trading nearly seven years ago is speaking out for the first time >> we had a board meeting where i tendered my resignation. and he gave me a gift of, you

know, two cuff links that were from the goldman founders. in fact, i'm wearing today just for -- here's the gulf link that has goldman and sachs portrait on it. >> more of andrew's news making interview ahead. and later, a debate over the wealth tax should the wealthy be taxed more or is the structure broken stay tuned you are watching "squawk box" right here on bccn

welcome back to "squawk box. right now the futures are down less than 90 points. down more than a hundred and then been back and forth between those levels red all morning in the morning session. and the nasdaq indicated down 14 and change when we return, rajat gupta, the former mckenzie chief speaking out for the first time and telling cnbc how 16 seconds changed the course of his life his story is coming up after this short break

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rajat gupta who was convicted of insider trading nearly seven years is speaking out for the first time gupta never testified at his own trial for insider trading in 2012 that centered around conversations he had while he was on the goldman sachs board now he shares his side of the story in his new book "mind without fear." andrew ross sorkin spoke to him recently in new york about his conviction, the testimony against him made by then-goldman sachs ceo lloyd blankfein and the turn of events that kept him on the board even after he were to resign. >> the fact that lloyd was rehearsed for many, many hours and changed from his deposition

to his witness account, that's where it made a big difference like he kept saying, oh, it's my practice to cover financial results. but that meeting in october had nothing to do with that. it had to do with 10% of the people being fired >> what was your relationship like with lloyd blankfein? because you talk about him at different points throughout the book and i'm unclear even now how you ultimately feel about him. >> i was brought into the goldman board by hank paulsen who i knew many, many years before i had an okay relationship with him. but it wasn't the same >> one of the things i did not appreciate is you almost stepped down from the goldman sachs board before this happened >> we had a board meeting where i tendered my resignation and he gave me a gift of, you know, two

cuff links that were from the goldman founders in fact, i'm wearing that today. here's the cuff link that has goldman and sachs portraits on it so i accepted the cuff links everything was done. press announcement was drafted three days later, i'm in europe and they haven't yet released the press. then i get a call from john bryant >> who's also on the board >> he said please reconsider your resignation, because there's financial turmoil and lehman is going to go bankrupt we don't want one of our board members to be resigning. and he convinced me not to resign and to me great regret, that if i had just stayed stuck with my resignation, none of this would have happened.

>> i was always curious, what did you think when you heard warren buffett was going to invest in the company? >> i thought it was very shrewd on both warren's part and goldman's part goldman did need the sort of boost of confidence and good housekeeping seal. it just ensured that goldman would be the last institution standing >> you also seem to highlight the issue around the idea that preet bharara and the justice department didn't go after the big fish meaning the executives from the banks in the aftermath of the financial crisis. but was much more focused on insider trading and other things >> i found it quite extraordinary that we fine banks billions of dollars and yet somebody must have done -- i mean, they are admitting wrong doing, right

and that somebody must have done that wrong doing human beings do that it doesn't automatically happen. and the buck should stop at the top. so none of the top management in any of our banks did anything wrong. that's what one has to believe if you look at the results so they were not responsible for all the suffering that happened to the common person in the main street >> and so his approach towards looking at insidertrading, you think, was >> the issue is whether, you know, he was there when the financial crimes were done when the financial crisis was there. certainly right after that so his obligation would have been this is the most devastating thing for average america, right so who are you doing after

not that he shouldn't go after insider trading. i'm not saying that. but the priorities are misplaced if you can't get to the true culprits >> do you think that there are culprits out there that were not prosecuted >> for sure. for sure don't you think? >> this is one of the great questions of our time. ten years later. >> you admit to incorrect procedures, fraud basically. perpetrated on the american people and say nobody did it. i just going to fine some institutions. >> in the next hour, rajat gupta shares his biggest regret. why he says he was a political prisoner web, and how he's trying to restore his reputation and the 16 seconds that changed the course of his life we have more of this interview on cnbc.com and you can find

andrew's column in "the new york times" this morning. when we come back, a new round of funding for rent the runway now pushing the value up to a billion dollars rent the runway ceo joins us to talk about the most recent founding as we head to break, take a look at the u.s. equity futures a little bit off the lows oewods s -- we'd seen early. "squawk box" will be right back. after months of wearing only a tiger costume,

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still to come on "squawk box," taxing the rich. two former congressmen stand off on the idea about the idea of the wealthy and the nation's taxture. plus rajat gupta speaking about how he's trying to rebuild his reputation new details on lyft's plans to go public. we get an update and talk ipos t t oatheopf the hour "squawk box" back in a couple. a cfa charterholder does. you've worked hard to grow your wealth. make sure you're working with a wealth manager who can grow with you. cfa charterholders have the investment expertise

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>> but then in certain markets, the nasdaq is where the action is >> as long as you say all three, you're fine. >> down 15 on the nasdaq and the 10-year is under 2.5% this morning >> now it's back to -- you can go with that economy >> yes i'm the german chancellor. >> you're the closest person i got to be able to criticize. you're here. you got to -- you know, you have broad shoulders. you're okay. >> and long legs >> as we already said, yeah. same as my waist 36 rent the runway announcing a $125 million raise bringing the company's valuation to $1 billion. this comes after the wardrobe

rental company at south by southwest. joining us now to talk about this news is jennifer hiyman she's the ceo of the rent the runway thanks for being here today. >> i'm so excited to be here >> let's talk about the valuation. bringing you up to a billion dollars. is this something you anticipated when you started down this road >> no. i mean, it's been ten years. so we've been working hard to pioneer this new form of dynamic ownership and believe me ten years ago, the industry, we were not a darling of the industry. and really had to partner with designers to show that this was an entirely the stream that this is just how young people are thinking about ownership across the board. >> this valuation comes just as we're seeing the ipo yesterday i say space broadly in apparel and in online things

and it's done very well since its ipo. how much do you think you're benefitting from that kind of glow around the few names that have really done well in an otherwise sometimes dubious market >> i actually think we benefit more from the advancements in the sharing economy. because if you think about how this concept of dynamic ownership where we have unlimited choice and the ability to use whatever product we want whenever we want it, our digital worlds have already moved there. so that's how we consumer entertainment. that's how we consume music. and the idea you would have that closet in the sclocloud for the physical world the millennial and generation z consumer is ready to adopt this behavior that's what we've seen since we launched this subscription just this dramatic growth in axcceleratxecceleration not onl many users we have, but how frequently they use the

products >> if they have the unlimited subscription >> which is now 70% of our revenue. >> did you consider going to the public markets and ipo'ing or is there no need for the plentiful capital? >> for this particular raise, the goal was to secure the financial freedom of the company, so we had as many options as possible as to when we should go public. and to be able to control our destiny on our own timeline. but i always said, i think it is really important to bring your company public at some point in time that is learncertainly a goal >> i think of the sharing economy and big names talking about going public or will go public this year lyft, uber but when you look at their business plans that they brought out, lyft's says not only are they not profitable, they may never be profitable. would you business line read like that? >> no. we've actually been financially

disciplined and we continue to get more and more financially disciplined over time. i think that potentially being a female founded and female led business you don't have another option you actually have to show that in your metrics. >> profitability >> yes >> are you profitable right now? >> well, we obtained ebitda profitability in 2016. >> do you advertise at all digital? >> we don't. we have seen that 95% of our customers over the past ten years have come to us via word of mouth from other customers. what we do do is invest in our community and we're giving tools to communicate with one another. >> i was thinking if you ever do a video or audio, do you need a voiceover spokesperson for your -- because -- >> as a fashion expert, you -- >> no. when you came in, you said she

loves your -- right? have you ever done a voiceover seriously. >> only for a package on banks and things like that so no. >> never say never right? just think about it, jen >> i will. i always like to consider out there ideas. >> the offer is there from joe on behalf of me. jennifer, coming back to your point that millennials are more keen or more open to share -- renting things rather than owning them. cars is one thing with uber and lyft clothes is another the partnership with west elm, people renting blankets and things like that that seems like an odd thing to use and take back again. >> you think about how frequently millennials are moving, how your home has become this new bastian of self-expressi self-expression. now it's as public as taking foe thes of yourself every day

so the need to dynamically change your home and have new items arriving, we reason think that this idea of dynamic ownership applies to the home, closet, and beyond think of the things you don't have to use every single day, bringing that into the physical world. and about the sustainability of this as well that the millennial and younger customer really cares about the fact that there's a huge amount of waste you think about our closets in our home 80% of the closet is not used regularly. so to create a new contract with a customer where she can have the variety that she wants, but she doesn't have to accumulate all of this stuff that she doesn't use. then you couple that with the fact this younger generation is living in cities, you don't even have the space to house all of the extra stuff that you might have put in your garage 20 years ago. >> how much do you benefit from the idea that millennials are not buying houses, staying in cities for awhile? >> huge. >> what happens if the

millennials start having kids and start moving out >> the millennials are having kids and 60% of them globally are choosing to stay in cities that number is expected to rise to 70% over the next ten years the other thing that benefits my company is the fact that there's 77 million working women in the united states who pay a huge financial tax to getting dressed for work every day needing to have variety in their wardrobes and the idea that rent the runway can be a solution for them where they can dress for the job they want and save money and time by using this subscription >> how many times does somebody have to rent an item before you make money on it if it gets rented four times, it's paid for and then everything is gravy from there >> well, it really depends that metric changes every year based on our cost to serve which goes down every year it also matters what cost we procure the inventory at so we started a model last year which is a platform where brands are giving us inventory on

consignment and we actually are revenue sharing with them on that inventory and it's now a the revenue monetization stream for the 600 brands we work with. >> so you've got clothes you've got the home. are there other areas you're looking at other store partnerships or genres you think could be good rental models? >> you can see the continuous expansion over the next year into many different categories anything you do not use every single day we want to make it fiscally responsible to have a subscription to rent the runway. we're trying to build the amazon prime of rental. >> what's the shelf life of something? how many times of -- it doesn't just fall off other people then do you sell the residual stuff? what if you open up a second hand story >> 17th hand. >> well, we make a lot more from renting it than selling it. >> but you do finally sell it? >> we do a huge amount of

donations at the end of life we do sell also to our consumers when they have something at home and fall in love with it, they could buy it but one of the reasons why we vertically integrate it at the beginning, rent the runway is primarily a logistics company. what we really do is restore physical goods to perfect condition. before we send them out to the next customer. so we now know all of these different data points about any given fabric, how to restore it to perfect conditions and maximize the turns while it looks brand new. >> end of life and then you give them a sendoff they get a nice home it reminds me of, like, toy story when andy finally gives away his toys. that's nice. and it's charity that's awesome >> everyone should feel -- have those cinderella moments >> jen, thank you very much for coming in. >> thank you >> appreciate it >> rent the runway is a cnbc disrupter 50 company can they make it five?

you'll find out in may stick around for that. coming up, trade in focus. the u.s. and china set to meet next week. will a deal finally get done we're going to discuss trade, taxes, and more. these two guys have been on before pitted against one another. was it jeb with barney last time yeah, it was it was great >> they were very odoggo tether. >> jeb hensarling and barney frank. "squawk box" will be right back.

trade talks between china and the u.s. expected to resume next week. kayla tausche joins us with more hey, kayla >> meantime the two sides are continuing negotiations over the phone with mid to late april in focus for a meeting between presidents trump and xi. they're pushing for a mar-a-lago summit while china still wants a state visit. xi will spend the next week in europe he'll be received in italy where he arrived overnight monaco and france where he'll have a meeting with macron, merkel, and juncker. the european union is expected to decide how to proceed with huawei next week mean while president trump and lighthizer thursday said there was no new messaging just president trump wanted a good deal or no deal with china. meanwhile, the white house is

continuing to talk tough on china. the president looks forward to working with countries in the region to strengthen our security, cooperation, and counter china's predatory economic practices we will see exactly what comes out of that meeting, but certainly seems like we will have several weeks to go before this china situation resolves at the very least >> several weeks that'd be okay still need several years, i think. anyway, thank you. for more on the -- hey, kayla. is it coming today the mueller report >> anyone's guess at this point, joe. the rumor mills are working overtime here in washington. but until we get it -- >> you're not going to talk about it until you get something firm, kayla? come on. >> you know my practice, joe >> i know, i know. it just -- probably not, though, right? i heard we're waiting for the mueller report and the biden announcement people are betting on each

it's almost like one of those 20/20 announcements. >> the citing of the attorney general barr had ears perking up >> mueller reportedly was in a mi minivan which it was not i think his people got really insulted and said it was a suburban >> i was surprised to see him in what looked like business casual with a zip-up jacket and a baseball cap >> lululemon pants >> yeah. >> every friday -- >> who wears those >> no one. but joe. >> one of these days it's actually going to come true, but you don't know you've heard the rumors but you don't know anything. >> we're still waiting, joe. >> thanks. for more on the u.s./china trade talks let's welcome barney franks and jeb hensarling. from what i've been told, both

of you have had a complete change of heart since you were on barney now you don't want any higher taxes and hensarling wants to go to 90% have i got that right, congressman frank? >> you got it about as right as you got the mueller report >> do you know something about the mueller report >> no, i don't i love that reporter who says until we know something, i'm not going to speculate or rumor. it'll come and we'll talk about it >> okay. we're here to talk taxes now you don't know anything either, right, jeb let's talk taxes since the last time we were on, the subject's continued to be bandied about. we could also talk -- i mean, think about what the other side, jeb, is now talking about. electoral college. maybe not having that. what were some of the other ones she said recently? oh stacking the supreme court do these things help the democratic party, jeb?

then i'll ask congressman frank. then you can talk about taxes. >> well, it's kind of like a top 40 hit of horribles here you know, it's kind of like the constitution in some respects. going to be sliced and diced in a place we don't even recognize it you know, just seems every week one presidential candidate on the democratic side is trying to out-left the other i don't think these -- ultimately these ideas are going to sell. it helps president trump as far as i'm concerned i'm still trying to figure out how a 28-year-old from new york became the de facto spokesperson of the national democrat party but you know what? as a republican, i feel very blessed that she is. every time she speaks, i think it drives more people back into the middle and ultimately i think that helps the benefit of the republicans. i mean, these are some really far left ideas that would just

frankly decimate the economy at a time where we have most americans living in the best economy ever if you look at unemployment, if you look at rising pay if you look at consumer optimism, small business optimism if you look at private non-residential investment i mean, you know, it's just full of data that this is an incredible economy and all of these ideas would just bring it dashingly down >> congressman frank, bill clinton, i don't know if he was the most successful democratic president in recent years, but i think most people look back on that historically and think it was economically a pretty successful time. he actually was quoted as saying the era of big government is over and i think of you more as a clinton -- maybe i'm wrong -- as a clinton democrat than an aoc democrat are you looking at what's happening with any trepidation whatsoever >> yes let me respond first of all.

aoc and two women from the midwest are really not very representative of the democratic party. the very far right people in the tea party have more influence over the republican party and have had they didn't get us to shut down the government speaker pelosi is very well aware of the importance of being reasonable there is an agreement on goals and jeb asked how does she become the spokesperson? well, it's thanks to jeb and those in the media she is an able smart person but her views are not mainstream democratic congressional views as to clinton, i did not agree that the era of big government was over i think the question is do you have a good government or bad government when president obama became president, we did health care and we did financial reform. jeb and i differ sharply on financial reform but that is one popular with the american people. the anti-big government argue would allow the subprime

mortgages and the derivative and all the other problems that gave us a crash to have continued finally with the actions, i was interested to see that we now have an agreement between the federal reserve and the president, his appointees whom he doesn't like but he has a pattern of appointing people he then begins to attack. but then a very major shift because there is an agreement that the economy is not growing at that 3% that the economies or the trump appointees as well as most of the private men at a timers that the tax caters as many of us had a great short-term impact. but the long-term impact, again, is not very great. and is not at that 3%. >> we'll see >> trump himself is implicitly endorsing that saying no fed increases. >> okay, congressman the way that you portrayed the three widely covered

representatives, that's one thing. but i don't know if they're outliers i mean -- >> they're not >> i don't think they are outlie outliers bernie sanders said everything i said four years ago is now mainstream when i look at it, senator warren, beto o'rourke raised more than anyone else. these are far left thinking candidates it's not just aoc. the geographic center of the party has moved way, way, way out there. >> look. first of all, jeb huflly has been on the far right of his party. he disagreed with many in his party when he was the chairman of the committee i'll give the point, i know you exaggerated their role but i'll give you a test at the end of this year, at the end of this congress, what will the democratic house have done and i will guarantee you that none of the policies that people find particularly alarming are going to have been enacted we're going to move in the direction of improving health care we're going to increase big

government by having infrastructure one of donald trump's biggest promises that would help productivity and so far has been nowhere. >> you're not talking about the wall i guess. for infrastructure jeb, you want to respond >> yeah, if i could hop in here and you were hitting on the point. and that is every major democrat presidential candidate has embraced this socialist manifesto known as the green new deal which by the way only about 15% to 20% of it is dedicated to green energy all the rest of it has these hard core leftist and socialist ideas. and as you poingt out, every major democrat candidate has embraced it. contrary to what barney says, this isn't just a few people on the periphery. >> i'll reiterate. >> quarter over quarter we have 3.2% economic growth and this is not any kind of sugar high in many respects, the

repatriation that's taken place -- >> jeb, what about the past quarter? what did we get in the quarter just completed what was the growth? >> we have 12 months at -- >> it started out -- oh, please, jeb. come on. you pay close attention. you pay close attention -- >> i believe that we have an era of 3% economic growth. >> the first quarter -- first quart forrer's not over yet. >> the first quarter -- >> this isn't any kind of sugar high because the relief is just now taking place a lot of this capital is getting repatriated in many respects what we're seeing is -- >> can i speak about this? we have two tests. >> -- the problem is to quit and drop the obama era policies that beatings will continue until r morale improves simply on the promise of tax relief.

>> we only have 30 seconds 30 seconds left. 30 seconds and then we'll have you back >> i know that jeb wants to deregulate the financial industry and bring back unmarked -- irresponsible derivatives and free subprime lending. >> don't speak for him >> thank you, barney for being -- >> jeb, don't -- jeb don't be interrupting me. here's the point >> they're playing the music i'm going to be the outside. >> yeah. you want to interrupt and pretend you don't know what the figures are. but nobody thinks it's going to be 3%. >> you're wrong, barney. >> we will have you back >> no, the fed just said -- >> we got to go. okay thank you, to you both happy friday

the ipo parade levi's kicking things off with a kbig debut now other big names making some news including one consumer name speeding up plans to come to market rajat gupta on the record. this hour, on the trial for sending him to prison. and the legendary consumer advocate calling for big change. not just lip service after two

deadly crashes in mere months. the second hour of "squawk box" begins right now live from the most powerful city in the world, new york, this is "squawk box. >> good morning and welcome back to "squawk box" here on cnbc live from the nasdaq market site in times square. i'm joe kernen along with becky quick and wilfred frost. the futures right now indicated triple digits down again in terms of the dow although, yeah now double digits on the s&p and the nasdaq s&p indicated down ten nasdaq indicated down 14 the yield curve, the 10-year is below 2.50% or it was much of the morning. 2.47%. lowest in quite a while. let's talk about the story investors will be digesting today. may met with her 27 eu

counterparts for more than seven hours. the prime minister is now being offered until the end of may to get brexit legislation passed on the way to an orderly withdrawal but only if she can get support by next week for the deal she is pushing through parliament should that fail, the eu says that brexit will have to happen on april 12th. a big stock mover this morning. dow component nike reportedly coming out with quarterly earnings of 68 cents a share for fiscal third quarter that was 3 cents better than the street was expecting however, the athletic footwear and apparel maker warned of a sales slowdown for the quarter that stock this morning down by 4.9% after hitting a new high yesterday. and indonesia is canceling a major order for boeing's 737 max planes the national airline wants to scrap a $5 billion deal for 49 boeing max jets. it's the first major airline to cancel its order after two deadly plane crashes within the

last five months >> guess what's inverted >> what? >> the yield curve is inverted >> all the way >> one basis point one month is 2.485%. we haven't seen that so we have an inverted -- by one basis point. i had to look it up. but we have an inverted -- when i saw 2.47%. >> additional pressure on the dow this morning too >> it was 1-7. >> now it's 1-10 i broke that story just in case you're wondering. i'm doing this dial-up thing >> german 10-year has gone back to negative. it was negative a few hours ago. went fractionally positive >> when was that i mean, do you remember how we used to have to get on the internet -- >> i loved those days. >> aol. >> only 30% of people are online for an hour a week and that dialing and screeching -- i thought it was

like cha ching cha ching it worked for me >> yeah. to you it was. anyway, good to have you we got to get to leslie first though were you -- >> i was, yeah >> on a commodore computer >> you're aging yourself now >> i think this job is aging all of us. >> anyway, uber and pinterest picking the ipo on the nasdaq. >> thanks. lyft's $19 billion valuation expensive or cheap that's the question investors are asking as they decide whether or not to invest in the lyft ipo next week typically ipo values are decided on a relative basis how a company's price compares with its publicly traded peers. but for ipos of business market in this case ride hailing, the peers aren't just obvious as it may seem i spoke with underwriters and investors to figure out the

relative estimates and comps being used on the street with the 2020 revenue projection of about $4 billion lyft would debut about 4.8 times forward sales. that seems reasonable, actually, compared with a basket of companies investors are using as comps. the basket includes delivery names which trade around 4.5 times as well as market place names which they're putting more weight toward those market place models which trade above 7.5 times. now, sources say lyft's discount to the basket could give the company scope to price at the high end or above the range, but it's a little too early in the road show to have a full picture of investor demand that said, a solid debut for lyft could bode well for the ipos coming down the pike. pinterest disclosing today uber is sed to be kicking off its own ipo in a few weeks both of those listings reportedly at the nyse >> can uber get a better valuation than lyft or whatever lyft comes out at?

does that set the tone for uber? >> that's what's interesting about this whole thing lyft is really a pure play ride sharing company. whereas uber has all of these other businesses to assess the valuation. but investors will also have to incorporate a lot more uber eats and the global nature of their business and all these other different dynamics when assessing their valuation. >> thank you we're going to continue to watch lyft closely yesterday levi strauss ended its first day of trading in the public markets what can investors expect from the other highly anticipated ipos this year joining us now to talk about this and much more is steve case he's the ceo of revolution and cofounder of aol he's also brought us the rise of the rest a tour that he's taken across america and a fund that has invested in over a hundred companies outside of silicon valley steve, what do you think when you see some of these ipo valuations >> i'm reminded that aol went

public in 1992 as the first to go public and our market value that day was $60 million we raised $10 million in the ipo. it was two times revenue seven years later, we were to $160 billion and it was 30 times revenue. it's a reminder these fast-growing companies, it's a rd to figure out how to value. i'm delighted in pinterest and uber going public. having a strong ipo market is healthy in terms of driving it. i think building strong durable independent companies is the way to go. and thinking of an ipo sooner rather than later is a healthy thing. >> i agree when i see the valuations on some of these things and warnings in the literature for investors, by the way, we're not profitable we may never be profitable yet here we're willing to throw this much money at you >> yeah.

microsoft, amazon, they generally went public when they're worth a few hundred million dollars. and billions or even tens of billions of profit you know, the game is different. unfortunately because of that, the individual stockholders have generally be deprives of some of the growth opportunity they had 20 years ago the companies are only going public when the valuations are pretty high. that doesn't mean they can't still go higher. but they're higher than historically ipos would have been >> does that raise the risk for retail investors >> it does you know better than anybody the market cycle here for a decade has been extraordinarily robust. can't continue forever so there is a risk these companies are going public not just at high valuations but at a time the market overall has -- is quite high the same time, these are great companies. long run, i do believe in uber, lyft, pinterest. others ten years from now are going to be important valuable companies. there's a durability to them we

didn't see with the dotcoms. and it's going to take a little while for the market to determine that "60 minutes" filmed us last spring when we were in memphis. >> we went from monaco to memphis on that edition of -- >> "60 minutes" always has an eclectic mix of stories. but we were grateful they took the time to shine a spotlight -- >> you looked really good on that piece, steve. >> i appreciate it you seem surprised >> i warmed to you significantly. because you don't need to be there in a bus in the middle of the country. and it's important too you're right because the coast, i mean, all you think about -- >> i appreciate it they said 75% of venture capital in this country went to just three states california, new york, massachusetts. states like ohio, michigan, virginia less than 1% florida going to be the next tour next month in tour. third largest state. less than 2% that's important because the start-ups are the big job

creators and venture capital does drive a lot of the high growth start-ups. only backing start-ups in places like silicon valley here in new york or boston but not in columbus or indianapolis or detroit. then we'll have a greater divide where a lot of people in the country do feel left out they have to level the playing field to everybody feels like they have a shot at the american dream. >> it's like "american idol. you are there listening to some of these insufferable stories siems. you don't need to do that. instead of virtue signaling like so many billionaires and megamillionaires, i mean, that's walking the walk in my view. >> i appreciate that but i actually really enjoy it for the next pitch competition, we had 540 start-ups supply a pitch. eight in each of the five cities by the time i get to see them, they eight are all pretty compelling we invest in one of them, but we're trying to promote all of them to create stronger start-up communities. >> what's the worst idea like on "american idol" where

the guy can't sing at all. you get any terrible ideas on the road >> the worst yed i've heard in the last decade was when i was on the colbert show and said a toaster. a company that shares toasters that was the worst idea i've heard. that was not a rise of the rest idea that was here in new york. >> going back to the idea of some of these ipos, do you think it's fair the entrepreneurs keep control of their companies with these structures >> it's tricky i have different views on that on the one hand, there and an incentive to take the long-term view not the short-term view at the same time i've always believed certainly when i was running aol, the shareholder should have a significant influence. it probably varies on the company and the stage of the company. in general that trend that gives the entrepreneur the controlling stock. it has worked in some areas.

some were built with relatively small family ownership that had significant control that allowed them to build a more significant company. it'll also be examples where they don't really have to listen to the market place. they don't have to reflect some of the reality and that can get them in trouble. >> what's your -- oh, can i do another quick one? what's your view on the finds? it's been three years in a row of fines totaling $10 billion from the eu on google. do you think some of those are fair >> i wrote about this when i wrote about this book three years ago. i think there's a backlash brewing against big tech i'm not surprised by it. these are very powerful, very valuable companies and have been a little out of touch in terms of how people reacted to them. i do need to make sure all voices are heard and some of the issues facebook is dealing with are dealt with start-ups everywhere need to compete with the googles and facebooks. right now it is difficult because they have such strong market positions

i think it's very fair for the eu to look at these things it's fair to have a discussion about, you know, should we look at anti-trust or other issues. my preference would be to have these silicon valley giants self-regulate and make sure they have level playing fields and focus more investment like rise to the rest on entrepreneurs in other cities to create jobs in other cities so we don't have this divide in the koun write where everything is rocking and rolling on the coast and the other people in the country are feeling left behind. not just to maximize their profits but to make sure we have an inclusive economy >> it seems like a way to do good and do well >> it's an arbitrage investment world, if you can identify great companies early in these places where most go public, or get there >> thanks for coming in. steve case when we return, much more

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welcome back to "squawk box. down 157 is it the yield curve? i don't know that's probably not helping. anyway, the futures are down we do have an inverted yield curve all of a sudden. just a basis point or so nasdaq down 30 that's worse s&p's down there's the 10-year. 2 2.47%. we've had the -- 2.7%? >> yeah. >> after the fed meeting but we are seeing that now so i don't know. the stock markets predicted eight out of of the last recessions >> but it makes people nervous every time they see it

>> it does certainly something that raises eyebrows >> the offset for the future is obviously we're up 2% for the nasdaq week to date. 1% for the s&p 500 week to date. and again, europe is down over 1% today so futures tracking that as well rajat gupta who spent nine years at the helm of mckinsey was convicted in 2012 of insider trading for providing a tip to raj about goldman sachs during his time on the bank's board the case revolved around 16 seconds during the financial crisis when he got off a board call where he learned that warren buffett was making a crucial investment in the firm and immediately placed a call to raj nearly at the same time he bought goldman sachs stock gupta served two years in prison and ultimately paid more than $30 million in fines and fees. now nearly seven years a his

conviction, gupta has written a book titled "mind without fear." andrew ross sorkin spoke with gupta in new york about his appeal, his regret of not testifying in his own defense at trial. a decision he calls, quote, a personal failure >> i should have testified i mean, to me it's very simple i believe i didn't do anything wrong. i should have answered questions. >> you refer to yourself as a political prisoner what did you mean by that? >> well, i felt it was the times, those times where, you know, many people who were suffering. they were angry at the financial system they were angry at -- so i was there at the cross hairs i'd done nothing wrong

>> the argument only resolved around 16 seconds in so many ways between when you got off the phone the board call and the next phone call you placed do you remember that day do you remember those 16 seconds? >> i don't remember the 16 seconds, per se. but as i say in the book, that day i had every minute scheduled. okay my first instinct and this had been my habit, it's not just that day, is to call my secretary. and say what calls do i have to make and i called her and i asked her whether he had sent the stuff he was supposed to send she said no. i said get me raj.

this would be a normal pattern this is the 16 seconds was just highlighted. there would be many 16 seconds in my life >> let me ask you about a line in the book where you say perhaps i said more than was strictly appropriate from my role as a board member but my motives were support not betray the bank. >> in those days, i'm sure you remember, everybody was talking about different combinations and mergers and so on. and this was a discussion a month ago where we discussed every possible combination and then it was reported in the press already. it was more getting in goldman's a smart institution. this makes sense for them to do it opportunistically >> do you think, though, having

listened to that tape that you crossed the line >> not really. it was a figure of speech. i said it happened at the board discussion i should have never said that the information at that time was neither confidential nor insider or had market moving information. so it was like, okay i made a mistake saying this was at a board discussion. i should have never mentioned the board. >> for more of the interview, go to cnbc.com. all right. coming up, ralph nader is going to take on boeing. he had a personal connection to this month's ethiopian airline disaster and the long-time consumer advocate is calling for more accountability and stricter oversight of boeing. that interview is coming up. you're watching "squawk box" on cnbc

welcome back to "squawk box. tiffany came in 7 cents above consens consensus. revenue below 12i7estimates. analysts had been expecting comp stores to increase the stock is slipping about 5% in the premarket still to come this morning, ralph nader on the record. after boeing's crashes including

one with a family member what boeing needs to do to regain the public's confidence stay tuned you are watching "squawk box" ghhe ocnbc your daily dashboard from fidelity. a visual snapshot of your investments. key portfolio events. all in one place. because when it's decision time... you need decision tech. only from fidelity.

welcome back to "squawk box" here on cnbc we are live from the nasdaq market site in times square. let's take a look at a few stocks to watch this morning shares of lululemon are under pressure this morning since we've told everyone that joe is wearing these pants today. wedbush cutting it to neutral and cutting price target to $155 the stock is down by about 2.5% this morning also, hibbett sports reporting 57 cents a share that was well above the consensus estimate of 38 cents hibbett also reporting a jump in comp store sales that stock up by 17% this morning.

and there's video game retailer gamestop which has named george sherman as its new chief executive officer. he had been the ceo of vitra he also had worked at advanced autoparts and best buy >> it's an interesting one i remember we were questioning -- >> gamestop >> yeah. we were wondering if it was another blockbuster. it was in the 20s then they made a case of service and everything else. gamers love gamestop >> interesting he's got a past at best buy which has managed to do what nobody thought they could do which is to out-do amazon when it comes to service >> yeah. consumer advocate ralph nader has been a critic of the faa but now it's personal. nader's grand niece was aboard the ethiopian airlines jet that crashed earlier this month shortly after takeoff killing

more than 150 people "new york times" now reporting that the 737 max plane as well as the one crashed in indonesia lacked two safety features that cost airlines extra to have on board. then days after the crash, nader posted an open letter to boeing on his website calling for the company to ground its 737 max 8 planes in a recent interview with "the wall street journal," nader suggested that he's looking for any boeing whistle blowers that might exist to come forward. mr. nader joins us this morning on the "squawk" newsline it's good to have you. condolences on your grand niece. i it is a personal issue for you now. and that's sad to hear >> it's a devastated -- she is leadership, compassion, and intellectual rigor written all over her only 24 years old and just was fearless in helping people she wanted to improve world

health and had worked in africa. when she was getting her degree on university of koppcopenhagen great in emergencies the kind of leadership, joe, that we look for in younger generations. she even had published papers in professional journals and was in high demand at professional conferences. so it's a devastating loss to her family, her many friends, all the passengers and crew. and the people who won't be helped by her in future years. >> hard to imagine, the grief for her family at that age let me ask you just the crux of the issue, mr. nader do you think it's a -- the relationship between faa and boeing and we understand how that works. there's a country we're in competition constantly with, you know, other manufacturers, airbus, china, et cetera and is that where the real issue lies, would you think? some type of incestuous relationship between the faa and

boeing or is it more in boeing? or the faa individually where you think the problem lies >> well, it's what the inspector general department of transportation put out reports in recent years. they're too cozy with boeing it's gone to an absurd length. where boeing picks its own inspectors the faa doesn't even pick its own inspectors they're there in the factory and they're pointing out different parts and one boeing employee says, oh, i think this meets the standard the other one says, i as a representative of the u.s. government endorse it. and then the faa rubber stamps it that's not regulation. that's the fox in charge of the chicken coupe. a and the fact that president trump after he was inaugurated to knock out two regulations for every new one has thrown these

agencies into chaos. believe it or not and forbes pointed this out yesterday, forbes magazine. that trump was cutting budgets he wanted to cut the faa budget, to cut the staff, and shove all the rig tour responsibility on boeing so that's what led to this kind of environment and once you have a business strategy to try to compete with airbus and you rush it which is what boeing did, here's the quick sequence you want to sell the plane so you have more seats, it creates a need for a larger engines and configuration which affects the aerodynamics which introduced this flawed software, this time bomb software. and they say to the airlines, hey, this is just a minor modification we don't have to give you detailed manuals for your pilots we don't have to insist your pilots be trained. you'll save all this money and buy this plane

it's better than airbus. that's what happened >> ralph, there's a story in "the new york times" today that points out that many of the safety features that some planes have are not sold in others. that boeing actually charges these as upgrades that go down many of these countries don't have regulators saying you need these things >> that's right. the offer is optional. it's like a car. they offer is optional but the warning light in case the sensors misfire and push the nose down against the will of the pilot. imagine the horror of that the pilot is trying to push it upward and this software is pushing it down. so they made the light optional. they made the indicator optional they're going to change that now. my message to boeing is all the gr grisly details are going to come out. tort lawsuits, the media on top

of it. so boeing in its own interest better behave accordingly in the coming months and not try to fight it, not try to use its hundred full-time lobbyists in washington to get its way. not to keep pumping money into over 300 members of congress who take campaign cash and they better straighten out. once a plane gets a stigma like the 737 max 8 and 9, kurnls organize a boycott once they say to the airlines they don't want to fly this plane, it's going to be very hard for boeing to turn it around so the ceo of boeing, in japan the ceo would have resigned. the ceo of boeing better straighten out and not see this as a lobbying and public relations challenge only >> the plane was approved to fly be many, many aviation authorities around the world what do you make of that particular aspect? >> well, they take the lead from the u.s. because it's a u.s. plane.

in past years the boeing 737 in the u.s. has had a good safety record less so in other countries and so they just rubber stamp. they don't have facilities in a lot of these developing countries to do otherwise. but now it's changing. i mean, now the image of the faa and the reputation to boeing is at stake and what they really should have done is gone to the 737 900. had a cleaner slate plane. but they thought that would take too much time and they were losing sales to the airbus competitor it's all about rushing it's all about profits it's all about telling the airlines this is an easy fix you don't have to spend time you know, there was a pilot on the hotline to the nsa -- excuse me on the hotline so they can tell what happened in the air episode and one of the pilots called in

and said that the training manual for the 737 max, quote, was criminally insufficient, end quote. so the justice department and the fbi are investigating. it's not just a civil matter it's a criminal matter >> do you think, ralph, that given the safety record for the last 10, 15 years with boeing, maybe they earned a lot of good will, i guess. maybe the faa did too. it's pretty staggering how -- i mean, these planes are marvels of modern technology this looks like it may have been some of the things you were talking about may have been at play here. but in general, the safety record is like, you know, compared to anything else you can do it's safe to do right? >> it was a good safety record in this country. there's such a thing as boeing pushing the envelope too far using robotics and automation to overpower the pilots >> now you sound like the president.

wi well, i mean, the point here -- >> i'm sure that wasn't intentional. >> you could have a good safety record but it's like stretching a rubber band. you know you stretch the rubber band to meet the purpose then you stretch it and okay then it snaps. >> what would the whistle-blower -- where do you think the whistle-blower would come from and, you know, this is all obviously speculation. but what type of information would you expect to garner from a whis whistle-blower to garner >> some of them would be retired aerospace people some would be from boeing. some would be from faa the congressional committees announcing investigations have to give subpoenas to these people to protect them from retaliation. and so the senate and house hearings are going to be starting soon. but what would spill out would be things like this. who were the technical

dissenters there were apparently heated discussions between boeing and faa pilots the pilots union has told the pilots to shut up and not talk to the media imagine that it's like they have no independent conscience of their own. the other thing is who made the decisions in boeing? was it made at the top was there pressure from the management which seems likely to push the engineers to move fast, move fast, move fast, get this stuff out, don't put strong manuals in print, don't require, you know, pilot training and then the other thing is who rubber stamped it in the faa secretary of transportation is now opening an investigation on that and then the other thing that is really critical is why they didn't make these warning indicators and lights standard equipment. so there are a lot of questions. and there's going to be huge investigations

but some of these investigations can turn into whitewashes. you know, the members of congress shout in front of the tv at the boeing executives and then there's a wink and nothing is done. so i think fliers' rights from the aviation consumer caption group. fliersrights.org is what people should go to for consumer protection information we really need a big aviation consumer organization in this country. because in the ultimate analysis, it's the media and the airline passengers that are going to drive this to the truth and prevent other crashes from happening and to make sure that this unofficial intelligence monster does not get out of control and overpower human intelligence >> ralph, i share your skepticism and concern about a lot of these issues you've highlighted today. but we don't know all the facts yet and some of the things you

said may or may not be born out. >> we do know the facts about inadequate pilot training. you have many pilots quoted in the media recently we know the facts they had the indicator and lights as options. and above all, we know that there is an anomaly here that usually boeing goes from the 737 600, 800, 900. why didn't they go to the 900? why did they go to the max and how fast was the process >> my point is there's still answers to come. >> yeah. there's more answers to come, of course that's what the investigations are for. but it's pretty troubling to see the business strategy that led to the deaths of those innocent people in ind knonesia and ethiopia >> we think to thank you for your time today.

>> thank you, becky. >> thank you still to come, apple's big plunge into streaming video. are we about to get details and see previews we'll tell you about the key event in cupertino on monday and don't miss a big interview later this morning with gm ceo mary barra that comes up at 10:00 a.m. on 'rba ik on the street. st tedwee ckn a couple you should be mad at leaf blowers. [beep] you should be mad your neighbor always wants to hang out. and you should be mad your smart fridge is unnecessarily complicated. but you're not mad, because you have e*trade which isn't complicated. their tools make trading quicker and simpler. so you can take on the markets with confidence. don't get mad. get e*trade and start trading today.

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got some breaking news on trade. let's get to kayla tausche is washington what can you tell us by the way, people watching the markets better listen up too >> one of the white house's top trade negotiators are planning to leave in the coming weeks that's according to three associated with the plans. clete williams is the director of the national economic council. he's been talking about his plans to leave the white house he's the lead negotiator for the g7 and g20 and he's been traveling in place of larry kudlow for talks in beijing. it's unclear how or whether his departure will coincide with china trade talks. though people familiar with his plans cite twear of travel on hi young family there's a replacement in the works. that person's appointment is not yet finalized. certainly it is a major personnel change for the china delegation as these talks enter potentially their final weeks,

guys >> is he someone who takes a hard line on relaxes tariffs or more open to finding a middle ground >> he's not an ideological adviser in that sense, wilf. his background is as an attorney so he focuses on the fine print and exactly what these negotiations say he's one of the most detail oriented trails on this. certainly would be a big way in these talks in the coming weeks. >> thank you, kayla. we'll watch the reaction to all this it's just under an hour now to the opening bell dom chu joins us now but i need to bring wilf in on this too i don't know if you're going to cover this in stocks to watch. >> okay. >> wilf, did you see the news about a well-known pizza chain and what's happening >> i did i did. shaq's on the board of this great pizza joint. >> of? >> it's so good. >> of what pizza place

>> p.j. are the initials >> papa, he always says papa but it is interesting. shaq is investing in nine papa john's restaurants he's also joining the board of papa john's given all the things that happened recently the nine papa john's restaurants where he is investing are in atlanta. >> apparently shaq is going to be on "squawk on the street" to talk about some of this today. >> does he like the product? i mean, is he like an outspoken proponent of the pizza there i don't associate him with p.j.'s pizza >> not at this point i mean, i like -- of course, as i always say the worst pizza is great. i guess there could be really bad pizza. >> there can be. but the stock is up like 4% premarket. >> there you can see up almost 4.25%. i didn't tell anyone i was going to talk about this great they got it ready that

fast what else, dom >> well, that's pretty dramatic compared to most of the other things i have right now. first of all, let's look at some of the other shares. they're not as dramatic as papa john's but best buy is up around a percent and a half at this stage. roughly 6,000 shares premarket the consumer electronics retailer upgraded to an outperform by analysts at oppenheimer. the cited the success of company management in turning its into a preeminent omni channel operator those who watch those shares up by 2% now. shares of lumentum, up as well roughly 9,000 shares premarket the high end optical technology company makes components that go into smartphones it was upgraded by jpmorgan to overweight from a neutral. they cited among other things a better outlook for the telecom industry given the technology

rollouts and limited downside risk relative to iphone volume expectations target price goes to 65 bucks from 50. and then there is one of my favorite ones today. a lululemon downgrade. down around 2.5% roughly 9,000 shares premarket, athletic apparelmaker most known for yoga gear, yes, was downgraded to neutral from prior outperform at web bush and cited less profit margin upside ahead and less likelihood that investors react positively given its recent run-up. shares are already up around 33% since christmas eve. i seem to recall becky tweeting out something about joe kernen wearing lulu pants now i'm not sure. >> i tweeted a picture for all you doubters. >> milking this for all it is worth. >> i can't see the picture i'm here are they the real yoga stretchy pants? >> no. they look like gray slacks, period >> you also missed the long photo shoot.

>> we weren't sure which -- we weren't sure which angle to show, but we decided to -- the rear shot was not -- >> i would say this, guys, the reason i bought the pants myself in the first place, the ones that joe is wearing, they make great golf slacks. >> you can go -- >> they don't improve his handicap, though >> i should do some squats anyway, thanks, dom. >> you got it. apple investors will watch as tim cook takes the stage at a key company event on monday. details expected on some of apple's upcoming bets. here to discuss what is working for apple, tim esco. apple is one of the top holdings in the fund. what do you expect next week is this going to be something that could really meaningfully increase that all important services revenue that they always talk about? >> well, i think we're expecting some sort of over the top television service to augment apple tv and the tv app they have within

the ecoecosphere long been my hope to see apple come out with a product that will make the complexity involved in over the top services more simple apple has always been good at taking something that we use every day and making it easier and that's what i hope to see on monday. >> this is a hardware and a sort of subscription announcement perhaps that you think >> well, yeah. i think it will be a subscription service that will be available across multiple platforms. i don't think apple is going to want to announce something that is only available on their apple tv product because it is not as broadly used as, you know, in an ecosphere where you have fire stick, google play, you've got roku nice to see whatever service product they have available across platforms. >> do you think we get more details about the reported payments, credit card, electronic payment partnership with goldman sachs >> well, i think wrapped into all of this is the ability for

people to make things easier that is through apple pay, through payment system with goldman sachs, and the ability for people to interact with all of their digital rights and digital media and perhaps buy things from whatever screen they're sitting in front of. >> perhaps some details about that. >> nice bounceback from that fourth quarter >> that's a difficult one with apple. it has been cheap for a long time been persistently below market multiple we haven't changed our position. we on downturns like we saw in the fourth quarter seek to add it to places where we might be light. in general, we have been a long-term holder and we expect to remain a long-term holder unless something fundamental changes in the story >> we have been holding on to boeing if you look at the -- we owe

boeing for a number of years all due respect to the previous guest who has an emotional tie to blaming boeing for everything going on with the two crashes, more and more comes to light that perhaps there is some liability on the airline side for how pilots have been trained. and it is not boeing's fault if other airlines haven't purchased the ind caicator light we're talking about. i think we'll find the pilot training will be the solution to this, the 737 max is a good plane that can be flown safely it is just going to take some time to get through all of it. >> tim, thank you for joining us >> thank you >> down to the new york stock exchange jim cramer joins us now. i want to get continue with that conversation, jim. did you see ralph nader? saw that interview >> yes, i did. >> yes, and i -- it is, look, boeing is the safety first company. obviously the new york times article is very tough.

very tough >> it is so hard to talk about this it is a tragic and -- it is a tragedy and a loss of life and i don't want to disparage other countries and safety and everything else, but i mean pilot training is paramount. i'm still not sure we know it is the faa and boeing or whether maybe it was pilots that weren't completely equipped to fly the plane safely which had a lot of safe flights and other places. i don't know it seemed to be maybe putting the carriage in front of the horse to some extent though it is ralph nader we need consumer advocates, no doubt. you need the balance between the two sides. but i think of boeing as a preeminent american manufacturer that, you know, we have pride in >> i think it is our greatest manufacturer and i think that the reputation for safety, i mean, wow, it is unassailable. if you go to the world war ii museum in new orleans, you see

what boeing did to win the war and how much they cared about safety of the pilots i just feel like that we have to -- i think ralph noted, we have to have the most vigorous investigation possible i think drawing conclusions is way too early. i think it is not fair to anybody. >> you see the yield curve today? it is just interesting that we're able to talk about it, right? it hasn't happened it hasn't happened, it has been close, it finally happened, we have an inverted yield curve i don't know if it goes beyond that >> bank stocks go down every day, premarket they go down as if they're biotech companies that failed some sort of phase three. look like biojebiogen go back to pepsico they yield 3%. acceleration growth there. that's what you want to be in. it works great show this morning, great show. >> looking forward to "squawk on the street." see you in a few minutes okay

♪ ♪ dear tech... let's talk. we have a pretty good relationship. you've done a lot of good for the world. but i feel like you have the potential to do so much more. can we build ai without bias? how can we bake security into everything we do? we need tech that helps people understand each other. that understands my business. we've got some work to do... and we need your help. we need your support. let's expect more from technology. let's put smart to work.

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want to let you know about a big interview on "squawk on the street." shaquille o'neal, he's joining the board at papa john's and he

will be on with the company's ceo and jeffrey smith from starboard value. that's coming up a little bit later this morning on "squawk on the street." thank you for being here the last couple of days. we'll see you one day next week. >> i'll buy you a papa john's. >> have a great weekend, everybody. see you back here on monday. right now time for "squawk on the street." >> go bearkats ♪ this is how we do it this is how we do it ♪ good friday morning, welcome to "squawk on the street." i'm carl quintanilla with jim cramer at the new york stock exchange dow futures down 100 and change after the best one day gain for the index in more than a month pmi out of europe and japan. nike and tiffany not helping, down 5% on earnings. europe down a percent. yield curve in focus road map begins with global growth concerns, futures down,