with it. we'll have the first interview with a company ceo straight ahead. we're proud to have it on "squawk box. that's friday, may 10th, 2019. "squawk box" begins right now. live from new york where 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 times square. i'm becky quick along with joe kernan andrew ross sorkin is reporting live on the uber ipo he is just outside the new york stock exchange andrew, go am. >> good morning to you we've got that news. i know we've got a lot more coming up, too, as well given the china news

>>ed markets are anxious about what's happening railroad. >> let's talk about that really quickly. we'll get back to andrew in a minute take a look at the u.s. equities futures. even though the tariffs are, on the market at this point is down, but only by 35 points. dow futures indicated down by just over 35 points. s&p futures off by six the nasdaq down by nine. again, yesterday we did see some declines, but the dow was down by 140 points at the he wanted of the day again, a lot of concern, a lot of questions wondering what comes next, but the market has managed to kind of hold in there every day.

>> the cac up by .3% the ftse up by almost half a percent. then overnight in asia stocks in china soaring after the u.s. hiked tariffs on china we'll get a live report from beijing coming up in just a minute. >> to put that $8 billion in perspective, guys, that's pretty much what the company lost over the last three years and potentially what could spend over the next two given some of the losses

>> we have a live interview with the ceo of uber at 8:00 a.m. this morning where he will be answering all of our questions about what this means for the company and so many questions out there from investors in the wake of the lyft ipo, in the wake of what has been a tough week, of course, in the stock market the china issue. uber, of course, sold its big stake in dd back to dd what that means for the company. there will, of course, always be a little drama when it comes to uber because travis, the founder of the company, of course, who was oust from this company in favor of derek koocoming into t company -- who i should say come in after he will be here. not with us, but on the floor of the stock exchange his father also will be here

you can't discredit at least what he did. worth $40 billion, in 102011 i think it was up to $41 billion in 2014. we'll talk to dara as well about the relationship that he has with travis. that's what's coming up. 8:00 a.m. is the big interview we'll show you a lot more and how the analysts and investors are going to be with us over the in extwo hours to talk about the upcoming ipo >> big event ipo -- >> it's been, like, seven years, right? it's far and few between that you have something this noteworthy >> you know what, with the taxi drivers and uber drivers start talking about it, that's when you know >> i think it warrants the jacket i'm with you on that i just looked at the temperature. it's 56 degrees. you've got that. and you've got that stately building right behind you.

>> did you consider a sweater to push the business that you are starting sweater of the month deal, or are you a jacket all the way >> i was thinking jacket, but now that you are mentioning it, we should be -- >> again, for -- >> swerts. >> we're sitting here watching these shaving guys walking away with billions of dollars, and we have the sweater of the month club that we've had for basically for years, and haven't done anything about it >> i mean, it's time >> i like the shot of where andrew is. if we can see that shot again. he is standing on the steps. >> pomp and circumstance >> of where george washington was inaugurated as president this is where it was all before you had washington d.c. as the

head kwaurlgquarters for this. >> i did a fet shoot there with faber 20 years ago for a golf magazine remember that? i did it for travel and leisure golf >> the national park. >> levy doesn't -- we are slapping these on. >> they do -- look, there's a guy saying it, right sorkin, with he will -- we're

looking forward to all of this, and it's neat because you already had some sound from -- when was that from >> when was that from? >> so that was from sunday, so we did a handful of conversations with darren. we'll be showing you those over the next couple of hours, and there's some really interesting stuff in there where he really talks about the future of mobility and what he thinks the company can do, what uber eats really is all about. that's an $8 billion business in terms of revenue on its own. we'll get into all of that kind of stuff throughout the next couple of hours. then, of course, darrell will be with us live >> it's now official your lighting outside down there is better than our lighting here that we've worked on does he not look phenomenal? >> and you're the easy part of the mix? max says i'm his favorite person he says. >> he better say something at this point anyway, more from andrew in a few minutes. right now, though, let's get back to the trade story that sparked a market sell-off this

week eunice yoon, slap them on. we slapped them on at 12:01. joins us now from beijing. hi, eunice >> hi, joe you could impose them. you could launch the tariffs as well >> impose. >> that's what happened. >> gently administer gently layer on to the -- but it's not it's a slap. >> i don't think that -- you can enforce them they were enforced right after noontime in beijing today, and immediately afterwards the chinese responded. the commerce ministry made an announcement saying they would take all necessary counter measures now, the chinese government didn't detail what those counter measures are, and that's been leading to speculation that the leaders here are still holding out hope for a last minute trade agreement in washington. that doesn't stop a lot of the speculation about what the retaliation could include. the talk has been the chinese might raise tariffs to 25% on $60 billion worth of american

goods, cancel major purchases of agricultural or energy products or stop their plans for car tariffs and make it more difficult for non -- for american financial firpz to enter the financial services sector here. then, of course, there's all the unquantifiable stuff, such as a greater customs check. president trump and xi are expected to hold a phone conversation sometime soon, and this came after president trump had said that president xi had sent him what president trump had described as a beautiful letter the move, though, is being seen as a bit of a vanity play by the chinese to try to influence the u.s. president, but there is still some time to possibly work out a solution because the tariffs that -- the tariffs that had been imposed only apply to products that have left china after 12:01. anything that's in the ocean already isn't going to have to

worry. the tariffs are not going apply to those products. there's still maybe a two to four-woke window where the negotiators might be able to come up with some sort of agreement and where we wouldn't necessarily see the tariffs taking their heaviest toll >> i wonder how long they last hope springs eternal we're ready to turn this around, but i don't know i don't know how entrenched anyone is at this point. they're here maybe it would be better if they didn't use language like slap. it sounds aggressive >> that's the media. >> you can almost hear it when the tariffs are imposed because they're slapped right on there thank you. we will talk stick around stay close >> all right for more on u.s.-china trade

talks let's bring in aei and china beige book chief economist derek scissor. the market seemsto be taking this all in stride at the moment i guess they're waiting to see what happens next? >> yeah, i don't think so there's a short-term problem after we lovingly fit the tariffs to the chinese goods the chinese aren't under pressure immediately for strong retaliation, and the tariffs don't matter that much to the u.s. economy as a whole. i think the market is thinking we have not just a couple of weeks. we have a little more than that. we try to figure this out. i think that's a reasonable short-term view. i think there's medium term risk because i think the problem in the negotiations is quite serious.

snoo that's not necessarily a good thing >> okay. so we are looking at months of these new tariffs actually being put on 25% on $200 billion. if that is the way this kind of works out, if it takes that long to go through these negotiations, is it going to be different this time? will those higher tariffs have an impact on u.s. consumers?

>> i don't think so. not to say there's no risk to the united states at all, but just the u.s. economy is so large. if you run the numbers on what the tariffs are going to do, you're not going to notice them in the consumer price index. i do not see why it would affect the federal reserve decision-making. there are certain sectors that are going to be hit. of course, that's always true. the risk to the u.s., i think, is the tariffs put a lot of pressure on china, their levels of foreign exchange. if they last a long time, the chinese will have to have more substantive retaliation than the moderate words they're using today, and that's going to hit certain u.s. companies and hit the stock market it's really more of an equities risk than macroeconomic risk >> that's where you think this plays out? is there any potential up side if there is a deal that's reached? do you think the market would look at that and say, okay, this is a relief. we're through it >> there will be a relief rally. i don't think it will be that large because, as many people pointed out correctly, the deal is to avoid a downward spiral. it's not to solve the problems the chinese are not going to suddenly become good ip and trade actors

these are entrenched policy on their part they'll be better for a while. they'll make certain changes we're still going to have u.s.-china friction starting in technology and extending all the way to things like human rights. they're still going to have tension. it's just that that worry about a sharp escalation will be taken away if we have a deal >> derek, thanks for your time appreciate it. >> all right let's find out what andrew has coming up for us andrew, back over to you >> hey, thank you, becky when we come back, we're going to show you a ride i took with uber ceo der being ahead of today's big ipo. we talked about one of the fastest growing businesses at uber and the potential impact on the stock. we'll show you that interview next ahead of our live interview with dara at 8:00 a.m. this morning. as we head to a break, take a quick look at the biggest premarket winners and losers in the dow.

>> what do you think the chance that is uber eats becomes a bigger and more profitable business long-term than the

transportation -- the classic transportation piece of the business >> i think that it's a toss-up i really do think it's a toss-up. if you look in china, the food delivery business looks like it's going to be twice as large as the transportation business, so i think that the category is enormous and the trick -- the reason the food business is such a good business is because of the margin >> because of the size >> because of the size >> think about it. three occasions, and the convenience is brings to the household is pretty extraordinary. >> that was uber ceo during a ride-along talking about the huge part of the company's business, which is uber eats, which we probably don't talk enough about right now we want to talk about that and a lot more. uber's pricing and valuation with our own leslie picker, who is here. she's been following the entire uber road show from the very beginning and knows everything intimately inside this road

show >> been on the road a lot. >> if you asked people at the start of the road show they would not have seen it pricing this way i think when you get these buzzy ipos, you expect to see it at the high he wanted of the range they debut with and then seeing the range increased over time and pricing either way above the initial range they market. we saw that with twitter, alibaba, facebook, pinterest lyft >> it is question is this them being conservative this morning in hopes of a pinterest -- pinterest brought theirs down, and then it actually -- that worked for them.

>> in terms of being conservative, i think they really had to pick a price that would bring investors in the door and try and secure at least some kind of a gain today. obviously we have a lot of the same issues. >> the investors that are buying into this ipo, though, are effectively already investors in the company. that's the interesting piece of this mutual funds have been in this company for a long time, and so how much of it is effectively supporting the valuation of something you already own?

you are kind of already in it. you want this to succeed i'm not saying plaque rock is doing this, but just as an example, you have black rock in here, fidelity, t. rowe. all of these guys invested privately that have the opportunity, theoretically, to get allocation and help support this thing today. there's only so much public market investors will tolerate, even though they have a lot of

the same investors that have invested privately, you know, over time people start to lose patience especially as they start to see these quarterly numbers come in and the stock market volatility. >> having spent as much time as you have focused on uber and this particular road show, what's the one question you want to know or want them to answer >> that's a good question. i liked your question about uber eats i think that's a really interesting point. what i this i is really important for both consumers and investors here is how does uber change as a public market company? they've gone through 22 rounds of funding they have $20 billion in private funding. >> can you see the live interview. that's going to happen at 8:00

a.m. this morning as we count down to one of the most highly anticipated ipos of the year now back to becky and joe at the nasdaq guys >> i'm -- was in the front seat, seinfeld, in that little -- who is that little english guy, the it little guy. were those guys in the front seat with you on that ride was it karaoke >> what was the name of our driver we had sal as our driver, guys, and was that his name? what was his name? cal was our driver do they get a little shot of you? is that what happened here >> there might have been a little shot of our producer potentially. >> no coffee there no comedians that's him i have never seen it i have never seen the late show, let alone the late late show there's karaoke with him, and then seinfeld does comedians, right? you make any jokes or anything that's a good look, though, andrew >> i see why it works. everybody is doing it, right

>> sweshd have done a sing-along for the web. >> there's a lot more coming up. >> all right >> also, when we come back, we've got some stocks on the move this morning. that includes a cyber security company that is plummeting after the ceo abruptly resigned. "squawk box" will be right back. i don't know what's going on. i've done all sorts of research, read earnings reports, looked at chart patterns. i've even built my own historic trading model. and you're still not sure if you want to make the trade? exactly. sounds like a case of analysis paralysis.

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>> greg clark abruptly resigned. the company says clark made it clear last month he wanted to spend more time with his ailing father symantec issued weaker than expected guidance for the first quarter in a full year that stock is now down by more than 16% decline of about $3.67 to $18.50.

>> quarterly profit of $1.41 a share. 7 cents above estimates, although revenue was slightly below wall street forecast does it look like they got the -- marriott says it was able to creates north american profit margins despite modest re new growth and higher labor costs. coming up, much more of andrew's ride-along with the ceo of uber, including the bet that he lost when he was named ceo. it's all leading up to the -- >> i bet he lost that's quite a tease >> i don't know. >> there are also apparently going to do their own rendition of "call me maybe.

anyway, this live interview is coming up at 8:00 a.m. eastern up next we're going to talk about the market response to the trade headlines. >> market not response >> tariffs slapped on at 12:01 out of washington. futures are basically flat in the red red across the board as we head to break, take a look at yesterday's s&p 500 winners and losers

welcome back if you are just waking up, there was no 11th hour breakthrough. the midnight trade dead looirn came and went last night, and the united states did raise tear ifrs on $200 billion worth of chinese goods from 10% to 25% immediately after midnight china's commerce ministry said it would take counter mersz.

it said it deeply regrets the turn of events the white house has confirmed the trade talks will continue today between treasury secretary steven mnuchin and u.s. trade representative robert lighthizer along with china's vice premier lei hue. stocks in china soared overnight. you saw the shezhe know up 3.8%. zplool if you take a look at what's happening here in the yates, you might have expected with the tariffs going on that you would see a big sell-off in the markets. that is not the case at this point. dow futures are on flat. so is the s&p. nasdaq is up by a point and a half we'll continue to see what happens. >> more on the markets reaction to the trade headlines laurie is deputy global chief

investment officerle at state street global advisors alec young, managing director of global markets research at ftse russell. overall, i'll start with you, laurie, are you basing things on or do you have to make a derns based on what you think whether we get a deal or not >>. >> we have our business case where he think there won't be additional -- disappointing they couldn't come to terms, but i think largely many companies already factored in these kinds of hikes as one of their base cases as well. the good news is they're still at the bargaining table, though. there could be some up side from here if they don't deteriorate and if they actually start to, you know, have those discussions be a bit more positive >> we don't know what china's reaction is going to be to the

tariffs. they said there will be a reaction we assume it's going to be something that's moderate, but that is seen as an equal and that the united states doesn't react to that? >> both sides have a lot to lose here if things deteriorate china has been clearly to migrate their economy. they're slowing in terms of overall growth. >> the best we get is superfishl or half measures maybe make us feel better, but they really don't change anything or is it possible that they decide, look, we're going to be doing this for the next 50 or 100 years. we're going to start, you know,

adhering to. >> the u.s. has been going it alone. again, i think these deterioration in trade talks may lead to people realizing that it can't be just a bilateral discussion it has to be broad erks and ultimately, china has been a bad actor on the global stage. >> i think as recently as a week ago you kind of had to combine the market was pretty priced for perfection this was complacent on this issue. now that weave clipped off 5%, i think in a way it's healthy, because expectations have become much more muted.

>> you were hoping for new highs repeatedly, you may be a little disappointed in the near term, but we don't think it's a repeat of q4, which i think is what most investors are worried about. ultimately, this might worst case take s&p earnings from 170 down to 160. it's not a recession where earnings fall 20%, 25%, and you have to take points off the s&p.

it's a corrective environment and not a crash or bear market we have to remember that so far most of the tariffs are on capital and intermediate goods, not consumer the next 325 would hit the consumer more, so given that we're a consumer economy, that would have a bigger earnings impact, but all in all we still see -- even high profile discretionary names, home depots and starbuckss of the world, kind of managing through this. a head wind certainly. a ceiling on the market. absolutely a bear market catalyst, you know, not in our -- >> if you are saying it's not possible to just slap them on that day i mean, how long does it take to do it? slap is not the right word there.

>> i think we need time to digest what just happened. as laurie said, both sides have a lot to lose. >> the futures, they're up now you guys are very -- it's like a salve you have put on. >> the market has taken the pain for this week's -- we're due to a friday reprieve. >> it's kind of interesting, though i do see we're even writing the stories that trump just ruined the chances for the u.s. to get a good deal with china, and it's like trump is the one that

everyone criticized for starting this whole process right now you're going to be able it criticize him when he doesn't get everything to -- >> i think -- >> we would have never started it >> it's totally changed. >> msn wanted -- >> right >> they're -- >> right to start is now now you are going to be able to criticize him because he screws it up even though you didn't like him doing it in the first place. >> i don't -- >> you know what i'm saying, though >> if we get anything, it's better than what they -- >> than where we were. >> very -- >> we're living in a hyper-partisan environment. >> we pay everything here? obviously, it's leverage yeah and it will suffer all right. >> when we come back, we're going to bring you a closer look

at what jeff bezos unveiled during his blue origin event last night that's pretty cool wait until you see the rest of it later, you don't want to miss our big interview with uber ceo ahead of the company's public debut later this morning. stay tuned you are watching "squawk box" here on cnbc sfx: [phone ringing]

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jeff bows yoes unveiled his space company's lunar lander for the first time last night. we have that infrastructure in place for the future space entrepreneurs, you will see amazing things happen. it will happen fast. i guarantee it people are so creative once they're unleashed.

>> space rival elan musk tweeted a lewd response. i guess that wasn't checked by anyone to bezos and his announcement we won't show it here, but you can find it on twitter in the past musk has called bezos a copycat. skbra why. >> you want to go, right, andrew what did musk say? were you out among that? i haven't looked at the tweet? did it have -- >> i'm not going to show you the tweet, but you should go look at it you guys should go during the

commercial break but before you do that, talking about -- talking about musk -- i'm going to leave it alone, but talking about elan musk and because it's uber ipo day, one of the things i did do was when i sat down with derek in a car over the weekend, i asked him to sound off on a bet that he lost, and we're going to show you that when he comes back, but the thing i did ask him right here, and i want to show you the response given we're talking about musk right now, is i asked him about elan musk's claim to roll out obo-taxes by 2020, and here's what he had to say. >> i thought if he can do it more power to him. our approach is a more conservative approach as far as sensor technology and mapping technology the software will get there. i don't think that his vision is by any means wrong i just think we disagree on timing >> by how much, though if he says 2020 -- >> i think it will be quite a few years beyond

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i'm going to go personal on you. >> uh-oh. >> when you got this job, barry diller was quoted as saying to you, "i really don't know how you got this job no one even voted for you. do you remember that conversation >> yes, i do >> what did you think? >> we were both wondering the

same thing so, i think when i was in the running, first of all, miraculously, it didn't leak one way or the other and barry knew that. i wanted to make sure that barry has been a partner for years and years. he's a mentor of mine. so, we had active discussions about what was going on and we were reading in the paper about all the drama behind it, and honestly, until the moment i found out that i was getting the job, i didn't think i was getting the job. the only person who thought i was going to get the job is my wife. >> did barry think you were going to get the job >> no! of course not. it was like a little game for us it was an amazing, you know, parlor trick conversation that we had >> so, when you got the call and you told your wife, what did she say? >> she said you owe me 5 bucks. >> what did barry really think he must have been torn, actually, i assume he didn't want to lose you. >> he didn't want to lose me, but barry -- we had a

conversation, and at first, listen, he wasn't happy about the situation. how could he be? but he said, you know what, if i were you, i'd do the same thing. and the kind of person that he is is he chose friendship over business, and that's why he is who he is. >> that was part of my ride-along with uber ceo dara khosrowshahi when we talked about how his former boss, barry diller, reacted to him getting that uber job. and dara's going to be live with us at 8:00 a.m. eastern time ahead of the company's ipo to answer all of our questions about this transaction i should tell you guys, right as we've been talking, the uber sign just put up -- i don't know if we can show you some video -- it's pretty, actually, sort of dramatic seeing them raise that sign it happened literally just moments ago during the commercial break in the meantime, what we do want to do is discuss uber's leadership journey with jeff sonnenfeld, senior associate dean for leadership at the yale school of management

and it is great to see you, jeff dara is going to be here with us of course, travis kalanick, of course, also going to be at the new york stock exchange. there's been some drama about the role he's going to play, but he will be here with his father as well. are you somebody who believes that the culture of uber is still problematic? because you look at some of the op eds and people who have written about this company, even in this past week -- there seems to be a continued question mark about the uber culture, jeff, and not only that, but also what it means for the country >> oh, gosh, that's a big part two to that question i think this is a really exciting time. and you're right to ask about the drama. it's a pretty breathtaking one it's almost -- you would have thought at times bordering on worldwide wrestling, you know, drama. if you have five simultaneous

dramas unfolding here, you have the life stage of the founder, and that's pretty exciting in itself he'll be there with his dad coming out of the tragedy when he was pushed out at 2017. his mom had just died in a boating accident and it's a quite, i think, a moment of justification and pride that they'll be out there. but on the floor, not up there ringing the bell and that's pretty interesting drama itself secondly, you've also got an exciting life-stage drama of this business with the ipo they're not going to have "b" shares it's going to be one vote, you know, one share, one vote, so we won't see the classification of stock, where it's not founder-driven but we have a third life stage issue about how they've gotten away from founding culture, where there's all these bro culture accusations. and i read those articles, andrew, and some of them were actually even in deal book, but the data they were looking at, the examples were all old. they were last year and mainly 2017 and before the leadership change where we saw such

volatility in leadership however, there is -- and of course, the culture about gender respect and the lack of transparency looks like they've come a long way on the governance model life stage, but we still have an issue with the drivers, but it's not like lyft treats their drivers that much better but that's something which is sort of the dark side of the gig economy in general, which we used to call the free agency of labor market and things in the past. >> right. >> a lot of workers that are cut free like this that don't have benefits and don't have secure employment's an issue. >> jeff, it is a longer conversation i know we're going to be having it over the next weeks and months when it comes to uber want to thank you for your perspective this morning when "squawk" returns, we've got a lot more coming up this morning. we're going to be counting down to our uber ceo interview. it happens at 8:00 a.m. eastern qume "sawk box" returns, two big hours, right ahead

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it's an uber busy day. the ride sharing company pricing at the low end of its expected range, becoming one of the biggest tech ipos of all time. questions swirling from investors about what you can expect [ honking >> what are you doing? >> we'll get you ready for the interview of the morning with the ceo of uber, live right here on "squawk box." and no deal! a new round of tariffs on $200 billion of chinese goods kicking in overnight china says it will retaliate can an agreement still be reached? we'll break down what you can

expect as the second hour of "squawk box" begins right now. >> announcer: 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. andrew ross sorkin is around we feel his presence he's down the street outside the new york stock exchange, and some fancy place called federal hall it's a beautiful building, and it's lit beautifully at night, andrew, but it looks good today in the daylight as well, getting ready for the big market mover of the day i mean, these are -- you go back -- it's like google, facebook -- >> amazon. >> -- amazon i mean, alibaba i guess was big, but we don't think of that necessarily the same way this is a big deal, this uber ipo. >> these are those moments. >> yeah. >> those iconic moments in

america, in america capitalism. >> only have so many. >> capitalism. >> uber expected to go public in the next hour and ceo dara khosrowshahi will join andrew live, live for an interview. in the meantime, we've got a full lineup, though, leading to the open of trading. that's a good shot there should leave that up for a while. anyway, u.s. equity futures. the president's tweeting some stuff. they had turned positive, but not big moves at all for having things go into effect at 12:01 that was not averted the tariffs did go on, up to 25% on things that had been at 10% there are the futures, though. they're down but not out here's what else is making headlines this morning at this hour, we're going to talk about everything joe just mentioned. uber obviously set for its wall street debut this morning. the initial public offering priced at $45 a share, and that was towards the low end of the projected range. the offering, though, will raise about $8 billion that is much more -- we have

much more coming up on this ipo, much more of the details behind it, who this is going to affect. another ipo, in the meantime, in the news this morning overseas beer brewer anheuser-busch inbev has filed to spin off its asian business in a hong kong offering reuters reporting that offering could raise at least $5 billion. and shares of priceline parent booking holdings are trading higher in the premarket this morning. the company earned $11.17 a share for the latest quarter that missed the street's expectations by 10 cents however, hotel room nights booked on its sites rose by a better-than-expected 10% the company also said that it expected to see revenue growth resume this quarter, and as a result, you could see booking holdings trading up by about 4%. tariffs on china have kicked in that started at 12:01 a.m. eastern time however, the negotiations are continuing today kayla tausche joins us right now with more from washington. and kayla, this seems to be kind of a quickly moving story, so what can you tell us right now

>> reporter: it is well, the latest is that we got a five-tweet thread from the president just a few minutes ago where he noted that talks are continuing and said that not only will this tariff hike to 25% bring in more money to the united states, he also said that he's putting plans in place to put levees on every single dollar of goods imported from china. he said the massive payments will go directly to the treasury of the united states he says tariffs will bring in far more wealth to our country than even a phenomenal deal of the traditional kind, and he says that he is going to divert the proceeds from these tariffs to u.s. farmers who are being hurt by chinese retaliation. he says, if we bought $15 billion of agriculture from our farmers, far more than china buys now, we would have more than $85 billion left over for new infrastructure, health care, or anything else now, he nekts cessary glets to

mention these tariffs are paid for by importers china pays them, but it is u.s. businesses who are hurting from these tariffs in the main way here when they pay those levies at u.s. ports. these negotiations between top u.s. and chinese officials lasted more than four hours last night. they included a working dinner near the white house ambassador lighthizer, the trade representative, and treasury secretary steven mnuchin led the talks, but there is no set plan for president trump to receive the vice premier today his schedule is open except for an afternoon event honoring military mothers and it's unclear whether a call took place between china ooze president xi jinping and president trump last night, as trump suggested. a resolution between the two leaders is seen as necessary to move forward goldman sachs suggested the tariff hike creates a soft deadline of another couple of weeks. that's the time it takes products to reach the u.s. from china. trump has said he's starting that paperwork to look at levying all chinese goods. we'll see whether that creates a sense of urgency for china to

come around on some of the issues it back-tracked on late last week. >> okay, kayla you know, becky has figured out the slap, where the slap came from -- >> i haven't figured it out. this came from twitter, so i don't know if it's true. >> came from twitter but in the old days -- and this goes back to alexander hamilton? >> again, according to twitter i need to do research on this. >> when they would levy things like this, on goods coming in from ships, they would slap the paperwork on the boxes on the ships. so, it sounds now like it's developed kind of a life of its own that you slap something -- >> by the way, i like it, if it's got a historic reasoning for it. >> it does that's why we slap tariffs on, when we can. and sometimes it takes longer. those are the ones that are gently administered over time. for more on the latest in the u.s./china trade talks, let's bring in our guest joining us now, senator rick scott. senator, it's good to see you. you talked to the powers that be i know you're close to the administration give us something we don't know.

all we have are things swirling around an conjecture and tweets and things like that what's going on? what do you think's going to happen >> well, first off, i think -- i had never personally expected china to do a deal that was fair to americans this is a country that steals our technology, is building a military to compete with us, is not acting responsibly as a world leader they're participating in the genocide that's going on in venezuela. so, and look, i'm a business guy. when people change the deal after you negotiate a deal, almost never do those deals happen so the president's doing what he can do to put pressure on them he is going to make american products more competitive, which should help american companies so, look, the president's doing what he can to stop what's been going on for decades of allowing the chinese to take advantage of us. >> so, when it's all said and done, we're not going to accomplish that much and that's going to be the criticism, that it was always going to be a toothless deal and trump just

wants one so badly because the election's coming up, that he's going to agree to something. and the critics that didn't want to even engage china in the first place are going to say that he got his clock cleaned by the chinese. that's -- >> i don't think he's going to blink. >> huh >> i don't think the president's going to blink i think lighthizer understands that china's been taking us to the cleaners for decades and i don't think they're going to blink. i think this is going to be good for american companies and i think it's going to, hopefully, start making china more responsible they won't have the money to spend on their military to compete with us, to go into places like venezuela and hurt the citizens of venezuela. so, look, i never expected a deal to happen because i don't trust the chinese. >> are you on board that the tariffs actually are going to be economically beneficial to the united states and the citizens here, that it's not going to be passed along to consumers and that it's not really just a tax on us that hurts both china and the united states, that it's a

lose-lose? do you -- he seems to think that it can actually be a benefit to the united states. >> i think it depends on the company. first off, it's going to make american goods more competitive. that's a positive. the amount of money we receive in tariffs, we need to make sure we give back, because it clearly impacts the cost of things all that money ought to be put back through tax reductions to the consumers of this country, because it is going to raise some costs so, it's clearly a tax, and we ought to give it back to our citizens with additional tax cuts but china is not acting responsibly. they haven't acted responsibly they're building a military to compete with us through the profits from american products, or products that are sold to american citizens. so, i think the president and lighthizer are doing the right thing and i don't believe they're going to blink >> and what does that mean for u.s./china relations for the next two, three, four, five years? it sounds like the cold war 2.0. >> well, look, they're not our friend we ought to stop buying their

goods as every day -- we shouldn't buy their goods. they're taking those profits and trying to compete with us in the world stage. they are stealing our technology so, we have to understand, they're not our friend and it's no fun to go through negotiations like this where the other side that won't be a responsible citizen. you can't do a deal with somebody that doesn't want to do a deal with you on fair terms. you can't do it. >> the presidentlikes when the stock market goes up, talks about how many new highs he's seen if this falls apart, there is no deal, i'm sure there will be some effect on the averages here is that okay is that okay with you? >> let's look at what the average person cares about we've got the lowest unemployment in 50-plus years. we've got significant wage growth so, if you look at what the average person cares about, they say, do i have a job are my wages going up? that's what they care about. i mean, we'd all like the stock market to go up every day, but reality is, for the typical american, they want a good job,

an american job, and with that, you can, you know, have the money through your government to pay for schools, keep people safe, all those things but it's about look at this market look at this job market. that's what people are thinking about. they're not thinking about the stock market every day. >> so, i like to stir things up, and sometimes i get yelled at. but here's the -- sometimes -- anyway, here's the "washington post." republicans are feuding over burr they didn't find collusion what is burr subpoenaing donald trump jr.? what was the rationale behind that have you talked to him i saw what rand paul said. i saw what ted cruz said what do you say? what's the deal? he's a republican. what's the deal? >> well, i'm not on the intelligence committee so i don't know exactly what they're doing -- >> do you have to be intelligent to be on that committee, senator? that's kind of an oxymoron when used in government terms, isn't it just kidding but you're not on it, but you hear things. i mean, you must have an opinion on what senator burr is

thinking >> all i know -- >> his north carolina colleague said "what is wrong with you?" do you know? >> all of us would like to know. so i'm sure that senator burr will put out exactly why he's doing what he's doing, but i'm not on intelligence. look, there was no collusion -- >> back to the meeting back to the meeting and tell us again after -- i mean, it's just -- i don't get it i mean, i'm speaking for you i don't get it >> yeah. i'm sure that senator burr will explain exactly what he's doing. >> good answer all right, senator if you see him in the chambers, he won't necessarily give you the stink eye, but thank you we appreciate it, senator scott. >> have a great day. so, looking up some of this stuff, the tariff act of 1790 -- >> we used to make a lot of money from tariffs, but we had no income tax. >> we did. the reason hamilton supported it was because he was secretary of the treasury at that point, realized we needed another $3 million to effectively run the country under operating budget and pay back the --

>> are you talking about alexander hamilton is that who you're talk being? >> yes, he was in favor of this and also wanted to make sure we developed our own economy and diversified from farming, so he was in favor of it it slapped it on in 1790 it goes all the way back to that -- >> slapped it on. >> you know who's on the other side >> aaron burr. >> thomas jefferson. close. thomas jefferson on the other side. >> excellent. >> opposed it because he was the globalist of his day, wanted to see these things so, goes back a long way with these things in fact, one of the taxes on that was taxing tea from china >> tea from china. >> wine was another thing, cherry port, all of these things were taxed in some cases 25%, 30%. >> and income tax was when >> far after yeah. when we come back, facebook responding to co-founder chris hughes' call to break up the company. we have the details after the break. keep it locked to "squawk box" this morning uber ceo dara khosrowshahi joins us ahead of the company's wall street debut stay tuned you are watching "squawk box" on cnbc

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the answer -- 1877, when rutherford b. hayes was president. welcome back to "squawk box," everybody. we've been watching the futures this morning and with the tariffs being levied on that $200 billion worth of goods from china, you might have thought we'd see a big sell-off this morning. so far, wall street is taking a wait-and-see approach, see what happens next, see if this actually happens, see if the negotiations today seem to yield anything and right now it looks like the dow futures are down by about 52 points we've seen them down by about this much, maybe up at times by five or six points, too. s&p futures down by eight points this morning and the nasdaq down by 15. also, viacom shares are rising in premarket trading today the company reported quarterly profit of 95 cents a share that was 15 cents above consensus estimates. and viacom shares are up by 4% right now. after facebook co-founder chris hughes called for ceo mark zuckerberg to relinquish his stranglehold on the industry and for the company to be broken up,

the tech giant has responded, and it doesn't agree in a statement put out by facebook's vice president of global affairs, he says, in his words, "facebook accepts that with success comes accountability but you don't enforce accountability by calling for a breakup of a successful american company. accountability of tech companies can only be achieved through the painstaking introduction of new rules for the internet that is exactly what mark zuckerberg has called for. the social media giant is already facing up to a $5 billion fine from the federal trade commission for mishandling user data, but some called the penalty a mere slap on the wrist. shares of facebook, as you can see, are off just a little bit people went wild with that story yesterday, i guess, because chris hughes was nominally a founder. >> yes. >> but he's the same guy that, you know, because of the system that allowed facebook to do so well, it enriched this guy for

being mark zuckerberg's roommate it gives him now a podium, since he has hundreds of millions of dollars, presumably, to push things on us like universal basic income and 90% tax rates and everything else that he -- >> he started in op ed saying the last time that i saw mark was at his house in 2017 and i remember thinking, that's probably the last time you're going to see him, too. drop something like that -- >> it makes me kind of question the capitalist system on what it can be worth maybe there's something wrong with that. anyway -- >> clawbacks clawbacks? >> it's not based on -- >> merit >> andrew rides along with uber's ceo and asks him about autonomous driving highlights from that interview is coming up. and at 8:00 a.m. eastern ti, railjo ulimeda wl ins ve my time is thin, but so is my lawn. it's been worn down to ugly thin grass! now there's scotts thick'r lawn,

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all right, everybody, let's get to andrew. he is getting ready for the interview of the day and andrew, we've been waiting for this one for a long time. >> we have been waiting for this ipo for a long time. dara khosrowshahi just arriving here at the new york stock exchange, making his way into the exchange he's going to be out here, though, with us at 8:00 a.m., answering all of our questions ahead of the big ipo but before we do that, i spent some time with him, and i asked him about the competition over the long term when it comes to looking at autonomous fleets,

and his answer is instructive. listen what he had to say. >> the ultimate competition we think is car ownership and if you think about a car -- if you own a car, the utilization of car's really low. it's essentially 5%. and the car's this ultimate transportation bundle. you use it to go get grocery, take yourkids to school, et cetera and we and our competition are slowly debundling what i call the car bundle now, if you don't have to use a car to go out to dinner or to take your kids to school, et cetera each of these occasions is being replaced by an on-demand occasion and just like the cable bundle -- you know, you had a bunch of subscribers who might only watch espn, "sportscenter" at night and they weren't getting the utilization out of the bundle as the bundle has been broken up, we think the car bundle is going to be broken up, and we view ourselves just as netflix has been kind of carrying this secular tailwind of the bundle

slowly falling apart, we are going to be riding this secular tailwind of transportation on-demand services, and there is going to be plenty of winners in this space >> you know, guys, when you think about uber -- and i know we often talk about uber as a speculative bet for investors. i know there's a lot of retail investors out there now thinking about, do i want to buy into the ipo? should i wait? what should i do and how should i think about this company, which, of course, even if it's now long life continues to lose money. dara khosrowshahi -- we'll talk about this more with him live -- really, ultimately believes that for this company to succeed, it's not just that they're doing what they're doing now and that needs to work, but really, that this is really a change in mobility, it's a change in the way we all operate when it comes to owning cars, how we get where we get i think this is a much larger idea whether, ultimately, that bears fruit and that really is the future, i think is the ultimate, in this case, $81 billion

question, or $76 billion question, depending on how you do the math on how much this company's going to be worth this morning at $45 a share but that's what's going on here. and i should tell you, for more of that interview along with this ride-along that we did, some people are calling it the ipo karaoke that we did with dara khosrowshahi -- you can see the entire thing on cnbc.com and it's worth seeing, especially if you're thinking about investing in this company in advance we will be talking, of course, with dara. that's going to happen live at 8:00 a.m. as we count down to one of the most highly anticipated ipos of the year, guys joe, back to you. >> many years. >> just to check in on this -- with the ipo pricing at the lower end of the range at $45 a share, what does that mean because if you look at it, there are some people who are going to be under water on this, thousands of employees who were issued shares i think closer to $48.77, restricted shares. so, they don't have anything coming out of this, unless there's a pop on the open today, in which case they would

>> right. >> also, i think the saudi -- >> so, the big question, of course, is exactly that -- what does this mean to the employees? what does it mean to the price are they pricing this conservatively on the expectation and hope that they get a bump that is clearly the hope the hope is that they are bringing down the price in a similar way to the way that pinterest did. of course, it's been a tough week for the markets, and whether people want to invest, whether there's sort of a risk-on idea, especially with everything going on with the china tariffs and everything else, remains an open question we're going it talk to dara about all of that, because that has weighed on this company and on this stock. the last true sort of appraised valuation was right around this price tag at $45 so, we'll see. but you know, you're raising all the right points, becky, and we'll ask dara about all of it literally, well, coming up in just about a half an hour. >> can't wait, andrew. this is going to be good

>> yeah, all right. >> i think there's a delay >> there is maybe a little delay. i was thinking about, you know, this is a hot ipo, but we've talked about sweater of the month. that would be the next -- sweater of the month that would be the next really hot -- but we probably can't do that if andrew is the founder and chief -- >> maybe maybe there's a way to cut cnbc in on the deal, kind of like dealbook, "the new york times." >> maybe "squawk on the street" could do sweater of the day, if andrew ever comes public we won't do it on this show. we recuse ourselves, andrew. coming up, with new tariffs kicking off in just a couple hours, there's one industry that's been trapped by the moves. contessa brewer has that story straight ahead. will uber ever make money? and can the stock make investors money? we'll speak to an early uber investor, bradley tusk, and "fast money" trader steve grasso will be reo scs he tdiusthat here's a look at u.s. equity futures.

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still to come this morning on "squawk box," the interview of the morning, of the day uber ceo dara khosrowshahi will join us to talk about the future of ride-sharing and uber as a publicly traded company. what investors can expect, and will they eventually mauck money? that news-making interview starts at 8:00 a.m. eastern time. plus, breaking economic news april consumer price index data

straight ahead. and new tariffs kicking in overnight. what it means for american manufacturers. apsnpon ceo nick pinchuck will be joining us. "squawk box" will be right back. i'm working to keep the fire going for another 150 years. ♪ for beauty that begins with nature. ♪ to make connections of a different kind. at adp we're designing a better way to work, so you can achieve what you're working for.

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welcome back, everybody. the u.s. and china launching into another round of trade talks. the current tariffs have one u.s. manufacturer facing a double whammy. contessa brewer brings us that story from north ridge, massachusetts. contessa, good morning. >> reporter: yeah, becky, here in south-central massachusetts, it looks like steel manufacturing is an expensive proposition. riverdale mills has to keep 750 tons of steel on hand at all times. they manufacture more than 3,000 different kinds of steel mesh products think everything from bird cages to high-security fencing here you're seeing some of this steel being fed into a welder, where it will be welded into the mesh and used for these products now, the costs of steel have skyrocketed, of course riverdale has applied for more than 100 exclusions from the tariffs and has been granted less than 3% of what it makes in steel purchases. the product it may be best known for are these lobster strap

meshes they supply more than 85% of the lobster traps manufactured in north america. but lobster is also under pressure remember when we told you about a year and a half ago that maine lobstermen were so excited about opening up the chinese market to american lobster they got hit with retaliatory tariffs of 25%, which shut down the lobster market there now those lobstermen are not buying new lobster traps what they're doing is repairing the ones they have and riverdale mills says, look, we can't pass on the soaring cost of steel to the lobstermen. they just can't afford to pay it they've cut their workforce now down by 25% since the tariffs took place guys >> all right, contessa i always wondered, where do you get a really quality lobster trap and it's up in -- where is it? >> reporter: now you know. massachusetts. south-central massachusetts. >> amazing how that -- >> reporter: good stuff. >> and it all makes sense with

the -- and you tied it into your last lobster strike. i can't believe that it's almost episodic awesome. thank you, contessa. >> reporter: sure. all right, our next guest knows firsthand the impact of u.s./china trade tensions on u.s. manufacturing let's welcome nick pinchuk, snap-on chairman and ceo nick, we're going to talk about this and get your insight, but as far as snap-on goes, you manufacture a lot of times where you sell so, even though you're prepared for anything, you're not as affected as a lot of manufacturers. >> that's true like for example, 80% of what we sell off the vans in the united states, manufactured right here, u.s. steel but u.s. steel's been going up as well, you know? probably 25% to 30% over the last two years and the steel rod that we put in hand tools is still going up so, we have to manage that as -- >> is this almost an advantage for you, relative to other manufacturers? i mean, if this kind of levels the playing field, if you make so much of this in the united states anyway -- >> sure, sure. i think it can be an advantage,

although we would say that our competition, generally, people decide to buy a snap-on tool or not, and then if they say not, they buy from a whole bunch of other competitors. so we don't have so many direct competitors. >> i guess i would say an advantage relative to others in the stock market, because others will be dealing with the price increases that you've already been dealing with for a long time. >> we would think so but look, i think, somewhat, you know, if you ask the national association of manufacturers, they're encouraging the president. they're saying, hey, we just want them to negotiate with urgency and not have a trade war, but they're happy with what he's doing because they suffered for a long time under unfair trade practices in china for snap-on, it's not such a big thing for us because we manage it we do have impacts of tariffs, but we have just this past quarter, we had 8 cents of currency impact. so, we're used -- and our margins went up. our gross margins were the highest in decades this quarter, even though we offset that so, we're in a mode of improving, you know. one of the things about manufacturers, i think, is the longer the tariffs go on, the more they get mitigated, because

people are working on them they're working on how to avoid the impact. >> because you've already put it in as almost going up against comps -- >> one, but two is, you're saying, oh, i'm resourcing i'm finding ways in which i can reduce the cost of the overall product to offset some of the tariffs. and the longer it goes, the more it gets mitigated and the more it isn't an effect that's what happens with us, anyway. >> so manufacturers can find other suppliers who aren't in china to do some of this stuff >> over time, i think that's true or they can do it internally in the united states. >> so it can hurt china but also the u.s. >> it can. >> i hear a lot it only hurts u.s. consumers, then i wonder why china is so worried about tariffs being put on their -- it doesn't affect -- it's not a problem, if it only hurts us, then how -- >> it does affect them it gets their attention because it's a disruption. tariffs are a disruption, so it creates near-term turbulence for anybody. you have to make adjustments associated with that and everybody has to deal with that.

snap-on deals with that pretty well last time i was here, i thought it was a positive inflection point. i see this situation more or less like kabuki theater i was in asia 11 years myself, and i think some of this is optics xi jinping has to have a victory for the 70th anniversary of the people's republic in october you see this written all over the "south china morning post. and donald trump, of course, is thinking about he wants to have a victory as well to satisfy people who have put their faith in him so, you see this kind of thing playing out. i think they'll eventually find a way to manage it so that both sides are seeing positive. but whatever happens, for us it's reasonably positive, and i think the quarter played it out. and as you said, we have an advantage because we make in the markets where we sell. >> we had jim webber, who's the ceo of brooks running, on with us a week ago. he said that they've already moved a lot of their operations from china to vietnam. they started doing this when the tariffs first became kind of a looming problem over a year ago. and i guess my question is how many companies have figured that out? it's not easy to do.

maybe easier if you're a smaller manufacturing, but how long does that take? >> it's not that easy. but for us, for example, what we make in china, we sell there so we're not looking to move but over time, this can happen i think what happens, if these tariffs stay in place, people have an economic decision to make but again, i want to point out, for manufacturers, i don't think it's a handwringing thing. one of the things that puzzles us is the way the stock market might react. somebody was on yesterday saying i think 7% drop. to us, tariffs are just another turbulence that you see to be managed. >> in fact, you said trade wars don't benefit anyone, but what i'm hearing from you is maybe trade skirmishes could end up benefiting us in our ongoing competitive situation with china. i mean, are you -- you sort of -- are you glad that the trump administration pursued this option? >> i am. and i think the national association of manufacturers, which represents large and small, is glad

they believe that it's been long overdue that we engage china, because of their unfair trade practices, intellectual property, the way they deal with state-owned industries has been difficult. and what did we think was going to happen? that was going to change by asking nicely? i don't think so and so, i think that's where the manufacturers sit. they don't want it to go to, you know, a meltdown they want to keep discussing it, so the discussions today, even though the vice premier doesn't carry the title of special envoy, and that's a little bit of a downgrade, they want that to keep going. i think we all wanted to see it work out to an arrangement that doesn't melt down into trade war, but we think it's important that we push back china and push back now economy's strong. >> how snap-on can gauge the strength of the u.s. economy, how well do you feel -- >> well, we call on over -- almost 1 million technicians. >> so you're pretty good. >> it's pretty good. the u.s. economy's strong. we call on 300,000 garages we're at the grassroots level. most manufacturers deal with

those kinds of people through distribution we deal with them directly >> yeah, you see kashkari's thing today? i just glanced at it, but his deal is that 3.6% doesn't accurately reflect how tight labor is, that the participation rate does, because it's so low, and that the way you look at whether it's tight or not is through wage gains, which are still better but still muted so, do we still a ways to go >> there's a skills gap in manufacturing. 5,000 jobs are unfilled, available now. >> available. >> it is part of a skills gap. and it's two problems. one is we're not training the people to call on air strikes for schools, and secondly, things like manufacturing or auto repair, so on, have a pr problem. they're viewed as a consolation prize of our society, and therefore, people view them, i think in huxley terms is if you've settled for those professions, you're again a minus in society this is something i think that needs to be overcome, and it is being overcome

the president's doing that, but a lot of us in manufacturing and the national association of manufacturing is working to do that because these are american callings pride and dignity of work. >> did you sit around on soma all day long -- >> that's right, mustafa mund. >> thank god for orwell, because -- >> right. >> pretty unbelievable with what's going on with a lot of things with orwell they were pretty prescient with where we are now, group think. >> and i don't think we should overlook that. i do think part of the reason why we can't fill the skills gap is people think you have to go to university to have a reasonable life. and this is not true i can assure you that the ability to keep your family warm and safe and dry and have pride and dignity exists in the auto repair garages all around this nation so, those are great jobs people should sign up for them it's just a matter of selling them on it that's what we're trying to do. >> nick, thank you for a lot of stuff we covered. we appreciate it. when we come back, we are

counting down to the interview of the morning uber's ceo will join us live >> scooters, bikes, vehicles, flying cars, fd.oo uber, the big ipo, when we come back

you often talk about uber in the same breath or context of amazon in its early days >> mm-hmm. >> what's the similarity >> of all the big, global technology companies out there, amazon operates similar to us in this intersection of the digital and the physical and the physical world is complex. it's unpredictable it requires more capital it requires this partnership between operations and technology and so, we have a lot of respect for what amazon has done and just like amazon went from being a bookseller -- essentially to being a transportation on-demand service. we want to be an everything transportation store. >> that is uber's ceo, dara khosrowshahi, on a ride-along with andrew. and we have a very special

interview coming up at the top of the hour. uber's ceo will be joining us live in just a few minutes he'll be joining andrew down by the new york stock exchange. for more on today's main market event, let's get to our panel. uber investor bradley tusk, ceo of tusk ventures also joining us, "fast money" trader steve grasso, and our very own mike santoli. gentlemen, welcome to all of you. >> thank you. >> great to see you this morning. and bradley, i'm just going back thinking what this must mean for you, because you joined uber how many years ago >> 2011. >> you were the first -- >> and when i -- travis had called me because he needed help navigating all these different political hurdles in the taxi industry and when i told him my fee, he said, i can't afford it, would you just take equity i didn't even know what i was saying yes to, but i was like, sure, what the hell. and that was 2011. so yeah, it's a nice culmination today. >> eight years later, that must have been a pretty good deal for you -- >> yeah, yeah. it worked out pretty well. >> 225x, i would say >> wow. >> what was the "x"?

>> it's a healthy number it definitely is enough that i no longer have to worry about paying the rent. >> did you hold onto it the whole time >> i sold about half to softbank in the tinder a little over a year ago and have the rest. >> we're talking about $45 a share, lower end of the price expectations, values the company overall at about $75 billion a long way from where you got in on this entire thing. >> we were at $30 million or $50 million when i got in. >> wow. >> a long way from where you got in but what does it mean for some of the more recent employees over the last three years who have gotten shares at $47 or -- >> yeah, i think, look, and i tell people this all the time who want to go to start-ups -- joining a late-stage start-up is not a get-rich-quick scheme, right? it's i love this company, i want to be here and learn from it and it's a good job. but if you want to make money working in tech, take a giant gamble and go on series a, and

after that, most of the up side's usually gone. so people who have chosen to work at uber the last few years should look at it more like a job and not hey, this giant gamble's going to pay off for me soon. >> steve, having said that, even though it was priced at $45, maybe it was nice to bring that down so you can see a pop at the open. >> that always comes into play, where the friepricing is right, where you think it's right because you want to have a good day. when you tune in and watch the opening bell and bob pisani is behind the post, you want to make sure it holds price if it holds price and pops and rallies, that's a successful day. so you want to keep that bounce as much as you can, so that's very important. >> you know what, on delta house at night, when you do that, all you guys do at the end how much time is left and you we it down? >> yeah. >> what's the opening price? >> in my first blush was going to be $62. that's where i fell. >> really? >> then i felt like it was way high on there. but i'd probably say mid-50s. >> so you're looking for a pop >> i am looking for a pop. and you never know

these things are all -- it's all played by the day and the bankers and everything else, but probably mid-50s. >> do you think that's what's going to happen, really? >> yeah, i mean, i think there's two different worlds here. there's the ecosystem in bubble, the tech world, right? and if you're looking at people in the valley, venture capitalists, reporters, it's been more pessimistic than not in the last couple months -- >> lyft took the hit. >> for sure. but then the other question, i guess, is we all kind of talk to each other and live in this little bubble, when real people all of a sudden can start investing, are they going to say, oh, you know, profitability, driver subsidization, all these things we talk about, or hey, i get to invest in uber, that's awesome >> and a lot of people take ubers and think they have a real connection to it but this is a tough week the market overall isn't doing them any favors. >> absolutely, and probably got a discount for that reason although i think the ways uber is different from most ipos is relevant, too. it's not usual that you have a

company this big, this battle-tested. it's not introducing itself to the world. people know it they've been through all these private crises while they were not publicly known, and i think $45 -- nobody remembers amazon's ipo price. >> no. >> you know what you remember? facebook's ipo price because they were too aggressive. >> because there was a problem, right, right. >> so that's the difference -- >> so smart on their part -- >> when you publicly say a year and a half in advance we're going to go public in a year and a half and it's a very slow, methodical process, i think it's probably a net benefit, that fine, take $45 i don't think it's even about the pop. i think it's, look, this is roughly the valuation we're comfortable debuting at and we would love to have a little upside from there, but see don't think they're trying to engineer a precise 20% upside -- >> and joe just said, lyft took the hit. never earn a profit hit. >> right so, people when they buy these ipos, you make room on your book or in your portfolio for a certain amount of plays. people wanted, for good or bad, they wanted to own uber, and own

uber longer term, and they wanted a piece of the lyft, but -- >> but they want to be investors -- >> when they see the sell pressure, they make room for uber so you wind up -- it's a double whammy so, you get it, you sell it, and then the guys that held it long enough want to sell it because they have to make room for uber. they don't want to own both. >> stick around. we'll have much more from our panel this morning as we digest andrew's interview with dara khosrowshahi that's coming up in just a few minutes. andrew, are you getting ready? >> we are getting ready. dara khosrowshahi is literally sitting next to me as we speak the interview of the morning the year's most-anticipated ipo. it's coming up right after this. ceo of uber, dara khosrowshahi, joining us live. take a quick look at the futures right now ahead of the big open this morning "squawk box" returns with the ceo of uber on ipo day, right after this ♪

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>> announcer: right now on "squawk box" -- uber going public >> there's a whole personal electric mobility revolution that's happening with this stuff. >> announcer: the ipo wall street's been waiting for. and the interview of the morning. >> cars can't be the only transportation solution. >> announcer: uber's ceo, dara khosrowshahi, on growth and ride-sharing, cutthroat competition, and his company's road ahead plus, expert analysis and commentary all hour long the final hour of "squawk box" starts 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 ross sorkin is downtown,

just outside the new york stock exchange his interview with uber's ceo, dara khosrowshahi, is coming up just momentarily let's check the futures in the meantime, which are now being affected by something totally different, although i wouldn't worry about the overall market tone if i were uber today. they've definitely got their own story. this is based on what happened overnight, 12:01, the tariffs slapped on tweets this morning from the president. nobody knows exactly how the talks are going or how they're going to proceed today, but 103 points is a rounding error, really, although it's been one of the worst weeks in recent months, but nothing that notable -- >> with respect to january, we've seen worse days, worst trading day of the year on monday is that the case, mike monday was the worst trading day of the year since january 3rd. >> down 2.5% >> before today, so another 0.5% at the open, just about 3%, 3.5% from the highs. >> this is after a big run

what is the gains for the year-to-date >> the year's like 15%ish right now. from the low, it basically went up 25% in 20 weeks from the december low you've given back 3%, 3.5% of that. >> let's get straight to our big interview of the morning andrew is standing by with the ceo of uber. andrew >> hey, thank you, becky joining us now on the ipo day, uber ceo dara khosrowshahi thank you for being here on this big day. >> happy to be here. >> and what a heck of a couple of weeks you've been involved in over this road show and what a week this has been want to talk about the pricing, want to talk about the company, was nt to talk about the future, but just on a very personal level, especially given what we were seeing in the markets this week -- >> yeah, yeah. >> howhave you felt about this >> i am excited to be here it's been the culmination of the work of hundreds of people at the company. so, it's just good to get it done and i'm looking forward to going back to building and good environment, bad

environment, we're going to be building a great company. >> but given what's happened in the market, tell us in terms of the pricing, $45 a share, which is at the lower end of things. how do you think about that? how do you think about that in terms of you're raising about $8.1 billion -- it's probably less than you wanted to raise. is that the environment? how much of that was this china news this week how did you think about that >> pricing a deal is an art, not a science. so, we will probably have had it imperfectly, but we thought that at this price, it reflected the environment. and listen, the environment is uncertain right now. and any time there's uncertainty in the market, investors are going to be a little hesitant to put $8 billion of their dollars to work. and we wanted to put our stock with a group of funds who we know aren't just going to hold for the next week, but they're going to hold for the next year, and hopefully, for the next five years. so when we looks at the environment and we balance how we really think of this company long term, this was a great

result $8 billion is plenty for us to build and grow on top of. >> what kind of runway does that give you >> a very significant runway we're quite confident about the road ahead. >> what was the lesson of the lyft ipo, and how did you feel when you saw that stock really drift down over the past couple of weeks since that ipo? >> yeah, listen, i think that there's no perfect lesson here i think they probably did the best they could with the data that they had. it led us to be a bit more conservative and it did lead us to place with neutral funds that we trusted, we've had relationships with in the past, et cetera. but again, all of this, when you're in the middle of it, it's very easy to second guess it two weeks later but when you're in the middle of it, you do your best, and i think they did their best at the time. >> what does success look like today for you? what -- how are you going to measure the success of this ipo? >> success today is a stable

price, a little bit higher than the pricing, not a lot higher than the pricing, because we want the pricing, we want there to be fair price that the company receives, but we're going to be measuring success in three to five to ten years, not in one day. >> okay. the one question that every investor has, and i know you get asked it over and over again, is path to profitability. >> yeah. >> walk us through how you get there. >> so, we are already contribution margin positive and for us, the definition of contribution margin is quite wholesome. it's not just gross profit it's much more it's all of the expenses associated with the profit that a country grows off. we have top five countries of ours that have 54% contribution margins and are paying significant amount to pay for their overhead and pay for the investment in the company. so, for us, the path to profitability isn't theoretical. there are cohorts of countries that are profitable, and it's about getting other cohorts of

countries to the same maturity level that some of our countries are operating at we do reinvest profits aggressively in new business lines like eats, that have great promise, but we're pretty comfortable when we look at the portfolio of businesses that we have, that we have a very strong path to profitability. >> so, lyft says this yearfor them is going to be peak losses. peak losses are going to take place this year. can you say the same for uber? >> that would be our intention, although there can't be any guarantee, but that would be the intent. >> right and we showed some videos in the last hour when we had our conversation about the comparison to uber i'm sorry -- you are uber -- comparison to amazon i apologize. but one of the things i was thinking about is, when you look at where amazon was at the time of its ipo, it was a much smaller company. it literally had $15 million in revenue. that was it. but it was also growing at 3,000 -- nearly 3,000%. >> sure. >> your growth has decelerated coming into the 20s now.

is it a fair comparison? >> it's a fair comparison at the wrong time a lot of private companies now are holding off much longer before they go public. >> right. >> we are much bigger, much more mature as a company as we go public and if you do look at the growth rate, our audience is growing 33% on a year-on-year basis, transactions have grown 36%. to be able to grow transactions 36% on a $50 billion base is pretty incredible, and we hope to keep it going. >> sort of a larger question, and i don't know if we're going to see protesters today, but you saw that there was protests and labor strikes that happened earlier this week. that's a big question for the whole gig economy. >> sure. >> what did you think when you saw those protests >> i thought that we have to do better we have over 4 million drivers and couriers on our system and how they make a living and how the system works for them is

quite variable, because you can plug in, you can plug out whenever you want to and as a result, for the vast majority of our drivers and couriers, it works it's exactly what they want when they want it, but there's definitely a group where it's not working, and we have to do better to make sure that our system is the right system for anyone, anywhere, who wants to plug in and plug out. >> let's talk about that risk, because one of the things you talk about is "our business would be adversely affected if our drivers were classified as employees instead of independent contractors. there's a move afoot in large parts of the world on that front. and also, we should say last night in one of your filings, you said that you settled thousands of driver claims over being misclassified as independent workers and that you plan to spend $146 million to $170 million do you anticipate there's going to be more suits like this >> i think the question of classification's going to go on for some time because labor is such an important part of any

society's means. we had a department of labor opinion that suggested that companies like ours and gig economy work did represent temporary labor. it wasn't permanent labor in one form or the other. so, we think we stand on the right side of the law, but we also have to be reactive to society. so, for example, in france, we've introduced an insurance program with axsa that gives drivers more insurance, more benefits where they need it and we're going to be flexible and we will look -- you know, our goal is to make sure that driving for us or being a courier for eats is a great way to either make some additional money or make a living, and that includes earnings and it includes benefits over time. >> in terms of profitability, how much does autonomy matter? how much does it matter that we get to that place? and i know we've talked about it, maybe five to ten years before we really get there. >> stage one for autonomy is about growth and safety. so, first it's got to be safe. then autonomy is going to bring down costs per mile, which

essentially is going to open up another stage of growth for us i think that profit time is well out, but i think the growth is well worth it. >> and how should drivers feel about autonomy >> i understand when drivers are scared to some extent of what autonomous can offer, but we believe that you're going to have a hybrid driver and autonomous state the machines are going to essentially take the simple, shorter trips that are less desirable, and that will leave the more complex trips, and hopefully, the trips that have more revenue associated with them for drivers. >> do you care if drivers drive for you or for lyft? most of the drivers i know in new york do both. >> i care if many more drivers drive for me, but they can also drive for lyft >> what about the rationalization of the business? a lot of people say, look, over time after the ipo, prices are going to have to go up both of these companies are going to stop, you know, going after each other, you know, in this almost ruthless way however, you should know, last

night i got a text from lyft offering me a new promotion. and so, i'm not really sure that that's -- i mean, tell us about that competition >> well, hopefully, you're part of our loyalty program. >> yes. >> so you'll stick with us thank you. and that's the whole goal of the loyalty program. this is a big sector, all right, the transportation space the area that we're going after is $12 trillion or more. you are going to have competition. competition makes you better and the good news is, i think both lyft and us have the ability to keep competing, to keep prices for service very, very affordable, and over time to improve markets >> i've got to ask you a compensation question for yourself there's a note in one of the filings that says if uber achieves $120 billion valuation on an average 90 days following the ipo, you receive a lot of money. are you expecting that now, given where the valuation is today? >> i wasn't expecting it any time short term. this is, i'm here to stay, i'm

here to build a big company. that compensation term is not about a single day it's about what value created over ten years and over ten years, absolutely, i expect to get there. >> then finally, do have to ask you a little bit about the drama that's in the news and i know he's going to be here a little bit later today, travis kalanick of course, he founded the company. he's going to be here with his father there was a debate i know he wanted to be up on the dais ringing the bell with you talk about that decision and what happened there, because there's been a lot of headlines about it. >> yeah, sure. those are unfortunate from where i stand. the day for us is about longtime employees who have been with us thick and thin and drivers and couriers who use the service that's what the day should honor. and i think that's the right decision for the company i'm thrilled that travis and his father are here to celebrate with us. >> what's your relationship with him like now >> i think it's fine he's a board member, and he brings an insight to the

boardroom that reflects his genius and his experience with the company, and that insight really is valuable for us. >> what are you going to do at 4:00 p.m. today? >> probably get a drink with my wife >> thank you for being here this morning. we wish you luck with the ipo and with the company >> thank you thanks for having me. >> appreciate it guys, i'm going to send it back to you. >> all right, andrew thank you so much. andrew, by the way, stick around if you want to jump in on this, too. let's get back to our panel around the table and talk more about what we just heard from this interview with uber ceo dara khosrowshahi. we are back with our panel, bradley tusk, ceo of tusk ventures, who is a very early investor in uber and who held on to a lot of that stake we'll talk more about that in just a moment. steve grasso is the director of institutional sales at stuart frankel and a cnbc "fast money" trader and cnbc senior markets commentator mike san tolo. and bradley, let's start with you again, as the person who's sitting here who has a major investment in uber what do you think based on what you just heard

>> yeah, i mean, look, dara really breathes comfort and familiarity. in some ways, the fact that he's already been a public ceo of a big company like expedia is very reassuring and ultimately, i think he lays out the vision pretty well, which is, if you're buying into uber at this price, or even at a higher price, you believe that all these component parts, whether it's uber eats or ride-sharing or scooters and bikes or uber freight, ultimately all come together into one network of logistics and transit that has incredible market control and supply, like amazon does. the question we'll ask ourselves is is this the person who can do it because the vision's there the pieces are there putting it together's not easy he inspires a lot of confidence. >> going back to this, i mean, you talked about this a little over a half hour ago for people just joining the conversation, you were an early investor you've been in this for eight years. you were there because travis kalanick called you, asked for some help with political issues that he was dealing with at the time. >> yes, same stuff dara's talking about now.

>> he couldn't pay you for it, so he gave you stock you sold half? >> i sold half to softbank, yeah. >> what happens today? now that you see the ipo eight months later -- >> i have a six-month lock-up, so i have that no matter what, but i'm not in a rush to sell from there the reality is the softbank liquidity is more than enough to do what i want with the money, and i believe in uber. i'm sure at various points i'll sell because i'm too concentrated in one position, but overall, if you believe in the company there's no reason not to stay in it. >> steve, would you buy today? >> you know, there's going to be a push there's going to be a want, supply-demand, and there's definitely a lot of demand for uber obviously, with growth stocks, you have to decide on when they could flip the switch like an amazon can amazon, can they be amazonesque and flip the switch and show profits whenever they want that's going to be the question that pulls new money into a stock like this, and that remains to be seen but yes, i think i would be a buyer of it. >> mike, i think the comment

that struck out most to me when andrew was just sitting down with dara was when he asked him about will this be the peak year of losses? that's what we've heard from lyft dara's answer was we'd like to have that be the case, but can't guarantee it. >> can't guarantee it. i think you have to keep in mind, they can modulate that, right? so if they stid to show fewer losses, it means invest less and if they believe the investment opportunities aren't greater, they have to show the street that they're showing capital discipline that could be the case i don't think it's necessarily a long shot to say can they minimize losses. it's can the long-term vision of the company be realized as they try to look better on paper today? that's to me the interesting point about unicorns coming public it's a little bit of a collision, or at least a meeting of wall street priorities and silicon valley math. and that is the uniplay we're seeing with these prices i think the other interesting thing he said was that the lyft experience did cause them to be more conservative on the pricing. >> yeah, right. >> $45 -- >> by somebody else's mistake -- >> it's also an art.

you want to place it with long-term shareholders every single person asking for an allocation says i want this for a long-term holding. every one of them says they want more shares than they actually really want in their portfolio, and that's the interplay of the game theory. >> dealing with entrenched taxi companies and political considerations that you were brought in to help manage to me seems like the considerations are only mushrooming even more at this point, and i'm talking about the question about whether you're an independent contractor, the question about health care, the question about a living wage and income inequality that we see and there's going to be all of these societal questions for uber, and maybe they need driverless cars eventually, but that's going to be tough -- >> a while -- >> but eventually, they've got to keep labor costs down because they're not making money now >> yeah. >> so, how are they going to -- remember don hope bryant was in saying this is an opportunity for uber to take a whole group of people and give them a living

wage and health care, which really is kind of antithetical -- >> on investors' dollars. >> which is antithetical to what they're trying to do in terms of profitability, so i don't see how they walk this fine line between -- >> yeah, it's definitely tricky. also, it's not all or nothing. so, in the u.s., labor laws are both state and federal what we're seeing is, in states like new york and california, this push towards living wage and classification as full-time employees, and then places like texas and florida, they've gone the other way and said, hey, if you're in the sharing economy, you're clearly an independent contractor -- >> yeah, but uber's biggest markets are in places like california and new york. >> for sure. so i think what's going to happen is when you're a full-time driver effectively, the people that drive us around manhattan, they will be treated one way or another like full-time employees. when you're the college student doing 12 hours a week to make extra money, you're an independent contractor and it's going to end up being totally different for every single jurisdiction. >> by the way, it's also -- i mean, there's debates about the cause of congestion. basically, is this a societal

guy g that people are taking thai kind of micro rides everywhere and having other people drive them around i think the benefit is uber's been dealing with this stuff for a very long time if you remember the first phase of amazon's life, it was oh, no, they're going to put book stores out of business! we obsessed about that for years. and they did. >> now they're putting everybody out of business. >> and that was the side story along the way that they grew into all these other areas. >> what makes uber a great investment in my mind is that it has so many levers to pull you're not looking at -- we're all talking about one aspect of what uber does and there's so many other levers that they can pull that you wind up saying, you know what, i get something like an amazon, like something that is conglomerate, that becomes its own etf so, you're owning something that has a bunch of different aspects, that has a bunch of different pros and a bunch of different cons, yes, but the cons are definitely outweighed by the pros -- >> let me bring up one issue i don't think we've talked a lot about, and i had kind of foergten about it.

they also have stakes in several other companies that could go public you're talking about a 37% stake in yendex, 28% stake in grab and a 20% stake in dede. some people have said that could be like $20 billion if they go public if the markets haven't turned by then that's an unrealized part that doesn't get a lot of attention. >> that's a part in uber's s-1, they said they eventually think 50% or more of trips three miles or less will be conducted by bike or scooter as opposed to car. why that's significant is, a, uber's got investments already in both of those spaces and maybe they'll make some more, but b, that solves the whole driver issue. >> that's a bold statement. >> i think that the congestion the way it is, people need other ways to get around, and if you look at companies like bird, they're exploding in popularity, and that's because people want an alternative and i think if uber's smart, they'll be able to capture as much of that market as possible. >> thank you very much for being here today. >> thanks for having us. coming up, we're counting down to uber's first trade as a public company there's more analysis on the way

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the environment is uncertain

right now. any time there's uncertainty in the market, investors are going to be a little hesitant to put $8 billion of their dollars to work, and we wanted to put our stock with a group of funds who we know aren't just going to hold for the next week, but hold for the next year and hopefully for the next five years. so when we looked at the environment and balanced how we really think of the company long term, this was a great result. >> and that was uber ceo dara khosrowshahi speaking with us just moments ago we're expecting the ride-hailing company's first trade on the new york stock exchange a little bit later. could be a lot of bit later. let's bring in andrew back for that we did the, you know, the jobs friday guesses among some of the other people are you at a mid-50 or low 60? here's what i think, andrew -- i think lyft already absorbed all of the angst, and this is going to be pure joy i don't know, maybe i'm wrong, but i just think it's a different situation.

all of the handwringing is already out of the way, i think. >> i think it's a different situation, but i think, actually, embedded in the answer that we just saw from dara khosrowshahi from moments ago, in terms of who the investors are, was a bit of an implicit dig at the lyft ipo and how that ipo was placed in terms of which investors really got access to that ipo there were a number of funds that literally turned over and sold those shares almost immediately. and i can tell you for the past week and a half, as i've been reporting on this ipo, that was a huge issue for this group, for the folks at uber. and they went through literally investor by investor to make sure that they were trying to lock in investors who were going to spend a lot of not only money, but time, and i mean not in days or months but in years, supporting this company. so, that to me was one of the major takeaways, and i think that will have an implication

for this thing trades over the next several weeks and i saw becky tweeting it -- i thought the other comment people will focus on is peak losses when are those peak losses and you saw that dara was not ready to guarantee that this year would be a peak loss year the way lyft has, and that is something, of course, that will raise questions on the other end of this conversation. >> andrew, don't you think that john hope bryant's idea for uber is antithetical to being a highly profitable company? it's almost like labor is the problem for profitability. they've got to get that driverless as quickly as they can? there's going to be societal pressures for living wages and benefits and not independent contractors and health care and everything else, which is going to make it tougher and tougher to be highly profitable. the two forces seem to be opposed. >> i think you're absolutely right, though. i do think when we asked him

about whether it required autonomy to become profitable, he did not say that was the case and i think as i spent time with him, even over the weekend, he's not really expecting full autonomy and i know elon musk says it's a year away. he's not expecting it for five or ten years in a meaningful way. so, i think there's a lot of other things that are going to have to happen before then in terms of the profitability story. >> you wonder how -- they've got to raise prices -- it's worth more than what they're charging right now to do what they do, and that's going to have to be part of it. >> that's true. >> there's no way. but then you wonder when taxis suddenly become competitive again. plus, you get to listen to the "squawk," you know, on the cab in the cabs you get to hear andrew talk about what's coming up on "squawk box. >> andrew, great job thank you. we'll check back with andrew in a few minutes. when we come back, much more on uber's ipo and what you need to know ahead of the first trade. we'll get you ready for what's shaping up to be a big day on wall street.

also coming up at the bottom of the hour, the next piece of the inflation puzzle april cpi data out in minutes. stay tuned for that. dow futures are down about 124 points, probably mostly on concerns about chinese tariffs or tariffs on chinese goods, $200 billion worth of them, raised to 25%.

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breaking news! our april read on the consumer price index up 0.3%! strip out the all-important food and energy, up 0.1%, all 0.1% lighter than expected, but

headline, it's 0.1% lighter than our last look as well. expectations and rearview mirror both up 0.4% now, let's look at year over year numbers both sets include 2%, if you look at headline, cpi year over year, it's 2%. if you look at core year over year, it is 2.1% now let's look at real average hourly earnings year over year for april, up 1.2% and if we look at weekly earnings year over year, up 0.9% the up 0.9% is a little disappointing. our last look was revised from 1.3% to 1.4% so wages on the real side aren't accelerating cpi's certainly not cold, it's not even cool, but it's not as higher and we could argue it's a degree or two not as high. interest rates almost exactly where they were yesterday towards the end of the day, but they are drifting a bit along with stocks. joe, back to you >> all right, rick thanks stick around joining us now, cnbc's senior

economics reporter steve liesman. mike santoli's back. steve grasso as well so, i thought -- did you think that sounded kind of hot, steve? >> i did i had it wrong rick had it right. we sometimes don't use the same consensus, but this time we do he was right -- >> he said it was cold -- >> colder than expected. i like how rick put it as well, joe. you know, it's not declining it's just not -- it's not really moving and the context here is important, because you would think the way the economy's been running and the way unemployment's been running that there were expectations you would have higher inflation, but we're just not seeing it housing shelter up pretty good, 0.3%, 0.4% right there a decline in new and used vehicles down 0.4% sometimes that has to do with the time of the year airline fares down 0.1%. i'm just seeing not a whole lot of inflation in there. prescription drugs up 0.7% that had been on the way down. it seems to be back on the way up the last couple months. gasoline, though, up 5.7%. that's going to kind of work its

way through. i thought, guys, for a second, we'd talk -- >> not going away. >> what's that >> not going away. >> it's not going away, but the acceleration i think is not going to be in the next several months >> how did powell have this misstep, where he was enamored that there was lack of inflation before -- you know, when he first came in to sit in that seat, he was enamored by the fact that he couldn't find inflation. no one could find inflation. fine, there was nothing around and then when he sat in the seat, he said, well, we want to, you know, raise rates because we want to combat the slow-and-steady inflation. >> right, right. >> and now we see that backstep. and the truth is, the fed is going to look for reasons that there's zero inflation and they don't have to look hard. >> it's not anything that changed other than he's getting pressure from the president to say -- >> well, is it that? >> we want you to cut rates. and okay, maybe it's not as transitory as we thought it was. they don't want to get boxed in by anybody -- >> i think he's stalling for

time i think there are things out there that are uncertain about the outlook. i think global economic weakness i think this trade stuff might have been on his mind. and said let's let this stuff play out >> right. >> let's not go either way and the question is, did he sort of invent this transient idea, which may or may not be true >> right. >> i can't find this primary brokerage services number here in front of me right now while we're talking, but that was something that was down and flattered it but quickly, i want to raise an interesting question, becky. if you can bring up the two-line chart i made on chinese trade. hopefully it's stacked in there. let's look at u.s. imports from china and u.s. exports to china. and this raises a question about the political dynamic here and who's got the economics of this right. and what you'll see, if the chart were -- there it is, okay? so, there's exports to china declining rather sharply -- >> yeah, but that's a percentage basis. what's in the real number? >> okay. let me -- hold that thought for a second, and you can see there's not a lot of change in

the total imports from china -- >> right. >> so, let's think about the economic dynamic here -- >> but i'll argue with you on 15 points on this >> you're going to argue with me before you know what i'm going to say. >> but look, first of all, there's not a big decline in u.s. imports from china, but if you're doing it overseas, it takes longer and u.s. companies -- >> you're stealing my thunder, because that was my ultimate conclusion. >> sorry -- >> cool. >> it's a fun game >> but let me -- >> you win. >> let me make the single point here before i get the wrap, which they should have given me a minute ago this idea -- do we need their stuff more than they need our stuff? and that is key to the calculation here >> that's short-term versus long-term. >> it could be short-term versus lo long-term. but if they're able to source our stuff from other places -- let's say it's ag. let's say it's soybeans substantially. >> sure. it's also a sense of

government -- not individual companies -- >> companies -- >> but it's also like their government could just say we're not doing it, changes tomorrow, we're cutting off our nose to spite our face companies could be -- >> but they say the u.s. is more reliant on china -- in other words, there are fewer substitutes for what we give and that's my point. right now, becky, right now -- >> short term versus long term -- >> maybe longer term we establish -- but then, ask yourself this question -- are these tariffs temporary bargaining tools or are they -- >> i don't know. >> -- structural pillars being put in place in order to allow u.s. industries to develop. >> mike, what do you think >> that would go away soon -- >> that would mean that those tariffs are going to continue to be paid, right so, in other words, that friction remains it's not like, okay, those tariffs are there, so we're going to resource elsewhere. so it becomes a friction point in the economy and it becomes a restraint to growth. >> but i will say, companies that we have spoken with are looking at this and on the long-term planning have already for a long time been looking at other alternatives. >> sure. >> some of them --

>> snap-on tools, you spoke to them this morning. >> it's less of an impact on them i'm thinking of brooks running shoes, which did move their operations did. >> but snap-on couldn't get out of the way of the steel tariffs. he was telling me their steel costs have gone up domestically -- >> although if you're looking at things from the stock market perspective, snap-on -- and he admitted this -- has a competitive advantage because they've been paying higher prices for u.s.-based manufacturing for a long time. now everybody else is kind of getting hit with these things. so competitively, if you're looking at a company to invest in -- >> it helps out. >> they're not getting hit as hard relative to other companies -- >> when i spoke with the ceo of masco yesterday, keith allman, and when the first tariffs came on, they had to adjust and they had to have the work-around that you're talking about now when the second layer of them come on, it's not -- even though it's a bigger hit or as big of a hit, it's not, because they've already found that -- >> they've planned for it. >> so they've been there, done that, already planned for it so the overreaction you're seeing in the marketplace is probably just that -- >> i don't think you're seeing an overreaction at down 136 --

>> the one idea i think is chee cheese thought -- the president of china -- >> i thought you said cheese xi. >> and president trump has the other idea he's thinking like you are in dollar terms and xi's thinking in percentage term, that it will be a big hit on a percentage basis -- >> i don't know the answer -- >> and for a long time they've been trying to divert their end assets it's a smaller piece of the economy than it used to be the question is who has the leverage >> and is one of them miscalculating. >> thank you >> i'm confident -- >> with steve -- >> i'm confident -- >> you just assume it's you? i did it to -- it's deliberately ambiguous. >> 16 years. i may be dumb, but i'm not stupid, right? >> there's two steves! that was the whole point of it. >> it could only have been one steve. >> you spent that entire conversation thinking that up. >> no, i didn't. >> yes, you did. >> but you don't know.

neither one -- steve, you don't know >> no, don't know. >> you don't know. >> gentlemen and joe, thank you. >> both of you can -- >> yes, becky. nicely done. all right, trade continues to be a big story for the markets. president trump has been very active on twitter this morning kayla tausche is back with the highlights on that kayla, good morning again! what you got >> good morning, becky the president is summarizing the state of u.s./china trade talks in five tweets he's saying he's in no rush to make a deal, that he's working to put tariffs on all chinese goods sent here to the u.s., which he estimates will reap $100 billion in proceeds, which he'll then funnel to farmers hit by chinese retaliation and other policies like infrastructure he also incorrectly suggests china is paying these tariffs, which are actually footed by u.s. businesses importing these goods. but he has a recommendation for those businesses, saying, build your products in the united states and there are no tariffs! these proclamations come as top negotiators from the u.s. and china held four-plus hours of talks last night, including a

working dinner near the white house, but those talks failed to produce a breakthrough before a tariff increase took effect at midnight there is no scheduled meeting between president trump and china's vice premier today, and it's unclear whether trump spoke with china's president, xi jinping, last night as he suggested he would sources say xi is behind the deal mark-up that happened late last week and any resolution needs to happen at the highest level, so we'll see whether one of those meetings or phone calls makes its way onto the schedule today, joe. >> all right, kayla. thank you. coming up, we'll have much more on uber's ipo and what to expect on its first trading day. we're covering the story from every angle. and cnbc has a great lineup of guests, including nyse president stacey cunningham, former twitter ceo dick costolo, and elevation partner roger mcnamee. "squawk box" will be right back. helping us find the right suppliers.

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welcome back to "squawk box. futures right now have improved a little bit they're down 125 points, now 122 on the dow the s&p indicated down 17. nasdaq indicated down 50, exactly 50 right now all right, let's get back to andrew ross sorkin to talk a little bit more about uber's big ipo. our interview this morning with ceo dara khosrowshahi. andrew is right outside the new york stock exchange. and andrew, what's it feel like right now? what are you hearing this is a really big morning >> it is a big morning

the entire board was literally just out here taking pictures. did not see travis kalanick just yet, by the way. a lot of cameras are waiting for him to arrive along with his father but in the meantime, earlier this hour, we spoke with uber's ceo, dara khosrowshahi, ahead of the company's big first day of trading. and want to show you some of the highlights and talk about them >> success today is a stable price, a little bit higher than the pricing, not a lot higher than the pricing, because we want the pricing, we want there to be a fair price that the company received but we're going to be measuring success in three to five to ten years, not in one day. for us, the path to profitability isn't theoretical. there are cohorts of countries that are profitable, and it's about getting other cohorts of countries to the same maturity level that some of our countries are operating at we do reinvest profits aggressively in new business lines like eats that have great promise, but we're pretty comfortable when we look at the

portfolio of businesses that we have, that we have a very strong path to profitability. the environment is uncertain right now. any time there's uncertainty in the market, investors are going to be a little hesitant to put $8 billion of their dollars to work, and we wanted to put our stock with a group of funds who we know aren't just going to hold for the next week, but they're going to hold for the next year and hopefully the next five years so when we looked at the environment and we balanced how we really think of this company long term, this was a great result >> you know, as you listen to dara khosrowshahi talk there, they are not looking for a huge pop today. we will see, of course, whether there is one, but i think given the reaction to the lyft stock price and also just the tumult in the markets, they've tried to be as conservative as they can with this ipo. and of course, as dara khosrowshahi said, again, you know, they really tried to keep and narrow the investor group

down to a group that is hoping to hold onto the stock, rather than flip it the way so many investors did in the lyft ipo. so, we're going to keep an eye, of course, throughout the day. this is the big morning. there's going to be a lot of pricing going on in terms of where this thing is going to ultimately open. but i think they're going to take success literally as -- you know, if they can be up 10% today, i think they're going to be happy, especially given all of the uncertainty around china and everything else that's been weighing on the markets right now. >> i'd say not down today makes sense, right >> got to be more than 10%. >> not down -- >> i think it's got to be -- so -- >> i'd say not down is success when you look at lyft. >> i think it's going to be hot, hot -- >> but my bar for success is you're not lyft. >> i kind of want some, but i'm not allowed to have any. >> do you? >> yeah, i would if i could. i think it's hot everybody knows uber one thing, andrew -- can you as

a futurist -- >> yeah. >> what do you say, a $12 trillion transportation market what the hell does that entail you're talking about every type of transportation -- >> it's purchase and maintenance of cars. it's a very, very inclusive number, to say the least. >> and how much are they addressing right now that's why they need a guy like dara who's going to take in all these myriad businesses, but i can't add it -- i can't get to -- was it 12, did he say? do you remember? >> i think he said 12. but i think what he's trying to talk about is the option value, effectively, that he's suggesting that uber represents in terms of what this marketplace ultimately looks like and to the extent that we all don't either own cars or only a small percentage of people own cars in the future, i think that's part of it. you know, uber eats business, what that turns into, that's now about an $8 billion business, and they keep reinvesting in that we talk about the path to profitability. if they did slow down some of these investments on some of these other pursuits -- by the

way, they're going to put the equivalent of, you know, electric helicopters in the air, or at least that's the ambition. so, there are lots of different bets being made -- >> that's what i mean. that's a big number. >> that's why they've compared themselves to amazon whether it's a fair comparison, i don't know you know, a lot of things broke the right way for jeff bezos and up until, really, aws and the cloud took off, i think there was still questions about whether amazon would reach profitabili profitability. and so, the question, of course, is whether one of these business lines hits in a way that maybe, at least today, is ultimately unexpected and that's why, to some degree, this is a speculative bet. >> right yeah, you already don't have a car, though, right you have a minivan hey -- >> it's an suv that you think looks like a minivan >> it looks like a minivan so, i'm sorry -- the only thing i'm sorry about, andrew, is that this happened on a friday. i mean, you're going to be tossed into that interview, like for -- you're going to go all the way until probably 6:00, 7:00 tonight how long are you going to have

to be doing this with the interview? are you going to be working late >> we're going to be on the air throughout the day we're going to be on the air throughout the day with programming. of course, we're going to be waiting for -- >> i can't imagine. >> -- for the open, which should happen around 11:00 or 12:00 this morning, and we will see what that price is at. then we'll see, of course, where it closes. and i know there's a big sort of uber bingo pool going on, frankly, all across wall street right now about where it opens and where it closes. so, we'll see. >> yeah, i mean, this is like -- i don't even think alibaba -- i guess alibaba in a certain sense, but this is like facebook or google or amazon. it's not even a zoom this is that major it's not every day you get a $100 billion -- you know, i know it's $80 billion, but basically, $100 billion market cap that's a company that gets that big as a unicorn to where it can actually be valued at that on the first trade. it's unbelievable. and it's like a seven-year thing, like a seven-year itch.

>> it's iconic it's an iconic day there are a lot of people getting ready. we thought, by the way, there could be protesters. one of the questions -- we talked to dara khosrowshahi about labor, and what you talked about with john hope of debate n on with labor. there are not protesters here, at least not yet we'll keep our eyes on that as well i should tell you by the wa way -- go ahead. >> you said the entire board or most of the board was down there to take pictures before they went in. how big was the count? you said travis was not among them, right? there is a couple hundred people walking in and about. i don't know if he's coming in in the back door or a different direction. he's going to be on the floor of the new york stock exchange rather than ringing the bell to give you a little bit of

color in terms of reporting we have done on this. the original plan is to put the driver and dara -- this is travis kalanick right now. if you talk about the growth of the company, travis is such a well-known name. he's such a force of november 2011 and august of 2013. uber values of $320 million. that's about 11 times just 20 months he's kind of legendary a director still on the board. there you see him getting into the elevator that's his father don who's standing next to him on the right. this is a long time coming for someone such a scrappy up start. andrew as you mention, he will

be there with his dad. it is a big day for him. >> i am trying to figure out how he snug in here without the cameras. which entrance he was getting in there at just to end a little bit of drama debate about this. the original plan with all the directors being on the floor during one of those recent board meetings travis kalanick says look i help create this company and the question of culture and everything else. he asked whether he can be up there as well. that conversation got tabled and released ultimately, dara decided to stick with the original plan and have all the directors on the floor. of course, there are questions about that perhaps would have been a lot of questions had he been up there about whether he was being brought back in the fold or whether he was the ceo

i think there were a lot of issues about the optics and the role of travis kalanick because there is an effort to separate the company from him we'll watch that and we'll be watching the drama on the floor as well and watching for the big number, guys >> we covered it and we had a camera on him, it is dara's day. baton gets passed. you wonder founders of companies, they get in and a lot of times you wonder, zuckerberg and you wonder there comes a time where it may be good for the baton gets passed >> this company has its success and cultural reckoning and debut

$80 million. >> you still have relatively flow and so it is a very mature company that by the way is also capitalizing in industry that really didn't haves much representation in the public market before. so this massive consumer change had been going on for years. public investors did not have the ability to tap into one of the biggest constructive technology out there it is not just an up start that's cashing in. >> right andrew, great job. i am going home and turning this on after i get a crown anyway, but, i will be watching you when i get back. let's get down to the new york sto stock exchange jim cramer is joining us now the hardest one and the ones we get burn for is trying to predict the odds opening price i am interested.

i think it is hot, hot this is uber i think it is different. lyft has abosorb some of the angst of profitability >> i agree with you. >> i think dara and everybody wants to be able to control this thing. then there is a lot of people bringing in uber this is the greatest company ever they're not listening to the idea that maybe they may not be able to make money, do they understand contribution margins being positive or the idea to mature companies so therefore don't worry. it is the biggest company that came public for a long time. therefore, we should buy it and use market orders and watch andrew's interview one of the best interviews cnbc have ever done, quite proud of andrew this is something i want to buy, this guy sounds great, that's how it works >> i am not going to ask you

6:00 a.m., you think >> i don't know. i think if i say 6 or 7, i will be guilty. it is not a ridicule game anymore. >> it is not >> i can say the ridicule i get about -- they don't care if i say. i think it will have a 6 they called could nould not rid. they think you know something. >> it could be a root canal. it is a great day. it is one of those days from everybody in the country is talking about ipo. >> that's good for business. lo i like that joe, i like that a t. >> thank you, i will see you in a couple of minutes, "squawk box" will be back in a couple of minutes. to inspire c through style. ♪ i'm working to make connections of a different kind. ♪

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roxana: when i got into teaching, it was this idea of really transforming our schools. marisa: one of my biggest responsibilities as a teacher is to serve as an advocate for my kids. newscaster: hundreds of teachers are hitting the picket lines. newscaster: thousands gathered here. rosanne: we need smaller class sizes. angelia: more counselors and more nurses. roxana: we have to be able to invest in our young people. angelia: every student has a right to quality education. ever: no matter what neighborhood you live in. roxana: our students don't have part-time needs, so they can't have part-time solutions. rodney: because we know quality public schools... roxana: make a better california... marisa: for all of us. president trump tweeting your all time favorite president, moi, no, he didn't put that in. got tired waiting for china to help out the only thing you added was moi. >> it is kind of understood in there, is it

moi. >> yours truly we'll watch and see what happens today. a huge day for the mark, you got tariffs kicking in at 25%. market is down 113 what's your guess? >> i am sure you will join us next week, right now it is time for "squawk on the street. good friday morning, welcome to "squawk on the street," i am carl quintanilla with jim cramer and david faber. complete coverage all morning long going into that opening trade. today is the day uber sets to make its public debut, the io crisising towards the low en