business never sleeps, this is "squawk box. >> good morning, everybody welcome to "squawk box" here on cnbc we are live from the nasdaq market site in time square i'm becky quick, along with joe kernen, andrew is off today. our guest host is sam stovall. we are going to have lots more on what the mueller report means for the markets and trump's economic agenda but first let's get a check of futures this morning which have come back a bit. you're going to see right now the equity futures are trying to make a stand here. dow futures indicated up about 17 points. this comes on the second worst day of 2019, stocks at this point look like they are hanging in there as we start a bit of volatile time in the major averages have posted weekly losses for two of the last weeks dow is lower s&p 500 and nasdaq are higher,

on pace for the largest gains in seven years going back to the first quarter of 2012. take a look this morning at what happened overnight in asia you did see some major losses across the board the nikkei was down 3% hang seng off 2%, and the shanghai composite we're going to talk about what to anticipate with the trade talks from china, also in the wake of what happened with the mueller report, whether that strengthens the united states' hands. ftse and the cac a little bit weaker the treasury market, the ten-year treasury is below 2.5%. at 2.46% >> okay. where's andrew was he scheduled >> he was skiing last week >> so he was not supposed to be here >> okay. all right. just wondering more on reaction to the mueller report, let's get to eamon

javers at the white house. i heard wind of this between games on friday. i didn't get to watch a lot of it there were some pretty great games happening, and i've got 14 out of 16. >> i'm sure you were watching that colgate game, joe. >> i did it was purple. >> it was a very good showing. >> i liked the uniforms. >> maroon. >> did you see duke? >> that was unbelievable >> i was tearing up at the end because for either team to lose at that point. >> i wanted it to happen >> to go down. >> because i don't have them up all the way. what would harwood be like today if duke had lost anyway, what do you think is going to happen vis-a-vis the marketsment we' markets. we're going to talk about that in a second. >> if the trump white house had to draw up their best case

scenario for the big mueller reveal over the weekend, it would have been pretty close to what actually happened here. this is about as good as the white house hoped it would be. there were two central questions in this investigation. one was on russian collusion did any americans or anybody affiliated with the trump campaign help the russians in their attempts to interfere in the 2016 presidential election that was the first question. the second one was on obstruction of justice did the president or his staffers, obstruct justice into the investigation into all of that the letter that we got yesterday from the attorney general william barr provided some answers to both of those questions. first, on this issue of collusion, here's what barr wrote in his summary of the mueller report he said the special counsel's investigation did not find that the trump campaign or anyone associated with it conspired or coordinated with russia in its efforts to influence the 2016 u.s. presidential election

on obstruction of justice, less of a clean finding from the white house's perspective. mueller apparently in his report does not conclude one way or the other whether the president committed obstruction of justice, but william barr, the attorney general steps in and in his own voice makes a conclusion he says in his letter, deputy attorney general rod rosenstein and i have concluded that the evidence developed during the special counsel's investigation is not sufficient to establish that the president committed an obstruction of justice offense for the president's perspective, this is a clear win. here's how the president reacted to this yesterday on his way back to washington from florida. >> there was no collusion with russia there was no obstruction and none whatsoever. and it was a complete and total exoneration. it's a shame that our country had to go through this to be honest, it's shame that

your president has had to go through this for before i even got elected it began and it began illegally and hopefully somebody's going to look at the other side >> so now according to barr's letter, mueller explicitly did not exonerate the president on the question of obstruction of justice. he simply did not come down with a decision whether or not the president did commit obstruction of justice nonetheless, joe, the fight is going to be over how much of that underlying mueller report and the documents that support it can be made public. barr has said he'll make as much of it public possible consistent with the law which is the key caveat there because a lot of it could be grand jury secrecy information, a lot cob classified there will be elements he will not be able to release democrats and people around the country are going to want to read as much of the mueller report as he can to understand why he made the decisions that he made that we learned about

over the weekend >> you know, you hear about whether there was intention, that's what they're saying there has to be proof of criminal intelligent it's hard to figure out why you would obstruction an investigation of something that didn't happen. >> under law, you can obstruction an investigation >> what would be the motivation? now i was talking -- >> it's silly to rob a bank, too. people do that it could be a crime. >> i know it could be a crime. but what would have been his motivation to obstruction something he didn't do >> panic, political fear, i mean, you know, any number of reasons. but we don't know whether he did it or not. that's the question. >> i mean, you have seen it, you're watching. it's impossible to discuss this in a reasonable way, especially on social media, but i did see you said weekend what time was it that was horrific. >> it was a late night on friday night because we had a lot going on.

>> and an early tweet. >> putting in the hours. >> let's see what it means for the markets, the mueller report, and the other things joining us now is ed gamble, managing director of and senior portfolio manager at qma and david lovitz, and our guest host sam stovall, son of robert. sounds biblical, doesn't it. sam, robert. chief investment strategist at cfra are we all in agreement that maybe this is in the rear view mirror and now we're back to global growth concerns, sam? >> well, i guess i'll just start by saying, yeah, we went 20% to the upside since december 24th i think it's pretty natural for us to attempt to digest things i think economically a goldilocks to a mama bear

because things are getting soft and colder. >> zeroing in on my question, we're getting a 3 point bounce does that mean that the markets had already factored in that nothing was going to happen with mueller or it was never going to be an issue in the first place you remember there was a time when i think it was brian ross, where was he, abc, he came out with false news, actually, that there had been a meeting before the election with russia and he had to take it back. the market sold off like 500 points when that happened. there were concerns about a constitutional crisis. were those concerns put away long ago >> i believe so. it's like a ping-pong ball dropping on the table, the first bounce, and every other one gets a bit more muted >> the cat gets desensitized after the first one. >> i like cats but love dogs we'll stick with bob. >> i'm going to go with that,

too, i'm going to be arthur brooks i love all things, but i guess i like dogs, log rhythmically more than cats. but that's just me ed, rear view mirror for this. >> i think so. markets are going to be focussed on brexit where the drama is going to reach a fever pitch trade talks in beijing, and the global slow down and slight inversion of the u.s. yield curve but i think it does remove some potential risks it's highly unlikely that we're going to be talking about impeachment proceedings and that had the potential to -- >> good on that, the demonstrs, a real quandary to continue impeachment. i don't know if this puts to bed. >> and i think a bigger issue that had there been a smoking gun, the conversation we would

have been having this morning would be more about the potential for a democratic sweep in 2020. >> i wonder about what the markets, whether it was an asymmetric risk, if they had found collusion if the markets would be down a lot or up a lot. >> the things we would be talking about would be the potential for a sweep in 2020 and the implications of market unfriendly policy sgls what a unfriendly policies. >> at this point, what's congress going to get done between now and 2020 >> i say next to nothing. >> then we need to talk about what happens in 2020 to see whether republicans would take it back, whether they lose the senate. >> i just think, you know, the markets are going to wait on that. >>st it not going -- it's not going to have anything to do with washington? >> i think again, this week it's about brexit, trade talks in beijing. there could be more.

>> and tax cuts now. >> it was big news last, you know, last week that the fed wasn't going to raise interest rates anytime this year. but now money markets are pricing in a 90% probability that we're going to get a cut before the year is up. >> i was watching gonzaga when that happened. i guess i missed a lot of -- when did this trump thing hit? >> friday. >> but we didn't actually see anything until sunday. it was just speculation until friday and saturday. >> weren't there 16 games on friday >> there were. you have the best hours for watching march madness, joe. whale say is we're talking about 2020, a slow down in global growth, political uncertainty, and i think, joe, the answer to your question about 2020 is really dependent on whether or not the economy's in a recession at that point in time. more importantly, focussing on

near term data the consumer looks fine. labor markets are tightening consumption looks solid. inflation is coming down that's a good environment for the core of the u.s. economy, where the softness continues to percolate is really on the manufacturing side, the business side and we know the lap of cap x has been driven by brexit, policy in the u.s., and wast going on -- what is going on in europe what are the implications from the economy because where we sit the economy is going to drive the skrooutcome in 2020. >> anyone have a deal in year-end targets or not? >> i think year end targets are a losing battle. the way i think about it is the s&p 500 looks like it should be able to generate $170 worth of earnings the market seems comfortable with a multiple of 16 times, you

multiply the two together, 28, 2,900 on the s&p as fair value, i think we could joovershoot tht given what is said and done at the end of the year, probably sitting around somewhere like today! 2,800. >> thanks. ed, how about you? >> well, i mean, yeah, we've already reached our full year targets. >> what's your full year target? >> 2,400. >> we don't publish official targets. but we were calling for 10 to 15% returns this year, and we're already there. >> from where? >> for the calendar year. >> you don't think we make any more head way? >> we have been pulling back on risky ae risky assets i think we're going to go through a consolidation. we could end higher. >> could end higher or lower thanks. >> i think we could end higher. >> okay. good >> we're not going to move higher right now >> stovall, you want to give

more cutting edge stuff. >> you got 14 of 16, was that right. >> 14 out of 16 of my teams are in the final you didn't do a bracket? >> i wasn't sure if you got them right or wrong. >> is it okay if we go to break or get more from david >> carry on. thank you, ed and david and sam will be here the rest of the show i'm going to show them how the brackets work, and that will be helpful. there you go when we come back, we have more of today's headlines including the latest on the fallout from the grounding of the boeing 737 max right now as we head to a break, let's look at the biggest pre-market winners and losers in the dow. looks like disney is leading the way up by about $0.16. ♪

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welcome back, everybody. u.s. equity futures at this hour are relatively flat. remember the market had its second worst day of the year back on friday trying to stage things and take a stand here, but nothing that is really anything to write home about at this point. dow futures are indicated up by about 15 points, s&p futures are positive barely, and the nasdaq is down about 15 points.

we'll follow more about what's been happening this, and again after the mueller report, looks like things are standing firm for right now. more developments surrounding boeing 737 max, american airlines cancelling about 90 flights a day because of the grounding of those aircraft the carrier has two dozen 737 max jets in its fleet and is planning to do that for several months to come boeing held a session on saturday to update airlines on plans to return the 737 max to service. it will be hosting another session on wednesday for more than 200 pilots, technical leaders and regulators the "wall street journal" reporting federal investigators are looking into whether boeing gave incomplete or misleading information about the boeing 737 max aircraft to customers is u.s. safety officials as part of a broader probe on how the plane was developed and certified. we'll be talking to a former faa official during the 8:00 a.m. hour right now, boeing shares are indicated down by about a third of a percentage point, $360.91 a

share. >> pinterest is set to go public the popular social media site following for an ipo late friday, planning to list shares on the new york stock exchange under the symbol pins. in its filing pinterest says net loss decreased last year, revenue rose 60%, and uber snapping up arrival, the ride sharing giant is reportedly set to offer $3 billion to buy dubai based rival, kareem networks uber is preparing for an ipo sometime this spring the company said to have a valuation of as high as $120 billion rival lyft is expected to make its debut this week. >> i saw the l.a. times reporting that lyft and uber drivers potentially are talking about a strike this week because uber drivers i think in particular have seen the amount they are allowed to charge per mile from $0.80 to $0.60

these companies need to move toward profitability >> pinterest, not profitable 60% revenue gains. >> it's a good point about, you know, a living wage. i got to ride back from newark airport to jersey city and the uber cost was less than $18. that's about a third what you would be charged if you took a cab. >> it's been great for consumers. it's been good for employees who have been able or contractors as they're known, which is part of the problem. from the employees perspective tough for them, and if you're going to find a way to make it profitable for the company, there's more of something that needs to give along the line. when we come back, we'll talk about stocks to watch, plus nearly 1,500 people facing disaster, we have the details of this near disaster involving a luxury cruise line over the weekend. "squawk box" will be right back.

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♪ just hold on, i'm comin' ♪ hold on, i'm comin' ♪ hold on ♪ don't you worry, i'm comin' ♪ here i come welcome back to "squawk box," we have a story that could make you a little seasick. a luxury cruise line that averted a near disaster, is back in port today. the ship with 1400 passengers and crews nearly ran aground after the engines failed in rough waters during a storm. when we say rough waters, these were rough waters like you have

not seen in the past just based on the video footage that was sent out by people on board, the ship sent out a may day on saturday. 479 people were air lifted off the ship as it got closer and closer to rocks, about 3,000 feet offshore there. the rest of the crew, the rest of the people stayed on board, finally, the captain was able to get some help from some other ships that pushed it back into port it's now at port in norway, and the cruise line has cancelled the next leg of its ship as you saw things, there was furniture rolling back and forth across the entire thing. people being taken off one and two at a time by helicopters in high winds this is what people paid for a vacation for thought about a cruise in the past, this cleared me up of ever wanting one. >> there are so many things that make you think twice >> what is the virus, the norovirus. >> the water, i know it's all separated but it just seems, so

many people, thousands of people. >> i kind of wanted to take an alaskan cruise, i figure that's the best way to see alaska. >> i was on a forbes money cruise on the crystal symphony, and it was a wonderful experience. >> well, it was free, so. >> that always helps. >> you might have liked that so the president is tweeting, people pointed out how silent he was the entire weekend, and finally said, i think he said on the day it came out, have a great day, and make america great. he's just summarizing, nothing too notable yet. we'll keep an eye on that to see if, yeah, oh, boy. okay so we'll watch that. any way, horror film us, topping expectations at the box office, the universal film from jordan

peele. making $70 million, the biggest for a horror film. the biggest opening weekend for a horror film not based on preexisting property, like a screen three or something like that, like a sequel or a remake. the opening ranks as the third best in the horror genera behind halloween, the second one probably the fist one was a slow burn and "it", the reboot the "halloween" reboot and "it" reboot nbc universal distributed the film good for us. among our stocks to watch this morning, fiat chrysler, rebuffed amerger approach from psa group earlier this year, according to the "wall street journal. in a separate story, the ft reports that the auto maker is signaling that it is open to a

merger or partnership deal with another auto maker we're also watching shares of tesla this morning "the new york times" reports that new registration data is indicating that tesla sales may have slumped you can see that stock is down by about 1.4%. telecom equipment maker is considering a $5 billion takeover offer according to a reuters report that is said to be worth $20 a share, compared to via's closing price of $13.21. what's next for the trump agenda and will there be more gridlock in washington, will there be movement on infrastructure, trade, jobs, health care now that the mueller report is out, we'll kick off that discussion next and is apple about to unleash a netflix killer we're going to view the event. here's a look at yesterday's s&p 500 win skpeners and losers.

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you're watching "squawk box," live from the nasdaq market site in times square. good morning, among the stories front and center, apple is set to unveil some new video and news services today. that will take place at apple's headquarters in california we'll have more on apple e's evt in ten minutes. subscribers to u-verse did not lose viacom channels like mvt and nickelodeon. the two sides have decided to continue talks on a new contract past the friday night deadline watching the real world in between the march madness, thank

god i was able to keep up to date on what was happening in the house. and gasoline prices, do people still -- is that still on? is that called real world? >> i think they brought it back. they brought back a lot of mtv franchises. >> i just tape them all, survivor. >> and throw out the tapes >> they live in a house. >> is that the big brother one >> gasoline prices. >> i live it >> you live it at work >> gas line prices are up by $0.16 over the past two weeks, the average price is now at $2.66 a gallon, exactly where it was a year ago flat year over year. >> u.s. equity features, dow is in the green dow is up 30 s&p up 2 and change, and the nasdaq is down 12. lawmakers are returning to work this week, and the mueller report is now a part of the agenda

elon muoy is joining us from capitol hill. >> if you thought washington was divided before, it's about to guess a whole lot worse. republicans from the rank and file are standing behind the president, claiming total vindication and urging their colleagues across the aisle to simply move on here's a tweet from mark meadows, he wrote after 22 months of a special counsel and two years of congressional investigations it's over the clock has finally struck midnight on the russian collusion fantasy, no collusion. democrats, however, they say this is not over they want to see the full report as well as the underlying documents made public. house speaker nancy pelosi saying that she will even reject any attempts at a classified briefing in favor of making those documents public the democrats are also honing in the on the fact that the attorney general cleared the president of obstruction of justice after just a weekend spent removing the mueller report democrats saying they want to

hear directly from barr. >> as much information as can be made public should be made public without delay i intend to fight for that transparency we will ask the attorney general to testify before the house judiciary committee. we will demand the release of the full report. the american people are entitled to a full accounting of the president's misconduct as addressed by the special counsel. >> house democrats are continuing their investigations into the president's finances and ties to russia but obviously, guys, the political landscape has shifted here, and that could affect their calculus on how to proceed. back to you. >> ylan, thank you very much, for more on what the mueller report could mean for the trump policies and the agenda on capitol hill, let's bring in dan, and jim pettakoukis, and a cnbc contributor, as it was just

set up, what impact do you think this has on the ability for the president to move his agenda forward, james, i'll start with you. >> listen, there wasn't a whole lot of ability before this, anyone expecting there to suddenly be no investigations and democrats, really, they need to work with this president that he's going to be here for another two years, that's not going to be the case there really wasn't much of an agenda yet the infrastructure, is it time for infrastructure, democrats in the administration are very far apart. i highly doubt we're going to see anything like that if this was the beginning of last year, now that we're deeply into election season, i don't think so if you like investigations, you're going to get a lot more or that. if you like infrastructure, not so much. >> is that why the futures are unmoved this morning, the market is not really pushing one direction or another based on this news? >> let me take a different direction, and i would start off by saying the market is far more

worried about a china trade deal and its ability to come to conclusion than it was about the mueller investigation. admittedly about a year ago there was a lot of uncertainty about the mueller investigation, but over time the market had built in there probably wasn't collusion. i think jimmy is right that we're going to start seeing more investigations and it reminds me of 1999 or 2011, before politically volatile years not much was able to get done, if you remember in 2000 and 2012, both presidential reelection years, you show cardiology come together to get -- congress coming together to get some items done and automatic spending cuts will need to go in effect there will be automatic drivers to get in place. the big question we are asking this morning, now that it's clear the president is going to be in office until the 2020 campaign, does china say we have to make a deal, more concessions with the european union.

it may be more in the noncongressional items that the president sees his agenda get lifted. >> china trade, that's one possibility. china realized trump's not going away i guess we need to concede and make a deal. the other side of that case is does the president feel emboldened, does he feel like his position is stronger, does he push harder on china to make a deal and does the whole thing show up. the president showed his willingness to walk away from the deal the bull case is what dan just outlined and the bear the trump administration. >> hinting back to what we have seen in a similar story play out in the past, not the same but the last time you saw an investigation. that was with clinton, what happened with the markets around those times after the star report and impeachment proceedings is on. >> the markets worried this was going to drive clinton from office, things were great, there was a bear market leading to the

starr reporting. after the starr reporting came out, the market went up, often a straight line. it became clear the president was not going to leave office, the market rallied the one difference between now and then is the bid and ask is a lot wider. if something would have happened to the president and made it more likely for democrats to get in 2020, the democrats have moved left, now talking about wealth taxes, things like that i think the stakes in the election in 2020 are a lot higher than they were 20 years ago because the parties are a lot further apart than they were 20 years ago. >> if we don't get infrastructure, if we don't get movement, let's assume there's nothing the house and administration are going to agree on in the next few years if that's the case, what does it mean for the economy and beyond? >> the world economy is slowing down that's okay if the u.s. was still growing like it was last year there's been this pause in small business confidence. ceo confidence as everybody waits for this trade deal to go through.

i think james brings up a great point. the president has upped his ante with the china trade deal over the last couple of weeks, and you have seen investors lower their expectations for that deal to come into effect. if the president somehow was able to pivot, get that china trade deal through, it's a pretty big tariff reduction. we're looking at 65, 70 billion. that should put additional stimulus into the economy where you don't need congressional action to say but that can carry itself over and never underestimate the ability of politicians to come together to do a deal in a presidential election year no matter how much they december -- despise each other. >> what the market is anticipating for these earnings, how much of this has taken a deal getting through into account or is that something that's total upside potential here. >> back in 1968 was headlines and now it's the economy and

trade that's the headline, most investors are asking when it comes to overseas investments which are trading at 20, 25% discounts to their normal relative pes, do i buy or just not bail and so i think a lot of investors are saying to themselves, you know what, i have been endured so much on the downside from overseas that maybe i should just stay the course, and i think that's what dan is saying is if we can get an agreement in terms of trade, that is something that probably will end up spiking the markets higher. >> gentlemen, i want to thank you for being here dan, jim, great to see both of you, and sam staying for the rest of the hour. much more on the global economic slow down and its impacts on the market with legendary investor, mark mobias, here's a currency rtua, eahqke st -- currency check stay tuned you're watching "squawk box. no matter where you are in life or what your dreams entail,

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>> i shouldn't laugh. >> and fibercon for that get up and go. >> and this propecia stuff which makes your hair not fall out spro supposedly the president takes it and got mad at his doctor. i'm proud, although it does do some other things. coming up, apple's streaming strategy, tmi, streaming strategy, will it be a netflix killer what investors can expect from tim cook. >> and we are following the latest developmentabs out the 737 max. we'll have a report later in the show "squawk box" coming up next. at&t provides edge-to-edge intelligence, covering virtually every part of your healthcare business. so that if she has a heart problem & the staff needs to know, they will & they'll drop everything can you take a look at her vitals? & share the data with other specialists yeah, i'm looking at them now. & they'll drop everything

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eager apple fans are going to get to see tim cook take the stage later today. it appears the company will feature more services in a quest for some new growth and perhaps a new streaming app. according to "the wall street journal. some apple employees are calling a netflix killer, this new app for more on this, let's bring in ed lee, "new york times" reporting and cnbc contributor there's room for everybody, i think. i need content >> all kinds of ideas. >> i need content. no one's killing netflix if you want to help me have even more to choose from, i'll be happy for that right? don't you think there's enough room for everybody >> there's probably a little room for some people, but not for everybody. >> really? >> if you're a household, how many of these things are you going to buy into? >> i don't know. maybe all of them. >> the setup whether it's

netflix or apple, it's an important sthing. netflix is largely a distributor. right? that's its value 60 million subscribers in the u.s. 140 million around the world apple is also a distributor. there's 1.4 billion devices around -- apple devices around the world. how do you think they got to -- >> it will be like replacing the vcr some day >> it's a little bit like that >> that's the nicest thing you've said to me. for some reason, i just -- you know, i can't imagine a world without netflix. but if apple allowed me to get every single thing that netflix does, maybe i wouldn't need it it would be based on original content. >> the key way to think about how apple's doing it, it's like a cable provider there's going to be some originals apple has paid for they want to upsell you into a

paid subscription. >> why would all these other media companies agree to that? why would i say okay, i'll pay you a portion of my profits so i can get bundled into something that is going to make me less and less relevant because you're killing not only netflix but my other competitors. >> great question. if i can make money, period, by being on the apple service because there's a billion device out there, that's a gamble i'm willing to take. >> but then you are basically selling yourself to walmart. why wouldn't today turn around oncethey have domination and say you want to stay on my platform, i'm going to charge you a lot more down the road unless i can lock in some deal that says for perpetuity, i will never pay more than this and you will never be able to charge me. >> when jeff bewkooewkes was ru, they talked about why would i cut a deal with you if you're going to give me good terms

because you could change it in a year or two. >> maybe apple had the winning argument for that. >> also if you think about the music labels it's a slightly different situation. that's just how people get music now. that's the other bet >> jim cramer made a good point. he tweeted something where he said that's a great deal i would love to be able to get all the things i already subscribe to at one place for maybe a lower rate that is lousy for the content companies that agree to that >> which is why netflix agrees to not be on apple it's not just the 15% tax. it's sort of the identity. it's the brand identity, right so we are a distributor like apple. we can't muddy us together >> that's crazy. what will the street say about these offerings? what will they think >> some estimates, they could generate $12 billion, $15 billion extra a year just on

these services >> wow that is a moneymaker >> conceivably this line item is a $40 billion service without trying that hard it's a hodgepodge of stuff now they're really going into it and they're going to promote the hell out of it. >> that's a big deal we've been talking about whether you need to really be watching the hand set sales as being the big issue or this. if they can ramp up services -- >> it's also more predictable having that revenue stream every month. instead of the two year to three year cycle that's where they want to head in terms of the predictability and the margin, hopefully, they'll get from it. >> do you have any thought on this >> if they're willing to be on these platforms now because they're awaiting new technology that might allow them greater access to the consumer on their own. >> you know, that's actually a great point. if you think about what apple -- the apple ecosystem represents, it represents the ecosystem for

all kinds of things. you know, things like augmented reality has been something that apple's been trying to tout here and there. they back tracked on that. who knows what that next big thing is going to be uber wasn't uber without iphone existing in the first place. so being part of the platform i think is important at the same time, if you're a media business whether you're in text or video or whatever it might be, you still have to be wary because you don't want the distribution point to be choked off one way or the other just in terms of business or whatever it might be if you have your own distribution point, "new york times" has its own app for example that's successful. they made the bet we'd rather not be part of pit if you're more of a nascent player in this, maybe it's important to be part of it >> ed, thank you very much great to see you ed lee also want to thank sam stovall for being with us this our >> my pleasure when we come back, we'll have more on the markets after the mueller report now trade is the next big

hurdle what investors should be watching as trade talks pick back up this week. plus lyft and uber are already on the road, but is this is the right time to go public with big tech that's coming up in the next hour i'm working to keep the fire going for another 150 years. ♪ to inspire confidence through style. ♪ i'm working to make connections of a different kind. ♪ i'm working for beauty that begins with nature. ♪ to treat every car like i treat mine. ♪ at adp we're designing a better way to work, so you can achieve what you're working for. ♪

wall street trying to figure out what the mueller report means for the market has the cloud lifted over the president and could a trade deal get done we'll cover your money and investments now that that report is out fighting the 6%. realtors under fire for their commission fees and now there is a class action lawsuit we will hear from both sides as we head into the busiest time of the year for home sales. plus, ready for lyft off a company preparing to go public we'll talk how the current scrutiny of the tech industry could affect those coming to market as the second hour of "squawk box" begins right now. live from the beating heart of business, new york, this is "squawk box.

good morning and welcome back to "squawk box" here on cnbc i'm joe kernen along with becky quick. andr andrew's off today can you believe that u.s. equity futures are indicated up about 12 points this morning 13 points. s&p up 0.84 and the nasdaq down 17 here's what's making headlines at this hour boeing is taking new steps in its efforts to get the 737 max jets back in service it hosted three airlines over the weekend to update them on a software fix for the jet involved in the fatal crashes. those were the three american airline companies that have those max jets in their rundowns -- in their lineups that they have been pulled and not been using also on wednesday they're inviting to participate in a information session. chicago fed president charlie evans says he understands why the markets are nervous about a flattening yield curve, but he adds he's

confident about the growth outlook for the u.s. economy he expects growth to be around 2% for 2019 and we should point out evans is a voting member of the fomc for 2019. and the thriller "us" topped the weekend movie box office it took in $70 million in north american ticket sales. that was the second best opening of 2019 behind "captain marvel's" debut earlier this month. markets will get to react to the mueller report for the first time today one side claiming victory. the other saying the president has not been exonerated. eamon javers is live at the white house. >> reporter: that's right. we did not get the full mueller report over the weekend. but what we did get was the summary from william barr who sent a letter to capitol hill and to the public. here's what barr said about the mueller report in his letter which was released late yesterday. he said on the issue of collusion with russians, he said he did not establish -- moouellr

did not establish collusion with anybody affiliated with the trump campaign and the russians. mueller did not come to a conclusion on the obstruction of justice by the president but barr himself concluded that the obstruction of justice evidence that was gathered by robert mueller was, quote, not sufficient barr also says he'll release as much of the report as he can consistent with the law and his obligation to keep grand jury secrecy information private and also classified information confidential meanwhile, the president returning from florida in a triumphant mood given the findings here's what he president had to say yesterday. >> so after a long look, after a long investigation, after so many people have been so badly

hurt, after not looking at the other side where a lot of bad things happened, a lot of horrible things happened for our country, it was just announced there was no collusion with russia the most ridiculous thing i've ever heard >> now, the attorney general william barr suggests that he's going to go through all of the material in the mueller report and try to release as much as possible democrats are already calling for a release of the full mueller report so the political battle now will turn to just how much of that information gathered by the special counsel we and the public will be able to see ultimately >> yeah. eamon, we will be obviously watching you got the southern district. you've got, you know, nadler you've got all this stuff that's going to continue, i guess i wonder -- everybody's

different and we're so polarized in the country but i wonder whether independence since we did spend two years doing this and didn't come up with anything, i just wonder if the real fervor for investigate, investigate, investigate, investigate, whether that continues for the next two years or whether there is some pushback with let's just got on with it >> what's fascinating is you've already seen the is speaker of the house pelosi try to tamp down -- >> i thought that was a trick. >> it was possibly a political hedge against just this kind of mueller report what they wanted to do is cast democrats as the reasonable party here saying we're going to wait for all the evidence and the facts and if it's not bipartisan, we're not going forward. she has a long memory and she remembers what happened to republicans after the clinton impeachment. bill clinton became more popular during that process.

she doesn't want to rerun the clinton impeachment with donald trump in office. >> we're going to talk now about the markets because i think the risk was asymmetric. i really do. i don't know how much we go up based on it. we're up 20% but a constitutional crisis or a continuing protracted, just -- you know, what we would have been looking at if there was collusion. what are the key takeaways from the mueller investigation for investors? joining us now, saddling up to the set, joe seidel from blackstone and chrykrishna mamai and mike santoli >> i definitely agree it's not a sustained or lasting upside catalyst

i don't think the market has been restrained by a mueller overhang right? you have to make the case that for two years somehow the market was suppressed as we waited for this i don't think you can do that. the market's up 16%. >> why not >> because i don't think that's what the market does, right? i think over the course of two years, i think the general shape of things based on what was reported was kind of digested by the market >> this was in the market there wasn't going to be collusion >> i don't think it was in or out. >> i think it was. >> i think it was too. >> what would we be pricing in if you said, okay, the market has decided that there was going to be a finding of collusion >> that would come as a shock to me this did not come as a shock to me >> the u.s. has outperformed the rest of the world by a lot >> bye-bye there go our lights. they don't like what we're saying >> exactly no, i would have -- >> russia. >> exactly if it would have gotten -- like, if some of the previous indictments had led to you thinking collusion was imminent, i think it might -- >> and i think the market told you because it didn't react much

to manafort and cohen and all this stuff it wasn't high sensitivity >> i mentioned the brian ross piece. remember that? >> i do. early on we didn't know what we were dealing with. this was a chaotic seeming situation at that moment but when you have two years of a process and again, a lot of the elements were reported through these other cases. >> seidel, you've been bullish does this make you more bullish? same bullish a little more bullish? >> this doesn't really change anything for me, per se. but i think there's at least one more risk we're not pricing in here and that's just greater polarization this is just the start of another leg of this process. and i think it means for democrats, they are going to be holding hearings, looking for documents and source notes i think you've got to consider polarization of the american public and i brought along a chart and hopefully we can show it that is a measure of consumer confident. and basically this is a chart or

a survey that's been going on since 1990 it surveys consumers on how they feel about their finances and spending outlook for people who are identifying as republican, they're basically saying this economy is as good as it gets it's the best in the history of the data we've seen. and people that identify as democrat, they're saying we haven't seen any lift from this economy. so i think the risk is -- >> although if you look at the blue line, the democrats' thinking on it, it's still up sharply since 2009 >> it's up sharply but one of the biggest divergences. >> the split between the red and the blue. >> the split i mention this because it could become a self-fulfilling prophecy if you identify as a democrat, you're looking at this economic expansion. you're looking at the political head winds saying i'm not feeling aed good you don't spend money. and if this continues to drag on with if that divergence continues to increase -- >> it's two-thirds of the market if you have two-thirds of that

half of the economy deciding -- >> your perception of how the economy is doing -- >> that defines your spending. if you're sitting out there -- >> even if the reality is wages are going up and unemployment is low were democrats just because of who's in office feel less it's not that they're worried about being suffocated in co2 in the near future, is it that's not why democrats are depressed. >> not one of the questions on that survey. >> let's not -- >> what's it going to matter if we're all dead >> let's not conflate two issues what this represents is far more about perceptions with respect to income inequality the fkt that lower level wages have gone up while others have gone up much more. >> that was democrat and republican it doesn't break it down by class. >> the supporters end up being in the lower income levels end up being supporting democrats. >> i don't think so. i think what donald trump proved

was he won people. like the reagan democrats. >> a portion of them not the entire economic t-- >> which rich elites voted for trump? tell me one. >> it's not that it's the fact the stock market has gone up a lot. that has clearly helped a lot of republicans. >> the market went up mostly from the prior administration. >> absolutely. i think the fact that the markets have gone up a lot has a significant bearing on how people feel about it -- >> you don't see any positive signs in wage growth right now that we're starting to see >> not at all. i think wages are growing. they're growingfaster than the economy. that's how things should be. however, that has a whole lot less to do with how people perceive things. if you go out and look at any of these types of surveys, what people will tell you is they don't think their wages are growing as fast as they should be growing coming back to the mueller report, i think the right way to think of the mueller report is

it's a dodged bullet asymmetr asymmetr asymmetrical is the right way to think of it. think of the growth in the world today is slowing down or not i think it isn't we are going through a soft patch. eventually we probably end up at a better growth rate than the second half of this year it will reach some sort of a trade deal as a result, the second half of the year is going to be meaningfully better. >> we got an inverted yield curve. >> how big of a deal is that you're usually a calmer voice. >> i would say you have to have these kind of two opposing thoughts in your head which is a significant signal, but it's not some kind of a trigger that says okay all of a sudden things go from good to bad there's a long lead time to even if this lasts a month or three months, there's a long lead time from that which has meant a recession or a bear market so i think so that -- i don't want to explain it away because

i think in past cycles people try to explain it away but it is very marginal. right now it's very brief. and all the research on it is if it lasts for a quarter >> we're still at 246. >> it's not about the shape of the curve as it is the level of rates. when was the last time when we were in this sort of a situation? you actually get better housing data i think that's really the proof. it's the level of rates rather than the shape of the curve that drives what the economic activity is going to look like in the future. >> that's usually why you get a bit of a lift after the inversion. one thing to keep in mind. it does have a cause as well as being a signal i do think that there's a chance it kind of turns some financing strategies upside down it can surface any issues that might be out there in the shadow banking world. >> i saw another -- i can't remember which pundit it was, but a well known one said that bernanke painted us into a corner and we got problems

trying to get back to what would be more normal but other people say this is the new normal i don't know what to believe >> we're the one economy that's escaped zero on rates. i don't know that we did such a terrible job >> our economy dictates what happens to the rest of the world as well. >> let's not get too deep here today the global growth is actually quite substantial it's not 4% or 5% people would like, but still 3 1/2% >> so then why can't rates get back to 4%, 5% >> because there's no inflation. it's really not about economic activity as much -- people think they know but they don't >> i think there is some inflation beneath the surface. i think people are only beginning to acknowledge it. historically employee cost has a correlation to cpi if you look at employee cost indexes today, they're movin higher not only are waging moving

higher, we're moving at 3.4% but government data is lagging because they're running hotter there's an inflationary concern there. mike, you brought up a great point on the yield curve it is a great predictor of economic cycles. what we do is try to explain it away it inverts at a period of massive bullishness. it's an important development. >> well, as long as there's amazon and complete transparency and pricing, maybe we just -- maybe we haven't -- we've underestimated how powerful -- >> in 2000 people said don't worry about it >> but how powerful is the internet in keeping down prices? >> i think that's what the fed is hoping to >> all right mike santoli, thank you. joe zidle, thank you. when we come back, with the

mueller report concluded the president has a week of trade talks ahead. we will speak to asia society policy institute president kevin rudd former prime minister of australia. "squawk box" will be right back. so with xfinity mobile

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up just under two. the nasdaq, though is, down 23 points the s&p is down now by a point and a half and some news just in from biogen the drug maker has announced a new $5 billion share repurchase program. as you probably know, it comes after last week's plunge in the stock following a decision to end a study of an alzheimer's treatment that did not produce the desired results. it was down lastweek because a drug failed. i can say it in three words. instead of -- >> a drug failed, it didn't work and it was a very -- there were huge hopes pinned on it. it was going to be a big deal. it was a new way to actually challenge alzheimer's. none of the other ways have worked except this doesn't work either. >> the program is in addition to the $1.7 billion share repurchase authorizations that were left from a prior program when we come back, the

impact of the mueller investigation on trade the president's trade representatives are ready to move forward with talks this week we have a preview of what to expect that's next right here on "squawk box.

high level trade talks between the u.s. and china pick back up in beijing this week is there now a greater chance of a meaningful deal? and kayla tausche joins us with more lost in all this news, kayla, i think that was really interesting the north korean sanctions. i like this guy, i'm not putting sanctions on him that's interesting, is it not? >> it is and we'll set that aside just for one second, joe, to talk about trade. because you ask whether the mueller report and its findings make it more meaningful or more possible that the president would get a meaningful trade deal and i think the answer is potentially. while the president might be emboldened by the conclusion that his campaign did not conclude with russian, there were still others on the inauguration and the president's business dealings as well as an investigation-friendly house led by democrats

the timeline for all of these investigations is unclear. but we do know the timeline for trade talks is a bit more clear. hope for the u.s. is that a deal will be reached in principle in the next two weeks you have president trump's two top trade officials flying to beijing for a one-day negotiation overnight on thursday vice premier hu returns on april 33rd the goal is to seal the deal in the days following that washington visit with a mar mar-a-lago signing summit the preference for the white house and said that china would be willing to relax pre-existing tariffs, but they want all u.s. tariffs gone that's something the white house has been unwilling to do the financial times reports they are underwhelmed on an offer for digital trade. is president trump emboldened to be firmer with china than he would have otherwise and how cybersecurity played

this china could try to interfere in the 2020 election alongside russia using lessons that they learned in 2016, joe >> yeah. i was actually just -- he has a good relationship with president xi he always emphasizes how much personal sort of camaraderie they have. based on a personal relationship based on whether it comes into play with president xi that gets placed on the back burner based on what the lower level trade talks were >> certainly the ministers as they call them who are leading the trade talks have been driving a hard bargain and holding the line that we have seen president trump able to take into account president xi's personal asks. when we ask him to relax treatment of the telecom company

zte. the president did that and that was in advance of cooperation with north korea before the summit in singapore last june. so we're seeing some of these similar threads, joe, play out yet again. then there's the question of huawei too president xi is expected to ask for those charges to be dropped or some similar outcome there. and we'll see if president trump is willing to engage on that as well >> back to business. trade, global slowdown just this other stuff seems to be at least that part is in the rearview mirror. but we'll see about the southern district, all that other stuff still on the front burner for a lot of washington. anyway, thank you. okay >> he thought you were doing wi - done with the mueller report there's some interesting comments out from a cnbc contributor today who is the ceo of kkm financial telling us this could be a real positive for the market if it allows trump to focus on getting chinese trade

deals concluded. joining us is kevin rudd he's the president of the asia spo society policy institute thank you for being here. >> good to be with you >> let's start with the mueller report with that off the table, does this strengthen the president's hand from his perspective or from the chinese perspective >> i think the bottom line as beijing looks at the mueller report is this will be seen as a win for the president. and therefore on balance, it'll be seen as strengthening the u.s. negotiating position. that's my baseline judgment. and when lighthizer and mnuchin head off to beijing this week for further round of negotiations, i think they'll have a bit of wind in their sails. >> meaning you think something is more likely to get done next month or so? >> i think it's more likely to produce more substantive outcome. i think the overriding logic both in beijing and in washington is both the heads of government or heads of state they want a deal

that is the american economy, the president fears is slowing he's taken action already by lack of extraordinary means which is not to raise rates further. as a result, you've seen sort of a slightly better outcome in the markets. the second piece of this, of course, is bringing the trade talks to conclusion. xi jingping has a slowing economy as well. so at a macro level, the two heads of government want this thing put to bed. >> can i just ask you, you mentioned something about president trump taking these extraordinary steps to put pressure on the federal reserve. what's the view from around the globe? do you think people who are looking at this from the outside, do they think a in the federal reserve stopped raises rates because the president made them or the chairman of the fed came to that conclusion on his own? >> i think the rest of the world think both of those things

australia, we have an act of full independence of the reserve of the bank of australia which is the equivalent. our vice prime minister said you're nuts and don't do this again. i'll be howled out of office this is a unique trump play. bottom line is it's effective. and i'm sure the chairman of the fed had his own reasons for doing that going back to the trade stuff, i think that's been a factor in the president's consideration. as we all know on this program, he looks at markets. but he also knows that market sentiment is driven by this unresolved elephant in the living room which is the trade war. i think he wants it done and xi jingping i know for a fact because of slowing back home in china wants it done as well >> let me tell you about the speed bumps i read last night. the idea there is pushback from the chinese, that they're not doing anything now to reduce

limits for companies to have data locally do you think there's any thought that will eventually get resolved or push comes to shove on these issues, that and how you -- whether you keep any tariffs there or threaten to have the tariffs come back on, what happens to those >> take those two points you just raised. on the -- let's call it the enforcement mechanism for this deal when it's eventually done, the american position is if we judge you violated china, then we'll automatically reimpose tariffs. but we want you to agree in advance that you will not then reimpose retaliatory tariffs on the united states. that is probably too much of an ask for the chinese to be blunt. but will be seen as an unequal treaty on the other one you mentioned which is this data storage question and the future of as it were cloud storage in china, if you're an investor inchina through an enterprise you invested in, require you to use

only their cloud storage facilities now, legitimately a number of foreign firms are anxious about that >> right giving over your data and making it possibly -- >> and making data vulnerable. so i think there's a fair ask by the united states to say, hey, this is not required of any other country in the world >> however twhab will allow the firms to be storing information the chinese government can't get access to. that seems like a big bridge for them >> i think you're going to have an outcome somewhere between the chinese about a week ago, it's reported, made a modest concession on this at least the door half opened. but this goes to the whole question of let's call it the chinese communist party's deep anxiety about let's call it the digital story of information period trying to screen out as it were foreign capacity generally. >> mr. prime minister, australia has what 20-some years without a recession? 20-plus? it's the longest economic growth

period that we've ever seen? >> it's quite a long time. so you think something like -- we kept it positive during the global financial crisis. >> let's talk about that what did they do differently sfl what's unique to australia is that something since we are already in the longest running bull market that we've seen for a very long time, longest running economic expansion in a long time, what would have to happen here to allow something like that to continue? >> i think our underlying thought has to be challenged i know economic history would point us in the reverse direction. i wasn't elected as prime minister to do that. but we did inject to make a difference why? we didn't want to see hundreds of thousands of people thrown out of work. i think the preparedness to do that through reasoning and measures and to do it early enough is important. >> has china had a recession in

the past 25 years? >> no, they avoided one themselves. >> that's not why little australia -- >> no, i was about to come to the second point is which is what we did domesticicly, about 25% of that went to china. and the chinese at the same time as we stimulated did the same for themselves domestically. it's two things. the independent analysts sets these two factors. so the latter factor doesn't apply to you guys in your own business cycle i think one final thing on the trade negotiations, and something for president trump, you know how the president loves as he tried to do in hanoi, do these final negotiations himself? >> yeah. >> it ain't going to work that way in a trade negotiation "a," it's too complex. "b," the chinese will never have xi jingping go to mar-a-lago

with 20% of his deal still to be negotiated they just will not allow him to leave home base. >> they don't want it to go south, yeah. >> they don't want him to, as it were, suffer the political criticism which would flow from him returns from mar-a-lago empty handed they watched what happened with kim jong-un in hanoi and said not for our guy. >> mr. prime minister, thank you very much for joining us good to see you. >> good to be with you back here at home, at&t and viacom have just announced a deal that will keep it on the platform the contract expired friday night and this kept talking past the deadline i think tv channels stayed on. now they've announced a new pact coming up, a huge week for the markets as we get ready for one of the most anticipated ipos of 2019. we'll discuss the landscape and w relates to your portfolio in a bit "squawk box" coming right back his steinway, which met a burst pipe.

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let's check on the markets this morning the dow is now negative. it's been in a pretty tight range between down 30, up 30 it's now down 22 or so nasdaq indicated lower on a relative basis, down 30 points or 28.5 on the nasdaq. and the s&p indicated down three. take a quick check of europe which is in the red except for italy. oil, we haven't talked about nearly as much for awhile, the market seemed to be held hostage by oil it would go up when oil was up and down when oil was down but we've been in a comfortable range somewhere right around $60. $58.83 today on wti. the 10-year, 2.46% is where it is now the dollar as you might imagine

with rates headed down, haven't been as strong as for gold which is, you know, i guess it's been in a bit of an up trend i don't know what you would attribute it to. maybe the fed. >> when the markets went down in september and october -- >> that helped and higher rates usually aren't from the fed $1300. gasoline prices are up in the past two weeks which made me upset. especially when people are, you know, sitting there idling and i can't get to where i'm going according to the latest lundberg survey, the latest price is $2.66 exactly where it was a year ago i'm reading quickly. tech has been on a winning streak but it's also come under fire from both sides of the aisle. this is as a number of high profile ipos are coming to market including pinterest and lyft later this week joining us with an investor's

perspective, bob davis, partner at hyland capital. going to be tough to get back to those days you're pining for again, bob i don't know if it ever gets back to there. do you think that wouldn't be good for anyone it seems like things are solid right now but not frothy is that a fair assessment? would you say the froth is starting to appear >> i don't think there's any froth right now. i think it's a really solid, lot of fundamentals. a lot of strong companies coming out. in terms of the pace of offering and the private capital. it's a very different market >> can you -- you were a -- i don't know if you were the visionary and i know you had some help with that, but can you just overall give me an idea five years from now, what are we going to be talking about? i can't imagine it's still

social media where are we headed? >> oh, boy, if i had tomorrow's newspaper, i'd be reading that right now instead of sitting here. >> what comes to you now and says check this out? >> there's a lot going on. there's disruptive commerce. you look at traditional industries that have been changed and challenged every day. we have an exciting company in new york which is a new way of buying food and eating at home we have a whole line of commerce companies. and a lot of the businesses that you look at that are traditional are stuck in their ways. they couldn't change if their life depended on it. there's a wave of new entrepreneur that is looking to come along and challenge those folks. a lot going on around the idea of autonomous driving and software we have investments in autonomous vehicles, drones, autonomous software. it's software operating in the place of people. it's strong. a lot in the way of cybersecurity. it's a threat that will not end. and as quick as the software companies come that look to stop it, there's a new bad guy that

shows up with a new alternative. that's a never-ending process that i think if you look five, ten years from now, that will continue on. and it won't slow down we do a good bit in the future of work and the future of education. we train young people and the new skills that they need to develop in an emerging economy a lot of exciting areas to still invest >> i just wonder where all these disruptive technologies seem to, you know, try to take the fat out of a lot of industries that it doesn't need to be there. i wonder what's still left for disruption what you said about college, i mean, i wonder about college sometimes. especially with all we've seen recently and how much it costs i just wonder if there are probablily interruptive ways to get a great education that doesn't involve $80,000 a year >> we have trilogy education we're invested in. they don't focus on a college degree they focus on getting the technical job skills that are

necessary to compete in today's environment. i don't need, necessarily to have that ph.d. in computer science to be a good front line programmer and what these guys do along with some of -- working with some of the top universities in the country, they'll probably you the possibility of getting a certificate in a particular skill. these guys will provide the skill set necessary. i think what's amazing is the way many of these companies today are using data i mean, we hear a lot about the data that facebook and google use that attacks privacy but you look at the way traditional commerce companies are using data to make the consumer experience stronger, that's a tough thing to compete with and again, traditional companies have a tough time doing that >> what's going to happen with tech can we self-regulate, you think? is there a big scary regulatory

onslaught coming from washington with tech and privacy? something akin to europe or do we just like the wild, wild west over here? i mean, i always -- i joke around that what's the name of the faang stocks in europe and it's n-o-n-e is their acronym for what goes on over there. they don't even have one so are we going to kill the goose that laid the golden egg >> i don't know. i mean, we're doing an okay job at self-regulation today often takes a crisis before we jump in and do that. but so many interesting parties to look at self-regulation before the government takes over i mean, the use of data to be clear is a really good thing if it's used properly i mentioned that some of these commerce companies and how they use data, at freshly i use data to determine what meal you like and how you like it cooked that's a good thing. if i use data, however, to look at your browsing history and to

use in some malware type of basis that says i'm going to expose who you are to the world i don't want exposed, that's not a good thing it's a balance we're trying to find there's too many priorities that have too much at stake to not get figured out before the government has to come and take control. what's likely is it's probably going to have a complicated and confusing solution >> you have cybersecurity start-ups come to you? i mean, are we ready for the internet of things can my pacemaker, can i feel comfortable having someone else running my pacemaker that i'm not hackable >> i don't know if you are i don't know if you are at all i think it's probably the greatest threat to this country today is the cybersecurity hacks that we're going to find and i don't think we've scratched the surface in terms of what could happen versus what has happened you know, we hear the doomsday scenarios of people taking over

the power grids and the banking systems and a whole host of other areas of threats to our day-to-day life. well, you know, that's real world stuff. and we need to be vigilant or it does happen. are you safe with your pacemaker being taken over i'm not sure your pacemaker is the target but are we safe on the internet of things? i don't think we are at all. we need ever-increasingly strong skill sets amongst young pioneers and developers to be able to solve for these solutions. it is a big, big threat. >> well, you know, next time someone comes to you with some stupid, you know, social media messaging something or other, why don't you say i'm not giving you any money? i'm going to fund some things to prevent hacking in cybersecurity. it's up to you, bob. >> i'm working hard on that. cybersecurity thankfully is an important area of investment for us we put a lot of money there and come up with a lot of great companies and great solutions. but it's a scary thing we're at the edge of some bad

stuff happening. and without some great cybersecurity, there's not going to be any end in sight to it >> hey, bob. we had steve case on last week he made a deal about rise above or investing -- what is it what's the name of it? >> that's a new cadillac commercial. >> rise of the rest. >> rise of the rest, thank you that's what i'm looking for. he says most of the investing goes to silicon valley, but he does say your area boston gets a lot of that money too. what do you think of the prices on deals that you can make with venture capitalists versus silicon valley >> yeah, i don't know if there's all that much different. the valley might be slightly inflated over what we would find in boston. for us it's boston, new york we look as one big beltway of investment opportunity we think of those interchangeably. if i compare boston and that beltway, it's probably very similar. pricing, you asked the question opening up with things frothy. pricing is a little higher we were talking -- you were talking a few moments ago about the ipo lineup coming up here

over the next few weeks. it's pretty amazing. but these are all companies of substance. this isn't the puppet of pets.com in 1999. >> they're companies of substance but not necessarily companies of profit. some of them also admit they have no path to profitability. is that a problem? >> if they don't have a path to profitability, it will inevitably be a problem. surely it will be. at some point you have to pay the fiddler. so that will certainly be a problem. we can't be working out, you know, at jimmy's yard sale every week trying to figure out how to get earnings but it's -- they'll -- the companies have sizable use of growth i look at lyft which is the little brother of the uber. >> and i love what they do as a consumer in using both those companies. but i am talking about those two companies in particular.

lyft talking about how it may never become profitable. and some of the drivers for uber in l.a. this week are threatening to go on strike because they've just been asked to say they can only take 60 cents per mile versus the 80 cents a mile they had been charging they say they can't make money on that. if you get to the point where you're already -- you're treating them as contractors, not employees and that's important to both of the company's structures then you have them saying you're going to take less and less money because that's the only way you'd get to a profit, it seems there's something that could potentially break there along the way. >> it's a complicated business to say the least great things never are if we're looking to change the world as these companies are, they need to do it quickly and easily it'll be tricky. i can't imagine a scenario where both lyft and uber are widely profitable businesses. i don't know when. i'm not on the inside of those businesses i wish i was those to me are strong

companies. we'll start to see different fees and services they provide look at what they're doing today with uber eats and all the services they offer today that continue to tap into new revenue streams. it will be there and available for them and they're really too critical to not succeed we looked at the banks in '08 and talked about too big to fail these companies to us in our daily lives are too important to fail they're critical in what we're doing every day. i can't imagine a life without uber and lyft. it's critical. i came here this morning in an uber car important to what i'm doing. >> i agree i use uber every week for the kids getting places too. it's pretty important. just because it's good for me doesn't necessarily mean i want to invest at the levels they're talking about. >> yeah. i guess you're right >> that's hard for me to believe. that he went in an uber car. >> i believe >> you don't have a driver you don't have to virtue signal here you don't have a driver? honestly

>> it's hard to believe, isn't it i struggled. >> you save up for your -- to have two pilots in your g5 i think. bob, thank you good to see you this morning >> always good to see both of you. coming up, some stocks to watch plus a preview of apple's presentation later today ato pend what it means for investors is straight ahead. video games have evolved. why hasn't the way you bank? virtual wallet from pnc bank helps make it easier to see what you're spending, stash more into savings and stay on top of your finances in a digital world. just one way pnc is modernizing banking to help make things easier. pnc bank. make today the day. why go with anybody else? we know their rates are good, we know that they're always going to take care of us. it was an instant savings and i should have changed a long time ago. we're the tenney's and we're usaa members for life. call usaa to start saving on insurance today.

still to come this morning, mark mobius, he will join us for the hour "squawk box" will be right bk.ac

markets after mueller. what does the long-awaited report mean for wall street, trade, and the rest of president trump's agenda

global slowdown concerns legendary investor mark mobius will take us around the world to find emerging toue ining opport. and new questions for boeing scrutiny mounting on how the 737 max got certified. we have the latest dwomevelopme. the final 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. andrew is off today. our guest host this hour is mark mobius legendary investor that you can ask about any country in the world, i think, and we may the futures right now in this country are indicated down 27 points the s&p indicated down about

five nasdaq indicated down 28 and treasury yields, the 10-year is below 2.5% still. biogen announcing a new $5 billion share repurchase program. that follows the stock's plunge last week after the decision to end its alzheimer's drug study it's not effective in third stage trials there was a lot of hopes on that for the markets. some people told us that in itself was worth hundreds of dollars from the stock it fell from $330 to below $220. it is back up by $4 this morning. $220.40 a share. boeing hosting teams from three u.s. airlines over the weekend to review a software upgrade for the fleet of grou grounded 737 max planes.

as it moves to return the jet to service. we will speak more on this later this hour. that stock is up a little bit today. fiat chrysler rebuffing a emergencier approach fiat's chairman john elkin is making a renewed push to team up with another automaker >> all right the big story over the weekend was the mueller report for more on that, eamon javers joins us with more >> good morning again. so we don't have the mueller report, but what we do have is the barr summary of the mueller report the attorney general sending a letter about four panls long up to capitol hill summarizing what he said are the principal conclusions of the mueller report which was submitted to him on friday. here's what william barr said o in that letter on the issue of russian collusion. did the president or anybody

affiliated with him collude with the russians in 2016 he says that mueller did not establish collusion. he said that mueller did not come to a conclusion one way or the other on the issue of obstruction of justice whether the president or his staff tried to block this investigation improperly but barr himself steps into the argument here in his letter and says that he and roz rod rosenstein say it's not sufficient to charge the president with a crime there as well barr also goes on to say he will release as much of the report as he can consistent with existing law. and there are several sensitive areas of information that might be included in this report he might not be able to ever release. for her part, sarah huckabee sanders was on the "today" show earlier this morning savannah guthrie asked her if she supports the release of the full mueller report. here's what she said >> look, i don't think the president has any problem with

it he has been the most transparent, accessible president we've seen in modern history. this is a person who loves to engage with the media. he's more than happy for any of this stuff to come out because he knows exactly what did and didn't happen. now the rest of america knows. they know there was no collusion. they know there was no obstruction. >> if that's the case -- >> so guys, now we know what the principal conclusions of the mueller investigation were there's still a lot we don't know about this. you can be sure democrats are going to press for more information here and perhaps all of the underlying documents as well for one thing, we don't even know how many pages the mueller report is. is it 5 pages or 500 pages we don't know. >> not a great week for the big east or for the democrats. not a great weekend, eamon >> yeah, look. i mean, if you talk about the democrats and their reaction here, there was some effort on the part of rank and file democrats to move quickly toward

impeachment. you can see that the air has gone completely out of that balloon this morning it is a win here for the white house and this president >> i like sarah huckabee sanders calling the president transparent. that's what those tweets are they're transparent, dude. >> right you can see what he thinks on a moment to moment basis particularly in the morning. >> if you're measuring transparency, he's a 10 or a 12 on transparency. anyway, thank you, eamon javers. let's get to our guest host mark moeb i can't say founding partner at mobius capital partners mark, you're everywhere i ask you off camera how many times you've been to china and it was i think a hundred more times which is about right. so you're everywhere, you're looking for opportunities everywhere you hear from our trading partners, their opinion of donald trump and you know better than we do

did anything happen over the weekend that will cause people we're negotiating with to act differently in the trade deals >> i don't think so. think about that and when they look at donald trump, they think why isn't donald trump telling people what to do? this is the kind of thinking they have. so yng it's going to have much impact one way or the other? >> so even in china where if it had been a different conclusion that bob mueller had reached, you don't think that would have emboldened china to take a tougher bargain iing position >>. >> they realize it would be difficult to impeach the president. if there was a definite possibility of him being impeached, then there'd be a different situation. >> that's interesting.

maybe that's what the market has figured out too. which is why you don't see much movement today >> exactly most people can't figure out what's going on outside the u.s. >> or inside the u.s. >> let's talk outside and inside the u.s. we always try to talk about the united states sometimes as if we can is almost do well domestically on our own, it seems like sometimes in terms of there are other countries that are more dependent on growth around the rest of the globe. we can self-generate then again, the globe is dependent on things going well here >> definitely. >> how much negative feedback can this country have from a slowdown in europe or a slowdown in china >> let's put it this way if you have a big, big fall in the u.s. index, that would affect everyone globally because they realize that the u.s. market is the biggest in the world. but the bottom line is that if you look at all this business about trade war and so forth, the trade deficit is increasing

with china not decreasing >> in a strong economy here, that you might expect that >> that's probably the situation. but that's why it's very puzzling when you look at the situation vis-a-vis china, yes, they're worried about the trade war. but the bottom line is that they're having a bigger trade deficit with the u.s. than ever before so i think we're in a situation now where they -- the chinese believe they can do a deal with trump. and i think they will do a deal with trump before the election and that's exactly what trump needs. >> will they do anything that actually changes their behavior? >> they're beginning to do that already. if you notice some measures they've taken in terms of liberalizing the market. >> those are proposals at this point. we haven't seen them play out. you think they'll take them seriously and literally? >> i think so. because it's in their interest to do that china wants to draw in more capital at this stage. because in a -- from a financial point of view, they have problems

domestically particularly on the private sector side. they've got to draw in more capital. that means more access to the free asia market and more ipos coming into play the interesting thing about china is the big ipos, alibaba is the largest ipo ever. and it was here. not in china >> so that brings us back to the discussion president trump is the one who's made this a priority but do you think this was going to happen anyway just because businesses and investors were no longer willing to go along and do what kmn had been demanding for years. >> towards more high-tech high value added. >> maybe they actually have some intellectual property. >> if you look at the patents worldwide, china is the leading patent holder now. >> i've heard that thrown about

about artificial intelligence, they have more pa thetents than do would they hold up the same? i don't know that all patent offices are necessarily equal. >> difficult to say. but in terms of actual numbers, they're right up there and they're increasing more than the u.s. and other countries >> all right let's take a trip around the world then is europe a positive or negative for the united states and for global growth right now? >> i would say it's a negative because of brexit. because if you look at the brexit situation, yes, uk will be hurt. but europe will also be hurt that's one manufacturer. imagine if this is upset earnings in these companies will be hit as a result of this problem. >> it's tough to even cover because it's an island, i guess.

>> it's a real problem >> a big backup at the borders with the tunnel and all. okay so europe's not going to help that much. how about china right now? >> china is going to continue to grow but you must remember, you know, in 2010, they grew at 10%. in terms of dollars, what they're growing at now is whatever number you want to use. so they're doing well. you can look at the trade deficit with the u.s., they're doing very well in terms of exports. >> what do you think of this guy from brazil? it was classic those two guys together i liked watching it. he says what he means too. he's transparent >> yeah. the things that are happening in brazil are earth shaking >> really? tell us more >> you must remember, this car wash scandal they had hit every

sector of the society. over half of the congress in brazil was impacted by this. they were involved so you've had this huge movement towards reform which he represents, basically and the interesting thing is the guy that was heading all these investigations, he's now put in charge of the justice department in brazil. this is an amazing development so i'm not saying, you know, they're going to change everything, but you're going to have big reforms taking place in brazil >> what about venezuela? there was a report that there were two planes supposedly carrying military equipment and soldiers that were landing there. it's a big standoff at this point. >> maybe that's the reason they're looking at that. >> but does that lead to a conflict point when we're looking at the things mike

pompeo have said recently. that they're drawing up plans themselves to figure out what to do >> as you know, the russians have always wanted to be in latin america. they feel that, look the u.s. is surrounding us in europe we're going to surround them in latin america. i mean, we saw that with the cuban crisis and so forth. >> yeah. >> that had a big climax >> exactly that's the sticking point and probably a problem going forward. but with brazil in that position with argentina coming up again, i think it's important for the u.s. to pay more attention to latin america. >> will we have a recession in the united states this year or next >> i don't see that. you're going to see slower growth compared to last year that's expected. but i don't see a -- >> when we do have a recession, will it be from a policy mistake here or con today g con cotagie?

>> that's not a good sign. that could be a real fire point between china and the u.s. >> i wonder if that's a time where the president's personal relationship with president xi is a plus. do you think it would be i think he would call him, probably, wouldn't he? >> you would think so. and you would think that would help but i'm afraid that china is on the path of more aggressive movement particularly in asia pacific. it would be very difficult to stop that. it's very important to the u.s. to really step up to that issue. very important >> all right mark, thanks more to come from mark mobius this hour. when we return, is apple about to unveil a netflix killer we have a preview of today's big event and what it could mean for consumers and investors. plus we'll have the latest development surrounding the

boeing 737 max and the investigation keeping the aircraft on the ground stay tuned bctcngsqwkoxonua b" cn 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.

welcome back to "squawk box.

mark mobius says the market's up now. at least the dow good, mark we were down about 20, 25. now we're up about 11. the nasdaq down 13.5 s&p up under a point but up. eager apple fans will get to see tim cook take the stage later today. it 150eseems the company will h new streaming app as well. that according to "the wall street journal." some apple employees are actually calling a netflix killer for more on this, we have gene munster at loup ventures on the "squawk" newsline. what do you think? the potential for a netflix killer out of apple today? >> it's going to be competitive and cause netflix investors to think about what this is going to to do for netflix's growth. over the next year this will be negative for netflix really shocking. the stock is up over 50%

but i do think this will be on netflix stock. i don't think it will kill netfl netflix. the simple reason is this. just like spotify, that exists it doesn't exist particularly well the stock hasn't done anything in the past year since it's went public, but just like spotify, the music site, i think that the video streaming services can have multiple players. and i suspect that over time you can have consumers with two, three, our even four of these $15 a month type of subscriptions as they pare back. >> would you be telling people to sell netflix ahead of this if you think it could cause problems over the next year as we see not just apple doing this but comcast coming out with a g streaming service. at&t is preparing its service now too. and all the ones that were already out there maybe trying

to beef things up with the potential of what amazon does too. >> absolutely. i would not be owning netflix. i should have been more clear about that earlier longer term, they would be a survivor but i would not own the stock. you talk about the competitive piece. which is known about other offerings out there. i want to caution, though, that on apple side, there's probably only going to be 10 to 25 shows announced. it's going to be smaller than netflix's 1,000. i would not own netflix for the simple reason it's going to get more competitive the company is spending money. it's largely overlooked. they're spending, you know, this $5 billion, $8 billion a year in conte content. they're taking debt out to fund that other players like amazon and apple don't need to pull a debt lever. and last is the distribution piece of something like apple, what that can bring. the 1.4 billion devices.

that's largely the reason spotify hasn't worked. apple music has accelerated based on their distribution -- >> by the way, did i hear right, gene, that apple is going to give us free -- those apple users will allow us to have the free access access to their content? did i hear that right? >> yeah. through the journal's reporting, it's hard to say what the exact economics are going to be initially over the first three months eventually this is going to be some form of a paying service, but think of it probably over the long-term as something like $10 a month. slightly below where netflix and hbo is >> the thing i don't like about netflix is these cliff hangers >> you're going to dig into the program on it. >> i was watching marco polo and then they left me hanging there. come on. at least conclude something. it's a real problem. >> we're very used to bingeing and getting everything we want

when we want it. >> the final episode of the sopranos do to you >> same idea >> just keep believing >> gene, for apple shares in particular because they've done so well with services, because that's been the kind of hidden thing that the street wasn't anticipating, what could this mean longer term >> it's a big deal that's what is so important about the moves today in the services and there's been a subtle move because they started doing things like apple music a few years ago. so it hasn't been a product announcement but this is as profound of an impact on the apple story as when they got into mobile devices. going all the way back to the ipod and the reason why this is so profound, it's finally the company is finding ways to monetize the base. these will build on top of each other. we have music that's out there there's going to be a news service. not going to be particularly

exciting but more importantly over the next two years, you'll see other services whether it be vr related or in health care, transportation just to be clear, i'm not saying apple is coming out with a car but there could be a service layer they could work with traditional oems this is an important shift why it's important to the stock is the as the business grows, it can get comfortable with apple getting a multiple they deserve. >> i'm beginning to see how strong apple is. because i had a very bad experience with microsoft. i had a mft computer i'm sitting in brazil and it goes black, no service now i'm switching over to apple. i can go anywhere in the world and have service microsoft doesn't have the service. they said we'll replace the computer

but i want the memory in the computer >> they couldn't get it back >> the thing with apple, this is all coming together. the service, the product, and also now the content which is really going to be amaze, i think >> hey, gene in terms of what content apple is going to offer, will they get premium services that will be bundled in with that or will it be rag tag content teams where they feel like they can't offer or charge for a subscription themselves so they figure if they get bundled in, they get more eyeballs somebody who had a successful sub discrimination model, why would you bother doing this? and wouldn't that really put your brand at threat which makes me wonder how big of a deal this is actually going to be >> so i think in terms of the size of revenue and the impact, i do think it's negative for netflix. even though we're talking about 40 shows end of 2020 versus

netflix at 80. i do think anything that moderates growth is going to have an influence on stock one of the challenges is this pg content likely apple will have they are meticulous about their brands and the best performing is the stuff that's more provocative. how they balance that, i suspect they're not going to have some of the most provocative hbo type of content that tends to do well so, yes, you're right. that will have an impact in the amount of people but the bigger picture is this this is a new offering that will chip away at the markets and they have the -- obviously the bandwidth and the capital to continue to fund high quality content. >> gene, thank you great talking to you >> thank you >> by the way, catch gene's reaction to today's apple event tonight on "fast money" at 5:00 p.m. eastern time.

coming up, the ipo parade strengthens another well known tech name that decides to go public it p'sinterest we'll bring you the details when "squawk box" returns

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23 points. remember, we are coming off the second worst day of the year in friday's trading activity where we were down significantly we'll see. things taking a stand at this point. pinterest is set to go public the site filing for an ipo late friday planning to -- what else happened there was other stuff going on shares on the new york stock exchange under the symbol pins in its filing pinterest ses -- when we come back, boeing working on getting the 737 max back into service. phil lebeau will bring us up to speed on the progress. plus we'll speak to an aviation attorney about this investigation. "squawk box" will be right back. why are you so good at this? had a coach in high school. really helped me up my game. i had a coach. math. ooh. so, why don't traders have coaches?

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let's take a look at some stocks to watch this morning viacom shares are higher after the company announced it had struck a new carriage deal with at&t the two sides can continued talking past a friday night

deadline that means channels like mtv and nickelodeon will continue to stream talks between deutsche bank and commerzbank have hit a snag. the future of deutsche bank's u.s. operations and also winnebago reported quarterly earnings of 2 cents a share. but revenue was below estimates. what recreational vehicle maker said was a challenging market that is now improving. a big week for boeing as they try to get the 737 max back into service phil lebeau joins us with the latest on that >> some of those comments are not a surprise given the tragedy that happened in ethiopia. their airline ceo saying within the last hour it will be very -- also also said to the best of

ethiopian airlines' knowledge, the software, the system that pushes the nose of the 737 max down, it was activated in the crash of the 737 max flight. just a few of the headlines from the ceo. let's talk about what's going on with a potential fix for the 737 max. there were three airlines, united, southwest, and american the ones that fly the 737 max in the u.s., they had pilots in washington getting an update from boeing about the software fix that the company is working on by the way, they're not working on this in a vacuum. they are working in terms of kmupting with the faa about what they are doing and that software, we're not going to go into all the details. but some of the important points of what it does, it will limit the mcas system's influence on flight controls. you heard the ceo make a reference to that mcas system. it will use two key sen source,

not one. which has been a complaint of those who look at the system and the pilots will be alerted in the caulk pet when mcas is activated. a couple of important things either today or tomorrow, the faa's expecting to begin a review of the software that review is key to whether or not they ultimately certify and say, yeah, okay this is good to go get this in the airplanes. we can work on the 737 to be no longer grounded. then wednesday the senate hearing on faa certification 200 pilots and regulators from airlines around the world that fly the 737 max as we take a look at shares of boeing, they are going to be in renton on wednesday. so boeing is now transitioning, if you will, to working with its customers, with regulators trying to keep everybody in the loop in terms of what this software fix will be for the 737

max. as you guys heard from those comments from the ethiopian airlines ce o rks, there's still a lot of questions about why this system was in place and whether or not boeing failed and should be held responsible for not alerting airlines and pilots more clearly about the mcas software guys, back to you. >> a few changes you said they're going to make. pilots will be alerted when the sensors aren't working and the idea there would be two sensors. it's my understanding, maybe i'm wrong, but that those issues already existed in some of the planes, you just used to have to pay for them as an upgrade i thought american airlines planes had two sensors already >> the issue is -- becky, the issue is the angle of attack sensors, the information the past first of all it was one sensor feeding into mcas also -- >> on all versions of it >> that's my understanding

there may have been a chance there were two but now it will be mandatory if there's a disagreement between them, then the crew will be alerted to them it will be saying here's the anxious angle of -- >> it was my understanding but based on some of the reporting i saw last week -- >> you're talking about whether they're alerting >> they were charging you an upgrade. >> that has to do also with whether or not the crews would be alerted you would have to pay if you were an airline to have that alert system in the cockpit. in other words, it was all there. the technology was there but you would -- >> tough pay to see it that's ridiculous. >> i understand. that's at the heart of why people are saying that will be changing with the improvements that are going to be made with this software system >> hey, phil rough friday for boeing into the close there. obviously in a very weak market.

rebounding a little bit today. but below that $365 level which is where so many -- i don't know the technicians thought that was important. i wonder what's going on then i was also going to ask you about tesla since you know so much about everything. tesla's indicated down another $6 today >> yeah let's talk about tesla the big issue here is just how weak were the q1 sales we're not out of q1 yet. every indication here has been whether it's been in the u.s. because you have lower model 3 deliveries because people who were buying it in the first quarter no longer get as great of a federal tax cut that's been cut in half. you've got that. you've got issues with the china drifr deliveries at the beginning. then the fact you've got a european market that spools up rbc out with a note today saying model 3 is going to cut into the

margins for models s and x that's why you're seeing pressure on the stock. >> i mean, that's a -- that was a weak chart it's pretty ugly recently. you know, who knows. so many things swirling around that don't have anything to do with the company's business too. i don't know what finally happens there. anyway, glad you were here for that it's weird that you cover anything that moves, is it flies, drives? >> wings and wheels. that's what i always tell people and back in the day, it was bankruptcy court but those are the days from '07 to '10 >> but it's kind of cool it's like you're anintrepid dashing type for financial reporting, it's not too sexy, but you've zeroed in on it all right. thanks, phil lebeau. for more on the investigation into what caused the ethiopian airlines crash, joined now by a former aviation attorney for both the faa and the department of justice.

he represents several airlines now at the law firm le clair ryan great to have you. do you think the faa has some consternation about the future interactions with boeing or do you think they can fall back and say, look, we did everything by the book and this is just something that happens >> well, i don't think the faa ever takes the position that we did everything by the book and these are things that just happen i think it's pretty clear that the faa is moving pretty quickly on this. boeing is moving pretty quickly on this. i think the shared common goal is safety. and i think safety at bottom is good business in the airline business in particular i don't think it's an issue of consternation. i think it's an issue of understanding what the issues are, dealing with them, and then moving forward >> okay. the ceo of ethiopia airlines

says it's going to be tough for boeing both crashes occurred not in the united states. there's been thousands of max flights in the united states maybe there's been some anecdotal evidence that a pilot said, hey, what's happening here or whatever. but at this point, is this a -- i mean, we don't even have all the information in yet, do we? do you think boeing a z a problem long-term with the 737 and have people going to say i'm just not flying it >> i think you've really put your finger on it that we don't have all the information in yet. both investigations, both the lion and ethiopian investigation are still ongoing. we don't have any information at all from the recorders, the cockpit voice recorder so i think there's a lot of premature speculation. there's a lot of people that are getting way out in front on this

i think it's somewhat disappointing that congress has already decided to get into the act and they're holding hearings this week when the investigations are still ongoing. in terms of boeing, it's an extraordinary product that they build. and the fact is they will get through this, i'm confident. >> what do you think of the potential liability is going to be in dollar terms >> in terms of absolute dollars, i can't give you a number. i can tell you that we're really looking at several dimensions as it relates to liabilities. one, it's the passenger liabilities vis-a-vis the boeing company or the airlines. the airline liability is relative to the passengers controlled by international agreement. and the contract that is their ticket with the airline. there are not similar limitations or contractual relationships. it's not unlikely that passengers, the families will pursue boeing in court

in terms of the airlines, that's relationship is initially dictated by the contracts between the boeing company and the airlines in terms of the purchase of the aircraft so there's no doubt that everybody's looking on all sides of this issue at contracts and insurance policies and so forth. >> is the rollout of another fix or -- i don't even -- is this really the first one or was the mcas system itself kind of a fix for what was happening in the first place i mean, does that open up boeing to some liability? >> i don't really perceive the mcas system as a fix i think probably as you know and as most of the viewers know from prior reporting, the aircraft had a change in terms of the location, moving the engines forward on the wing. that changes the center of

gravity, the weight and balance of the aircraft. and as a result there could be situations where the aircraft would go nose up the mcas system, this maneuvering characteristic system was designed to operate transparently to the pilots and to push the nose down. i think what happens to get lost too many times in these discussions is that following the lion air accident, on november 7th of last year the faa issued a mandatory change to manuals after boeing issued a bullet and it became effective on november 10th of last year. and what it said is that if you as a pilot of one of these aircraft experience uncommanded nose downs of the aircraft, mainly the mcas system activating and the aircraft is going nose down without you

pushing it down, here are the things you should do and really the simple steps were turn off two switches on the pedestal between the pilot and co-pilot the ethiopian airlines president has said rather forcefully several times that they were trained on that procedure following it coming out. so you really have to ask the question of if they were trained or the procedure, they should have had in their mind the lion air accident and the nose of their airplane is performing exactly as this bulletin says it could perform. why didn't they just turn the system off and that's, perhaps, the disturbing thing about all the speculation going on congress focusing in on the certification process. we don't know what happened. >> i'm very surprised to see something like that happen the second time around you can see the pilots should have known, i say as a consumer

i knew about that fix after the first crash. however, should they have been allowed to bring out these new plane that performs very differently as you just described where the nose might come down without making pilots we train and recertify for that. is it the same as a 737 or should it have been reclassified as requiring that training bmp the lion air crash too >> i think that's the thing that everybody seems to be focusing on right now should there have been some greater drivewegree of differens training and i'm sure we're going to hear an awful lot about it. >> do we know the pilots didn't turn it off? >> well, every indication since the accident occurred is that they didn't turn it off. but i think that's really an outstanding question we're so far out in front of this thing and the answers to every question that we're talking about with respect to that flight, the ethiopian airlines flight, are on those

recorders. and we really have to understand what's on those recorders. it may well turn out -- it could turn out the aircraft had nothing to do with the accident. it could turn out that they turned it off. >> yeah. turned it off. then i don't know what to think. anyway, mark, we'll be waiting for that stuff hopefully have you back when we know more. thank you. >> thank you when we return, we have more with our guest host mark mobius. right now as we head to break, check out the futures this morning. things are relatively flat dow futures up by 11ois, pnt na nasdaq down by close to 4. "squawk box" will be right back.

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welcome back to "squawk box," everybody. take a look at the futures this morning. you're going you're going to see that, yes, dow futures up by 14 points. s&p up by 1. nasdaq down by 4 mark mobius from mobius capital partners we have gone around the world in a lot of the major areas but haven't talked about emerging markets in general i think probably the big clue are -- the big key is what is the federal reserve doing. would you agree with that? >> it looks like they're standing still we're probably going to not have much movement in the interest rate set by the fed and that's very good news because it means people in emerging markets can say, okay, you know, we can predict more or less what is going to happen going forward,

we're going to have 2%, 3% interest rates and can count on that i think it is good the important thing is that a lot of the bond business is going to be moving into emerging markets because with interest rates at this level, the bond traders, the bond buyers are going to be seeking higher rates. and that means more sovereign bonds in the countries that maybe shouldn't be getting financed you get a higher rate and a lot of gambling in that direction. >> gambling. i'm glad you said that that's my next question. you see things like the goldman sachs problems they had with imb, that's coming from a government that is blaming them now for a problem they created too. do you really want to get involved in some of the scenarios or is it just gambling >> no question it is a gamble. because you have some of these countries that are in trouble financially. but, you know, the -- they take a chance and they try to hedge themselves and so forth. but at the end of the day, i think a lot of the money is going into emerging countries

and the ipo activity, of course, bigger in emerging countries than even in the developed countries. >> the ipos taking place on foreign listings >> on foreign and in the u.s >> listing here -- >> a lot of the chinese companies having ipos here and majority is going to be in tech. tech names frightening thing is that these big names coming on are money losing >> that's what i keep saying too. if you can tell me you're going to be profitable in five years, great. if you don't have a game plan for doing that, how you go to market, particularly with the massive valuations they're talking about. >> exactly i can't figure it out. we're back to, you know, what is it your burn rate? remember that in 2000? >> right people saying it is not pets.com how can you show me you're going to make a profit with these things show me your path to profitability at the very least so i can try and actually decide whether this is a fair valuation. >> yeah. and you have competing ipos. lyft and uber. and these are multibillion dollar issues. >> so do you tell retail investor who is dealing with a

very different scenario and these companies stay private for so long, and so maybe even more of the potential day one pop is already taken in the premarket activity is it something you would tell a retail investor to get involved in >> i wouldn't. i would say be careful or diversify yourself, put 10% in these ipos of money losing companies, but make sure the rest of the money is safe. >> mark, we had a guest earlier this morning, kevin rudd, who was talking about the long run they had with a positive economy for australia. part of the reason is because china has done so well if the economy is turning down what does that mean for the satellite economies that have depended so heavily on it? >> it will be very bad news and politically store australia because they're exporting all the raw materials to china the interesting thing is if you look at the imports of raw materials by china, it continues to increase. in volume. have to be careful because if you look at the value, it is

down because a lot of the commodity prices are down. the volumes are still up so i think australia will still be okay, but no question they depend on china more and more. >> mark, thank you. >> let's get down to the new york stock exchange, jim cramer joins us now jim, okay, you're an investor, and it is on friday, and friday at 9:30, 10:00, you're watching you guys on "squawk on the street." now it is monday and we had the events of the weekend. what has changed for investors if anything? >> look, i don't think much has changed. i think there is a big supply coming in and that's causing a lot of the -- the momentum stocks to sell off because the street has no money. they got to raise money for pinterest, got to raise money for lyft only thing i think that has changed is people feel like there is going to be some sort of march surprise with the president, didn't get one. so i think that -- that's not necessarily why the fuchl future

gone up steadily since the morning, but i think it is something off the table. >> yeah. now, okay, kind of a rear view mirror, now back to the real world and real news. and what happens with the global economy and what happens with profits, i guess in the united states we can focus on that again and -- >> totally i do think that the global economy, things get weaker, can't get rid of brexit, which i think is really slowing down europe china, i know, flexes its muscles, goes to italy but it doesn't -- it is muscles seem weakened because the numbers out of china are not so high. >> we had one person say the divide in the country is not going to be healed anytime soon. does that matter for the stock market, do you think >> you know what, i got to tell you, it sure hasn't mattered for retail retail is theoretically you most expect it. a lot of the retailers definitely a lot of the restaurant chains, good numbers, and so that's -- reflecting a lot of confidence based on the fact that we have plentiful

employment which i think is far more important if that went down, sure, but right now, no. >> we had gridlock discussion, for 30 years, gridlock is good, but nice to get something done i guess we have dealt with things not getting done before, haven't we >> we have i think all of us are pulled by the budget deficit that doesn't mean we should sell the s&p. it is never really correlated. >> do you think that -- you didn't mention china, that's one things people brought up, that the president might negotiate differently or china might negotiate differently and he's not winking. >> i think the reports that were -- that there is an upcoming deal are still premature. i just am not getting that i think the people who are softliners continue to speak to the media behind the scenes. and you need to speak to the hard-liners. >> right robert lightsaber. i like calling him that because then we can make the sound of the lightsaber, it is a cool

name lighthizer i know what it is. jim, thank you we want to thank mark mobius for joining us this morning. >> thank you. >> trip around the world it was great quk x"ilbeig back. guy a promotion. you should be mad at forced camaraderie. and you should be mad at tech that makes things worse. but you're not mad, because you have e*trade, who's tech makes life easier by automatically adding technical patterns on charts and helping you understand what they mean. don't get mad. get e*trade's simplified technical analysis. lies beyond the tech sector. it's about technology transforming every sector. ♪ at pgim, our bottom-up approach uses a technology lens to identify long-term winners. from energy... to real estate... to retail. finding such opportunities for alpha is the true value of active investing.

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all right, let's take a

final check of the markets dow futures up by 20 points. s&p futures up by 2. the nasdaq up fractionally up by less than one point. a little improvement over where we have seen at different points of the morning but relatively close to the flat line that does it for us today. join us tomorrow right now time for "squawk on the street." ♪ good morning and welcome to "squawk on the street. i'm david faber with jame cramer and we're live from the new york stock exchange carl has the morning off let's give you a look at futures. half hour from now, get started with trading for this week of course, coming off, well, major averages posting weekly losses in two of the past three weeks is where we stand as we see we're going to have perhaps the slightly higher open our road map this morning starts with what's been pressuring stocks, at least in the most recent sessions. that being the