>> senate prediction >> byron wink. >> zidl got long >> nasdaq down yesterday the markets managed to close higher watch all day long join us tomorrow right now it's time for "squawk on the street. ♪ three that's a magic number, yes it is ♪ ♪ it's the magic number ♪ somewhere in this hip top sou community ♪ good morning to tuesday. welcome to "squawk on the street." i'm carl quintanilla with david faber and jim cramer futures lost some ground this morning as the market weighs the impact of the u.s./iran conflict europe is up, oil takes a breather but gold near six-year highs. stocks opened lower but within striking distance of new all-time highs as investors look to shake off middle east worries. >> plus chevron is pulling u.s. oil workers from iraq.

its ceo michael wirth will join us exclusively this hour tesla shares set to hit a new record at the open as the electric carmaker delivers its first china made model 3 to customers. 24 hours ago looked like the sell-off might continue on monday and reaction to those middle east tensions but stocks did erase earlier losses to finish yesterday in the green. major indices saw their third positive session we watch gold, jim, are we betting this is short in duration and limited in scope? >> you used to work for zilian i keep thinking about that word over and over again that's the word that define this is market. because yesterday when we were down very bad, ugly down 200 dow points, the dow is down that much, it did look like the beginning of something big, and you know what you saw? shorts pressing, thinking this is it, this is the big one it wasn't the big one and i almost feel like that unless something happens that's completely out of left field, if

you read what iran wants to target, people want to own stocks they want to own them so badly, and they want to own them even if they've gone up a great deal. amazon, 1900, suddenly people talking about amazon getting interesting. i see people talking about amd, as if amd wasn't up the most in the s&p. now suddenly they like it. people raising the price target. goldman reorganization, it's important the stock went up 50 points >> change the way they report segments, not a reorganization of personnel >> i'm saying you could argue major or you could argue that you know what? people are willing to come in even up here even though it had a good run, one of the strongest performers in the dow. >> a lot to talk about >> i think i want to be a little cautionary, where have these people been? where has cowan been

micron is up but carl, the thirst for stocks and the moment that they went down almost reminded me of 2018, where we did great and suddenly vix blows up in the first week of february right now, unless iran does something radical and erratic, people are buying stocks >> you say where have people been phase one, brexit clarity, u.s. mca, 232 expiration, all these good things are happening. >> you're right. >> the first big week of the year >> china was not mentioned yesterday. it didn't. >> it's going to get mentioned next yeweek >> it was rather amazing you leave on vacation and it's all china. you come back, it's all iran in the meantime a lot of companies in ces saying great things with the possibility to do a lot of business with china. i can craft like my friend byron wein this morning, a bunch of positive scenarios how about if bernie sanders wins

iowa, david, first week of february >> coming up now >> new hampshire, second week of february, right? feb 11 >> are you giving me a good scenario >> i'm saying a lot of people will say sanders versus trump? and trump, hate him or like him, pretty darned good for the stock market sanders can't beat trump i'm crafting that. >> there's another scenario that says sanders wins one and then buttigieg wins one and somebody else wins another and you go to super tuesday and you're michael bloomberg and you get what you're hoping for, which is 15 plus percent and you get a brokered convention and that would be positive, too now that's highly unlikely >> 1924, secretary mcadoo? >> might happen sometime might as well be now >> i was talking with my nephew, who is the head writer for this show and only writer for this thou show "mad money" have you seen the numbers for buttigieg, the money that's coming in better start focusing on him wall street loves buttigieg.

how about that >> huge props from tudor jones and others, it's true. >> i think again i'm crafting positive, buttigieg is good for the stock market, trump good for the stock market >> you were saying the market was downplaying the risks. >> i am looking at a february kind of problem, a 2018 february in that remember like january pretty good that year and we have taur i hariffs and vix. am i positive? i'm more neutral than positive when i come in and i see microchip preannouncing. they say the business is going to be down 3.75 to 4.25 instead of down 3 to 7 but that's industrial that's commerce. that's consumer. that's aerospace, defense. that's the economy so i keep seeing things that defy my desire to be more bearish. >> certainly a little reason to be bearish on tesla today, on

track to open at a new record high, company announces a program to build the model y suv at its shanghai giga factory delivering first three cars to the public and during that ceremony if you haven't seen it by now musk expresses his joy by dancing on stage, preceding to strip off his jacket, reveal a t-shirt with the cartoon of the factory and boosting tesla's presence, you got to just watch this you can't cut away from this this is musk talking about the company's presence in china. take a listen. >> we tend to make, continue making a significant investment and increasing the investment in china, making the model 3, and the model y, and future models also in china, and i think something that would be i think super cool would be to and so we're going to do it, we're going to do it, is to create a china designed engineering

center to actually design an original car in china for world life consumption >> so you've had nice things to say about it maybe more positive than i ever heard you talk about >> he could be naked, i wouldn't give a damn, that would not be fair to be truly naked oh, i don't give a damn. this thing -- what are you looking at >> i'm looking at you. >> i catch this thing at 280 >> you did >> told me i was a has been. my wife said if you tried to drive it, raise $2 billion instantly. i'm a believer ten months he built that plant >> yes >> ten months. listen, the moment you throw a rock at a window and it goes through it and the deposits soar, come on? david, at 27% of the short, people still don't believe >> there are any number of musk companies, and i had the opportunity to speak to a handful of people who work not

just tesla but other places and one thing they uniformly say is how hard he pushes to get things done some even saying perhaps pushing too hard, too fast, but you can't underestimate his ability to move an organization, move it quickly. >> why is tesla not worth twice the value of ford and gm put together given the fact that ford is a declinie ining asset. >> gm's sales in china were down, sold over 3 million vehicles >> sales down 1.3. >> the dividend seems the same >> and interesting to contrast gm and china, which is a very important market, they sell more autos in china than here >> yeah, yeah. >> what's the "yeah, yeah" it's still 3 plus million. >> i don't know if you watched com this morning with brian sullivan, maybe you get up to watch that 4:00 show, too? infomercials but -- >> thanks. >> com was marveling over the idea tesla is almost as bigas

the market cap in gm and ford. ford is wasting the asset and gm is doing autonomous. i agree with byron wein, autonomous is years out. when you do the simulations they crash too much >> yeah, one of byron's surprises is the idea that the dream of full autonomy gets pushed out this year, because of some maybe unnerving events. >> i was at nvidia and saw the brilliant jenson wong show me simulations. they have to do millions and millions of simulations and the war's in snow. the car's in black ice the cars with pedestrians doing the wrong thing. >> right >> these are all suboptimal. >> yes listen, we sat here what, three, four years ago talking about the fact we thought autonomy would be here in 2020.

>> you loved autonomy, remember? >> i did >> you loved autonomy. >> i did not the company by the way >> no, that was ill advised. i like ev. we're going to speak to the ceo of chevron i like mike wirth, like him a lot. what happens when we all go ev what happens what happens to chevron? >> i don't know. >> don't you think we have to ask mike wirth >> if not today then in coming weeks or years >> ev as a percent is still what, 2%, 3%, somewhere in there? >> a lot of growth what did chevron go up 40% on this problem with iran, 50%? >> nothing, zippo. nothing. the commodity didn't really move that much at all >> five-year i don't want to be in mike's business i think mike is terrific but that's not a business i want to be in. apache up 4, sold to you apache killed us on the alpine

high so they're like the serial killer they're a real serial killer >> investors agree with yo because they don't seem to like the sector either for years going, it was the worst perfo performer or one of them last year underperforming >> what does it take, no one can take them over >> no. oil at 100 bucks would probably be good, that would help >> how is that bid being put together >> you know what oxy, there's a lot coming on that i think there's a lot more synergies perhaps than you anticipate, mr. negative >> synergy synergy is oil at 70 >> yes we're almost there >> no, the forward curve >> hamm's worry is 75, right >> hamm, he told me he liked 80. hamm >> harold says the same thing all the time >> ham, pastrami, boar's head.

>> that was irreverent >> i thought it was really good. other people are using it! what can i use i'll watch cartoon network what channel is cartoon network? >> that's warner >> viacom remains the most stock four times earnings. >> how do we get back to viacom? >> because we're doing a lot of growth by association. >> it's like jim's brain and then there's this whole part right there that's just viacom >> non-linear thinking is the way to go in 2020. >> it's true i understand that. >> i am one i don't know if you noticed my weight since i came back, i am on a turn back time tour >> are you really? >> i am. planet fitness today ringing the bell i'm going to turn back time. >> you had them on last night, didn't you >> yeah, he's turning back time. >> we're going to get krcramer's mad dash and talk to the chevron ceo michael wirth, his company is pulling employees out of iraq

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let's get to the bond pits and check in with rick santelli. >> reporter: good morning, carl. it's an interesting day. i thought we'd get more move off the drop in the trade balance, deficit, smallest in years but

there's a lot of moving parts there in the market, didn't pay a lot of attention the four-day chart i picked four days because of the iranian incident occurred on thursday four sessions ago. we've stabilized in a tight range. tight range let's open the chart up to mid-october. basically ten-year note yield's been closing in the range of 170 to 190 granted it's 20 basis points but it has been a tight range. if you look at a four day of bund you see a pattern and highest yield close is minus 24 basis points so we're five basis points away. it's obviously in a tighter range, but the formations are the same some of their inflation data ticked up a bit. nowhere near their target but of course, christine lagarde will have her hands full trying to raisin flation levels without doing more damage to the economy and address some of the chronic structural issues, get a little

fiscal activity going. finally when it comes to trade and trying to look at that number this morning, i can't help but think of china and how things may start to clean up a little bit and to that end, the currency market seems to agree the dollar versus the chinese currency the dollar is basically the lowest level since july which means the yuan is at the best level since july. david, jim, back to you. >> all right, thank you, rick santelli as we count you down to the opening bell, 13 minutes before trading we get to i ahma mad dah of all the stocks in the world amd is your favorite over the last three years >> yes >> you love the queen of the zone we like to say. >> their two ceos, 15 blocks of each other, lisa detwiler, my wife and lisa su >> not surprised they make its debut on mad dash but why today? >> lisa su, this is ces going on, we have unbelievable

coverage >> onfojohn ford is there at th electronics show >> dave left intel behind, intel has had manufacturing problems >> think about that sentence for a second, amd left intel behind. >> jerry sanders ran amd and i was friendly with the board members now deceased at intel and thought it was important to keep amd alive so there would be no anti-trust. now amd is getting the mojo, all the big clients. today heresy, analysts nomura says amd is going to take share from them. from my dog. >> nvidia. >> of course they're related, lisa and jen smart >> cousins >> but i don't think she can do that i had this argument three years ago, when i said i don't think you can take share from intel. >> in what area? >> data center three years she said to me jim, i am going to trump intel.

i said give me a break well now i'm starting to take notice now i think nvidia, the data center market is big enough, that david, look at this, will you? david, this is why it's important just to be in stupid index funds and not pick stocks and not try -- see because you see this has single stock risk have you seen those adds not as good as index fund, david, because people are stupid and we shouldn't let them pick stocks, except for amd congratulations to lisa su the road map is a tap. italy she names all of her chips rome, you know, florence i've been trying to get her to do cooler areas. >> sure. >> punxatawney, capri, where i saw the captain in capri i said hello he saiding in to m nothing to me the captain is jeter

hey! he was like, eh. what can you do? >> we had his wife on with us years ago. >> well, we have to go will you look at this stock? look at that >> coming up, oil and geopolitical tensions, we'll want to hear from chevron, ceo mike wirth will join us talking about the price of the commodity. >> chevron >> thank you when i lost my sight, my biggest fear was losing my independence. mmm... good. so i've spent my life developing technology to help the visually impaired. we are so good. we built a guide that uses ibm watson... to help the blind. it is already working in cities like tokyo. my dream is to help millions more people like me.

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♪ if i could turn back time you're watching cnbc "squawk on the street," the opening bell in four minutes. very busy tuesday morning. jim and david were talking about gold a moment ago, doing some reorg the bank calling its four main segments global markets, investment banking, asset management and consumer and wealth management, changes before q4 earnings as well as its first ever investor day later this morning page one piece in "the journal" internally they believe shares should be trading higher and as a result expanding some disclosure some metrics. >> trying to present more transparency and a lot of it makes sense in the face of it when you consider things in

terms of where they're moving certain things, lending to corporate clients, where does that really belong, derivatives related to advising, underwriting these things had been designated sort of segments that really don't exist so to speak, and so they set themselves up with segments that reflect how they run the business in the hopes of presenting more transparency they're giving the analysts a week heads up essential toy get comfortable with it before they report earnings but carl, as you point out, important day is going to come on the 29th with their investor day, and even though the stock jim has done well there is frustration on the part of many members of the organization, who rely on that stock to a certain extent, and in the investor base overall so much change has been pushed on the organization by its senior management team, led by david solomon. >> right >> there is an argument to be made the last few years under former ceo lloyd blankfein, the organization had become somewhat

splerotic, and the question is when you push that much change and don't see a result, do you bring even more pressure from shareholders? >> this consumer decisiivision, i was in the wealth management business at goldman if you brought in anyone less than $10 million, they told me don't waste my time. david, what is it now? $10? >> it's a lot lower, as they do focus to a certain extent on consumer >> how about how opaque they are about the card i've done a work on the card >> the apple card which goldman is the -- right. >> it is doing very, very well so well that one day, people behind the card think it may have to be spun out, and yet here is the tangible book, ten times earnings this is goldman sachs, not goldman slacks >> when do you believe investors step up and start to show the willingness to pay a premium again that they once did for the franchise? >> i think that you have to

believe that these other businesses, that marques sorry, lloyd i know you like the name but i think you have to see a steady increase. no more episodic works just steady as she goes increases. you're not getting jpmorgan growth >> some reporting about what they would provide and wouldn't in terms of financial targets. what i can tell you is they are going to provide enterprise level wide targets, medium term targets for returns, from a returns point of view, so what they're anticipating, that's important. that will be on each segment they are going to give to some extent real targets for people to hold them accountable to. >> there is a country called malaysia, looking at $2 billion, 3 billion malaysia

you got to get this malaysian thing passed that book, did you read that >> i read other stuff. >> unflattering. [ bell ringing ] >> a big day for investors and jpmorgan will kick off earnings season a week from today there's the opening bell the s&p 500, cnbc real time exchange at the big board, it is planet fitness celebrating the opening of its 2,000th location, at the nasdaq the resistance based high intensity low impact fitness method, all the goldman chatter today reminds me of ubs cutting jpm and b of a to neutral, wait for a better entry point on b of a. jpm upside only warranted if expands materially >> it is a cheap stock byron wein said that has to cut again. a lot of people think that's bad for the banks. we say listen wait a second, anything that will foment more

business activity is good. it's a nice move >> all the banks had a great move last year look at that >> multiples selling at a fraction of what a serial company sells at >> does that make sense? >> doesn't make sense at all >> sell general mills, buy morguen? >> i wasn't crazy about the general mills quarter. they played a lot with the blue buff a winner. >> credit suisse ups kellogg's >> kellogg's got a 3% yield, doing better than general mills right now but then again it's kind of low to high. i don't know i just don't believe the bank of america and goldman should be as low as they are. i don't think. they're so far behind the market >> financials were a great place to be last year, outperforming the s&p with the big move towards the end of the year. >> that's true a lot of stocks catching up to

where they were. amazon still hasn't taken out its high texas instruments is back off the microchip preannouncement hire alphabet, david, to break up and to be more accountable, talking about being more accountable >> alphabet is up 4.5% already already, there it is >> have you met this guy, kurt, the data center guy, google cloud? >> no. >> most impressive guy i've met in silicon valley. many years >> they have been trying to compete with aws and microsoft's azure, still a distant third >> i want to bet on lebron james data center. >> that's what you're calling this guy >> not me. thom thomas kurian. i'm from philadelphia. he's a genius. i have a lot to say and not a

lot of time and i got to do enough free association to stun you. >> huh, and my hearing's going, too. >> your hearing is going >> that's my problem for sure. >> oh, my god. >> it's loud in here, too. >> yes yes, it is >> welcome to your mid-50s >> mr. rondo, the man who rang the bell at planet fitness started at the front desk of a planet fitness that's what you can do in this country. >> there's hope for me it's great i'll start at the front desk of a planet fitness >> 2000, planet fitness franchise is good when you see pier one closing stores. this is the most desirable tenant in the world because it's experiential david, you don't have to be beautiful like peloton there's people who ride on peloton, they're in unbelievable shape. >> they have the nicest looking people on those bikes for those ads. >> planet fitness you got people who are, look like the rest of us you don't feel embarrassed to go in there >> no judgments.

>> scarlet johansson you want free association i had a trainer and right before the client before me was scarlet johansson. are you kidding me i had to stop, i had to quit >> this is going to be great, when you take an avengers role because you'll be cut, right, you'll be jacked like scarlet is >> i like this man, he's turning back time. >> it's my turn back time tour for sure >> really quick, guys you mentioned faang, one is facebook is going to ban deep fakes although not going to remove certain content that is parody or satire and jpm ups their paid sub estimates for netflix >> that was unbelievable, 300 million. >> for 2024. >> there's 7 billion people in the world. is that the target market? is that the t.a.m., david, 7 billion? >> that is the t.a.m more or less i don't know how many of them are getting it in china.

>> what are you -- sounding like the president. china. >> we're going to make fun of how we talk this morning is that the whole show >> i told you i went to my 45th high school reunion and everybody sounded like me. >> he was barely from queens, he's from jamaica states t-mobile came out with numbers this morning, guys in terms of customer additions. let me give you walt isaac's take on it from lightshed. preannounced a million post-paid phone net ads in q4. churn was up a bit to 1.01%, year over year, for the first time since the first quarter of 2016 the net ads weds on the higher churn, likely means phone growth additions were turned to growth for the first time in a year, maybe that has positive overt e overtures for apple. 77,000 fourth quarter prepaid net adds below consensus, and

below last year's. so you can see where not much of a response there most important of course is you're going to get closing arguments in the big trial, the state ag, against sprint and t-mobile trying to force a judge to block their deal to acquire sprint you'll get final arguments next week we won't get a decision probably until mid-february, but a lot of people continue to weigh in on the likelihood that the judge will, judge moreira says no and certainly it seems to be at the least 50/50 if not a higher percentage believe he will say no >> instanet has a piece that was very compelling which talks about the shares should also rise on a broken deal. >> they're saying win/win. what is their thoughts why it would go up on a broken deal >> free cash flow, ebitda is stronger actually the fundamentals. who is running t-mobile? >> mike seiver is the ceo of

t-mobile i haven't really gotten to know him well i look forward to getting to know him john ledger is there until the spring >> john ledger is going to be in my co-host on "mad money." >> when? >> he's going to take over when i take fridays off, kind of like when carson took them off. joan rivers. >> joan rivers >> john ledger will be the co-host of "mad money. >> i've talked to him, oh my gosh, how angry johnny was oh my god. >> the opportunity arises we'd love to have him as a contributor to the network, which would be great sitting right there. >> i have asked him, i want him. i think he's one of the most colorful figures and built a great company. >> will you let him hit the sound board, something neither david nor i do >> he can do whatever, like elon is allowed to be naked, can he hit any button, okay

>> wow, that's big >> he's so great >> beyond meat up 2% on this impossible news they are going to start a plant-based sausage patty in some burger kings other restaurant news, starbucks, jim, 1300 cafes, going to lunch the oat milk honey latte, so menu innovation continues to be a piece of the story. >> kevin johnson continues to do a good job the stock is a good example of the stock that's down ten from its high that's kind of the opportunities that i'm seeing. many stocks are down dramatically from their highs and people are going for those and i think that does matter i think that there's opportunity in starbucks i think there's opportunity in nike i think nike can go higher kevin johnson comes in, a technologist, replaces howard schultz. mark parker goes out, right, john donahoe, personal consumerization. who would know more? >> donahoe knows his way around that stuff, and service is an

important part of what they have done or what they did, what he did there. >> i like that >> although he wasn't in the job, how many years was he at service couple years >> some people say not long enough you hear that? some people. >> some people >> well, i'll tell you, i can't wait to see what mcdermott does in service now mcdermott is big think he's big think you ever go to any of his events >> i don't know that i have. >> that's where i saw billy joel, wanted a selfie with me? how do you like that >> yes, because you've told us >> many times. >> yes, many times billy joel selfie, that was your highlight of 2019. >> pretty much so. he takes that chopper in from the hamptons, does that show someone gave me tickets for christmas for the show my stepdaughter. unbelievable can't wait >> i gotta go. i gotta go see him how about that >> there you go. >> we're in agreement. >> we're making people a lot of money. >> we are.

you're doing great >> goldman sachs up $2.57. >> goldman is having a nice move today. >> on david's news >> i don't think that's minus. it's their news. >> did you see the fire upgrade? >> they are citing tensions around iran as we await some response >> it's been a laggard >> not a christine lagarde >> and i don't, i'm not sure i want it. crowdstrike has a division that competes with fire crowdstrike is so good people are underestimating the power of crowdstrike there's another one, the stock is down gigantically as is zoom video. >> these were ipos last year >> yes i'm excited about a lot of stocks but i keep thinking i've got one eye on twitter president. >> is the u.s. government uses crowdstrike to secure various systems or the electrical grid using crowdstrike to ward off

what will conceivably iran incursions into other countries? >> yes >> the russians can basically turn off the power grid any time they want. >> that's scary, david don't scare people like that >> i think it's true >> don't scare people like that? >> why >> because you shouldn't >> okay. >> highlighting potential risks, which is sort of what we do here >> yeah, that's true >> maybe if you learn about it, then you can stop it >> you want an opportunity >> yes >> next week is the jpmorgan conference health care pharmaceuticals. >> are you going out there >> am i going to miss that >> i know. >> i'll be there breaking news left and right >> everybody goes there, not me. >> you can't get a hotel room but you could stay at my place >> very nice you of you. >> i'll do the usual 3:00 a.m. >> and great pieces on founders ousted and raise money again >> great piece, so good. people, she's so good! >> oil prices pulling back,

obviously dow is down almost 100, for a closer look at the sector and how companies are starting to respond to this heightened geopolitical risk, brian sullivan is live at the goldman energy conference with the chairman and ceo of chevron. hi, brian. >> carl, good morning. joined by michael wirth of chevron. thank you for taking some time >> pleasure. >> you have american contractors in iraq, they have removed from that country after the air strike do you anticipate they will go back and how much, if at all, have your operations in iraq been impacted? >> well, we don't have a big operation in iraq. we're up north in the kurdish region, and we take security measures on an ongoing basis as we see risks evolve around the world, so this is a relatively normal move for us to move some people to do their work from a different location we have good people on the ground still in iraq, iraqis and at some point as the situation clarifies itself and we view the security position as proper,

we'll see people return. >> but you're still operating, still producing in iraq, just the americans have pulled out? >> yes, we're actually developing a discovery so it's not in production yet so it's early phase development work >> are you surprised the price of oil did not jump more than it did? >> not really. you know, we saw the attack last year on critical infrastructure in saudi arabia, and pretty quickly the market reverted to areas of price range where it had been before. we continue to be in a pretty well supplied market and this event while certainly is newsworthy didn't fundamentally strike energyinfrastructure or change the supply and demand dynamics in the market so i think certainly a reminder of the risk that exists in our business but fundamentally hasn't shifted supply and command which is where price gets set up. >> are you adjusting your internal estimates on the price of brent or wti crude going

forward, based on not only what happened on friday, but on the opec move and the recent firming up of the market, a little bit, over the last couple of weeks? have you changed your estimates? >> no, we haven't. those are the kinds of things we see in this business, and we look at a long-term view really on supply and demand, and we don't overlay the shorter term phenomena into our thinking about price and the things that drive investment >> i know we have jim and david and carl back at the new york stock exchange jim, why don't you come on in here >> sure, mike. you're really probably the great visionary of the large oils, and i know you must be thinking about the day when you do have no growth, perhaps it's because of reduction and demand for fuel, perhaps because of ev, and i know it's not that close but you're a forward thinker what does chevron do when big oil has no growth? >> well, look, the world consumes 100 million barrels of oil today. we've got 6.5 billion people on the planet, 20 years from now there will be 9 billion people

on the planet. and so even and the world will need 30% more energy 20 years from now than it does today and that includes all forms, wind, solar, oil, gas, everything. and if you see a day when we see demand begin to plateau, there's still underlying decline it's a depletion business, as you develop the resource you need to invest to replace that and you've got to have a price signal that incensed the replacement. there is a long future in a growth environment, and there's a long future even in an environment that begins to plateau for good economic investment to continue to provide the affordable, reliable and ever cleaner energy that the world will need. >> are you surprised at all that the forward curve has not really budged despite the turmoil in the middle east? >> not really, jim you know, fundamentally, supply and demand remain where they were before these incidents. we haven't seen anything that has actually changed that last year we did see something that

impacted supply for a period of time, which was at tack on infrastructure in saudi arabia, credit to aramco for a strong recovery and repair of that, but fundamentally, markets while they see the geopolitical risk, i think we've been in a well-supplied market for some period of time here and it's generally what the view continues to be at this point. >> if oil prices, mike, stayed where they are, i mean that's a big if, 63 bucks they were at 55, so they're up $7 or $8 every dollar of incremental gain in the price of oil as i understand it benefits you to the tune of $450 million a year in additional cash flow. is that correct? >> that's roughly correct, yes >> $1 increment, 450 so you are sitting on a lot more free cash flow if oil prices stay this way for a significant period of time your capital spending budget hasn't budged, it's been the same for three years would you look to increase it next fiscal year if oil prices stay at 63 on wti?

>> probably not. it's a long-term business. we sent our capital spending plans for a long-term value proposition for our shareholders, our dividend is the most important thing to the people that own our stock. we've increased our annual dividend payout for 32 consecutive years. our board will make a decision on that here later this month, in terms of 2020 but i would expect that streak to continue >> i know david is going to jump in with a question as well what happens to the extra cash flow >> it can strengthen the balance sheet. we're buying back shares at the rate of 5 billion a year we have a disciplined financial set of priorities and we'll stay consistent with those priorities >> david >> thanks, brian mr. wirth, last year, esg investing i think came into its own in a way that perhaps it hadn't up until then but it's not going anywhere now more and more assets going into these broader esg strategies, which often don't include a company like yours what are you doing to try to

phase down the impediments that investors may face in terms of investing in a chevron i know for example that in australia, you started up a co2 injection project in early august great country to do it in, given the fires right now, that are taking place there, perhaps as a result of in part climate change, but just address for me what chevron can do when faced with so many investors who simply say that's no go territory that stock >> i am at the goldman sachs conference today, meeting with investors, and we talk about esg issues they care about the s and the g, where i could woo hold our company up against any e is the one really you are asking about and within e, it's climate. it's not water or air quality that is getting a lot of attention today. three primary approaches that we're taking on climate. number one is to reduce the carbon intensity of our operations, and so we've got a strong commitment in place, and metrics that affect my pay and the pay of every employee in the

company that hold us accountability to rereduce the carbon footprint of our operations second strategy integrate renewables to our business, solar and wind to power some of our operations i've talked to jim about some of our things on renewable natural gas, working with dairy farmers to take the by-products of dairy farming and captured natural gas for consumption, and the third is to invest in break-through technologies, which is really where companies that have the scale and the technical capability should be focused how do we find solutions that can work at scale, that can be competitive and economic, with the alternatives today, and there is work to be done there so we're focused on all three of those, as we have discussions with serious investors that want to see our company and those in our industry be part of the solution i think they understand the things that we're working on >> quickly, are you going to stay in california, your corporate headquarters is in san ramon, across the bay from san

francisco. >> we've been in california -- >> i know, 140 years >> -- for 140 years. it's the birthplace of our company. we were the standard oil company of california. look, we've got big assets in california, bi california, big refinery, big oilfield there we have people in texas, all around the world it's been our home for 140 years and that hasn't changed. >> okay. michael wirth, ceo of chevron, thank you for joining us guys, i'll send it back to you at the new york stock exchange carl. >> brian sullivan. still to come, possible foods, not just focusing on burgers, the company launching plant-based pork and sausage products stay tuned for an interview as the dow is down 120.

over the last six months or so s&p up 8% tesla up roughly 100% in a new all-time high today as musk celebrates the first deliveries out of cha.in dow down 121 this morning. we're back in a minute now you can, with shipsticks.com! no more lugging your clubs through the airport or risk having your clubs lost or damaged by the airlines. sending your own clubs ahead

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good tuesday morning welcome back to "squawk on the street." i'm carl quintanilla key data, to rick santelli. >> an important day. nonmanufacturing for december. of course the service sector biggest u.s. economy 59, follows 53.9, best numbers since august when we were 56.4. let's go to factory orders this is a november number. factory orders down .7 big miss there, down .7. strip out transportation, though, and you can see that that made the difference it pops up to .3 look at durable goods orders on the headline minus 2.1.

that's not good. minus 2.1 is the weakest number since may when we were minus 2.3. if we look at some of the internals here, let's take out transportation, it becomes less negative but still negative on factory orders down .1 without transportation let's get to the money ball, shall we, capital goods orders nondefense ex-aircraft profit for capital spending up .2 up .2. and last month up .1, prior to that up 1.1. at least we're putting positive numbers together, albeit small if we look at shipments, that's down .3. nothing to get too excited about. but nonmanufacturing solid number ism as we whoever at 181, which has been the recent high yield over the last session and a half morgan, back to you. >> rick santelli, thank you. our roadmap begins with rising risks to stocks, the latest in the middle east and what it means for markets.

that's coming up next. plus a vegan in vegas. ceo of impossible foods will join us in a few moments. finally something to dance about, at least if you're a tesla shareholder. why? the stock is at an all-time high where does it go from here we'll debate this hour. begin with rising middle east tensions. pentagon saying u.s. has no plans to target iranian cultural sites after iran vowed retaliation for the killing of its top general. iran says 50 killed and 200 injured in a stampede that broke out during a funeral procession for the general. secretary of state pompeo delivering remarks now we'll monitor that and bring you headlines. meantime steve liesman looking at how economists and strategists are digesting this news good morning, steve. >> good morning, carl. the analysts breakette down, impact, best case and worst case scenario three specific areas let's gothrough them the first they look at is the

confidence channel, both consumer and businesses. oil and whether higher prices are as negative as they once used to be final lip gauging the possibility of military attacks, minor to possibly major attacks. pantheon, "we can't rule out a sort of grand scale attack but our core bet, the risk cinema something trigger a real war, however, will likely put a premium on oil prices for the next few months at least with the u.s. a major producer an oil spike has a different impact and perhaps it once did take a look here in october, the latest available data oil imports equaled exports. what's paid in higher prices is also received in the u.s it's going to hurt consumer in oil using regions in the country but helps producers in the oil production two puts helped underpin the economy and mark it says when it comes to the tension in iran a power put fed will focus on growth effects,

not inflation. a trump put. the president will keep tensions at some level, reasonably low to buoy the stock market and economy. some people have their doubts about that wars and recession take a toll on confidence. obviously not discounting the personal toll that's taken the conflict with iran could delay expected rebound in business confidence from decline in trade tensions and consumer confidence and equity values have potential to undermine growth carl, when have you a conversation like this, obviously you don't mean to discount the human toll that happens but this is the way they are trying to analyze the potential economic impact. >> our job is to cover both. thank you, steve steve liesman. let's turn to the market impact steve mentions morris is with us managing parter at geo plasset management good to see you. >> good to see you. >> the last couple of days, change your view on investing equities. >> not on a long-term basis but

you have to be concerned about any political event you can't predict. that's beyond my pay grade so we're concerned, of course. >> how were you feeling about markets in the new year prior to these events >> with a measured degree of optimism which we still have but this is an election year i don't predict elections, especially the one as contentious as the one coming up there's a huge difference in the policy paradigm of the two candidates, whatever it will be. >> best case, worse case in that political framework? >> in terms of the direction the democrats go and/or the drx republicans go, i think what you're most concerned about are policies that will kill the economy with good intentions i think the epitome of that would be the program espoused by senator warren not so much the wealth tax but

capital gains tax increase, income tax increase, indiscriminate attitude for people making money and work and make money. >> is that going to keep you from buying stocks especially if someone like warren wins iowa? >> all it does is introduces element of unpredict ability i have a lot of confidence in our system we generate more innovation in this country than any other country in the world maybe israel per capita is better that's why people want to steal our i.t. because we create it. i think there's so many areas of opportunity, so many areas of change that we want to take advantage of it. >> serum when you talk about innovation, look no further than your portfolio to see it being put to work. i'm curious what you think about tesla? looks like you added to that position, went long last quarter? >> we pretty much had a hedge position in tesla for a long time and it was costing us some money. we basically unhedged it and

added to the position when two things happened. number one, when they raised equity this year, that bought a lot of time for the company. number two, when they reported third quarter earnings, that showed they actually could make money, they could produce cars, and that they were really running a business then when you look at it in a broader context, they are at least two to three years ahead at least two to three years ahead of any potential meaningful competition in the electronic vehicle area. i'm not denigrating german carmakers that produce quality products two to three years in a world of rapid change is a lot, and they don't appear to be standing still. is it something that we just buy and put away no, not yet. we're watching the operating performance very carefully last month's production numbers were encouraging the fact they were able to build a factory in china is a plus we'll take it one step at a time. >> morris, if memory serves,

facebook was another one of your favorites, at least in the past. i'm curious as to your thoughts, particularly given again your point it's an election year. facebook is certainly going to be under the microscope, making changes as recently as today in terms of deep fakes. how much do you worry about regulatory versus the ability of them to run their business with such incredible margins. >> i think you defined it there. i worry. i'm paid to worry. since we have our capital invested with our partners, we worry. but it's a great business. it does appear, and i'm not trying to sound facetious like mark zuckerberg is finally growing up, that he's learned he can't just do things he wants. he is running a media business with a very strong technology base, and it's just a great series of businesses i just look at the way people use instagram, the opportunities that it has. it's not so much the digital payment initiative, it's the fact that the company can become

an important source of digital payments in a broader sense in the same way that alibaba and tencent do in china. i think they get it. there's tremendous opportunity, a growing audience, growing usage. people want the product, and it's free. i'm not being facetious. just the way broadcast television is free we pay for it through advertising. we pay for facebook the same way. >> doesn't sound like you're worried about either regulatory risk or that in some way consumers are repulsed by the way their data is being used. >> okay. let's take the second one first. as a practical matter, i talk to people, i talk to people in my family, i talk to people just day to day, and everybody knows that nothing is private anymore. okay people use that carefully. so i think of course you want your privacy protected i think that standards have to be and will be enacted

i think gdpr in europe is a good example of the direction that we'll go but within that context, these services are very useful with regard to regulatory action, you always worry about what actions can be taken, but i think that as media businesses they have the right to free speech okay they have the responsibility not only the right, the responsibility to communicate everybody's views effectively. so i think that is a measure of protection all these companies, this is not just facebook, but the major companies, also have one other thing going for them they are national assets they are innovators. they are idea generators and more than just service generators so ultimately barring a real extremist that whatever regulatory framework is developed will not inhibit the

ability to be economically productive. >> i've got to get your thoughts, ten years ago i was reading an interview where you were talking about advent of internet tv. you've come on cnbc and talked about names like disney. as we see more streaming services launch, what do you think the next chapter looks like >> i think there will be tons of it streaming is the future. the only impediment to faster adoption of streaming is nfl, because broadcast television essentially has the right locally to produce nfl programs, and that's the only thing where ratings are going up but i think the direction is clear. i think that you can have two general comments anybody today can stream just about anything and that opportunity will grow, but everybody can't consume everything had the chairman of weight watchers on cnbc and she made that comment with regard to

food you can eat anything you want but you can't eat everything you want that's in regards to streaming as you look at it, i'm reminded of one other line, content is king that's what we have to watch we're very -- from an investment point of view positive on disney's strategy. we think maldorian has given a big kick up with disney plus, no baby we like the direction they are going. they have the balance sheet to do it and they have the management with the attitude to do exactly what amazon did when netflix came into operation. amazon killed their dvd business because they knew that the future was, you know, streaming. i like what disney is doing. >> even though it's not yoda, apparently we'll have to find out who he is >> he's a member of the tribe. >> i haven't gotten that far in the series you broke my heart a little bit.

>> that's what he says anyway. >> good to see you. >> morris mark. coming up right here, impossible foods is making some headlines from ces the ceo is going to join us in just a few minutes speaking of the consumer electronics show jon fortt is there, live on the ground in las vegas all day. jon, what is coming up after the break? >> david, how about some impossible devices amazon senior vice president devices and services is going to join me here it's a really important space he covers for ces, alexa and lots of things, fire edition tv, alexa in cars. that and more coming up after the break. achelor's degree. achelor's degree. - [woman] it doesn't matter how old you are, you can do it, you can finish. - [spokesman] finish your degree at snhu.edu

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welcome back the amazon exec in charge of echo, kindle, fire, joining jon fortt at ces in vegas. jon. >> morgan, thanks. dave, welcome. >> thanks, jon. >> this is more and more becoming your show not just amazon but you're one of the major players here. tell me how you see the interface changing around voice, because that's where a lot of your focus is. >> we see voice as a new paradigm of user face. we like to call it ambien interface. doesn't replace the phone we know and love but gives customers a different way to interact around them we started with the home, being

able to turn on your lights with voice is magical, to play music is magical now we're extending that on the go -- >> in the car. >> auto partners. >> what are people going to be doing in the car you're driving it. i guess there's some music stuff, navigation. what's your vision there >> the big thing in your car, at least until we get to full automation, autonomy, is to make sure you're not looking down at your phone that's unsafe. voice is perfect user interface with that. the ability to play music, listen to an audio book in your commute or information as you're going throughout your day. very helpful. >> have we gotten to the point we can admit automation is a ways off for a couple of years people talking about, it's around the corner it's a long corner the more realistic companies are talking about the technologies we're going to use in the next year or two and stuff like this. >> i think that's probably right. when we get to level five autonomy sometime in the future, it's going to happen but a little ways out. what you want to do is add more

things that give customers convenience in the car in the front seat that's going to be voice-based interfaces, navigation in the year seat we announced fire tv, we would put it in bmw and chrysler, to get access to streaming media as cars get increasingly connected. >> fire tv edition is a platform you make available to others so they can build software and services into their own devices whether sound bars, tvs. you're kind of competing with roku tv there, right >> it's an operating system and a platform on top of that for applications it goes into all sorts of devices. i mentioned cars, best buy, toshiba, most recently tcl with sound bar. >> looks like an inflection year based on the way we've laid it out. in 50 devices but you plan 150 that's a big ramp. >> not only that but ramped internationally.

we launched first tvs in india, first tvs in the uk and germany, including what we've done in the u.s. it does appear we're getting a flywheel effect. it's such an amazing time with streaming media, you included, as we see new services coming on board on top of netflix and amazon video with things like apple plus and most recently disney plus. baby yoda works. customers are increasing connected. >> a busy little guy he's very popular. i always ask you about the business model behind alexa. you always say, well, we're trying to get it out there as much as possible, no hard profit and loss calculation but it reminds me of the browser and search, the way alexa is rolling out there. the interface on the one hand and then a sense of people's intent how much are you learning from the data that's coming in that way that's cycling through and making alexa smarter and smarter. >> that's what we're focused on right now, which is as we see

what customers resonate with that could be smart home, music, podcast, then what we do is try to double down on research and development and innovation in those areas and increase the breadth of the features. when we first started with smart home alexa new how to turn on and off lights now we have 95 device connecting to 190,000, connect everything from toaster oven to ceiling fans. >> how does data affect strategy are you looking at the data and say we've got to do toaster ovens now because people are asking for that with alexa. >> what you do see is what people are interested in, might be using echo. a lot in the kitchen la leads you down the path where you start experimenting with things in the kitchen. you do apis, partnerships with discovery, food network kitchen, to see will customers resonate with recipes

half of alexa customers last year interacted with the recipe. you wouldn't have thought about that if you didn't experiment across these different areas. >> how is the feedback customers have given you about privacy changed over the past year you have ring now? there have been all sorts of controversies around what the cameras are looking up in the neighborhood, how police get access to that footage are you getting a different kind of feedback over the last few months that's changing the way you communicate to customers about what this is and what your policies are. >> we continue to see incredible momentum with the ring business. they had another record holiday. people loved their door bells and increasingly smart lighting. you're right there's a lot of bad people in the world trying to penetrate networks and try to get access to people's devices and homes. it's ours to build world-class protections. there weren't breaches of our system but people using dark web

and finding ways of individual cameras. we added more protections over the holiday. we're going to have two-factor authentication moving forward. in addition over the holidays we added notification if anybody logs into -- a new user logs into a ring camera, the new owner gets a notification so they know what's happening. >> that's important move how long before the data consumers are putting in through the system through their alexa request, et cetera, starts informing ad placement more and more and becomes a real revenue driver >> we haven't really focused on ads that much. there's certain types of capabilities on alexa advertising driven for example i can set a news briefing in the morning and listen to cnbc and listen to another news briefing. if that's advertising driven, we do support that. we haven't really concentrated much on specifically billing ad networks out for alexa, feels too early. >> you have to be experimenting, taking the data you get and say how would we target ties, make

the experience better when we eventually roll that out. >> not experimenting yet someday we might see that if it adds value to customers but right now that's not something we're working on. >> let's determine when you're going to do that >> i think when we can find products that will resonate with customers that the advertisement adds value so one example, another place we're on alexa, we have ad supported content is with music. there's plenty of great momentum with ad -- subscription supported music services, amazon has one. some customers want the value where it's free. so we have put amazon's free music service, ad supported, spotify's free music service on alexa to give customers that choice many do. tens of millions of customers have opted for that. so if we actually see there's a value proposition for customers, and it resonates with them, i think that's when we'll experiment. >> we've covered ground because amazon is covering a lot of ground lilt realterally at ces

thanks for being with us carl. >> thanks. still a new all-time high for tesla and the dance that everybody is talking about we can't see it enough "squawk on the street" back in two. ♪ ♪ i can. the two words whispered at the start of every race. every new job. and attempt to parallel park. (electrical current buzzing) each new draft of every novel. (typing clicks) the finishing touch on every masterpiece. (newborn cries) it is humanity's official two-word war cry. words that move us all forward. the same two words that capital group believes have the power to improve lives. and that, for over 85 years, have inspired us to help people achieve their financial goals. talk to your advisor or consultant for investment risks and information.

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a big day for etf spotlight, look at energy, spider xle analysts expect geopolitical tensions to result in unplanned oil shortage in the middle east elevating a likelihood of oil spike. sector laggard over the last 12 months chevron, second largest u.s. oil company feeling pressure ceo michael wirth did join us earlier, the slight uptick in oil following the attacks was not surprising take a listen. >> we saw the attack last year on critical infrastructure in saudi arabia and pretty quickly the market reverted to areas it hadn't been before we continue to be in a market and this event while certainly

is news worthy didn't fundamentally strike energy infrastructure or change the supply and demand dynamics in the market so i think certainly a reminder of the risk that exists in our business that fundamentally hasn't shifted supply and demand where essentially supply gets set. >> maybe more interesting was his answer to brian that if oil stays around here, don't expect cap ex or r&d to go up priority remains on buyback and dividend and answer to your question about how they are starting to present themselves to different constituencies. >> that becomes a more and more important part of the way they articulate at least their strategy given how many investors investing in esg with that title, environment is the first part governance checking boxes going through the way they are trying to show themselves to be worthy of that investment approach, but it's a tough one. >> yeah. overall, though, i think it's really notable

we certainly had analysts and energy market commentators coming on that say this is essentially short-term phenomenon in terms of move higher in oil prices doesn't change the fundamentals. but to have the ceo of one of the largest integrated oil majors in the world come on and also say the same thing i think really throws the weight behind what the street has already been anticipating okay meantime, take a look at shares of tesla hitting a new record high this morning now trading around 460 a share company announcing a program to build model y at the factory model 3 cars to the public where during the ceremony ceo elon musk broke out in a dance. you can see that right there some dance moves it's incredible. this symptom really continues to break out to new highs the narrative is certainly shifting given everything we're seeing in terms of production

starting to ramp up in china it will be interesting to see what happens with model y especially given comments in the past, what margins can look like compared to model 3. >> torn on the name, credit suisse keep underperform but forced to bring target from 300 to 240, which used to be an upside market, now a downside one. >> a lot of people, a lot short tesla that don't believe in the story, the ability to meet growth targets out there and eventually they will burn through even more cash they have been wrong they have been right sometimes but wrong longer period. >> but it is interesting in general when you have so many different automakers now launching their own electric vehicle models this year in 2020, it does seem likewe're finally hitting this i can't even with this video. >> we're having this conversation and no one is listening. >> i want to get on the stage with him and dance i'm feeling motivated. it is, 2020 seems to be poised

to be the year of ev and tesla does have the lead in that so we'll see how it plays out. >> still baumer doing the monkey dance is the best i've seen. >> that one, too. >> maybe bring that back at a microsoft event. let's accepted it over to sue herera for an update. >> i followed baumer on that and now elon musk. here is what's happening a stampede at a funeral procession killed 16 people and injured 200 more as of now no indication what set off the stampede 6.4 magnitude quake struck puerto rico before dawn and followed three hours later by an aftershock measuring 6.0. one killed, 8 injuries the largest in quakes that struck the u.s. territory in recent days. harvey weinstein arriving at court for the start of jury selection in his sexual assault

trial in new york. this comes a day after prosecutors in los angeles brought new charges against him. jury selection could take weeks. and a spacex falcon 9 rocket was launched last night with the third batch of 60 satellites for the star band network. mini satellites covered in dark coating which spacex agreed to test to satisfy astronomers who feared having the night skies filled with thousands of bright satellites in the future interesting experiment that's right up your alley, morgan that's the update. >> you know it is. we'll be talking about it more in the next hour or two. that was a record setting launch for spacex spacex is the largest operator in the world of commercial satellites after that last night. >> it's an amazing story. >> sue herera, thank you. >> you got it. >> up next, ceo of impossible foods on the company's new plant-based pork products. quk t see rurns in two don't go anywhere.

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let's get back out to las vegas now and ces show our own julia boorstin is sitting down with a special guest. julia. >> thanks so much, david i'm joined by ceo of impossible foods. thank you so much for talking to us today you just announced a big new product, impossible pork how important will this new product be to accelerate your growth >> it's huge our mission is to completely replace animals as a food production technology by 2035. pork is the single most widely consumed meat in the world, more than 250 billion pounds are consumed annually. our mission is global. in the u.s. beef and ground beef are the most iconic meats but

global it's pork, so this is going to be extremely important for our future, particularly internationally. >> your main rival, beyond, had pork alternative sausages and patties back in 2017 and 2018 was when they launched those two products what took you so long to get this pork alternative, and are you concerned about playing catchup? >> first of all, our main rival is not beyond meat or any other plant-based company. as far as i'm concerned, i wish them nothing but success they have the same mission we have the only rival we care about is incumbent animal-based industry. we are not going to launch a product until we feel like we have something that passes our very high standards. so this is something we've been working on for a while, and it's gotten to the point where you feel like, okay, this can go head-to-head against any pork from a pig it's good to go. >> in terms of good to go, you do have a partnership in place

but they are having concerns about the supply chain will you be able to produce enough to really expand this >> yeah, actually, a very good question and also something that is -- we learned a hard lesson last year when the demand got ahead of our ability to produce. we're not going to make that mistake again. it's a factor when we launch a new product, we're not going to launch a product and we're not going to launch a new customer until we know we have the capacity to meet whatever demand might come our way, so i think we're good there. >> so how do these new products and partnerships impact your ipo plans? >> well, we don't have any ipo plans at this point. i think it's reasonably likely at some point that we'll go public but it's really not an important consideration right now. >> do you think it will happen this year? >> i really can't say. >> morgan, you want to jump in here. >> i do. thanks, julia.

pat, morgan brennan here thanks for coming to the show. given the fact you are looking to expand in china especially nonprork product, also awaiting approval in europe as well how are trade problems affecting and how are you navigating this. >> it's something that's come up in our conversations with china. in as much as we are waiting for regulatory clearance to sell in china, it hasn't really affected our business yet it's definitely something we're keeping an eye on. >> now, morgan, do you want to keep going there or should i keep -- >> go ahead, julia. >> so one questionas you introduce these new products, you face a lot of criticism about the health benefits of these. they are processed they are made with oils. i'm wondering how you address

concerns these are just not that much healthier than actual meat as you continue to expand your product line. >> well, one of our core principles is we're not going to put a product out that we don't believe is significantly healthier for the consumer, better for public health, better for the world and the product it replaces our pork product has 40% lower calories, 60% less fat and 40% less saturated fat, 0 cholesterol, higher iron and none of the contaminants that are prevalent in pig-based products so i think that it's a clear winner from a consumer health standpoint. >> do you feel like you're going to need to iterate the products and make them healthier. >> for sure. >> will these products change to become healthier over time. >> first of all, i think this is

a way healthier product for the consumer than the pig derived product, just in terms of calories alone but yes, the thing is the core advantage that we have over the incumbent industry is that we can continue to innovate and improve. the pig stopped getting better making meat a million years ago. so yes, we're constantly working on improving nutrition, deliciousness, versatility, all those things. >> what about new products what's going to be your next thing? are you working on a bacon >> we have done some work on bacon. we've worked on pretty much anything -- any product that comes from an animal whether it's terrestrial or fish or shrimp or anything like that, there's work ongoing about it. you can be sure in the next few years we're going to be launching products to cross

those categories. >> it took a while to get this one right. do you think your pace of product introduction will be faster going forward >> yes, it definitely will be. first of all, it took us a long while to just understand meat at the molecular level so we could be smart about creating new products not only i would say is the pace of new product development getting faster, but we're getting better at getting better the whole innovation cycle is accelerating on top of that, we have been building up our r&d team we're probably going to double the size of our r&d team in the next 12 months because this is the most important problem in the world. it's a really hard scientific problem, and we're all in on it. >> we look forward to tasting the new pork product i'm sure it will be very interesting to compare that to the animal-based one thank you so much for joining us

here from ces. we really appreciate it. morgan, back to you. >> julia, thank you. lastn e return, the te o carlos ghosn's escape from japan. the dow is down 90 points. ern obstacles. lease the 2020 nx 300 for $359 a month for 36 months. experience amazing at your lexus dealer.

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the best of the best find out more on cnbc. more "squawk on the street" coming up. legendary terrain in telluride, the unparalleled landscape of park city, or the famed peaks of whistler,

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meanwhile, the stock price, none going down as ceo. >> there goes the jacket. >> the dance, look what's going on all right. we're not going to get tired of that one. >> no. >> authorities in japan issuing an arrest warrant for the wife of carlos ghosn as details trickle out how the ceo escaped the company. phil lebeau has been monitoring it and following it. he has the latest for us. >> reporter: the arrest warrant is one of the developments in this carlos ghosn investigation. carole dpoechl, tghosn was name. japan is accusing her of giving false testimony around april of last year. here is carole ghosn talking to us about the situation carlos found himself in during the 13 months he was under arrest in japan. >> i'd like to speak to my husband. i miss him dearly.

i wish i could go and be with him at the hardest time of our lives and to take care of him. he really needs me i need him this is just cruel and they are punishing us they want to break carlos. it's a way of putting more pressure on him. it doesn't make sense why i can't see my husband he's combative and wants to prove his innocence. he knows he's innocent that's why he didn't confess to any of these allegations, even though he was in solitary confinement for 130 days. >> well, now he is in beruit how did he gets out of japan well, it was by a charter airplane in fact, we have learned that it comes $350,000 to get him to turkey initial payment was made to an aircraft operator that flew him from osaka to istanbul, turkey, and then he took a second plane from istanbul to beruit. no second payment has been made. it's still unclear had paid that

$175,000 at least on the flight from osaka to istanbul, he road part of the time, it's believed, not confirmed, but believed in this music equipment box. the white powder you see there is when they dusted it for fingerprints we did talk to sources in turkey that said, look, there were holes drilled in the bottom of this box this box was found on the plane after it landed in turkey coming back from osaka. so guys, a lot of developments but what everyone is waiting for is to hear from carlos ghosn that should be happening tomorrow when he holds a media event in beruit. >> phil, any expectation in terms of what he's going to have to say presumably he's not going to go into too much more detail about his actual escape and the logistics itself, right? >> no. i expect no details at all, no comment at all wouldn't be surprised if there was some kind of requirement made for the press who are there that, look, you're not going to ask about his escape because

he's not going to talk about it. he's going to make no mention of all of that. he wants to focus on the allegations japan filed against him regarding not reporting all of his salary and withholding tens of millions of dollars. that's the allegation he was held under arrest in japan he wants to prove that those were bogus allegations while that will be the focus of his commentary, remember, most of the world is still focused mainly on how did he gets out of japan when he was under arrest. >> such an embarrassing episode for the japanese authorities, that's for sure. phil, we look forward to more clarity. phil lebeau. the markets starting to erase earlier losses "sawonhein0 pots quk t street" will be right back at fidelity, you'll work with an advisor

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watching boeing this morning. let's get to dominic chu for a market flash >> boeing shares have been moving steadily higher and sharply around the 9:45, 10:00 hour on some unconfirmed reports and rumors that berkshire hathaway and warren buffett may be taking interest in the stock. we have reached out to berkshire hathaway

in response to the cnbc request for comment, they've referred us to some of their own corporate guidelines, in essence saying that they do not confirm nor do they deny any kind of market rumors whether they are correct or incorrect because they do oftentimes traffic in many of these securities, buying or selling, one doesn't preclude the other. what that then means, though, is that berkshire is not really saying anything about whether or not boeing is in their crosshairs or not. that is the statement that we've received from berkshire hathaway, again referring us to their corporate guidelines david, read into that what you will, but boeing shares had been rising on some of this rumor or speculation. berkshire is in essence saying they never comment one way or the other on anything correct or incorrect with regard to the market action, david back to you. >> we'll watch the stock there perhaps we'll get more we never know. meantime, goldman reorganizing the way it reports its business

segments this just ahead of earnings next week wilford cross covers the company closely. he has more on what they're saying is about transparent si >> exactly reorganizing, the segments, it breaks its earnings down in. if we can roll the prompt again, ahead of earnings next week and it's crucial that it comes at the end of the month we have institutional client services, investment banking, investment management, and finalfina finally investing and lending. the key change we'll see is investing and lend willing go away and its parts redistributed among global markets, investment banking, asset management and consumer and wealth management the i and l part will mainly go into asset management whereas the lending part will be split down based on client, so corporate lending will go into

investment banking, private client will go into wealth management i and l has been seen as a black box, commanding a lower multiple than the other parts these changes are an attempt to rectify that and allow the ceo, david solomon, to clearly articulate his long-term priorities, breaking out roe by segment for the first time at the moment, goldman sachs is on a 1.05 times the multiple compared to jpmorgan 1.8 a 7% discount. stanley is thought to be easily recoverable if invest today goes well and the 1mdb issued cleared up they've played catch-up. this week they're up over 20%, the bank index is down week to date this announcement certainly the first step forwards impressing investors. >> that investor day is an important one for them >> absolutely. >> more so than many of the

institutions you mentioned that trade at higher multiples. goldman has changed in the last couple years, in the midst of significant change those roe targets will be very important because they're the first ones you'll hear on specific business segments that didn't exist to some extent. >> it's not make or break but a significant milestone for the new management team. i think what's interesting about the way they've announced this today and the stock price reaction is the latter half of last year, when we still hadn't reached the investor day and the date was pushed back and it was going to be a 2020 target, people started to get concerned, have they got things not to cover up, but are they not excited enough about their own forecasts. they suggested they wouldn't give specific targets. that list shows that's not right and they're take their time to get things aligned as they want more within the individual segments, one, we know that the consumer -- this is still very small, we saw that under 5%, global markets is going to increase in size and the much

sort of maligned trading is going to increase in size as well, perhaps what people wouldn't have except expected for a new goldman sachs. >> as we wait for it to be consumerized, it willing a big investor "squawk alley" moments away. live coverage from ces continues tethbrk. (gentle music)

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good morning it is 8:00 a.m. at the consumer electronics show, 11:00 a.m. on wall street. "squawk alley" is live ♪ dance i hope you dance ♪ i hope you dance i hope you dance ♪