money. it is friday, january 17, 2020 "squawk box" begins right now. good morning welcome to "squawk box" here on cnbc we are live from the marketsite on times square. let's look at u.s. equity futures. you'll see green arrows. the s&p topped 3,300 green comes on top of the gains we saw yesterday dow was up 267 points yesterday. this morning, indicated another 63 points higher s&p indicated up almost 8 points and the nasdaq up by 30 points

also take a look at what's happening in the treasury market 10-year is yielding 1.816% >> counting zeros here four commons 12 zeros google parent company alphabet now has 12 zeros, also four commas becoming the fourth u.s. tech company to reach a $1 trillion valuation joining apple, microsoft and amazon, amazon has since dipped below that mark cramer last night talking about another member is microsoft. weighing in on the controversy on apple and how much it should aid law enforcement by opening

locked e locked iphones or maybe creating a backdoor for law enforcement >> you cannot be cool. you have to be cool on your own. you have to take pride on the digital capability you have built. no press release with us or anyone else will do it you will need to build your dig call capability and by the way trust. there is a conversation about privacy already. we have to engender the trust. you as retailers are the keepers of the most important data you have to build trust. whether importance or privacy, they are front and center issues >> that was before his interview with jim with jim, he did talk specifically about what he thinks about weighing in with

apple. >> maybe we can get the actual sound bite that was interesting >> we'll get that ready and cue that up in just a minute we'll come back to that. wework getting some new investor interest this morning. a reporting that singapore investor trust bridge has held talks with wework china over increasing their stake of the china branch the plan values wework china at around $1 billion. the proposal was submitted to softbank last year wework currently owns 59% of wework china with the remainder held by other investors. >> it is like a lot of the same money. >> if you can get effectively, that means you could get a

little less than $5 million. you sort of have to make the decision, do you want to be in china or not >> it is just weird when you have so many intertwined interests on both sides. also yesterday, nbc announcing details of its streaming service at an event in new york city yesterday. dubbed peacock it will have an ad-supported free version and two paid versions starting at $4.99 the company expects peacock to break even in 2024 when it will be reaching they hope between 30 to 35 million users. this is very different from other streaming services out there that are trying to copy netflix to this point. this will be ad supported.

they'll be able to widen the distribution a key point made yesterday is that they care about distribution they will look to find ways to expand like they've done with cox. they pointed out that you can get disney plus free for verizon users. they do want this to have very broad distribution >> linda runs advertising for nbc made the point that there is not enough inventory advertising inventory. that they want dignal inventory. that's where they see the opportunity. >> it makes a lot of sense >> the other question is peacock will do interesting things putting late night on at 8:00 p.m. at night. is that a different audience

>> no. >> does it not include us? >> no. by the way it would be great for us does it peel off viewers at 11:30 if you are running carriage fees against cable systems who are paying, they think for what used to look like linear television and you are pulling certain programming forward. it is a fascinating major shift in the television landscape. >> it is good. i don't need the ago vags. i'm not watching the late night guys, i'm not. i see sound bites. if that's what most of it is, then yeah. it is good i think the hybrid ad-free model is the way to go there is times where i'm watching something, i don't

mind i can get up from are times i don't mind a commercial i'm not sure it sells me anything but instead of these places where you've got to do it, you've got to pay for it and it will cost them >> i think consumers would rather take some ads >> then you have 10 streaming services you write a check to each month i told you a week ago, it looked like a coiled spring it is getting close to an all-time high. >> 47.27 who is counting.

earlier, we mentioned cramer's interview. here is what he said over apple's issue with privacy >> as a citizen and user, i care deeply about privacy but i also care about public safety both of these have to be in balance. we have to come up with mechanisms things like backdoors are just bad ideas. the cloud app is a good first step >> that's what i would have anticipated he would have said the idea that he supported apple's position on this there are times when these companies compete but this is an issue that unites them all being forced to create a backdoor any government could demand they hand over. we'll see more of the interview

later. a 2020 election update, a national poll finding that sanders is steadily climbing and he's now tied with joe biden 20% of registered democrats said they would back sanders. up two percentage points 19% supported biden, 12% supported elizabeth warren 9% backed former new york mayor michael bloomberg. >> that's the other story. he's up to 9% without participating in any debates >> and others would support pete buttigieg. and more from andrew yang. >> stock market undervalued or over valued? >> overvalued.

>> big tech. regulate or break up >> you can't oversimplify. you need to dig in and solve the problems you are concerned about. >> fed chair powell's tenure, approve or disapprove? >> somewhere in between. >> recession in 2020, likely or unlikely >> i'd say a slightdown turn in 2020 is likely >> what would you do >> put more economic buying power into people's hands so we have a trickle up economy. >> when asked about the facebook social ad policy, he said they need to step up and verify the truth of ads they have on their platform >> the numbers of 20% for biden is that down or has bernie steps up i wonder if the numbers that are now supporting bloomberg came

from biden >> during the primaries, whatever extreme position is where it moves biden has to go left and during the national election, he has to come back. bernie sanders is a socialist. you've got an actual socialist he's starting to move up everybody else has to move that way. >> except for the republican in the party who is now at 9% >> i'm not sure biden has to move >> it is a battle for the soul of the democratic party. it is 50/50 right now. it is weird because the energy is with the youthful but all

being thrown on to a 78-year-old man. >> do you console i had date the 12% 0er the 9% that bloomberg may or may not have? >> in both cases you end up with just above 30. >> i think you get a broker and convince make it is mike >> a broker convention after the first or second vote they are released and allowed to vote for whoever you want to. they would come from behind or come from nowhere. >> if you were betting, if you had a dollar, you could go 25, 25, 25 in other political ad news this, we are very pleased with,

i think. the impact of bloomberg's ad spending ratchet it up, baby. cable is the place to go for cable. we will welcome your ad money here put it wherever you want, mike he spent $217 million so far on digital and tv advertising that represents about three quarters of the amount of all the other candidates combined. including donald trump tv ad rates have jumped 45% in houston after bloomberg's campaign bought $1 million worth of ads i've seen them run one after another. >> you buy up all the inventory and don't allow anyone else on >> we are open for business.

>> bloomberg spent $21 million in texas $8.4 million in pennsylvania the journal says he spent more than $16 million on google ads nearly $7 million on facebook. >> as a result he's gone from 1% to 9% in the polls in nearly a month and a half >> there is a reason he got in he wants a mainstream candidate to beat trump. he said he wouldn't get in if he thought joe could do it. he apparently came that conclusion and he's going for it >> he's not going to get half baked. am i allowed to say half assed >> you already did >> half baked. i came up with that fast half baked alaska. we love him. he's confident >> i have to say he's the most

confident, accomplished person he is. when we return, we'll talk about breaking news overnight. china posting the weakest growth rate in 29 years as the trade war takes a bite out of the economy. u.s. equity futures across the board. dow future up by 58 points closing above 3,300 yesterday for the first time nasdaq indicated up by about 28. "squawk box" will be right back. >> announcer: today's big number, 64 that's how many s&p 500 stocks e p t s time highs yesterday a ths&seanother record when you move homes, you move more than just yourself.

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china releasing economic growth rate. eunice yoon has the latest read on china's gdp >> china's economy grew at the slowest pace but did perk up at the end of the year coming in at

6.1% q4 at 6% because of the trade war. the department data is raising hopes that there could be a recovery manufacturing investment at 3.1% prompting some research to raise their estimates for 2020 socgen and pitch upped estimates to 5.9% and oxford to improved outlook. why they would want to see the economy around 6%. they basically made a promise to the country that incomes would double from 2010 to 2020 the phase one trade deal helped to manage expectations for brother this year. research firm economics expects

the trade deal will lift gdp up 0.3% fi fitch sees a 2% rise they are seeing quite a bit of anxiety over the economy here. >> eunice yoon, good to see you. i get to see you there on the screen nice to see you. we'll continue our conversation about markets. major averages breaking through 3,300. our next guest has some cautious out look joining us now to discuss his view and where to invest charles campbell is here, the managing partner at mam partners come on, man we are getting so close. >> we are close. 3,500 is less than 6% away

but we have been up less than 50% the last three years i'm not sure they discounted the by lateral damage. if we take market share from other countries, they are not just going to stand back and not react or recallate in some way they will engage they said yesterday, we are going to stand by france as they engage and support them completely >> sort of walk through -- right now -- you can look at the chart and see. i'm not a technical analyst, you can see which way it is supposed to be going. tell me what will turn it. >> there could be a couple of catalysts. you have the aspect that the trade deal which we've announced, we've spent almost three years in the making,

completing it. it lasts less than three years, you are thinking about a multibillion cap x program and you don't know what is going to happen beyond december 2021, your uncertainty will be relatively high. the biggest head wind wasn't the tariffs themselves, it was corporate and consumer uncertainty. that is still there. that is a head wind. in addition. if the market continues to melt up, you get up to 3,500 level, federal reserve officials will begin to discuss market levels that is a problem. what is discounted now is a cut only starting in september, october by staying on hold through 2020 even though they turn dovish

because we have a number rotating in and out. that is a problem and part discounted at all. >> i hope you are wrong but appreciate your perspective. i imagine you hope your wrong too. >> i do. but this is a base case. facebook under fire. facing a new lawsuit and some harsh words from the speaker of the house. we'll talk about that when "squawk box" returns after this. at synchrony, we're changing what's possible every single day. with technology that helps you offer shoppers a better experience. take your company's app. we can add in all sorts of capabilities, which help your customers manage rewards, offers, and payments on the fly. and now, applying for credit

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welcome back facebook is facing a new lawsuit over claims of anti-competitive conduct. four app developers are suing. this move marks the latest in facebook's growing battles with small app developers that have built their business on access to facebook's user data. house speaker pelosi ripping into facebook adding to the pressure the company is facing on capitol hill. >> the facebook business model is strictly to make money.

they don't care about the impact on children, truth or where this is all coming from all they want are their tax cuts and no antitrust action against them >> that's tough talk coming from a california legislature >> i just feel better and better about my whole stance with facebook >> do you remember that video that is clearly a fake video of her pushed out it was not taken down. >> wasn't off by that much do you know whether -- can i buy one of tho one of those pens dubbed the impeachment pens i think they could make a lot of money on them. >> you think that should be a

campaign thing we all need something for what is going on. wouldn't you want one? a co-mmemorative pen that speaks volumes. next week, we'll be coming to you live from davos a holiday-shorted trading week but we are going to start tuesday at 5:00 a.m. who can do a four-hour show? do people know we are all wired up and to get to a bathroom, you need to unwire, go through all the layers, go through the metal detector, take a brief quiz.

are you okay with this are you going to tell me depends. that's gross >> don't you have a big thing coming up? >> president trump is exhibited to address world leaders >> he's supposed to be speaking 5:30 to 6:00 a.m. east coast which is 11:30 to noon davos time >> i'm going to try to talk to him. that's a squawk tradition. he didn't go last year we have a huge lineup of other big people including other presidents, jamie dimon, jp morgan uber ceo and dozens more it is always a big deal. it is cold we have to walk everywhere it might be worth it >> it is a beautiful back drop

>> it is >> so many top leaders and government will be there it's the one time we can see them all together. >> i can see how the other half moves and thinks i'm there. >> you live like the other half. >> what half them we've talked about it a lot. the davos syndrome if i'm going to have a nickname, it will be tanya like patty herst she turned into. i always want to not let that happen >> remember the jamie dimon line about what davos is about.

billionaires telling millionaires what to think >> you know in the past what i've called you. there is neandrathal man there is davos man seriously, how many meetings are you leading this year? >> i don't know. a lot. >> if you take your shoes off, could you count it >> i don't know. we have a commercial break >> you could solve a lot of the world's problems while we are there in addition to doing a four-hour show >> coming up, retailer gap >> you are going on and on >> you don't need any pr or a

personal agent gap backing off its plan to spin off old navy stacks react ahead here is a look at yesterday's s&p 500 winners and losers >> that was wonderful. >> it was great. >> pretty good it wasn't bad. >> i didn't really like it it was terrible. >> it was bad. >> awful boo. stay restless with the icon that does the same. the new rx, crafted by lexus. lease the 2020 rx 350 for $419 a month for 36 months. experience amazing at your lexus dealer. ♪

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♪ >> good morning. we are live at the nasdaq marketsite futures are indicated higher this morning massive momentum pushing stocks up again and again two days ago, the dow went above

29,000 s&p 500 crossed 3,300 yesterday. nasdaq looks like it will open another 29 points. a few stocks to watch. gap is dropping plans to spin off old navy working to stem sliding sales. that move is surprising as a few months ago, they said they were sticking to the plan after the departure of ceo it announced that the head of its gap brands is leaving. enough to add 5.5% to the stock. revenue was shy as the railroad hauled less freight. the company expects a slight improvement and stronger performance in the second half as well. >> coming up, we'll tell you why

some nfl owners are absolutely livid with the sport's newest owner david tepper and peacock takes flight we'll have thelatest of what i means for the battle for your screen you can watch us live on the go on the cnbc app. listen to us no video on that pod thing >> audio >> squawk pod is pretty good too, i'm told. through the at&t network, edge-to-edge intelligence gives you the power to see every corner of your growing business. from managing inventory... to detecting and preventing threats...

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david tepper bought carolina panthers in 2017 he's a huge steelers fan >> it is a way in. >> there he is becoming the nfl's richest owner. he hasn't been shy about splashing the cash around promising to build a new world-class practice facility for the team recently signed rookie head coach to a $60 million contract.

the other nfl owners are not too happy about the spending spree joining us now is jabari, our cnbc sports business reporter. i could see that there is a lot of them belichick is 12. sand shawn payton, tom around a 10 area. gruden is around $10 million those coaches, none of them can block. right? everything they can. shouldn't they just be happy they got this great thing going on and these unbelievably profitable businesses. why are they wining? >> there is nothing that owners want more than more money.

if i can bin by paying someone less money, come on. when they come foo an industry, they try to make a mark. all of those guys, mark cuban the same way bought the mavericks came in with a smash he made his mark they try to make his mark. david stern fined the heck out of cuban because he was opening his mouth. >> do they eventually tamp down wheres it more business as usual or do they stick around? >> i think they learn the business i think mark cubon is phenomenal he understood what he could and could not do one of the first moves was sign denis rodman at 38 david tepper is trying to do the

same thing if the panthers win the super bowl, he looks like the new guy on the block he loses, he looks like the guy that just bought a toy >> he's never coached a game all of those coaches before, they won super bowls >> who says this guy says he's going to be here 30 or 40 fans >> you said he's a steeler's fan. if he's building off the rooney model, we'll see we'll see if tepper folds under fire >> i like the idea of being a long-term owner and making long-term decisions. if you are an opener who can look at and deal with the long term, you can make does decisions. >> i've covered the spurs basically my career. they put emphasis on longevity

coach pop, $11 to $12 million. if i'm bill belichick and i see matt come into one game. i'm looking at my owner saying, it is time to bump me up it is an eagle thing too >> i like the owners >> i could see that. imagine how i felt researching the story. they are talking millions and i look at my check >> are there profit margins? >> it is but not in that way for the head coaches they get the increase. >> you want to win, you want to play, you got to pay >> you've got to pay for the right guy. >> are any of these owners

losing money >> these new rookie head coaches come in with four-year deals they've got to prove themselves. david got an inexperienced guy i like the guy he's like me to give him that amount of money without proving anything i would be upset too you are meeting up business. >> this is what netflix did to tv taking new guys off the street, giving them full seasons of pilot episodes >> who do people want in the super bowl >> i know what i want. 49ers. i think 49ers and the chiefs would be phenomenal. you have a young quarterback of mahomes going up against the oldest team and i kansas city fan base so you are winning all around. >> that would be good.

>> it would be >> thank you read his full piece on cnbc.com. bring a little more energy get up for a workout, maybe go to the gym first >> coffee. >> thank you >> no problem. when we come back, new analyses on the tax plans of elizabeth warren and bernie sanders and the impact they would haven othe united states. that's next here on "squawk box. spend a bit today, knowing we're prepared for tomorrow. wow dad, do you think you overdid it maybe? i don't think so... what do you think, peanut? nope! honey, do you think we overdid it? overdid what? see? we don't think so, son. technically, grandparents can't overdo it. it's impossible. well planned, well invested, well protected. voya. be confident to and through retirement.

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welcome back, everybody. the american action forum has an analysis of proposed wealth taxes by bernie sanders and

elizabeth warren and found they would reduce wage growth for more on that report, let's bring in american action forum president and former director of the cbo and people tend to paint these two candidates with the same brush is there a differentiation between the two of them and their budgets in terms of the budget deficit and what it would mean for growth? >> there's not a big difference in their proposals the top rate in the sanders proposal is 8% in the warren proposal is 6% you find out that under sanders workers lose about $1.6 trillion in wage income under warren it's 1.2 trillion so they're the same. bernie's stuff is just a little bit bigger. >> in terms of what that means for growth, how do you take the numbers and then try to figure out gdp? what happens to it over time >> this is a decline in gdp and the question is where does it come from? these proposals have been

portrayed as we're going to take money from a few rich people not any consequence for the middle class we wanted to find out if that was true >> and again, those numbers that would land on the middle class, what are those numbers what are the taxes that eat into that how would they see that? >> that would show up as smaller paychecks. in is the same conversation in the tariff world we know they have to send a check to the government but do

they raise prices for consumers and shed the burden and shift it anywhere else in the economy it's the same thing going on in the wealth tax and indeed over long periods of time about 63 cents of every dollar would end up as lower wages for people going to work chlts it's interesting that you haven't heard any of the other democratic candidates making arguments like this. they may not have embraced the same structure but i haven't heard any of them on the stage saying i'm not embracing the taxes because of what it means for workers and the economy. >> i do think that's interesting and these have been cleverly advertised as small taxes on a few rich people. and as it turns out they're not a small tax. if you make 6% of return on your capital it's taking all of it and more these are draconian taxes.

it's not surprising that if you had a tax on a lot of investable capital you'll have consequences. >> the reason most of th on is there is a sense that there is a huge problem with inequality in this country right now. how would you suggest there's a better way to deal with it than the proposals that we have seen from warren and sanders. >> that's exactly the way that we'll think about it one of the messages of this paper is its not wrong to have a progressive tax system it's dangerous to do it this way. we should have higher marginal

rates. >> we have seen a push toward higher rates and focus on tax and capital income and tax capital income because they think only the rich have it but that's the same capital income that funds pensions for firefighters and policemen the same income that schoolteachers need when they retire so you have to be a little bit careful about going after the real fundamental thing that allows an economy to grow the active saving, investing and creating productive. >> great to talk to you. >> we have news on airbnb this morning. airbnb perhaps the biggest ipo planned for 2020 the company announcing this morning that it's going to change it's corporate governance structure a bit to involve all stakeholders and not just investors. it now plans to take into account community shareholders and employees. i spoke to brian last night about all of this. i don't want to be one of the ceos that says we're trying to do all of this great stuff and

then treat board meetings like every other board meeting. instead of having a shareholder day in the future they'll have a stakeholder day in the future. they'll tie all of their compensation and bonuses around not just metrics that would have historically included how the actual math of the company went. they're creating a special committee on the board called the stakeholder committee. >> he says this is the future of where this is all going. we'll see how it all plays out we'll talk more about that in the 7:00 a.m. hour still to come, the newest member of the trillion dollar club. used to start with a g changed their name and start

with an a. you probably know who they are we're showing it to you on the screen so surprise. >> what massive tech valuations mean for your portfolio. squawk returns with that and more in just a moment. 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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the trillion club. joining the exclusive group. the peacock streaming service has been unveiled as the second hour of squawk box begins right now. >> good morning, welcome back to squawk box right here. i'm andrew ross sorkin take a look at u.s. equity futures at this hour green arrows once again. the dow looks like it would open up about 67 points higher. nasdaq up about 32 points and

the s&p 5008.5 points higher. >> records continue to fall on wall street. there's been 11 trading sessions in 2020 and so far already closed in record territory five times. also it's made an all time intraday high 8 times. as this rally goes on you see more and more big companies getting bigger and bigger market caps it welcomes the fourth u.s. tech company to reach a $1 trillion valuation after a late surge yesterday. it joins apple, microsoft and amazon that have dipped back below the mark joining us is mike santoli and also egor who is the managing director of predictive analytics and gentlemen, welcome to both of you. >> thank you for having me. >> mike, let's talk first about alphabet and what it has just done by getting into the

trillion club. not a surprise been waiting for this to happen. >> this is the market that we have so those three stocks that now have a trillion or more market value together, $3.7 trillion in market value essentially no net debt and roughly $150 billion this year together in net income they're trading together at 25 times about this year's profits. that's kind of where we would be at a, you know, later stage bull market making new highs. doesn't mean that we stay there but if you look back to late 99, microsoft hit 600 billion at its peak this is about where we would be if you accounted for inflation. >> some of those stocks climbed to those levels. >> except they were 40-50 times earnings and not 25. it's built on the profitability of the winner take most tech businesses. >> in terms of the new records

we set every day how much is coming from big tech stocks like this and how much is coming from other arenas >> it's more representative of the big growth stocks like these. they account for 18% of the s&p 500. 15% of the overall stock market. that's a lot but it's not to the exclusion of everything else because the majority, something like 80% of all stocks are above the 200 day average. >> when you hear numbers like this, does it make sense to you? where the earnings from these companies have been or does it make you nervous.

you have all the big cap names in the market. >> when you see short squeezes like this, how does that play out? >> it has a little bit this year because we're seeing an increase across the board so even though the market is going up shorts are actually legging into their positions throughout january. >> is that an implication of a healthy market where you have some players actively bidding things up and others that are actively shorting? >> you need both sides of the market for the market to be healthy. we have a lot of shorts in there putting their stakes in the ground a lot of names that they think are overpriced at the moment. >> most short selling happens in funds that are both long and short, right so the long side is going up to new records. you'd scale up your shorts if you're not trapped in something but also if you talk about tesla and apple swapping back and forth, apple is 14 or 15 times as big market capwise as tesla

so the shorts in apple is like 1% of the flow, right? >> 1% of flow to apple and 20% of the flow to tesla. >> that's a more important way at looking at the company. >> exactly we see that it's not comparing to ams apples to apples. >> amazon is big. >> it's also a hedge people are looking at shorting apple. some of the big cap names as a hedge instead of shorting a spy or a nasdaq etf. >> some of the other big ones we're looking at the stocks right now that have seen a lot of activity beyond meat, peleton and smile direct three companies that went public this year and then netflix so much in the news what has the short activity been there? >> it's really interesting because we have seen a ton of shorting in january and over the past month 15 million shares short over the past 30 days so even though the

stock is rising people are shorting into the name they're seeing a lot of activity that is overpricing the stock at the moment thank you for coming in. >> wall street expecting boeing to write down billions more on the 737 max and there's a new estimate from a analyst this morning. we'll have the details next.

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bigger write downs now for boeing in the wake of the 737 max crisis bank of america is now estimating the total cost to be as high as $20 billion cnbc.com aviation reporter wrote the story and joins us now so what's happening? >> so boeing reports at the end of the month of course and investors are looking for messages from calhoun the new ceo that took over this week the charge that boeing took in july wasn't the end of it. that was a $5.6 billion pretax charge looks like it can go up to 10 or $11 billion now and investors are looking for some of that to be reported before earnings on the 29th. >> so the question is when you look at the 5 billion which was

clearly off was that because they didn't know what they were doing? because it was premeditated? this is where it's going to get interesting later on with all the shareholder losses i imagine is going to happen. >> boeing didn't know and a lot of people including the airlines, investors said over and over again before he lost his job that this plane is going to be flying by the end of the year or at least have the faa approval to fly by the end of the year and that's not happening. we're taking the plane out of american, southwest, united taking the plane out until june. >> at this point, they say june, is there any reason to think that it will be ready to think it will be ready to go by july or june? because with the pilot training that's going to be required that all takes time. >> that's a good point boeing did that about simulator training

they are now saying simulator training that's going to take a long time. >> that matters for the airlines in particular too just in terms of the summer crush when you see a lot of people traveling. i'm sure that we'll put a squeeze on them. >> yes. >> the airlines could come back and negotiate more money from boeing than they already squeezed out of them. >> that's possible american and southwest already had their agreements from boeing and that's 2019 only that's why they're saying $20 billion. >> i know that you didn't raise this idea, i'm raising it, but i have been hearing more and more about this in part because i talked to lawyers recently shareholders are going to sue and there's going to be all sorts of depositions and discovery around -mails.

in terms of the damage, you said that everybody thought this was going to come sooner everybody thought this was going to come sooner because boeing told everybody it was going to come sooner so the question is whether you think there's going to be e-mails and other things that show there were people inside of boeing saying it's not going to come sooner. >> we're getting more e-mails. the house lawmakers of the transportation committee say the e-mails that we have now are not enough and peter that chairs the committee said where are your surveillance pu superiors? we have these e-mails but we want to see the e-mails from the people that manage those people. so there's more to come and that investigation is not over. >> okay. leslie, thank you. you can check out the article right now on cnbc.com. >> coming up, peacock struts it's stuff nbc universal unveiling pricing and content details for the new streaming service. coming up, details, that's next.

>> time now for today's after lack trivia question, where did dr. martin luther king jr. attend college the answer when cnbc squawk box return s. coach saban convinced us. we are committing to aflac. why aflac? because health insurance doesn't always pay it all. aflac! after surgery we had extra bills followed up visits, deductibles. we thought health insurance had us covered up for everything, but it didn't. aflac gives you money directly to help you with those things. i want to thank my wife, my mom, the duck. get help with expenses health insurance doesn't cover. get to know us at aflac.com

now the answer to today's after la aflac trivia question. where did martin luther king jr. attend college the answer, morehouse college. he started his college education at the age of 15 and received a degree in sociology. >> the future of television is coming into focus. comcast unveiling details of the streaming service called peacock. peacock hopes to stand out by offering a free ad supported service. steve burke explained the strategy at the company's presentation yesterday >> we think there's a clear opportunity to create a streaming platform that we own

and operate that give people what they want when they want it and allow us to monetize we also think we're able to take advantage of this opportunity and play a leadership role in the on demand streaming world. >> that unique positioning comes from all the content with more than 600 movies available including titles from universal pictures, dreamworks, films like et and jaws. the more than 400 tv shows including saturday night live, will and grace and the office and the pricing is tiered starting with a free ad supported option or for $10 a mo month no commercials he is also a cnbc contributor and probably one of the two or three people most responsible for cnbc when the industry was facing something similar

>> i wanted to put the peacock logo on cnbc and the peacock police showed up in my office and said no way. it isn't going to happen don't even breathe it. we will have revolution from the broadcast affiliates. >> not for long. we had to prove that cnbc wasn't a threat i have to tell you it's a recreation of a broadcast network in streaming form and you don't even hear the issue of what about the broadcast affiliates what are they going to think >> they're still a big part of the business and how are different cable operators, take

comeca comcast out of it given that they're the parent it's available to anybody on peacock but on lineal available at 11:30. >> when it comes to the cable operators including comecast they have adopted a very different view about what happens to programming because cord cutting to them actually benefits their core business because they know people need the broadband part of the cable service cable is where they go for it. the margins on the video business have gotten worse and worse so they actually improve their margins as people cut the cord plus it will ultimately be distributed by most of the cable industry and they'll look at this as something that helps them navigate their relationships with broadband subscribers through offering

this content service >> phase one is finished now let the games begin? we'll see what actually happens. >> the streaming wars are on i look at this, i'm surprised at discussion of the content. meaning that he has put all the major shows that he has contributed in the police and crime family on here and that is going to actually be a very substantial part of this. all the talk has been in the streaming wars who gets friends, who gets o office but these one hour crime dramas actually have a lot of staying power. i can speak in my own household. my wife, my daughter-in-law will watch svu over and over.

so there's a lot of guts to this in terms of that kind of programming as well. >> are they right to take the embrace and to make the embrace and call it peacock and be so different than it was when cnbc was launching? this is a whole different way. wall street looks at it a different way too. >> look at disney. disney said we're all in on this and disney has gotten $50 billion almost of additional market cap by showing it is really all in. it ultimately does give them some reward. it's a very different strategy in terms of look, ad supported is something that can sustain this kind of service where

everybody is much more focused on the direct to consumer pricing. looking at ad revenue over the next four years when they're talking about 30 to 35 million subscribers, i think like disney they'll blow past the number so they're setting expectations low so if you're talking about 2.5 billion of ad revenue off of 30 to 35 million subscribers you're talking about pricing your ad inventory at astronomical rates that's really the game here. >> astronomical for digital or astronomical for what they would be paying on the traditional broadcast model? >> the hulu type inventory is going for cpms today and comcast is still an owner of hulu. they see the data and they know how successful the pricing of hulu as an ad service is and that's way above the cpms that they're getting on the broadcast game and the broadcast game has been a bit of a head scratcher as of late

ratings decline. they're declining substantially but as they decline they have been able to take up the pricing on the broadcast network because it's more scarce to reach people >> that game i don't think has that much more steam in it this is about okay we have to create another form of high priced advertising there isn't that much advertising in the advertising supported video on demand space. >> that's the opportunity. >> this is a huge opportunity. >> do you think it's too much? >> well, you're beginning to see the budgets really shift there and there's not that much inventory and that puts pressure on the inventory and puts pricing there. and there will be a ton of advertising the shifting to late

night television to earlier in the day is really brilliant. >> that's a way of getting the audience that does not exist for that kind of first rate programming but it's also a little scary in terms of what it means for what's supposed to remain of traditional television which is supposed to be about life events. fresh daily stuff. sports now they're beginning to say hey, we're not just going to put scripted entertainment programming on peacock, we're going to put the fresh daily stuff there as well. >> do you remember when all the affiliates and their 11:00 news when, i don't know, whoever is in the league with late night it would impact the bottom line of all the local affiliates. >> huge and it still does. >> so just in closing, you're not really that bullish on the whole streaming business because it's going to be cut throat but you think comecacast has an

advantage because anybody that streams needs broadband anyway do you think disney has problems in terms of stock price? >> well, i think -- >> you can say it. >> it's ahead of itself. >> it's a bit ahead of itself relative to what has been accomplished having said that you can't take anything away from them, how much early subscribers they got on disney plus that's a huge thing. comcast as a cable company i think is well hedged the issue for all the traditional companies is streaming they have to get into. they got to put their shoulder behind it but the downdraft in the traditional business is going to be much steeper than most investors have priced in. >> all right thank you. and a note -- wait a second, nbc is the parent company of cnbc it says here. >> good to know. >> i'm glad you recognized that. >> the topic of media and our parent company we want to wish a happy 25th -- this can't be right. 25th anniversary to the golf channel and our colleagues over

there. it launched as the first single sport cable network in 1995. it continues to be much watched tv for any golf or sports fan and arnie was affiliated. >> that's when comcast got going before they had nbc and that was a cable industry club deal so to speak and the club brought it along and look where it is today. >> the lump in my throat i miss him and love him. the congratulations on 25 great years. it will mean a lot more i think. >> still to come, microsoft and black rock among the companies making commitments to sustainability we'll show you what the microsoft ceo said to jim cramer last night squawk box will be right back. sometimes, the pressures of today's world can make it tough

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it is not just investors it takplans to take into account host communities, shareholders and employees. it plans to base it's compensation on this i spoke exclusively with the ceo last night and he told me i don't want to be one of those ceos to say we're trying to do all of this great stuff but then we treat board meetings like any other board meeting. they're planning a stake holder day instead of a shareholder day. but it's obviously going to include all of these other people this is what he says is the future of the way businesses are going to operate of course this is a company that's going to likely go public later this year. the biggest ipo of the year when it happens and interestingly to some degree you have to argue that the traditional shareholder will be diminished in this. >> it seems like it's going to be a three ring circus. >> he says it's not -- we're trying not to trade one off against the other but he said look the future of all of these

companies is to do this. this is some what what the business round table has talked about. >> formalize it. >> in a very, very meaningfully designed way. >> does every one of those stakeholders have the same influence or is there a pecking order of the stakeholders? >> i pushed him on that and i think that he was talking about, you know, we don't want to trade one off the other. i think invariably some are going to have to have more power than others. right now regulators more than any other stakeholder in his company probably are the most important. >> doing this before the ipo, i can understand why he would want to do that to fend off the regulators and tamp down criticism that's come through but i don't know if he realizes how difficult it is to be a public company because of all the ceos that have taken their companies private again and said forget it, that's when they're dealing with shareholders. so suddenly say, i get having

your employees at the table. that makes a lot of sense but to say people that have no affiliation with the company, i think they need to do a much better job of addressing the complaints but i don't know if you want them at the stakeholders meeting having an equal say in what's happening. >> do the customers that are customers and hosts that are customers of the host. >> the person that happens to live next door they have really good complaints that's what they should do a better job of addressing but do you want to bring them all into one meet wrg this ing where thi happening? address the people calling your customer complaint lines. >> i imagine they'll have direct listing as opposed to an ipo in terms of how you think this is going to happen which will be an interesting thing they have historically not needed additional cash to raise. >> he's a smart guy. >> he's a very, very smart guy the question is how this all works itself out. >> meantime, the ceo of microsoft is laying out his company's plan for going carbon negative in the next decade. he spoke to jim cramer

exclusively last night on "mad money" about it. >> by 2030 to become carbon negative to in fact, go back in history all the way to our founding in 1975, look at all of our energy consumption and make sure that we recapture that and of course we also know that it's not just about what we do, its the ecosystem and the innovation we need breakthroughs so we're putting a billion dollars in an innovation fund. we're very excited it's a small part of what all of us will have to do to achieve more. >> microsoft and blackrock are a couple of major companies making big changes to focus on sustainability it's a conversation. i imagine we'll have more in davos next week. but to talk to us about corporate and this investing strategy is chairman and former nasdaq ceo of this place the cnbc contributor and author

of market mover. lessons from a decade of change at nasdaq. good morning to both of you. >> good morning. >> the question that we keep asking is is this real or marketing? >> i thought what larry put out this week was quite real and actually quite hardcore. i read it a few times of course. and i thought the message, which we have been arguing too is the reason they're doing this financial value creation and i thought he made an argument in there about alpha risk and beta. on alpha he said companies that invest with trend understanding the importance of moving to a lower carbon society and all the industries that that will effect will have disproportionate returns. this is one of the biggest not dealing with it is a huge risk factor. utilities that didn't deal with carbon in europe lost 80% of

their value. they have gone bankrupt by not understanding risk in this related space and then finally if you're blackrock you can also think about the beta part of this long-term capital markets are going to be effected if we don't tackle carbon in a meaningful way. it was very hardcore. >> let me ask you about this microsoft seems to be doing what black rock is asking it to do. having said that, it's going to come at a real cost to be carbon negative not just on an annual basis but to recapture all the carbon that companies put out since 1975 the question is, should companies be doing this independe independently? or is this something that you think only really works if governments, probably frankly across the world mandate it so that it actually happens in a more strategic fashion. >> first i would compliment

microsoft for the first time identifying the fact that we have to go carbon negative i think that's a step but you have to understand how small of a step it is microsoft is responsible for 10 million tons of carbon the world is producing 36 billion. that's increasing right now. so i think what i read about going carbon neutral, you have to recognize that has to be the country and primarily it's going to be in asia when you look at the carbon production happening today it's growing in asia we're up to 36 billion tons. so i would say this, to think that we're going to go carbon neutral and save whatever environmental risk we have isn't going to happen. we have to go carbon negative and satya has identified that. >> and do you think the investment community is going to ascribe a higher valuation to a company like microsoft because of these efforts

and when you talk about doing some research there's so many different definitions and we still have issues understanding what the numbers are so an esg measurement is by definition quite mushy so when larry announces he's going to use esg that could be quite significant and it could be quite insignificant it depends on what measurements that you're using and how you're using them but i would say one thing with respect to esg if you get the g part right, the governance people primarily focus on the e but if you get the governance part right the e and the s will take care of itself. >> two points on this, one, i don't think satya's announcement yesterday was so directed at the financial markets. i think it was much more directed in a broader sense. they are a human capital driven company. young people today care about where they're working.

and i thought that was a statement that you can trust us. we put ociety's interests alon side our own and it's a statement designed to attract people much more. >> a harder philosophical question big companies like a microsoft with big balance sheets and income statements can afford to do these things. so maybe they're the ones that lead the way in that regard. however if they're successful it's going to put a lot of pressure along the rest of the other businesses and smaller businesses that can't afford to do these things and how you're supposed to think about that. >> to change behavior, you have to change context. the people that change context are your customers, your investors and government and policy regulation and so microsoft along with others is trying to change context larry f irgsink is trying to ch context from an investor point of view. if it puts pressure in a balanced way everybody has an

inventive to improve. >> is it the job of business to do this? >> i would say this, we have to recognize that we're really just arranging deck chairs by these moves. you have every year 36 billion tons of carbon going into the atmosphere that is increasing right? now if we take these efforts and we cut the rate of growth. so instead of 36 going to 50, we go to 40 that's a good thing. but the attention, the publicity, the money, the government have to focus on the fact that we have to get carbon out of the air so i applaud what microsoft is doing. i think that's real. bla blackrock could mean anything so i'm not sure but at the end of the day we're just arranging debt chairs. you have to get the carbon out of the air we put it in we have to take it out when you look at the year 1900 we were still producing 2 billion tons of carbon per year. so for us to think we're going to carbon neutral, less carbon produced in the air than existed

in 1900 is just pure fantasy so we have to focus. >> thank you thank you for joining us question is how do you do this and also manage growth. >> absolutely. >> it's about shareholder value and value for society and others >> yeah. >> thank you >> still to come, stocks to watch ahead of the opening bell but you can always watch us live on the go on the cnbc app. we'll be right back. i consulted with your grandmother's doctor. we can do the screening at her house. hi. this is the man that's going to check your eyes grandma. cognizant ai solutions are helping healthcare companies advance diagnostics and prevent blindness in patients with diabetes. everything looks good. you have beautiful eyes.

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let's put a social media theme for our edition of movers. we'll start with a couple in the green and the red. shares of snap higher around 3% on 200,000 shares of premarket volume after they get upgraded to a bye from a prior neutral. they cited things like a management team focused on user growth and more optimism about

ad spending and 50,000 shares premarket at this stage. and downgraded that stock to a neutral bye and they also cut the price target from 35 to $37. they cited among other things continued spending and i vestment in safety and security protocols and other operating expenses pressuring profits despite a big year ahead from the social media company like the presidential election the olympics and others and those shares are down right now and we'll end on shares of pintrested higher on 85,000 shares of premarket volume it's been held from overweight to equal weight and the target goes up from $30 to 28 they cited among other things attract evaluations given the underperformance over the last year and shares up 4%

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all people. >> bernie sanders climbing in popularity now tied.

robert frank has the details of a new cost analysis on that plan plans for thelth cahealth care green new deal would not be that sanders plans would cost over 60 trillion, that's with a t over the next decade. that's more than the current total projecting spending of the government of $52 trillion it would be 2.5 times bigger than fdrs new deal that would grow spending by only 12% of gdp buttigieg would grow by 2% and biden by 1%.

his green new deal adds another 16 trillion. his jobs giving every american that wants one a job, 7.5 trillion on top of that cancelling all student debt and add universal health care. it's unclear though how to raise the other $40 trillion or more >> thank you, robert, research fellow and now the vice president of strategy and polic

it seems crazy to me he's a socialist why is he leading the race for democratic nomination? >> i think we need much more public spending and public investment in order to grow the economy. this is a problem right now that we have very little productive investment and the plans that we're talking about investing in children, investing in health care, adapting to climate change, these are the kinds of long-term investments that set us up to be successful in the 21st century your previous guest mentioned this is similar to what we did in world war ii and that

spending layed the foundation for success in the 20th century. now we need to be successful in the 21st century. >> that's a lot of spending. just if you take each one and by itself that's a lot of spending. >> if you add up all the proposals on the left, including the bernie sanders medicaid for all plan, you're looking at 47 to $92 trillion of spending over the ten years. there's simply no way that taxes on the wealthy can do that the heritage foundation did a study and looked at what would happen if you con firefightefisy single dollar. it raises $32 trillion over 10 years and it wouldn't be feasible because you would drive the she into the ground but that would only pay for a fraction of the $92 trillion in spending the secret is and i think the secret is starting to get out is that if you want the european style welfare state you're going to have to have the european style tax program and i don't think that people get recognized

what that looks like but if you go to france the payroll taxes are 50%. if you make $100,000 per year in france, you're going to pay about $52,000 a year in taxes compared to just $35,000 a year and for the lower middle class, it's a much higher rate there as well $40,000 a year in europe you're going to pay about $6,000 more per taxes period than in the u.s. >> now interesting piece in the journal, it's an op-ed piece but they just have quotes from biden, warren, sanders, about the state of the country, state of the economy anyway, the party out of power has to make the case for change but the challenge for democrats pitching carnage would be persuading americans that they shouldn't believe the economy they see all around them with

their own eyes do you have a comment on that? >> yeah. i think that we have a sense that the economy is doing well because stock markets are high but average americans aren't necessarily feeling that same buoyancy i think about 50% of americans don't even own stock or have a stake in the stock market. >> okay. there's the unemployment rate. there's the wage gains. >> the wage gains -- >> coming off welfare and off disability. >> the wage gains at the bottom 50% are twice the wage gains of the top 1% now it's not to say that we don't have an inequality problem but directionally we're going the other way right now. >> i know that the stock market doesn't benefit everyone but when there's a stock market crash, you tell me what the rest of the economy looks like when the stock market is forecasting those type of economic

conditions it's just. >> this is not just about the stock market all of those, you go back 20 years. you go back 30 years, the really average household income is in the double digits for the typical family and that's record amounts of capital investments record income and near record low unemployment and because we're a free market system if we want the european welfare state a look at how the average family is doing in germany for instance our average income in this country, that's after tax income is $11,000 higher per family on average. we are doing well. we're doing better it's because of our free market system that a lot of the candidates on the left are promising to dismantle. >> but there is overlap between the bernie voters and the trump voters we forget that but there was quite a bit of overlap between the two voters

and some voters were going to vote for one or the other and a lot of that is because the economy is doing well but there's a lot of people left behind by housing, education and health care costs. so how do you address those because that, i think, is what is helping bernie is to address those problems >> that's right. i think they would welcome a debate over whether or not we're doing as well as we should directionally the trend may be improving. americans as you said still can't pay for health care, for education. and for child care and significantly these are the investments that will grow the economy in the long-term we are falling behind on the human capital investments. we are falling behind on new industries, previous guests were talking about business,

preparing for decarbonization and i think the country needs to do that as well. >> for only 30 trillion to tackle the .04% co2 in the air. >> it just so happens those three sectors, health care, education, housing, those are the three sectors that the federal government has and they have caused that rampant inflation. >> joel, thank you wow. thank you. >> thank you guys. >> when we come back, former agricultural secretary will join us to talk about the impact of two big trade deals on farmers and the american economy

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>> proud as a peacock. >> the following program is brought to you in living color on nbc. >> our parent company unveiling it's new streaming service, peacock. details on the pricing, the line-up and the fierce

competition just ahead. >> and 12 zeros. alphabet joins the trillion dollar market cap club the final hour of squawk box begins right now . good morning and welcome to squawk box on cnbc live from the nasdaq market site in times square u.s. equity futures at this hour are strong once again a little bit after a really strong session yesterday we're up about 54 points on the dow. the nasdaq up about 27 and change and the s&p 500 up about 7 treasury yields right now are right about where they were. i'll quickly say i'm in touch with david. >> they're going to make us --

>> i'm not going to say what he says about the market. i'm going to tell you that i'm going to tell you what he says about the markets in about ten minutes. but i am going to tell you what he said about his allegiances between the panthers and the steelers he told me, this is a direct quote and i have to read it. i was born in pittsburgh but i married the carolina panthers. who is first in your heart your wife or your mom? and if you say anything but your wife, i will let you stay at my place tonight. i thought that was pretty good so he's a panthers fan but still loves the steelers. >> as a mother that wounds you you have to let them go sooner or later and you know who recently was a good illustration of this? >> who >> mother versus wife. we know where he is coming down and she's the queen. >> you continue follow the

royals closely though. >> how do you ever forget about diana. >> meantime, we have stories to tell you about investors are going to be talking a lot about the new member of the four-comma club. alphabet remains on watch this morning after googles parent market valuing the company topping a trillion dollars with a t. it's now $5 trillion that's more than 17% of the s&p 500. abandoning it's plans to spin off it's old navy brand into a publicly traded company. that's spiked on the news. sales have slowed in recent months casting doubt on its separate entity. it's like bad news is good news.

i don't even understand the thought process at this point. >> i think they realize that they were not going to get a lot of value it probably needs to have it's own private equity fix internally before you do something like that. >> and then wall street expecting bigger write downs for boeing in the wake of that 737 max crisis cnbc.com reporting bank of america estimating the total cost of the plane's grounding to be as high as $20 billion if they return to viservice by jun or july. boeing taking a $5.6 billion charge in july to compensate airlines and other customers boeing looks for fourth quarter results on january 29th. >> the trade deal receiving overwhelming support in the senate as it passed yesterday. 89-10.

that gives president trump his second trade victory this week following a signing of that phase one deal with china on wednesday. joining us to talk more about the impact of the agreements, he also served as agricultural secretary in the obama administration and he is a two-term governor from iowa. secretary, thank you for being here today you served in the obama administration but you had very positive words about what happened with u.s.m.c.a. your comments on this. what do you think about the trade deal >> it's good news. it's going to give us an opportunity if this agreement is implemented in ways we intend it to be enefitted.

and a new system put in place. all in all a good agreement for dairy and for agriculture as well maintaining the status quo wheat and dairy are big winners. >> to back it up for people that don't follow the dairy industry quite as closely, what have been the problems pressuring american farmers when it comes to dairy >> the canadians have a supply management system. they should be managing their problems with supply within the borders of candidate and they have an excess they began to export well below prices. >> what is the powder? just what's used to make milk? >> it is a by product of cheese. it's a byproduct of butter it's what is left after you made butter and cheese and that type of thing

it's 70 to 80% so any time prices are impressed, especially artificially it creates problems for dairy farmers and processors. >> what does itget used for? >> it gets placed in a variety of baked goods and a series of ingredients used by the pharmaceutical industry as a filler for pills and dilutes the impact of medication and that nature. >> the senator from pennsylvania put out a statement saying outside of a few modest modernizations and access improvements usmca is a step backwards and i could not support the passage. >> i respectfully disagree especially as it relates to dairy. the elimination of the class 7 pricing series and we anticipate an agreement and put in at a

time when we seem to press prices for three or four years this is good news along with the chinese agreement if it's carried through the and chinese follow through with the promises they made. there's opportunities for additional market access in that agreement. >> outside of dairy farmers what does it mean for agriculture on a broader base. >> the chinese agreement, if they follow through and purchase 40 to $50 billion of agricultural products that's obviously going to strengthen and stabilize farm income and prices the key here is implementation the key here is making sure that the chinese follow through with their promises they're famous for promising they're not as famous for following through with a promise. >> and in terms of keeping promises and trying to keep this under control, we passed usmca mexico majority passed and approved it but canada has not yet. the prime minister there has been under pretty considerable

political pressure and pledged to compensate the dairy farmers in his country facing more competition. what would that mean to you? >> i think canada is going to ratify this agreement. i don't think there's a question about that i think it's important that they ratify it soon there's a six month window in which they have to eliminate this class 7 pricing system. we have to get that done as quickly as possible so we restore some sense of fairness to the market. so i expect that it's going to be ratified. clearly the canadian dairy industry is a powerful political interest in canada the reality is they benefit from a supply management system consumers don't benefit. they see higher prices for milk and dairy products >> in terms of making sure that they are enforcing this. making sure that they make the agricultural purchases that they promised, when will we be able to check is this a two month process? a one year process or beyond >> we'll have a good sense of

this in the latter part of 2020. early 2021 industry is going to have to continue to report into the u.s. government i think it's certainly important that the u.s. government is setting up it's own separate office within the trade representatives office for implementation to review and make sure that the conditions of this agreement are following through. under this agreement either party can leave at any point in time after giving notice so it is important that we monitor performance. it is important that we get these purchases made by the chinese. we'll see what they purchased and how much over the course of the next 6 to 9 months and you have a good sense of whether or not this is an agreement that really will in the long-term benefit u.s. agricultural. >> thank you for your time today. you bet. comments on the markets. interesting. we'll have them when squk x rern tus.awbo so what are you working on? >>i'm searching for info on options trading, and look,

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it takes one to know one. >> he loves riding a horse that's running >> in terms of the market. >> in terms of the market. did you make these

i sent them to you. >> they're on the bottom. >> and that in summary said we have been long and continue that way. now he did go on to say i think we should add a qualifier that at some point the market will get to a level that i will slow down that horse and eventually get off. >> can he let us know when that happens? >> he said will you have some level or sign that will indicat that to you? i'll be the first to know after his wife and his mom which references back to earlier the carolina panthers that's the wife and the pittsburgh steelers are the mother so i guess what do you take away from that? we've had people say that. it's a momentum trade. cramer has said as much i think. how do you -- >> ten years ago he was so right. >> he was so -- >> this is the hard part. >> and if i'm third that might be early enough, right >> you will share with us at that point >> well, after i, you know, do

everything that i need to do we don't anything but yes, i will so that's what we have and i could have just called him but i don't -- >> you don't like talking to people. >> i don't like talking to people number one but no, i'm not going to disturb him on a friday if he wanted me to call i would have called. >> this was a very significant call he doesn't come out and make calls like this very frequently. this seems to me like something that people should sit up and pay attention to he made a coup le of calls when he said to get out of things too. it's almost impossible but he has had some incredible success with major calls he made along the way and i'd paid attention to what he has to say here. >> when we come back, we're going to talk about riding the peacock, the proud peacock, our parent company aiming to disrupt the competition in the streaming space with a new service peacock, we'll talk about what the platform has going for it right out of the gate but also

the stiff competition it's going to be facing we'll talk about all of it when squawk returns [ ominous music playing ]

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in studio where saturday night live is filmed she has more on what happened in the presentation and the after effects of it. >> well, peacock is not trying to compete with netflix but to reinvent broadcast tv for the internet age it will have a combination of new and old shows and series in films and live news and sports there will be fewer ads than tv. less than 5 minutes an hour and these ads will be more targeted. there will also be a premium tier with 15,000 hours of content that will be available to anyone for $5 a month with

ads. they'll make it easier to browse premium video, all different types of it at scale while the free tier aims to battle subscription fatigue. >> i think the plan that steve and teams from all parts of our wonderful company have created is a tremendous and positive business opportunity that will give us years of growth and new avenues of innovation that were not technologically possible a few years ago. >> nbc universal forecasting that it will hit between 30,000,035 million active peacock accounts by 2024 that's less than hbo max's forecast at 50 million subscribers and disney pluses of 60 to 90 million by then now peacock's financial forecasts are also smaller projecting $2.5 billion in revenue by 2024 compared to hbo max's $4 billion revenue protection and the $7 billion in estimated revenue for disney plus in that year.

but unlike those services, nbc universal is also using peacock to incentivize cable customers to keep paying for the tv bundl that also benefits the media giant. back to you. >> thank you for that. shares of comcast up more than 30%. peacock is facing some very stiff competition. hbo max, apple tv plus, disney plus, not to mention netflix and amazon and here to discuss the changing landscape is the co-founder you were at the presentation yesterday. >> i was. >> your takeaway is what >> this was great for consumers. who wouldn't want lots of content. less ads and easy to find and the best part is as you watch, you get smarter. so it's going to learn what you like and if you like watching cnbc clips or you like watching saturday night live clips you're going to get more of what you the consumer like watching.

>> so great for the consumer i know a lot of companies that are money losing companies that are fabulous for the consumer. tell me whether this is good for business. >> there is a substantial advertising opportunity. i mean, if you think about most of what's happening right now across the entire media landscape, you're seeing most of the places being created netflix, amazon, disney plus, apple tv plus, there's no place for advertising. like literally, you know, look, you can put some sponsored product placement into some of these shows of course but there's really no place for advertising and you're seeing what we're hearing from advertisers, you had big advertisers in the audience from eli lily to target they're dying to find and reach consumers so you'll take the ad load down dramatically and you'll create a real opportunity to sell. >> so tom rogers was on in the last hour and one of the comments that he made though is that the rate at which nbc will have to sell those ads on

peacock is going to -- a cpm basis will be at a substantial premium to make this work. to make the numbers work he thinks they'll have to be at a substantial premium to what, for example a hulu and others in the same space are getting square it up for us. does that make sense >> if i go on right now and i want to watch, we did this test preparing for peacock day. so we went and we just tried nbc's experience so we watch an episode of this is us on the nbc ipad app. on that experience there was 8.5 minutes of ads in 44 minutes of content. that's going to shrink from over 8.5 to sub 5 so you're going to shrink the inventory and tell the advertiser we'll give the consumer a much better experience and there's going to be fewer advertisers and you're going to pay a premium. >> are the advertisers going to pay a premium? >> based on what i heard yesterday this is what the advertiser wants

a better less repetitive i got served the same ad five times. you're going to stop torturing me. >> this is based on what you heard from advertisers in the room yesterday. >> they want a better -- first of all, consumers want this. five times in a row. >> i'm getting five in a row one of the other things that they're doing is changing the programming dynamic. late night, for example, it's two sets of viewers. we'll cannibalize it there's linear programming available and for the first time you're able to see seth meyers

is 12:30, does it upset the apple cart to air him at 8:00 p.m. >> we started on this kind of -- we created this hashtag good luck bundle five or six years ago and no one bought into it and no one really thought cord cutting was going to be a thing. when you look at where we are now, nbc or comecacast nbc, thii where the world is going you can fight the shift. what you're talking about is will cable operators like this. >> i'm not saying do you fight the shift or should you fight the shift, is there a fight on the other end? >> they're going to be upset disney is putting content from fx on to hulu a couple of hours after it airs. there's going to be some fx content that never airs -- it only airs on hulu and you don't need a cable subscription to get hul urg hulu there's no doubt about it. consumers don't want to watch in a linear form live

less and less every single day m especially outside of news and sports. >> julia is in l.a. and wanted her thoughts on some of the things that you have been saying. >> just to jump in on what rich has been saying, demand from advertisers, i also heard that there's huge demand for getting another place to play in the ad supported streaming market we're going to see a 30% increase in ads going on to digital video this year compared to last year and a lot of that is due to the fact that tv ratings are declining, advertisers need to be able to reach the same number of people so there's a huge demand to be able to chase people where they are and then just another little nugget about hulu, i want to point out that yesterday steve burke said that it was possible that in two years when the deal with hulu expires that they'll pull back the content and will have it exclusively on peacock and i think that's when there will be a real moment where we see hulu and peacock become much

more competitive with each other when they're no longer sharing a lot of that content and that's when nbc universal could really ramp up. >> if you're an investor in comcast parent company of this network that we're on right this second you like this. >> you do. >> the question is do you like it more? meaning when disney plus was announced it was like a rocket ship, right? that's not happened in this case the stock has been on the move in a nice way for the past week and a half now. >> look, disney is lighting earnings on fire 2020 earnings for disney three years ago were 8.5 dollars and are now going to be sub 5. >> what is this worth? >> it's far less expensive someone called it too too conservative this is not too conservative this is doing exactly what comecast should be doing to leverage their assets. >> a, would you own comcast

relative to the other cable companies out there. >> comcast is very well positioned broadband is still the core of this story this is given consumers that use comcast broadband more to do i think about this platform, i'm not sure that other cable operators are going to embrace this but charter doesn't want to do this, comcast is going to roll this out nationally. >> what do you think the stock should be worth? >> there's a lot of value creation just out of broadband alone. >> if i gave you $10,000 and told you that you could buy any one of the companies right there, which one do you buy? >> i think the most exciting global opportunity where there's no -- you talked about the pressure on the core legacy business as you do this, whether it's disney, whether it's comcast, you're all going to have this pressure as you disrupt your legacy business i think you want to own the pure play which is netflix is the most exciting stock over the next 12 months the report on tuesday, if they grow global net adds that's going to be a good stock over the next few months. comcast is resilient and had a really nice move over the last

several eeks seasonally adjusted annualized units. that's a whopper of a number well above anything that we're expecting. if you look at permits they're up 1.416 million also seasonally adjusted and annualized down close to 4% and much of what we are seeing with regard to housing has been improving. obviously low interest rates don't help but there's so much more than that but this is really a big housing

start number we still have more data to go. industrial capacity utilization, university of michigan and rates popped up a bit. this 180 has never been far from the close in ten years for literally months now and we have firmed up a bit above it some global positives with regard to economic fundamentals and of course many are optimistic post trade deal, u.s.m.c.a. that numbers will even improve further back to you. >> all right, rick, thank you very much. steve and diana are here as well let's start with you because housing starts were something. what do you think? >> this is because that demand that we're seeing really strong demand for existing homes but that really short supply of existing homes for sale. we heard from the builders that they're seeing more people coming through the show rooms.

they expect to see more sales. they had builder sentiment up to a 20 year high last month. this is not surprising at all. we're also seeing some of the analysts start to revisit their predictions for 2020 they actually doubled it's prediction from 3% starts in 2020 to 6% so a lot of bullishness. the only weakness i'm seeing in a little bit so you don't have a lot of people getting ready but the number itself huge today. >> your thoughts. >> we had a slow -- at least initially slow grinding rebound in housing that's been beautifully timed to offset the weakness that we had in manufacturing. it dates to about six or seven months after interest rates started to decline which is about what you would think in the long and variable lags that we believe monetary policy effects the economy. this number is the best that we had going back to -- diana will check me on this, march 2006

we have not been at 1.6 million at an annual rate. we have been waiting for the housing market to start to better reflect the demographics out there. the need for housing the rise in the number of house holds and it's been curious as to why it hasn't the big story here i think is the way that housing is probably going to add to gdp and i had a chart that i want to show you which shows the contribution of residential investment to gdp and you can see it's been negative for the past 1, 2, 3, 4, 5, 6 quarters and just in the last quarter it was positive and a lot of economists whose forecast i follow for the current quarter see it being more positive than that. so i can't do the numbers on the fly here but you can think about an additional .2, .3, .4. >> what is this private residential fix investment. >> if i could jump in here too, it's also important that we're seeing not just single family

construction but multifamily taking another huge jump we were expecting to see it ease off a little bit because we're going to see a will the of completions in 2020 but i'm seeing numbers up 74% year over year in multifamily starts 32% month to month that means that we're seeing increased rental demand as well as buyer demand and that's just going to contribute to gdp more. >> let's be a little skeptical for a moment here. didn't we have some warmer than the regular december weather. >> you're going to throw the weather in i love it when you throw the weather in. >> let me back it up. >> it's a factor. >> you had a 25% bump in the northeast. a 37% bump in the midwest. to the extent that you can, to the extent that you also by the way have trouble finding workers. you have construction workers. you can put them to work in december you might as well. i'm not taking away here perhaps it was a little bit exaggerated. you and i have been here month after month and year after year.

you could probably count on one hand the number of times we have seen a 17% increase in housing >> these numbers especially, the new home sales as well as the construction numbers have a wide margin of error and i just think that it's interesting that you're seeing more construction in multifamily even as you're seeing the for sale housing market heat up and the single family builders heat up. there's so much formation. household formation starting in 2020. >> i don't disagree. becky, this is the way housing works it's way into gdp. okay it's a whole bunch of stuff but including the added value of renovations and the added values of additional housing starts what that shows is that housing in the fourth quarter contributed .17% to gdp. and you can see it's subtracted from gdp and now it's going to

add again and that's important and it's one of the reasons why we have seen -- we talked about this yesterday, the estimates for the fourth quarter go up month after month -- week after week as the data has come in in part because of the strength of housing that we have had in general, the reports which are the ones that i follow for the housing market have tended to be negative and there's something ellsworth talking about here i don't know if we have the time but to just take this on, there's an ib out there that the more you lower interest rates the more you raise the price of housing because you make the monthly payment more affordable and so therefore you raise the total value of the asset to what extent -- where are we

in the affordability of housing now. are more americans or fewer americans able to afford homes at the moment? but we're also seeing a reacceleration in home price games. they had been shrinking from 2018 into 2019 because of higher mortgage rates and now we're seeing the prices go up. now affordability is better because we saw mortgage rates go down and home prices were shower rir -- shrinking but they have gone back up again. >> thank you both. good to see you. >> when we come back, we'll talk about why he is still betting on the bull market. we have his exclusive comments to joe when squawk box comes rit ck ♪ ♪

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it's what will give you an indication of that he told me that i would be the first to know after his wife and his mother >> do you think he was serious >> no, probably not. but as we pointed out he was very bullishand --

>> single mid to high single digits. >> not just that but a lot of this has come too far too fast it's very muted. so here's a guy that made $2 billion in a year i don't know if anyone has ever been better at managing money. about a year ago or two he said, you know, i don't have any intestinal fortitude that i used to have. it's more for me now, but the one guy that does at this point is tepper and that's the guy that i listen to

so he never wants to weigh in but he did and i'll talk about that he said if you -- >> don't say it. >> he said you may use it if you must but we need the chart for it >> the half life of saying i'm riding this horse should be at 3:00 p.m. today. >> that and the other thing. just so the viewer doesn't think that david tepper decided today was the day. >> no, he was talking about the panthers. >> he came -- right, he texted us about the carolina panthers. >> it sort of happened in the moment as opposed to coming on to tv today to tell the world get on the horse. >> it's important to put it into context that we were talking about and i asked what happened for your love for the steelers i was born in pittsburgh that's like my mom and my wife is the carolina panthers. >> he didn't intentionally come on to say here's what i think people should be doing. >> no. >> as a matter of fact in other

conversation. >> this is just what i'm thinking. >> begrudgingly after i asked him. but as long as we're going back an forth i might as welsey what he thinks of this crazy market which is now up almost 100 points. >> that's right. they all have a common theme and that's technology. >> so becky, let's talk about some of those folks that joe was just talking about we have three text stocks on the move this morning because of analyst calls. first up shares of apple are up about .5% in the premarket trade. roughly around 300,000 shares of volume the iphone maker and a, approximate p services company gets a target price hike to $368 a share. it was $296 at morgan stanley. they are updating their estimates due to new assumptions on the upcoming smartphone upgrade cycle. around next gen of 5-g wireless. they're also looking at shifting away from phones and those apple

shares are catching a bid. we'll see if they can make record highs today they're close. speaking of wireless, shares of qualcomm up over a percent on roughly 50,000 shares of premarket volume the computer and wireless chip maker being helpful and upgraded that stock from a buy to a prior neutral. it goes to $108 per share. it was $89 before. they cited the ramp up to 5-g technology which could lead to higher average selling prices and higher royalty revenues for all of it's intellectual property and 5-g technology and we're watching qualcomm as well. the online market share and option sites gets downgraded the target price goes down to $32 per share. it was at a prior 45 they cited head winds to the core marketplace business to a roll out of internet sales taxes

and online and multichannel retail as well as the used goods portals like posh mark so those shares are on the move as well. i'll send things back over to you. >> thank you for that. we'll continue to talk about tech right now joining us is the grounded investment advisers partner. we talked about it earlier $5 trillion is the market cap combined with the top five tech companies in america today what do you make of that and are you in the david tepper jump on the horse while it's running camp >> i'm glad i'm on the buy side and not on the sell side today and i would add that the market capitalization doesn't change our investment thesis on any of them you're starting to see investors look at technology differently it's no longer the hypercyclical business from the early 2000s. it's now consumer staple for the most part. so it can enjoy much higher and

stable revenue streams and we're bullish on tech. >> how concerned should we be about how big of a valuation that presents in terps of day-to-day market swings this is driving so much of it. >> the amount that they make up of the indices and if the indices move or if we begin to see rough economic roads ahead they'll get out of the markets more largely in the largest companies. so the thing that is bringing them up because they're such a large part of the indices can bring them down. so it's hard to see that right now. >> final question, if you can only buy one which one >> if i could only buy one, apple still. >> got to be apple. >> apple is still it thank you for joining us this morning. appreciate it. we have more squawk on squawk. what to watch ahead of the opening bell on wall street. futures pointing to a higher open on this friday morning. dow would open up about 105 points higher.

s&p 500 up about 11 points and this is the dow closing the best week since august you can always watch us live on the go on the cnbc app if you have to head to work you can do it right now. we're back in just a moment. (soft music) - did you know that americans that bought gold in 2005 and even now many experts predict the next gold rush is just beginning. so don't wait another day. physical coins are easy to buy and sell, and one of the best ways to protect your life savings from the next financial meltdown. today, the us money reserve is releasing official gold american eagle coins at cost. for the incredible price of only $154.00 each. these gold american eagles are official gold coins of the united states, and are being sold for only $154.00 each.

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we're almost 100 points down we've been talking about david tepper speaking out on the markets, telling me, after just, it was certain dserendipitous t about the carolina panthers and the pittsburgh steelers. he said i love riding a horse that's running i said is that the panthers, the steelers he says no we've been long and continue that way. he said at some point the market will get to a level that i will slow down that horse and eventually get off so i -- tepper has been the subject of really positive comments from someone that may be the best ever in the business, so i asked him druckenmiller about tepper and his comments and stan doesn't like to opine lightly and he said "of the current market i

revealed a bullish posture intermediate term in an interview december 13th. since october, when powell guaranteed that he would not rescind the insurance cuts unless inflation was persistently above target, in other words, would not change even if trade and brexit would work out since then, both worked out and the fed is still whining about inflation being below target trump's election prospects increased with two trade greements and big win in iran which democrats have responded poorly to. in his words, i am still riding the horse as well, and bullish in the immediate term. >> druckenmiller and tepper are both following the momentum on this and think that up is where the market is headed >> in a nutshell -- >> significant >> yes tepper's call, you put in the qualifier that i could slow this horse down, that could be hours,

days or weeks. i mean, you know, i don't know how long >> probably important to say, too, neither one of these two gentlemen woke up thinking they would be advising or advertising what their position is you happened to be in conversation with them and this is what you gleaned from those conversations. >> i appreciate it, he said "if you must." >> for people who think they're manipulating us and trying to tell us so they can sell that was not the intent. they tell you what they think about the market >> right exactly, and you know what you have to worry about saying something on a global financial, and that's these guys have so much skin in the game they have bigger problems whether they say something and the buy side is so much, why even predicted all right, anyway, joining us now charmane goldman sachs chief private officer.

are you similar thinking or do you need to manage risk in a way that it's more front and center. >> we've actually had the theme of staying invested now for over ten years, so when we started during the global financial crisis recommending our clients actually go overweight, we have never since suggested clients actually reduce their exposure, so let answer start with the premise that clients have a good customized strategic asset allocation, the right mix between stocks and bonds and othe recommended clients go underweight, so we have actually been long equities this entire nearly 11 years, up 500% in addition, we've also recommended clients have a much bigger allocation to u.s. equities, so the theme of stay invested but also the theme of american preimminence. we've said relative to developed and emerging market countries,

u.s. is preeminent so should be underweight emerging market and other developed equity markets >> once everyone has this opinion, now, is there a time when you say, okay, we've ridden the horse long enough? do you know whether we're getting close to this point? >> there are two factors we p focus on if we're in ex-pax, the odds of positive return is 87% one definitely has a huge tailwind in terms of the current economic environment and we have a low probability of recession, so that would encourage us to continue to stay invested. the american preimminence theme we think is a long-lived factor, not something that's going to disappe disappear, competitiveness, productivity, innovation, rule of law we can go through labor productivity there are so many factors, demographics we think these two themes have staying power. that's the title of our outlook

which is on our website, room to grow, so we actually believe there's more running to go, to use their expression of this horse. we also don't think equities are very expensive they are slightly overvalued by our metrics, they're overvalued by about 13%. that's not enough to start going underweight equities, and we're also very sensitive to taxes for our clients. if you had a dollar invested at the trough of the equity market, and you had not sold that, the equity market has to go down, if you're a new york city resident, for example, 29%, just to make up for the taxes, so i think the idea of trying to get in and out of the market for short term trading is not beneficial, because the tax drag is going to be huge. >> right >> so economic expansion, and we have to see much higher valuations to actually recommend getting out of the market. >> thank you for, i feel like we've heard a lot of voices today and it's another good one.

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pd-l1 saved my life. saved my life. saved my life. what we do here at dana-faber, changes lives everywhere. everywhere. everywhere. everywhere. everywhere. next week, we will be in davos at the world economic for numb switzerland we'll have interviews with jamie

dimon, ray dalio, brian moynihan, david solomon and many, many more. a huge week for us great time to check in with lots of leaders in business we want to make sure you join us we're ready for the cold >> i have some great outfits, not for nothing, all planned out monday, tuesday, wednesday. >> fashion show. time for "squawk on the street." ♪ what's your favorite, color, baby ♪ ♪ good friday morning. welcome to strm t"squawk on the street." i'm carl quintanilla, with david faber, and tepper and druckenmiller blessed the market's momentum, helping us look past a host of downgrades, weak reports outs of transports. housing starts the best monthly print in over a decade, and ten-year 1a3 road map the resilient ral