thanks, len schliefer ceo of regneron, and instead of waiting for your body to make the antibody, take the antibodies. >> that's great. >> and better science, every day, it seems. >> markets are down but not out. >> we'll be back here again tomorrow together. with our bromance, andrew. "squawk on the street" is next >> you bet ♪ this is how we do it ♪ >> good monday morning welcome to "squawk on the street." i'm carl quintanilla with jim cramer and david faber features with some mild give-back, a jam-packed week, q1 earnings and white house infrastructure and the chip shortage and powell speaks and the coin based shortage and much more microsoft, speech recognition company, nuance, 19.7 billion, the ceos will join us exclusively this hour.

but nothing flashing red, powell keeping up the bullish outlook and weighing in on the archegos controversy in a wide-ranging interview. and top executives with the white house on the chip shortage microsoft, alphabet and dell amongst the companies that are set to join. >> guys, let's get right to the microsoft deal, jim. we will talk to nadella later in the hour and framing this as improving the ai capability across health care specifically and some other industry, too >> look, i think it's brilliant. the reason i think it's brilliant, there are a couple of companies that really have a hammer-lock on the data. they're epic and the other one, and epic says we will never sell, so it seemed like you could never get the data, and store the data, they have it and they won't share it but therefore microsoft has everything it needs to continue to be in control of all of what

you need to know about individuals. it's almost as if they have, they really have what i regard as being a database that could really change the way health care is done so i know it starts as ai, but what it really goes to is all of your data is with azure, which is their aws, and i think it's brilliant. they will be able to control a lot of what is known about health care, and known about you, known about individuals no one has ever been able to do this i think it's brilliant >> david, what do you think? >> oh, okay, sorry, i was having an audio problem for a moment. i'm good now, guys listen, jim, it's curious to see them do a large deal, not curious, boughts they have been, it has been part of the strategy for some time, you always have to wonder in this environment what it will look like on the anti-trust front, i mean on the face of it perhaps, there should be no opposition, but this is a test of a new administration which we know is focused on this

and focused on competitiveness and privacy and a lot of different areas, jim, so one would have to imagine that will also at least be something that we should keep in mind here. >> i'm so glad you mentioned that, because what happened is, nuance is a small company, the fact that they have all of these deals with everybody, the major companies that know your data, it hasn't really mattered but when you pair that with microsoft, which is an unbelievable company when it comes to, when it comes to the cloud, then i think that there will be issues about privacy in the cloud, there will be issues about whether this company, microsoft, now has everything, because nuance had these great deals, so i absolutely think that what's going to happen, carl, the questions in the new administration are going to be about privacy, and power how do you make it so that microsoft doesn't own everybody's health care data i know that if you bought epic and you bought cerner, you might be able to get that but no one

was able to do that, specifically epic, so powerful, but now epic has a deal, so nuance is going to be microsoft, microsoft effectively has a deal with epic, and people don't recognize how important epic is, but when you go to a hospital, take a look, it's almost always epic and they've been hard to crack. microsoft's going to crack them. >> yeah, we can't wait to dig in with the ceos, david strategy, and i guess on price, too, this was a little bit higher than had originally been reported over the weekend. >> this is a stock already up dramatically over the last year, although prior to that, it had not seen hikes anyone where near, as we get ready to speak to mr. nadella and mr. benjamin later this hour, anywhere near it is getting taken out, it is not all a cash deal, always important to point that out, no microsoft stock, and 16 billion, debt involved, which gets the overall enterprise value up closer to 20 billion but from an

equity perspective more or less closer to 16 and a 23% premium to the closing price on friday and jim, it's not as though microsoft doesn't have the ability to spend cash all day long on whatever it wants, and to your point, for microsoft, not that large of a deal, but in this m&a market, one of the larger ones that we've seen in some time. >> david, a lot of people see that microsoft stock has just been on this incredible tear so explain to me, just walk through why management would not buy this company with stock? do they, does mr. nadella, maybe he honestly think that the stock is cheap >> i don't know. it also has to do with a certain extent with the desire of the acquired party, and we could ask mr. benjamin perhaps on that front, i don't have any real background here in terms of the merger itself at this point. it is very cheap to borrow at the level that microsoft can

obviously, they have plenty of cash on hand and do something so that it can become, it would be more accretive, jim, than even using your own stock that often is the case in an environment where interest rates is as low as they are. that's one thing to keep in mind then another is i don't really know what the buyer was thinking, although given he's going to remain with the company in some way, sometimes you do like to have your own shareholders still have something in the game, so to speak. so it is an interesting point to make >> look, i think it is something we really have to talk about carl, i'm just saying, this might be the beginning of the consolidation, through technology, and health, that's what we have to watch, carl. >> yeah, i was going to say, jim, as well, the big army contract the other day, this deal, fitch, 11 days ago, upgraded microsoft to aaa, very few companies have it, they said the operating, the gross leverage is 8/10 size, so an

interesting balance sheet as david suggests, a lot of strength at microsoft and we will dig into that with the ceos later this hour. last night, the big news is fed chair powell "60 minutes" talking about an inflection point for the u.s. economy here is what he said if you missed it. >> i think there are always risks. i mentioned the risk of the spread of covid, we're seeing more covid cases again, many parts of the country, as you know, are reopening with enthusiasm, and time is going to tell whether that was premature, but we do see cases moving up again, not at a high level, but you wouldn't want to see them moving back up, you would want to see them flat or continuing to decline they're at much lower levels than they were in the winter vaccination is helping, but that's i think the main risk to the speed of the recovery. >> jim, that line that the outlook has brightened substantially has led some to conjecture that it was a hawkish presentation, but his point

about covid trends is a serious one. i don't know if you've seen michigan data lately but there's a good chance michigan will take out its covid high in daily cases. >> look, i think there's complacency, like you wouldn't believe. i think that the new variant is absolutely, i think, raging in this country, i'm not talking about the impending doom comments, that we've seen, from the cdc, but i thought jay powell was extraordinarily good, he really took off any rate hike to 2022 because he sees he has better data, more quick data, doesn't have to go ahead of inflation. there was a moment, carl, it really was just, it was shocking, what he said was, what he said to mr. pelley, when you and i were in college, we didn't have this kind of data and i'm a little bit younger than jay powell but it did sound like, look, the textbooks don't work anymore and anything that you've seen before is really not in keeping with the technology that we have, with the ability

to be able to figure out when we're going to have inflation, it was almost as if, look, the old models just don't work because they're too old, hey, david, jay powell is not necessarily a dove, he is an analyst who says the old data doesn't work >> well, you better hope he's right. i believe this interview was taped last wednesday, is our understanding, and obviously our own sara had an opportunity on the panel to talk to powell on thursday but on friday, jim, is when we got inflation data that looked pretty hot, and the market did not react to it at all interestingly, the likes, for example, the-year-old, that we were look -- the yield, that we were looking at on the 10-year didn't really budge. gold moved down on the day you weren't here friday. but nose numbers on the face of it at least look like there is inflation coming back. >> look, i was here in spirit of course you know, i got to tell you something, david what he does, jay does, is, stay on this jay, i mean jay, what jay does, is basically take the

current numbers and just say, look, don't worry about it, you should stop looking at the current numbers. david, i think you're right, if the current numbers continue for many months, but carl, this is a man who basically says i am not worried, the data near term may not be what you should be focused on, focus on 2022, why 2022 because that's when employment may come back to work. this is, i i'm going to use the word, instead of dove versus hawk, i'm going to change the dialogue right now, sensitive. the man is sensitive to people who are not getting jobs particularly minorities. and kcarl, this is a new way to look at the economy. i think it's a far more advanced way. i don't think he gets much credit for it. what he says is as long as this one cohort that is not getting jobs, we're not done, and carl, i find it so refreshing, this guy is like a republican, appointed by a republican president and when i listen to him, you know what he's saying, we got to stop the

discrimination, i love it. >> yeah, it's going to be interesting, jim we certainly have a boat load of debt options coming up in the next three weeks beginning with the 10-year note auction today and get a sense as to whether or not that sensitivity to rising yields is real but david, to jim's point, i mean if powell's right, then the old play book that by the time the numbers are in the data, the cat's out of the bag, that was always the big fear, that the fed was not good at being reactionary, would be different, if powell's right, and the data sets are more nimble and more finely tuned now. >> which one would imagine is certainly the case certainly in the times since we were kids, there's no doubt, we all talk about of course, just the changes that have taken place, even in recent years in terms of the flow of information, and the ability to understand things in realtime, that we previously could not but then again, you know, do you really repeal those sort of long-term laws of economics? i don't know guys, it was interesting that he was asked about the hedge fund archegos, i know we don't have a lot of time left in our little

time right now, but that he actually chose to comment on it. the fed not really much of a regulator for these banks involved here. the story continues to capture my attention, of course, the blowup of that hedge fund, but take a listen to what powell had to say when asked about it. >> it is an event that we're monitoring very carefully, and working with regulators here, and around the world, to understand carefully what's concerning about it, though, is, and surprising, frankly, is that a single customer, client, one of these large firms, could result in such substantial losses to these large firms, in a business that is generally thought to present relatively well understood risk, that is surprising and concerning and we're going to understand that and get to the bottom of it. >> very interesting that he chose to engage on that, and of course the treasury, the s.e.c., one would imagine would be involved in that, as are many of us who are reporting on it, and guys, i continue to be asking that same question, what was he

thinking, the gentleman with archegos, what was he thinking could he possibly have been, as i learn a little bit more over time here in terms of just the size of the actual positions in many of these stocks which was stunning and then the fact of course, that you know, he did not disclose so much to some of the various prime brokers. and then other questions, too, what were the fees that he was paying they may have been enormous. and there may have been a reason there. and i come back, you know, again, there is so much more reporting to be done there are many out there who are obviously doing this as well i could expect that we will see more stories about what exactly went on here it did not destabilize the financial system in any way. but the role of morgan stanley as both underwriter, lead underwriter of the deal at 85 for viacom, while they had this enormous position here that they were really beginning to unload, fascinating, not to mention all of the fees that prime brokers was taking in, guys, and that remains a key here as well as to

why these companies wanted to do business with them, despite what was behavior that, well, we still can't understand it all. carl >> yeah, certainly will be a question for the earnings of goldman and morgan stanley coming up later in the week. not only do we have the ceos of microsoft and nuance on that huge deal this morning, not only do we have calls on the airlines and tesla and chipotle, but stay tuned today for a brand new show on cnbc. "tech check" premieres at 11:00 a.m. eastern time this morning our guests include uber's ceo, with some new data on mobility, intel's pat gelsinger obviously about the chip summit at the white house and linked in founder, "tech check" premieres today 11:00 a.m. eastern back in a minute this is how you become the best! [music: “you're the best” by joe esposito] [music: “you're the best” by joe esposito]

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. in just a few hours from now, the white house scheduled to host a summit on the global chip shortage of croeos of ford, alphabet, at&t, and we will talk to intel's pat gelsinger at 11:00 a.m. eastern time, as we get yet another day of potential disruptions to apple, some argue, certainly mitsubishi now joining the auto space, and having to shut down some lines >> i want to know about nxp. i want to know whether nxp is a problem. they're the guys who supply a

huge amount of chips to the auto companies. so far they've gotten away with it and you've not heard them as being a problem, but i have to tell you that behind the scenes, some of the auto companies would tell you if only nxp had more checks i also hope they talk about china. one of the things, david, that i am most concerned about is the chinese saw the shortage coming, and they double ordered. there's no sin to double order but china has more chips i think than it needs. and this group may not be able to articulate that, but i sure hope the president sus, discuss it, david because right now, i think if the chinese were to leave some chip, it would help our companies, but i don't think they will, i do wish the president would come out and say i wish the chinese would stop taking all of the order flow and he should be talking about taiwan semi and how much taiwan semi is dependent on chinese order, and taiwan semi, a, against china and the united states, geopolitical issues. >> and when i asked last week,

you said it will get worse before it gets better. these are all issues that don't get resolved overnight or over weeks. i mean it takes years to develop the production capacity necessary to make us no longer perhaps as beholden, as you say, to taiwan, and you can see it there. 22%. >> it drives me crazy. drives me crazy, carl, you know why? because we think we can build foundries to alleviate this. so in 2025, we'll be ready to go 2024 come on, get realistic, we have to tell these companies, you got to start producing more chips and you got to send them here. that's what has to happen, carl. >> jim, mark field, formally of ford was with us last week and one of the arguments he made is autos as a sector don't have a huge amount of leverage because they don't create a meaningful piece of business for the likes of taiwan semi auto chips accounted for about

3% of sales. so it's kind of hard to put the squeeze on them. >> why not why not have president biden call them and say look, we know this is a small part of the mosaic of your business, but we're laying off people in our companies at gm and ford and it is time that you give us a break and you help us. biden has leverage gm and ford may not. but you got to be able to say that the president of the united states does, given the fact that the united states is depending that whole country so i think this is a question of why doesn't the president speak up and call them and say you know what, we're putting a lot of people to work, we're putting gm and ford to work, and i know that mr. gelsinger, it's great that intel is talking, its tell's not the problem, the problem is taiwan semi and being able to get those chips and nxp, i want to know how much nxp is supplying to china versus us it's geo capitol hill. and the company that has leverage is the white house. i don't think it is a company, but i think that's what has to

happen. >> carl, it's -- >> we can't wait to hear more from them. >> complex to say the least. >> as we said a moment ago, later on, microsoft making a big bet on ai, by agreeing to acquire nuance communications. as you can see, nadella and benjamin with us exclusively later this hour. we're back in a minute did you know that petco, is now a health and wellness company? their groomers work wonders for my confidence. i trust their vets, and i'm known to have trust issues. they deliver high quality food the same day. i was outside digging, what'd i miss? just everything regarding our physical, social, and mental health. exciting. i'm gonna take a spin around the room. great idea. ♪ ♪ petco. the health and wellness company.

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billion deal, trying to bolster its suite of enterprise applications with ai, we'll talk to both executives after the opening bell, which happens in about six nus.mite great party carly you must of blown your budget.

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welcome back, let's get to "mad dash" and then roll into the opening bell chipotle is on the menu. >> yes, i mean, david, there's some things happening in the fast food and the dining issue, and what i'm finding is there are a lot of companies that went out of business, probably about 100,000, that's left the strong to survive and here we go. chipotle, so ray jay upgrade, raymond james upgrades, a nice price target boost from jpmorgan and the new quesadilla, menu improvements, and what matters here is they were able to make it so there was pretty much making as much money outside the store as inside and now the inside of the store will open. a lot of states in this country are beginning to scrap the social distancing rules. i don't know whether that's

because they think it is herd immunity or people are vaccinated but the winner here will be the company that had great numbers beforehand, and making the most money beforehand, and as chipotle, i think it's still a buy, i like these guys since 300 and doubling down right here, i like the price target of 1800 by ray jay. 1800 >> are there any businesses that come to mind, obviously in this area or perhaps others, where they were able to pivot effectively, and now, theircor business, or the business they had previously, is also going to return and so they're going to have sort of two engines working for them >> look, this is a great question and i would turn to brinker, just okay outfit, now doing much better because of what they're doing, texas roadhouse, also digital, really great. sad ry the ceo killed himself -- sadly, the ceo killed ty tinnutus, can't take the noise,

sometimes happens after you get covid. and a good balance sheet but this is about taking share of the companies that went under. and i would have to include starbucks, too i think starbucks will be a long termwinner. >> so it's great that you pointed it out but it's bad, that they're winning because of the breakdown of the smaller guys. >> it's true carl, you will have a guest on tech check later, and i would point out uber similarly seems to be now starting to see its core business come back, and obviously, we know the success it's been having with uber eats. >> yeah, interesting data of mobility bookings, a cycle high, post-covid, demand recovering, interestingly here, jim, faster than driver availability and this is a dynamic we're seeing across industries, the wave of demand is outpacing their ability to fill it with supply, whether that's physical goods or labor, and we will get to dara with what the solution is because unlike a lot of business, the turn to technology, when it comes to

driving someone around, it's something that's years away, at least that's what most believe >> i think, carl, what matters here is just the tenor of the american people, with $2 trillion in pent-up excess cash, they are going places they don't want to be home, maybe, look, the ones who are out will have uber eats and the others will have uber and incredible interview on "tech check" will tell us the temperature of this country, which we don't know and we're not getting from the government i want to know what he says. >> yeah, we'll see as that happens later this morning the opening bell, and a look at the s&p, jim, given that tenor of reopening, and as jamie dimon put it, euphoria, coming out of the pandemic, why is it that equity volumes are falling so dramatically, and is that a warning sign as we're at these new highs? well, i think that the, candidly, i think the new kind

of buyer that we were talking about, the robinhood strong buyer, the merry men, i think they kind of got blown out, a lot of them got blown out because they concentrated on a couple of stocks they concentrated on, when you look at wall street bet, it really just decided that they were going to focus on amc, gamestop, and palantir, and cathie wood, the red hot mutual fund, etf manager, not that good performance, and then a lot of them got caught up in what i say is the high flyers, and snowflake as an example, they just kind of have gotten into these stocks and didn't know what they really own now, all of what i just said is going to cause tremendous aprobrium against me and the younger investor once again kind of didn't go in the right place, and there is a lot of margin money involved that is not good and given the fact that the stocks went down a two-tone market here, i know we call it value and growth, i think that is absolutely growth. what we had is secular growth

and that has been hurt and that's cyclical growth and that's soaring, and honeywell, comments from last week, david, i have rarely heard an analyst praise a stock, praise a company, so much, cyclical, going to secular gain from the industrials and a lot of the younger people, david, got caught up in the secular gainers that frankly are, you know, they got expensive. but they like price to sales >> they were certainly more speculative. not that some didn't make money. >> by the way, anybody early in gamestop is still up enormously, the stock is still up 4,000% over the last 12 months. but some of the other names that we've talked about, and you just mentioned, certainly also cciv, which we talk about so often, has come down sharply, from its highs, and then we get to viacom and discovery and archegos again, and what happened there, unclear how many of that cohort were really involved in some of those names. but you know, i guess the question becomes, are they, and

it's difficult to know, are they stung for a period of time, to be back soon or is it, you know, more along the lines, it doesn't feel like it, but more along the lines of what we saw after the dot-com boom became a bust >> well, i don't think there's that blown out i think they're going to square to buy pieces of bitcoin i think they find that ethereum and bitcoin are a lot more exciting, and drawn to excitement, david, and they also are drawn to what i regard as the kinds of stocks that came public in the last, let's say six months, that frankly had, airbnb, which is a great company, but people got too excited about it people got too excited, i think about, you know, food delivery in general, they didn't get excited enough about the ubers of the world it's kind of interesting go for doordash but don't go for uber carl, i think you got to ask,

dara knows, he made an acquisition that was so brilliant and people don't talk about it, you got to talk about it, the acquisition in the alcohol and spirits business, i cannot tell you this is the reigning king drizzly, he stole, it and i know know one wants to hear that if they work there but they made a lot of money than was a vision, dara was a visionary, because that's what people want to know, it's so brilliant, you got to ask him. so excited >> yeah, that was a big deal and we look forward to getting an update from him on that guys, whether it's mobility at uber another tell this morning is cignet raising the q1 revenue guide and their comp guide as we can see the consumers, more of an appetite to buy jewelry and ual, i don't know if you saw some of the airline news this morning, but they did say q1 revenue down 66, a little bit lighter than some had expected, new private offering, new term loan, new revolver, jim, after a

weekend in which baron sort of took the cruise industry to task for what will weigh on eps for years to come. >> nor vewegian cruise has more than $7 billion in debt. that's kind of incredible. airlines will have a boom because travel and going out to din remember the two things that i keep hearing about the ceo of cigna, just a total unsung hero. came to me when the stock was 17 and said we have the capability of buying, of online jewelry, david, i got to tell you, online jewelry, i mean no way, yes way. cignet powerful david, wow >> look at that stock. >> whoa. >> yes i didn't know it was up 700% over the last year. >> don't go to jared, will you >> they have these stores, you go and you buy jewel recollection david. >> that's not happening. >> not happening

>> you go to jared. >> something else to buy online - >> every kiss begins with faber. [ laughter ] >> you can buy anything you want on alibaba for the most part probably jewelry as well did want to get to it before we move on this morning because of course, they did get a 2.8 billion fine, an anti-monopoly fine from chinese regulators, you know, our viewers have been following this perhaps, have been aware of it, it's a relief rally, rally alibaba under the microscope for a long time, jack ma, we talked about him previously and comments that he had made last october, i guess, that put him in a more of an antagonist position with the government but why is the stock up? well there's a feeling that this is it. that this is not going to impact their business, really going forward, that it is not ultimately going to be material, that even though it's a great deal of money, it just doesn't really change the equation for

alibaba, and this is what joe had to say, a conference call discussing this, and i think this is the theme that is taken up by many of the investors buying the stock there and look at mr. tsai's comments. they're affirming our business model, we feel very comfortable that there is nothing wrong with our business and we're pleased that we're able to put this matter behind us so that, carl, seems to be what the market is taking away from this that perhaps chinese regulators, while they will continue to be focused on monopolies so to speak, are done at least for now, with alibaba. >> all right, guys, as we get the opening here, packed show, we will get to rick santelli a little earlier than usual this morning. hey, rick. >> good morning, carl. a couple of extra options. today not only, not only are we going to have a three-year option, 3s 10s, 11:30 and 1:00, eastern respectively, 58 billion and 38 billion respect telephone.

and a two-day chart of 10s, today's very nicely tucked in the range of fridayand the las four sessions are pretty sideways and if you go to a one-month chart you can see what i'm talking about. you can see the right-hand side there that looks kind of scall oppy like a pumpkin on halloween, we have started to consolidate smaller range, less volatility and all around between 168 and 163 and that's where we're hovering today if you look at what's going on wi with, bunds, since november, consolidating since the end of february, all central banks are taking a bit of volatility out of the marketplaces but we're at extremes on the range, so what happens if rates move higher finally, two months on the euro versus the dollar and the two months of the dollar index, mirror images, and euro strength is starting to put the kabosch on what's going on with the dollar carl, jim, david, back to you. >> thank you very much when we come back, we will have

a huge interview, microsoft's satya nadella and nuance mark benjamin on their company's big deal do not go away esg is responsible investing. who's responsible for building esg into your investments? at pgim, the pursuit is on for outperformance. as active investors, to outdeliver with customized strategies, integrating esg best practices into our investment decisions. as asset managers and fiduciaries, to outserve, with our commitment to better esg outcomes. join the pursuit of outperformance at pgim. the investment management business of prudential.

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microsoft announcing this morning it will buy speak recognition company nuance communications my co-host on "tech check" john ford joins thus morning with some very special guests hey, john. >> hey, carl, yes, satya nadella, mark benjamin, ceos of microsoft and nuance communications, great to have you on cnbc this morning satya, get straight to this. nearly $20 billion deal inclusive of debt. give us the rationale and how important specific industries and depth and knowledge in those industries are, as you build out this ai-driven cloud strategy. >> good morning, john. it's fantastic to be with you. it's a very exciting announcement for us. if you think about this, it always starts for us with our mission to empower people in organizations, and in this case, it's about america health care. it's about patient, it's about doctors and health outcomes and

nuance and mark and team have done a fantastic job of taking perhaps the most defining technology of our times, artificial intelligence, applying it in the most critical of industries, health care, and doing it also with a platform first, partner first approach, and so for us at microsoft, to bring everything we have done in health care and over the years around over the decades with nuance, with partners, is what this deal is all about. >> tell us about the timing, satya, because you look at nuance's stock chart, it has had quite a run over the last year, it seems like it would have been a possibility to get it cheap area while ago, i know you have been working with them for a while, a lot of their innovative services are built on azure, so what's the opportunity that you see for growth in the future and both in health care and take some of what nuance has been doing in this very complicated area and perhaps extrapolate it out to other verticals where you're also looking to grow. >> right, coming out of this pandemic, john, we are going to

see some real structural change. we've already seen in the pandemic massive acceleration of digital transformation, but coming out of it will be structural change across industries, and in health care, in particular. so for example, this particular opportunity, when you think about the provider market, in order for us to keep improving health outcomes and reducing costs, digital tech is going to be key you participated in it, as microsoft, on the i.t. side, but what nuance and mark and team have done is take the most critical point which is at the point of care, and really transform it, with integrations, with epic, all of the critical companies and to us it will double the total addressable market going forward and not only be able to serve awful providers with everything we do in microsoft 365, dynamic 365 azure, but nuance will be able to help us deliver these ai-first solutions, for doctors, and raid radiologists, and

overall clinical decision support in partnership with the rest of the ecosystem. >> and mark, you've been on a tear why sell not just the stock price, which we like to look at but you noted in the last earnings call, your net promoter score, 59 for software, that's really good, there's a lot that you have been doing on the acquisition front, and some really innovative software that lets physicians really be a lot more efficient tell me why sell. >> thanks, john. i mean we've been working with our partner microsoft for the last couple of years, and you know, we have big ambitions here at nuance, and the more we work closely with microsoft, in developing our dragon ambien experience or dax which will change the way medicine is delivered, the physician patient experience, we just saw an opportunity to really, to create hyper scaling opportunities, on a global basis, and you know, we're purpose-driven here at

nuance, very similarly to microsoft, so the opportunity to really take our ai capabilities, alongside of the cloud-based capabilities that microsoft and azure and the power platform and dynamics, we really feel there's a great opportunity. we're not only solving the industry's hardest problems, but in health care, as one example, we believe we can create more access to care, and we believe that is a great calling for the two companies to come together for. >> congratulations i think this is a huge deal. and obviously, if you think it's going to double, it's amazing. i want to ask, what do you think about the idea, you have never been able to crack the near ol ig pole of cerner and epic and if you can get their data, which frankly mark has a great deal with them, wouldn't you be able to make it so we as individuals know exactly, we could put it on our watch, we could it put it on the pc, which of course is a microsoft pc, we could make it

so everybody would be able to be in control, we would be in charge of our health care, if you guys pull this off what do you think? >> jim, i come back to this, i come at this from fundamentally empowering, enabling the providers, because, you know, as tech company, sometimes we always stretch what technology on its own can do. ultimately, i want my health care to get better because of great doctors, spending more time with patients and so the approach we are going to take, jim, whether it's nuance's taking, and microsoft is taking, historically, what is the broad ecosystem, in this case, epic is critical, to your point, they build the databases, which then get used by the providences and all of the other health care providers in the world, to provide great health care so i think sometimes we think about this as somehow one party doing it all i just don't think complex industries work like that. complex industries work to

better everyone, if there is a real ecosystem approach, where everybody does good stuff in their swim lane, and trying to stretch and do everything. so that's at least how we would approach it. we know something about ai, and nuance knowsing is about ai, we know about cloud, we know about data, ehr, epic databases in health care, all of that ultimately, though is, just technology, to help providers. >> let me go from that, i know a lot of doctors want to spend more quality time with patients. they have a lot of paperwork they're not able to really drill down and i would say use the word, the empathetic, be empathetic to patients, there's too much that they have to do, can they actually be, i know it's a little ethereal, but a notion of empathy that can be driven by this mark's the expert who should talk about this. >> yes. >> but one of the fundamental things that i've seen, one of the fundamental things, i'll just say this, if you look at dax, it is about that, which is

doctors inherently have empathy for patients, it's just that sometimes they are overburdened, doing all of this data entry and what if this ambient ai can help doctors focus more on the patients and we should show you it is just phenomenal to see what happens in terms of the conversation and how the burden comes down to the physician. >> that's right. and jim, i would add that, you know, we serve almost 600,000 physicians here in the u.s., and could you imagine going to 15 years of training to practice your profession, and then learn that for every one hour of patient time, you spend upwards of two hours in documentation and administrative time, and it's truly a burden, it has created a massive burnout among the health care system, so you know, we believe that, you know, our solutions coupled with microsoft's platform, and capabilities, will bring actually the practice of medicine back to that, i think intimate physician patient

interaction, and really reduce that administrative burden, if not eliminate it, all together, improving the quality of care, improving patient satisfaction, these are just some of the things that dax and other opportunities that we see in the future will help, i think, change an industry where indust doing that with other industries as well. we have solutions that serve financial services with our enterprise ai solutions, so it's very much our calling and we will work in this ecosystem that one of the, you know, matches of the two companies is that we really work well in a partnership model so whether it's the ehrs or whether it's all of our customers, that's really how we envision the future as well. >> david faber, on the face of this deal shouldn't raise a good deal of questions for regulators it's a new regime when it comes to regulation under the biden administration i'm curious as to your thoughts about how you're going to make

an argument that this is pro competitive, and any objections that may arise from privacy considerations. >> on the aspects of regulation and privacy insecurity, these are super important topics, obviously in the particular context, the deal, as well as the segment in health care, so one of the things that we are doing here, david, is this is all about providers, patients, doctors, and their data, and our job is to provide technology so that they can, in fact, keep all of that data secure, use even the ai that gets created on top of the data to benefit health care so this is not about some aggregation play this is about pure platform providers, and that's sort of why it makes microsoft very distinct in how we approach most of what we do. >> mark, i want to go back to what you do at nuance and how that has shifted and perhaps intensified over the last year

how is the quality and intensity of engagement within health care changed over the past year you noted your sales force has been hard at work. your growth numbers have reflected that how has especially during the covid period the desire to leverage, not just technology but the cloud as you're making that transition, how has that impacted your results? >> pre-pandemic, we saw great momentum in the market with all of our solutions in the framework of the digital revolution across industries during the pandemic, all of our leadership team really, you know, took a customer first approach, how do we help our customers because we're serving the health care community, and we really went out of our way to make it not about commercial but more about, you know, support and partnership. so i think as the pandemic has carried forward and we see some light at the end of the tunnel, we're seeing our customers and our partners really understand

that we need to accelerate the way in which we operate and the way in which we conduct our business and the way that our customers do business with us and, you know, the economic pressures within the health care systems was already, you know, a major challenge, and it's only really gotten worse and compound, so, you know, our salesforce has done a remarkable job. our engineering teams have created truly market leading solutions. and the partnerships with dhr is the partnerships with the world's largest retailers and financial services teams we work with they view us very much as a trusted partner, and quite honestly when we partnered with microsoft 18 months ago, that was really part of the sauce making, if you will, because we're viewed very much together as a trusted partner for our customers. >> well, when we're talking about cloud transformation, ai to solve a complex problem, highly regulated industry, and

privacy and security issues that have to be tackled, it's hard to find a company that's handling all of those like nuances. mark benjamin, satya of microsoft, announcing this acquisition, considering debt, thanks for being with us on cnbc. >> thank you, john >> thanks, john, and of course don't miss the premiere of tech check, 11:00 a.m. eastern time this morning we will be right back.

jim, what do you have coming up tonight to start a busy week? >> okay. so we have the largest seeded nft company because people want to know about nonfungible tokens, it's still very big, carl, and the younger people should watch don't forget, a prelude to coin base don't forget check tech. i want to congratulate, if it's anything like microsoft, it's going to be mask ya i can't wait, and you've got the most important guest uber is in charge of this country, and dara knows more than anyone. i would put him over anyone in the government knowing what's

going on in the country. i cannot wait for tech check. 00"m mt see you tonight a 6:, adoney" with jim cramer markets down a touch s&p 420. don't go away.

good monday morning, welcome to another hour of mos"squawk on the street." i'm carl quintanilla as we get q1 earns, more fed speak, dead auctions, ipos, vaccine, and reopening news. for now, markets down just a little bit here. s&p 4122, and the dow is down 58. >> we're 30 minutes into the trading session as well. here are the three big movers we're watching microsoft buying nuance communications in the second largest acquisition ever the software giant agreeing to pay $56 a share, a 23% premium for nuance alibaba moving higher. chinese antitrust regulators slapping the company with a $2.8 billion fine. investors seem relieved that the company is not facing more serious regulatory issues. you can see shares are up 8% right now. and uber posting record gross

bookings in march as demand is up shares up more than 3% uber ceo, dara khosrowshahi joins cnbc's new show, tech check, which premieres next hour at 11:00 a.m. eastern time, dai david. >> thank you, morgan let's get to kayla tausche, a few hours away from a start of a white house summit that's going to deal with the shortage of semiconductor chips. kayla, what are we expecting >> reporter: well, david, at noon today, more than two dozen executives will have an audience with the president and his top commerce and national security officials. they're going to try to make their case for what the u.s. can do to increase manufacturing capacity and try to win back some of that capacity from overseas competitors as consumer demand for these high-tech goods that increasingly involve chips, as that demand explodes. today, ceos of several companies including alphabet's ceo, sundar pichai, ford's james farley.

gms, mary barra, will have that conversation with the white house. and other companies like those making everything from medical devices to printers will be having that conversation as well the biggest historic hurdle to increasing this capacity here in the u.s. has largely been the lack of lucrative insencentives like those overseas, china, south korea, have direct subsidies, tax holiday, and discounted land loan and equipment leases and in some cases, it costs half to build those plants in those countries helping to build market share overseas at the expense of manufacturing, market share here in the u.s boston consulting group estimates that could be reversed by an investment of $50 billion. that bcg says would draw investment for 19 new fabs as these factories are called, creating 70,000 jobs and capturing a quarter of new manufacturing capacity over the next ten years, so perhaps it's not a coincidence that the biden

administration has requested $50 billion, specifically for semiconductor manufacturing and research in the american jobs plan and the conversation that the white house is having with the industries today is going to help inform conversations with lawmakers about that plan. there's one bipartisan meeting happening later today as well as a near term report that the national security council is producing by june 4th about what can be done to help alleviate that global semiconductor shortage, that meeting is happening at 12:00 p.m. eastern. guys >> kayla, and we'll try to talk to intel about the meeting later this morning on tech check appreciate it. kayla tausche. in the meantime, the fed chair on 60 minutes last night in a wide ranging interview steve liesman has details if you miss it had. >> good morning, carl, fed chair jay powell sticking to his talking points for the big national audience on 60 minutes last night, saying he sees a

strong economic recovery gathering steam but the fed will keep interest rates near 0 at least for this year if not longer >> all the way through the end of this year, you wouldn't see rates increasing >> i think it's highly unlikely we would raise rates anything like this year, no. >> powell reiterated his contention that any coming bout of inflation will be temporary and unlikely to alter the underlying inflation psychology that is generally expected fed chair making his first competents on the blow up of the arkan archegos >> it was a risk management break down, and one that we're looking very carefully at to try to make sure it doesn't happen again. >> finally, powell said the fed is developing software and even designing a digital currency but said a decision to issue a u.s.

dollar has not been made and remains a long way off back to you guys. >> following archegos, i was interested to see him engage innon that at all and give a real answer what would the fed's role be, with prime brokerage, lack of trans transparency, but many may not have understood the risk they were taking. what would the fed's role be, if any, as a regulator. >> could you repeat what you just said, many of the prime brokers did not understand the risks, what are they in business for? what are they supposed to be doing? they're supposed to be assessing risk give me something. i want to throw it it's ridiculous. >> by the way, steve, the point is they may not have fully understood because he was not disclosing as he should have all the different -- his different levels of ownership or economic

exposure with the other prime brokers. they only knew what you had. >> that's exactly the point. that's the area where i have been reporting and i'll tell you what i can tell you, my understanding, and correct me if i'm wrong here, the interest rate and currency swap market has a certain amount of disclosure and transparency to regulators, the equity swap market does not, and there's a variety of ways that he used these derivatives as i understand it, to keep from certain closures that would be out there, including staying under the 5% rule. i would think that regulators, i'm not sure if it's the fed, the cftc or the fcc who are the ones who are going to look at this, but using these equity swaps as a way to hide your 5% or greater ownership stake that might trigger other prime brokers to know where the risk is here, that may be an initial area of inquiry by regulators. >> steve liesman, thank you. it's the deal of the morning, our jon fortt joins us and more with microsoft's second

largest acquisition ever after that big interview with both ceos moments ago jon, this is really a bet on health care. i thought some of the most interesting commentary, the idea that you take the data input and administrative burden off of health care providers and doctors, then they can actually potentially focus more on care. >> yeah, but morgan, i think what's most interesting here, particularly for investors, not just in microsoft but across big tech and enterprise tech is taking a step back and realizing where we are in the cloud transformation we seem to be in this stage, certainly where microsoft is focusing in on industries, and as it competes with the likes of aws, you know, google cloud, et cetera, they're taking on this industry focused perspective including m and a, where they're trying to get deep and smart and drive value there, not necessarily about having the biggest revenue but having, perhaps, the biggest profit and profit growth as they get deep into industries. what nuance has here is it's

slimmed down, it's begun this cloud transformation, it has voice and ai technology that very specifically caters to doctors' needs, and as we know, doctors in health care systems time is very valuable. if they can apply ai to those sorts of highly regulated, data specific problems, and show results, that could translate to other industries and that is how if you're microsoft, you imagine winning in the cloud this takes me back in a way to 20 years ago i remember when oracle bought people soft. that was hostile, this is not. it sthhowed that enterprise tech was moving at that stage into a specialized focus on industries. it feels like we're moving into that sort of era in cloud, particularly ai, and a lot of it is going to be driven by the imperatives that businesses have coming out of this pandemic period i talked to satya specifically about that and the rationale behind the deal.

here's what he said. >> it always starts for us with our mission to empower people in organizations. in this case, it's about health care it's about patients, and doctors and health outcomes, and mark and team have done a fantastic job of taking perhaps the most defining technology of our times, artificial intelligence, applying it in the most critical of industries, health care, and on doing it also with that platform first, partner first approach, and so for us at microsoft to bring everything that we have done in health care over the years and over the decades, with nuance, with partners, is what this deal is all about. >> and guys we've seen microsoft push on retail where this is concerned, where they see some advantage, perhaps, versus amazon, because amazon clearly competes in retail we're seeing them do this in health care, and there are a number of other areas as well. >> great interview, john we're going to break down more of it or review more of it in the next hour as well with that

big premiere of tech check jon fortt, thank you. as we head to a quick break, here's a look at our road map for the rest of the hour, a big call, upgrading tesla, saying it's a creating a quote applesque ecosystem. >> and the ceo of overstock, joining the growing list of executives calling for improved voting laws. >> and why one chip executive is calling the shortages quote the worst i've seen it in my 40 years in the industry. a lot more "squawk on the street" continues in a moment.

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corporate executives continuing to speak out against controversial voting bills across the country joining us now is cnbc exclusive interview overstock ceo jonathan johnston explain what that means. tech integration, why is that key to voting reform. >> access to voting needs to be safe, secure, secret and private. we need to make it easy for all eligible citizens to vote, and that can be done with improved technology we heard tim cook and apple calling for this, and saying that the iphone smartphone has that technology. it certainly does. we at overstock have invested in

a block chain based voting app company called votes it provides safe, secure mobile voting on smartphones. we need to make it easier for people to vote and we need to make it trust worthy so that people can ultimately know that their vote was counted as dthey cast it. >> yeah. jonathan, i go back to the last election and to what were baseless charges against a couple of companies in the technology area that were dealing with voting, and they were questioned. i mean, you know, i guess anybody who doesn't fully believe in technology or understand what's really happening could actually question the outcome over a vote even more so if they aren't just going into the booth and filling out a piece of paper do you agree >> well, i do think we need to have an audible paper trail. the votes app, mobile app,

provides that. i think part of what the problem is we make it so hard to vote. we make standing in line at the local junior high school or library a requirement. in the 21st century, we do so much on our smartphones, we bank, we go through tsa, we trade stocks, all on our smartphone we need to make it easy to vote. we need to make it easy for the disabled to vote, for our military personnel overseas, for people that have jobs and can't take hours off on an election day to vote. mobile voting provides a safe and secure way it provides an audit trail it is trustworthy. i think that's where we need to go so that people feel like it's easy to vote and they know their vote counts. >> yeah, listen, i mean, there are many people who might agree with you and wonder why we haven't advanced to that level already given the technology as you say may be there i do come back to the question of trust somehow, and whether

you're going to get enough political leaders who agree with you. who are you talking to who are you weighing in with here to try to actually influence them that this perhaps is the way to go to get more people voting and voting securely >> you know, we're talking to county clerks around the country. they're the ones that control voting we're talking to state, secretaries of state that control voting we have done lunch and learn presentation for members of congress and their staff you know, the great thing about the vote's mobile voting app is you can confirm that your vote is counted as cast whif when i have gone in and pulled a lever, i know i've voted but never really known that my vote was counted as cast. this provides ease of voting and trust worthiness without any attempt at all to suppress

voters i think politicians are slow to change, but it's time to come into the 21st century, and be involved in what is safe, secure, easy access mobile voting. >> i don't know. i think all of it is kind of on the table, which is why we're seeing these debates and this back and forth around laws in a number of states right now is because we're just coming off a once in a hundred year pandemic where a lot of things were changed and questioned i expect we'll keep having this conversation i want switch gears a little bit, jonathan, the actual business, overstock, up 900% over the last 12 months, beneficiary of the stay-at-home trade, if you will what are you seeing in terms of ecommerce and business, orders to your site from consumers as things begin to open up. when we're talking about port congestion and inventory shortages, how is that affecting you? >> our business remains strong clearly a line is benefitted from the pandemic.

so is the home furnishings business, so is our key focus, we're all about delivering dream homes for all, and as people spend more time in their home, or try and expand their home to the four corners of their property, not just four walls of their home, business has been great for us we have a very diversified supply chain with over 3,000 partners they have been able to get past port congestion in los angeles, and long beach, by going through oakland and seattle. we never list anything on our site that's not in stock, trying to ensure a great experience for our customers. i think where companies get in trouble is listing things to sell that are still on the water. when that happens, the congestion becomes a real problem. >> overstock has been accepting bitcoin as a payment option for a number of years now. i think really one of the first companies to do that i'm curious what you're seeing

in terms of consumers actually utilizing the cryptocurrency to make purchases and based on that, how much bitcoin you're actually holding on your books in reserves? >> so you're right, we began accepting bitcoin in january of 2014 we were one of the first big companies to do so today when people use bitcoin to purchase area russian or sofas on the site, we keep half of that bitcoin and we turn the other half into u.s. dollars that we use to run the business. we'll occasionally spend the bitcoin we hold with vendors that accept it we do hold some bitcoin, about 200 plus-ish bitcoin right now anytime the price in bitcoin goes up, we see a small surge in people using bitcoin to purchase on our site, but it is still a very small, less than 1% of our revenue that comes from bitcoin

purchases. >> jonathan, appreciate your time today thank you. >> thanks for having me on. still to come, tesla's battery storage business, the analyst behind that call is with us next. don't go anywhere. ♪ i wish that i knew what i know now ♪ ♪ when i was younger ♪ you need a financial plan that fits the way you want to live in retirement. a plan that can help grow and protect your money. now or in the future. with an annuity in your plan to help cover essential expenses, you can live the retirement you want. the right financial professional can show you how. this is what an annuity can do.

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. welcome back, it is time for our etf spotlight. the u.s. consumer goods, ticker iyk up more than 50% in the past year, it's up slightly this morning. one of the fund's biggest holdings is tesla, getting an upgrade in price target increase at canaccord annuity jed dorschimer is the analyst who made the call. he's on with us now. thanks for coming on. >> thanks for having me. >> there's three things, the first is delivery numbers in the transition from sort of low volume, high priced vehicles to high volume lower price, so

that's the y and 3 we saw those numbers out that will lead to greater profitability. second is probably more technical but the surface level, we think that the 4680 battery will open up capacity, and that will drive into the solar and storage market, mainly on the storage side of things the third is really the effect that we can only compare to apple in terms of the brand value that tesla is driving in the energy market, and so we think that they're doing the same thing and that that's going to resonate and has a log rhythmic benefit versus the linear that the competitors are taking so those would be the three things. >> i want to go back to the solar and home energy market piece of this. tesla acquired solar city a couple of years ago. it just, it wasn't a focus for investors. it didn't seem to be a part of the business that was getting much attention within the company either

you mentioned apple, the fact that they did just ink this deal with apple, do you think that's the tipping point for this piece of the apple pie. >> they just added a utility section on their web site. i think that this is going to be an area of focus now. they can't focus on this area, at least on the energy storage side unless you have ample capacity and so if you look at the -- all of the capacity has been going to the vehicles, model, sx 3 y, and as they open that up, we think this is going to be another leg to this stool. >> hey, jed, i just wonder, your thesis, your framing is understood do you think the street is still myopic about the car business, and that once we get signs that the gms and fords of the world are going to get a leg higher, at least on the chase that they're going to think of tesla

as an auto story and not going to be giving things like storage enough credit? >> yeah, and i think that's where the street will be wrong i think that will be the focus that's what i'm going out on a limb and saying i think the way that tesla looks at solving problems is fundamentally different. now, i have worked within a fortune 500. i understand that logic in the linear way that most companies are attacking the problem, but i think tesla's bringing a machine gun to a knife fight, and i think that is going to continue to allow them to expand their lead >> have you factored in the possibility of infrastructure spending in the u.s., and what that could mean for the company or would that be an added bonus to your thesis right now >> it's hard to say that's parsed out i think that would be an added bonus. really, the energy storage angle is what we have changed to our model and that is probably what's new as well as the

delivery i think everything else is a bit of a tail wind for them. at least at this point one of the risks to our call is probably on the chip shortage side and don't think that that is going to be a major near term head wind, but that is a risk to the timing of our operations. >> i'm glad you brought that up given the fact that semiconductors are very much in focus with the white house holding that event today jed, thanks for joining us. >> you're welcome. thank you for having me. speaking of which, still to come, and we'll get a closer look at that white house s semiconductor summit kicking off in a few hours we're back in a couple of minutes. you packed a record 1.1 trillion transistors into this chip i invested in invesco qqq a fund that invests in the innovators of the nasdaq 100 like you

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welcome back, i'm rahel solomon, and here is your cnbc

covid update at this hour. india has overtaken brazil as the country with the second most confirmed covid cases after reporting nearly 169,000 more infections overnight new daily record, the overall number of infections there has surpassed 13 1/2 medical the u.s. leads globally with more than 31 million cases a study by israeli researchers has found that the south african variant of covid-19 may be able to evade some of the protection given by pfizer biontech's vaccine. researchers looked at fewer than 400 people, and the results have not been peer reviewed. shops, gyms, beauty salons, and pubs, welcome back customers in england and wales for the first time in months, as covid restrictions were released to be allowed their first pints of beer since early january, at least publicly, carl, i'll send it back to you.

>> thank you, we're happy for them, our friends in the u.k obviously that white house summit on the global chip shortage is in focus this morning. our next guest says the shortage as it is right now is one of the worst he's seen in his four decades in the business. ganesh, ceo at micro chip technology thanks for insights tonight. great to see you. >> good morning, everyone, how are you? >> doing well. i want to talk about the inputs you think the white house is after for the medium term and the long-term, but i wonder if you can just talk about that comment about the short-term the worst you've seen in 40 years? >> absolutely. i think the imbalance between supply and demand has never been this acute in all my history in this industry, and it's continued to get worse over the last six months. the rate at which new orders are coming in, and demand seems to be increasing is outpacing the capacity that they can bring on board, so clearly a constraint we're going to see through this

year, most likely into next year >> so you've obviously been through so many cycles, and i wonder, that point at which demand returns and supply catches up, what has broken down this time? what makes it so different is it the sheer force of the demands return or are there supply side. >> late 2018, 2019, when we had the tariffs start to create, you know, head winds for many of our customers. they couldn't absorb the tariffs, and the end consumers couldn't bear the prices our demand went down in 2019, and then as things began -- or supply chains began to realign, we hit covid, and then covid hit through the first half of 2020, and just added to the thing where automotive, industrial consumers and all that stopped buying if we got a catch up here from all the way in 2019 in to 2020,

but as all of that slow down happened, manufacturers like us could not get a demand signal from our customers that gave us enough warning to get started. all of us leaned out our inventories, we started to idle our factories to run less than what they normally do. it takes six months of cycle time from when we say go to when we can begin to have production in full force. that started about september of last year. >> i know you're not going to be at today's summit. if you were at the table and you were asked by somebody, what do we do to make sure this never happens again, what's the answer >> so i think there are two separate issues. i don't think today's summit, at least to my knowledge, has much of an effect on 2021 and 202 2. these are supply demand balances from normal economic cycles. nothing that the summit is going to talk about today i believe will affect 2021 and 2022. i think where the summit does in fact have a value to spend time

on is, you know, what are the policy initiatives that are going to be important to support a stronger semiconductor manufacturing infrastructure in the u.s. in the medium to long-term. and, you know, semiconductors are the foundation for our digital economy. so much of what we do depends on that, and both for economic reasons and for national security reasons, it be hooves the u.s. government to ensure that the long-term strength and resilient of the american domestic semiconductor industry, research and development, and manufacturing capability are there. >> that takes a long time. >> that takes a long time, doesn't it how many years are we talking about here until we can actually get to a point that you're describing if, in fact, we went down that path >> i think government initiatives as far as r and d initiatives can probably happen in the next one to two years manufacturing, the biggest issue here is probably at least three years away from when we say go at a government level, something that comes out of it as a result of an industry level. >> ganesh, you hit on a key

point. i realize micro chip is one of the largest supplies to semis, you know a little something about this idea of national security i remember speaking to your predecessor, steve sangy, back in december 19 at the reagan national defense forum, and he was talking about concerns around hacking, counterfeit parts, some of the other issues that become a security discussion to your point, how much do you think can actually be built domestically, especially when you are talking about something like defense, how much can your company engage in that >> so wealready build a fair amount of it in the u.s. for the defense part of our business we have other proposals we have made, which can allow us to do more for the defense industry. we have a fair amount of manufacturing in house, and some of it within the u.s. as well. you know, there is opportunity to do more but it has taken a long time to get there. obviously there are semiconducts

of many flavors. not all can be done in the u.s some to of it, the infrastructu does reside overseas a lot more can be done, and there are proposals that have been waiting for decisions >> i know chuck robyns of cisco said a couple of weeks ago that in his view, this shortage as we have been discussing it, probably going to last a couple of years, just because the demand is so strong, and we'll have to work our way through does that kind of time line sound about right to you, that this is a story that will last, say, six to eight quarters, at least? >> i believe that is about the right order of when this thing will try and correct itself. clearly not 2021 most likely sometime in 2022 whether that is middle of 22, later in 22, i'm not quite sure. but it is -- the imbalance is so large it's going to take a while for it to correct. >> so we're talking about these different shortages, at least right now, for the foreseeable future i'm curious what you're seeing in general, when it comes to strength in bookings across your

different end markets. >> yeah, that's a great question because i think the media information has largely been centered around awe utomotive. there's very much an issue that other industries are facing as well you mentioned chuck robbins in the communication end of the business we see that in data center, in our industrial business, our consumer appliance business. there is a boom in demand that is coming from all of these different end markets that is all as a confluence into the time line we're in today, and you know, some of that will get serviced by the growth and supply some will push out in time to when it can be serviced. >> we'll see if we get any additional clarity from the readout tonight or tomorrow, perhaps, ganesh, we hope you'll come back and talk about it. clearly it's not going anywhere for a while. thank you so much. >> happy to do it. thank you so much for the opportunity.

as we head to break, let's get another check on shares of microsoft and nuance surging on that $16 billion deal. microsoft is down ever so slightly, moving closer to the flat line. nuance is up 15%, trading around $53 a share. a reminder that that deal is for $56 a share. we'll be right back. stay with us ♪ ♪ we made usaa insurance for veterans like martin. when a hailstorm hit, he needed his insurance to get it done right, right away. usaa. what you're made of, we're made for. usaa usaa. what you're made of, we're made for. these days you have to keep everything moving and reinvent the wheel. with a hybrid, you can do both. that's why manufacturers are going hybrid with ibm. with watson on a hybrid cloud factories can use ai to automate the little things so they can focus on the next big thing. businesses that want to innovate

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one of the year's hottest trades may get a boost from earnings season. we take a deep dive into financials on trading nation.cnbc.com, more "squawk on the street" straight ahead

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>> the battle over $10,000 salt cap continuing in washington but lawmakers in new york didn't want to wait for a possible repeal so the new state budget includes a work around for pass throughs and partnerships, and of course some of the biggest beneficiaries will be those hedge funds and private equity under the new rule, the pass through would pay a voluntary state income tax based on a certain formula. now, the pass through can then deduct the full amount of that tax from its federal taxes, and that's because businesses are not subject to the salt cap. the partners then get a state tax credit equal to their share of their pass through tax, so basically what's happening is the partners can shift the tax to the pass through and then get the full deduction now, connecticut, new jersey, already allow this strategy and it is the only work around that the irs has actually allowed it only works for partners and pass throughs not employees. now, governor cuomo is saying he

fully expects the froederal government will repeal the salt cap. the white house of course has not included that cap repeal in its tax plan, and any repeal would cost the government $600 billion a year in revenue, david, with most of the benefits going to the top 1%. that is why there is such a battle in d.c. and why the new york state lawmakers wanted to do something to help some people in new york. unfortunately, it's not most employees. it's just partners in pass thr throughs and s corps. >> typically among the highest compensated people in the state, and people conceivably thinking about relocating themselves or their businesses as a result of ever rising taxes and the inability as you say to deduct them or at least previously. i'm not sure what it means for the old w 2 employees out there. you're out of luck if you're highly compensated, you're obviously very lucky, robert, but nonetheless, not able to

deduct any expectations in terms of where that really will stand on the federal level as to whether it will actually be removed, the salt cap >> look, the challenge at the federal level is we've got this $2 trillion infrastructure plan. if you add salt repeal, that adds $600 billion to the cost. that's almost the total amount they want to spend on roads, bridges, tunnels, and everything else it's just going to be tough. either you raise that corporate rate to the mid-30s or you cut $600 billion from the infrastructure bill. so i don't think either one of those is palatable to most of the democrats. so maybe they raised the cap from 10,000 to 15. maybe 20 but i just don't think the government right now can afford a repeal, and the biden administration has not included it in its plan, so it's going to be a tough haul. >> i want to make sure i got this right, the states raising the tax rate on the state's

wealthiest, but the very very very wealthiest are going to have access to this bypass with salts whereas those that maybe work for these companies don't is this just about keeping these firms here or is this something else >> no, i think david had a great point. the people that are partners in the pass throughs and partnerships, they are the most mobile they own their own companies often these are small partnerships if you and your four other partners or 12 hedge fund traders want to go to florida as we've already seen, it is easy for them to leave and they are the highest earners. the employees are stuck, and they are stuck with that salt cap. >> yeah, and what we know is that many -- that yes, you can talk about the actual own sers n partners in these companies, a big reason we're seeing them relocate to other parts of the country is because employees also potentially want to engage in benefits and work in markets where the cost of living is a little more palatable as well.

something we have been talking about, we're going to keep talkingabout, robert frank, thanks for bringing us the latest as we head to break, watch united airlines, as the company expects first quarter revenue to drop 66%, on the lower end of previously issued guidance expected to report first quarter earnings next week you can see there, shas e wnbo 3 1/2%. more "squawk on the street" after this break go aflac!!! what the heck, troy - that's not your kid!

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welcome back to "squawk on the street," i a it's a mixed picture if you look at breakdown by sectors. you see behind me. energy for one holding on to slight gains including names like apa, conoco and this move in oil and gas stocks among higher crude prices. and jumping back above a $60 per barrel mark you see here traders monitor tensions in the middle east after iran plblamed israel for a sabotage attack at a key nuclear facility keep an eye on those developments and more on the middle east, rather. carl, back to you.

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welcome back three manufacturers going public via spac spitfire acquisition the deal expected to close second half of the year value $1.6 billion 3d founder and ceo joins us now. welcome. >> thank you i'm extremely excited to be here thank you so much for having me. >> let's talk about 3d printing, additive manufacturing the way it's explained to me, cracked the code being able to apply 3d metals printing applications to very complex components and parts that historically because of their design were not amenable to it how have you done that >> we built a full stack solution of hardware, software and manufacturing process that is really powered by ai.

this is a very sophisticated solution that we integrated from the ground up over the last five years. >> so give me an example of how this type of technology actually changes not only the timetable, also the cost to make something like, say, an engine part. >> yes so for a lot of companies, when you look at the engine, you could have some sections of that, some assemblies contain tens or even hundreds of parts those could be made using one part now that is manufactured at a fraction of the time typically 0.1 to even 0.30 of the timing a significant lower cost because you don't have to take all the components, machine interfaces and make them together you can make it one go, as one part. >> now, you've decided to go public via spac.

elon musk was interested in acquiring velo and that you weren't interested in selling. is that the case >> look, spacex and elon musk are extremely great partner for us, and even more than the partner, they're a source of inspiration. however, velo3d is my life's work and we are just at the beginning. my idea when finding this company, founding this company, and my mission, to build a great public company that would allow many companies and really all of humankind to invent things and get things into production in a new way, a much faster way we are going to do it and just at the beginning of this journey. >> benny, a lot of companies going public through spac you ramp revenue growth and ebitda growth starting in 2023 and gets dramatic $43 million to $318 million by

'26. your projections what gives you the confidence what you see in your business that you can actually meet them? >> yes so if you look at our revenue for next year, we are going to reach revenue close to $100 million. this is from less than $20 million last year. when you look at our revenue for next year, the vast majority of this revenue is coming from orders, pre-orders as well as revenue already formed we have a great visibility for next year, and our model that is based on expand and procuring and repeating for repeating customers basically means that at 2023 about 75% or 80% of revenue will be from customers acquired in previous years same is true for 2022 and same is going to be true for the years after that we have very conservative

sales -- in the revenue model that we built, and the example i gave you of 2022 shows you how transparent and how great visibility we have for this sales numbers. >> and those sales numbers don't rely on advanced technology beyond where you have it now on continued growth amongst your customer base and obviously selling more of your services? >> correct based on existing products and products we already announced and are going to, are already delivering or going to deliver this year. >> benny, finally, cathie woods investing, new exploration etf the firm is offering, you mentioned spacex do you see yourself as a space-fising company, given the fact aerospace and defense have been the earliest adopters of this type of technology?

>> aerospace and space in particular have been an avid producter of manufacturing by far leading the pack with this however, we are seeing a great progress and great adoption also in aviation, in commercial aviation, in power generation and in oil and gas in all of those applications we see incredible improvements in efficiencies, and carbon footprint which are available through more efficient, fuel-efficient systems, that could be manufactured using this technology so we see in the next few years a lot of adoption, and are already seeing this adoption starting now >> all right well, benny, thanks for joining us today we appreciate it. >> thank you so much. a pleasure >> all right. david, just getting a check on the markets now starting the week off modestly lower. keep in mind we closed at record highs for the s&p and dow just

last week and earning season gets under way key with banks and some of the airlines and whatnot beginning to put out numbers as well. >> and we got "techcheck" coming up, right? exciting. >> yeah. really exciting to see to see the debut of this new tech-centered show, which is going to kick off right now. that does it for "squawk on the street," "techcheck" starts right now. stay tuned. ♪ good monday morning. welcome to the premiere of "techcheck" our new show about business technology on cnbc. i'm carl quintanilla with jon fortt and deirdre bosa what a news day to kick off our