continuing to use tupperware products i guess, amid the pandemic back to you. >> always good and the parties are so much fun. miracle grow, i should have thought of that. of course. that would go up, too, in the pandemic thank you, dom and andrew, becky, should we look at the futures, look at the 10 10-year, look at dogecoin, we can't see any of those things, bought are because we got to go. >> -- because we got to go >> we have facebook and what they're going to do about trump. >> should i get off of my space and get into that? >> in a few moments, a ruling whether to lift former president trump's suspension we will get that to you as soon as we can. in the meantime, good wednesday morning. welcome to "squawk on the street." i'm carl quintanilla with jim cramer and david faber future does have a bid, a day after the dow claws back from a 340 point deficit. the road map begin with the treasury secretary janet yellen

clarifying tuesday's comments about potential rate hikes plus, well, technology shares of course, they're rebounding a bit after yesterday's sell-off apple, tesla, microsoft and a number of other big names are moving higher ahead of the open. and in the wake of its archegos capital loss, we're going to speak to the ceo of ubs, the first u.s. interview since taking helm of that giant wealth management company. biggest wealth manager in the world. carl the oversight board at facebook has decided to uphold the former president's suspension from facebook that's the only headline we have at the moment, guys. jim, i will say there was a general consensus that this decision, that that suspension was going to be lifted >> i thought it would be i thought that there was a kind of a groundswell, he's not on twitter, banned forever but facebook had the panel of people that i think are looking for due

process and due process probably would have him back as opposed to just an edict david, i have to tell you, i think this is kind of shocking >> i think it is, as carl termed it as well, something of a surprise i think there has been an expectation, as you just said, that he would be reinstated in some form, perhaps a certain and more stringent regulation around the behavior on the platform >> no inciting. >> come in, with some criticism, because it wasn't truly an independent board so to speak, given they were funding it and paying but, well, the headline speaks for itself there >> it's big. it's big >> i'm just looking through -- >> when twitter did it, i thought twitter numbers would come down. but they really didn't >> here's the decision, guys, just looking for some easy quotes, the board found that in maintaining an unfounded narrative of electoral fraud and persistent calls to action, mr. trump created an environment

where a serious risk of violence was possible, at the time of his post there was a clear, immediate risk of harm and his words of support for those involved in the riots legitimized their actions. as president, had a high level of influence, obviously they talk about the number of followers he had, it was not appropriate, they say, for facebook to impose an indefinite suspension it's not permissible for facebook to keep a user off the platform for an undefined period they go on to say that facebook did not follow a clear published procedure, jim, and that is one of the take-aways from this, is that as the journal said today, they have an inept way of policing their content >> well, i mean, look, this is kind of a clear and present danger test. the first amendment, where you press the first amendment to a certain extent, that the supreme court has said, look, you cannot, you cannot create a

situation where there's going to be danger. this is what they're talking about, david and the former president of the united states did not pass the clear and present danger test. >> apparently not. i know julia borisen has a lot more on this and i aseem we want to get to her. >> david, i think -- >> we will talk to some members of the board later on today. good morning, julia. >> i think, good morning, carl, it's going to be really interesting here is what the implications are for how facebook handles political leaders in the future. one of the key questions that the oversight board is evaluating was whether there are any recommendations from the board about suspensions when the user is a political leader this of course does set the precedent that it is possible to suspend a political leader, and it says that facebook made a mistake in not permanently suspending the president at the outset of this, saying it was inappropriately for facebook to impose an indetermine gd penalte

and permanently disabling the page they also say the board made policy recommendations for facebook to implement clear and proportionate policies that promote public safety and respect freedom of expression. so this will have implications for how facebook handles other political leaders going forward, and in this ruling, here, guys, they go through the time line of what happened around those riots on january 6th they say they go through a sort of tick tock of what happened throughout the day, and they say that the january 6th postings severely violated the community standards on both facebook and instagram, and that they violated the rules, prohibiting praise or support of people engaged in violence. so going forward, it says that they will not just be doing these temporary suspensions, they're going to have to have a firm ruling and firm rules to address these types of things.

so indefinite suspensions are not going to be allowed going forward, guys. i will continue to dig through here >> it's actually quite a lengthy decision statement here, julia, it does seem like obviously the headline is about the president's presence on faceboo which will not happen but the second headline is telling the board, telling the company, you guys need to get your stuff together in terms of how you decide who stays and who guys. >> it is facebook's role to create necessary proportionate penalties for violations and the board's rules is to make sure the policies are consistent with the content policies and the values and the human rights commitments. they criticize facebook for bringing forward a vague standardless penalty and facebook does not live up to the responsibility, and that is a

harsh creditism and they say the board declines facebook's request and insists that facebook apply and justify a defined penalty. so putting some of that responsibility back on facebook. i am expecting to get a comment from facebook on this decision any moment now so it is going to be very interesting to see how facebook responds not only to the decision, to continue the ban on president trump, but also the criticism of how they handle this and push some of those questions over to the board rather than resolving them themselves >> julia, we'll be checking in with you all morning if you're just joining us, facebook has decided the, the oversight board has decided to uphold the president's suspension from the platform jim, implications for engagement, metrics, the stock >> well, look, i think that the stock itself is just been a juggernaut the numbers are so great consumer product companies really like facebook and i think david, they will like it even more after this

decision >> even more. >> even more they don't want controversy. they want people who come and post pictures of dogs. >> let's not forget instagram of course is really the more important platform at this point for the company. >> in terms of a friendly place. i was trashing wall street bets yesterday, because i think that they're foolish in just saying only things about gme, there's other stock, like 499 in the s&p itself, and the one thing that absolutely, that consumer product companies don't want to see is somebody inciting a riot, even as a former president of the united states, and they are looking for noncontroversial sweet things it's like something from honest, the new company. >> jyes, jessica alba. >> you don't want to put that next to a guy who is calling the

federal reserve chief a clown or making fun of janet yellen or just basically trashing people because it's fun they don't like that color. doesn't like that, david procter is not a fan. >> so in your opinion, nothing stops facebook from its continued -- >> it's even better. >> -- dominance in the digital advertising platform. >> the stock was down yesterday. that was probably a mistake. >> a lot of technology stocks were down yesterday. >> look, we had, the week before, it was all of the drug stocks that were down. and the week before the food stocks were down the week before the industrials were down. it's called rotation what you have to do is you have to watch volleyball to understand it. >> there's a sense as well if you watch the cryptos, there are certain cohorts that are selling stocks and buying crypto >> i still have money in ethereum, yesterday, and i put some money down to own a hummer, but you can't get a hummer >> no, i listened to mara barra. >> but i took my ethereum and why not just buy a car instead

of ethereum. >> how much crypto do you actually own >> enough to dot, to do the job. >> talk about the platform, there's a lot of vitriol >> looking at mention. >> i just wanted to see after trashing wall street bets whether these doge hands, whether it is, the diamond people, i mean look, if i want a diamond, i'm going to what, 47th street, what is is >> 47th street >> i don't need them and their phony diamonds >> you should just get rid of that mention - >> i did. >> i looked a it the for one second to see how much they hated me and it was great to see the hatred because i don't watch it otherwise. >> but back to your point, facebook trying to eliminate that as much as it can. >> facebook wants to be the kinder, genter - >> it will be interesting to see, and julia brought this up, carl, how it will apply to other so-called leaders, and what the -- >> so-called

>> that's a little judgmental. >> i don't know how you judge, how are they going to -- >> was the president not a leader >> he was. >> i'm saying -- >> a leader of a political party, but not necessarily in control of the government for example. >> gotcha. thank you for clarifying that. is that also what they're talking about, carl? i'm sure we will hear a lot more in terms of getting a sense for the ruling, but it will be interesting to see how they, after this, make decisions about banning certain people from the platform >> how many people incited a riot, david? who threw the flyers out of the second car window calling for an insurrection against woodrow wilson which was the original case the original case that was like what president trump did >> got it. >> you're a proud boy, man. >> excuse me >> what? >> i didn't mean that. >> you didn't mean it. >> carl, sometimes we're better

off -- >> a big piece this morning, guys, about the arcane walls that get users kicked off all the time and obviously, don't have a sense of coherence which is worth the read, given the importance of this decision today. julia has a little bit more context around what just broke a few moments ago. jb >> yeah, carl, earlier i mentioned that they said it was inappropriate for facebook to make this an indefinite suspension but what i want to make very clear here is the board pushed back to facebook and giving facebook six months to determine trump's final decision on the account status it is important to note here that a lot of this is being pushed back to facebook, and that facebook now has to decide if this is going to be a permanent penalty or not another six-month period which is beginning now so they say that they have to, facebook must re-examine the arbitrary penalty. and then this penalty must be based on the gravity of the

violation. the oversight board is asking facebook to make new rules based on the violations that the president, that president trump had, earlier this year and they say that if facebook decides to restore trump's account, then the company should apply its rules to that decision so basically saying it is possible for facebook to choose to restore the president's account, in six months, but then they have to make this new set of rules to explain that and just to address the question that david just brought up here, about whether or not this is going to have big implications on political leaders, the board said it's not always useful to draw a firm distinction between political leaders and other influential users saying that other users of large audiences can also contribute serious risks of harm. so i think they're going to be looking at the decisions going forward, more in terms of the number of followers than whether someone is a political leader or not. >> the president, leader of a party that is 50% of the country, won't the gop, the gop

people just say this is an example of the kind of censorship that we've come to expect from -- >> look, i think that facebook was going to be criticized no matter what way the decision came and i think, i'm sures th this s going to spark more concern from the gop, that facebook has an anti-conservative bias having said that, i think it's sort of unfortunate in terms of resolving this issue that it's still not going to be resolved for another six months not completely at least. so a lot of pressure on facebook here, to not only make rules but explain them i think there had been hope that the oversight board would resolve a lot of these issues by now, jim. >> thank you. >> that's going to take us to january 7th of next year, i guess, julia, so a discussion we will have in the future. there's a lot more to get to of course, we will get to the adp number and what that might say about the jobs number on friday. gm of course and their guidance

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following the facebook oversight board decision, now a statement from facebook. julia's got that julia? >> that's right, facebook's global affairs and communications, writing that they believe that their decision to suspend president trump was necessary and write, they're pleased that the board recognized that we took the unprecedented circumstances, justified the measure we took, they note that the board does not require facebook to immediately restore trump's account but does not specify the appropriate duration of the penalty and acknowledging that the board criticized the open ended nature of the suspense and review the response and we will now consider the board's decision and determine an action what is clear and proportionate, in the meantime mr. trump's accounts remain suspended. also acknowledging the board made recommendations on how to improve policies and that they will carefully review those recommendations. carl, back to you. >> okay, julia, obviously this

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a little less than nine minutes before we get to an opening bell on what jim and i like to call hump day. do you remember that >> do you remember mo green? >> do you remember what mo green created? >> he created las vegas. >> a stop for gis on the way to california. >> segal had something to do about it, too. >> and last year, everything was

closed but now, it is up 20% over 2019 for caesars. vegas, you can't get rooms a lot of people say that the weekends are sold through. and they're opening it up as if it is going to be like the old days david, you're not going to be able to go back. i know you probably want to go and catch an nfl game, if the jets were playing but you know what, forget about it, sold out. it's amazing. >> jim, it's a ten bagger. >> a ten bagger. >> i met mo. and remember when this thing was going to go bankrupt. >> you were wrong if you sold it along the way. >> people thought it might go bankrupt. >> because the debt was ridiculous paying down debt but it is about, david, the return of people who want to congregate with other people when people get vaccinated, they suddenly feel they're not necessarily invincible but they want to go out and at what point, david, do we decide, listen, if you're not vaccinated, we don't want you at the casino

they're all kind of tiptoeing around i say, i don't want my servers not vaccinated i don't want my casino people not vaccinated but people are just flocking to vegas. like never before, david now it's sko hard to go overseas >> some of it could be overseas, that you can't go. >> forget about vegas, baby. sold out for the weekends. >> it's back. >> it's back bigger than ever. >> although the convention business is not back. >> just you wait. >> business travel. >> you keep hounding me and hounding me on that. >> i do. >> didn't you listen to jamie dimon yesterday. >> i do. >> he's got zoom sickness. >> a lot of that going around. >> a lot of you have not had to do a lot of zoom >> the old-fashioned zoom. which is called zoom. >> do you put your name up, david faber rather than look at yourself. >> i do, actually. >> somebody else on the computer. >> i put my name up, i don't want to sit there and look at

myself. >> who knows who you are >> we got to go. >> vegas, forget about it. >> we'll forget about that, too. forget about a lot of things we've got about six minutes left coming up before the opening bell

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i don't anticipate that inflation is going to be a problem, but it is something that we're watching very carefully. and if it does, if it is a problem, which i don't expect, there's certainly tools available to tacking it. >> that's the treasury secretary from yesterday, talking in that conversation, jim. a lot of discussion on the one side, people say she should have known better than to talk about rate, powell certainly doesn't talk about the dollar, on the other hand people said look, what she said is what we talk about all the time, and why shouldn't you be able to talk to the market like an adult >> i think she can certainly

talk about higher prices, i didn't think she had to talk about higher rates, i thought that was out of school, suddenly we have a quarterback controversy in washington, that's wrong janet yellen, may i remind you in, december of 2017 raised rates predicting that she had to do it to head off inflation. she caused basically a crash in commodities. it was a completely ill-advised move by her, and i think throughout this period, i think she's like pressured jay powell to forget his goal of trying to get minorities to be enfranchised instead of disenfran chisd because they've not been able to come back and get jobs so i'm a total pal aficionado and janet yellen was off the reservation and i'm glad she got back on the reservation by the end of the day. >> what is off the reservation saying they have tools if it happens? >> off the reservation is saying they need to raise them and she walked that back everybody knows this very to do it but the problem is, that her words are powerful and she was a former fed chief

and she showed an ill-advised use of, or abuse of her treasury power. >> right. >> and that's why she had to walk it back. >> she's in a you feke position -- unique position. >> she is in a unique position not a fed secretary, fed chair. >> she should not get in the way of jay powell and she did and she should have known better it's okay. these people are not above criticism. >> and she very well now may realize that. >> and anybody who puts undue pressure on jay powle. >> an enormous amount of pressure on him from the last administration, from the president, on twitter. not only secretary mnuchin who was behind the original appointment to the job and typically treasury secretaries, they don't comment on the dollar and they often didn't comment on rate, right? >> i think her words, i think

that she's a seasoned enough pro to know that puts pressure on jay powell and jay powell doesn't need that right now. >> he's fighting for equality. >> yes >> it sure beats being called a bonehead, as david said. >> oh, yes. >> the president called him -- >> president trump was uniquely, uniquely arbitrarily capricious in the way he trashed people and i think america got sick of it or at least half of america. carl, good news on chips jim farley talked to us about the japanese plant coming back that's important. >> and how about honest, carl? >> we are going to get to chips. there is honest, yes, jim, at the nasdaq, celebrating its ipo, founder jessica alba, ceo nick, doing the honors, on "squawk" earlier today, and at the big board, highlighting an etf what do we think about honest,

jim? leslie talked about the valuation here, the implied valuation down from some prior round, and they did price in the middle range. >> i think i would like to see a reasonable, not hot, interesting ipo. now, carl, i am a client of endeavor i want to put that out right here, before i start with that that was another deal which was priced kind of okay, got you in, and then roaring and then again let's say i am a client but this is a new way, maybe wall street, the brokers have gotten smart and are pricing things so they're not outrageous, and also we've not had an endless number of spacs. >> no, the spac spigot has dried up in part because of course as we discussed many times the s.e.c. is taking a close look at any number of different things dealing with the issuance of spacs, whether it's the pipe, the relationship between spac sponsor, pipe investors and other deals, whether it's projections that we talk about

so often, but that does lead me, guys, to a report this morning, that i want to confirm and go into a little bit more, about a potential spac deal that is out there, another one from chamath palihapitiya who has been of course one of the most active when it comes to doing, issuing stocks and doing deals this one involving equinox i think bloomberg reported it late yesterday confirmed as well. his spac is in talks with equinox, to potentially do a merger those talks continue i can give you a little more sense. you can see it right there what they're talking about in terms of value it's pretty significant. equinox's business has been crushed during the course of the pandemic also soul cycle. which they had as well they were targeting as much as 22 times, jim, ebitda that they were seeing in 2023. $320 million so they're looking for 2023 ebitda, 320 million and saying hey, we think we're worth 22

times that that does get you above a $7 billion value overall. and they need money. they've got, one person characterized it as a pretty funky capital structure with liens and original investors who might want to try to get out, silver lay, and they were looking for a pipe that could go as high as $2 billion. >> is that symbol ptb. >> no. >> ptb is pt barn um. >> here is the spac am question. and you get a market check as we like to say here >> this was shopped to a number of other potential, to spac sponsors who passed obviously on the potential transaction itself and again, unclear whether they get to the finish line here, it will be a big deal, that's steve ross, remember, of related, miami dolphin, eek knock is a part of that -- equinox, we have the ceo of equinox on with us from time to time, and what i

can tell you there, they were looking for 22 times, estimated ebitda, 320 mill and a pipe at least at the time of two bill and a number of spac sponsors, carl, passed so we will see what happens here with that, with that spac. >> is there any shame in this process? >> what do you mean? >> well, it's just terrible. like caesar's. maybe it resurrects like caesar's >> resurrects the health clubs >> people like their soul cycle. they don't necessarily keep using the peloton at home. >> look, i think peloton by the way has a fantastic quarter. >> you do? >> yes, but one of the things, i just wish these deals were priced at reasonable numbers because they got a lot of -- david, a lot of people have lost money. and i think someone has to stand up for the people other than gensler, the s.e.c. head we don't want people to lose fortunes, do we? >> we talked a lot about it every day, okay, we talked about the speculative nature, we talked about the

prognostications and the projections that you would not typically see with an ipo because they're not allowed to do that in an ipo, and there is a thought that of course really, these are ipos, they're not merger, as we call them, they're just ipos. >> right. >> but should be traded as such. and one wouldexpect in time yo are not going to be able to see these companies put out ridiculous projections for 2026. >> i've had any number of these companies on "mad money" and i don't think a single one of them is up overall, and a lot have lost money. >> listen, chamath palihapitiya, he is still hanging in there virgin galactic has done well, sold a lot of stock there, a number of his have hung in, there at least they're up, right? >> where did the volume come >> open door is still higher clover has not been a good performer. and a couple of open ones. >> they can always point to good things i'm saying when they came on tv, it was just a great moment to sell >> okay. >> yeah. >> carl, you got a lot of public

companies out there that have already de-spac'd and we'll be watching them closely. >> indeed, guys. of course, we got to keep our eye on cathie wood's ark fund, down 9% for the year, at the bottom 100th percentile of mid cap growth funds that we track so when your top holdings are tesla and tele-doc, what do you expect >> when you look at what she has been buying of late, it is every single one of these little companies that is being crushed and what she's selling are all of the kind of steady as she goes, but remember, she regards them as cash equivalents but i would say she's unique >> is that you being nice? >> yeah. that's exactly what it is. >> jim, it does sort of remind me, what do you do with a zoom or a t-doc at this point especially given some of the comments from jamie dimon and

even the zoom ceo. >> zoom has to reinvent and come up with more products and they're a one product company and that's not healthy tele-doc has more competition, it's almost as if it was a heat-seeking missile, and so many companies are in the tele-doc business all of a sudden that you can pit them against each other and get better prices. they're losing some customers. but i think it's up to, i would say, to create zoom 2, which is an extension of the franchise. that's what they have to do. they have to come up with something else i mean look at peloton i know that they came up with the tread mill and they had some issues but i appreciate the fact that peloton is thinking they got to be bigger than this and it's time for zoom to be bigger. and what will zoom look like and/or any number of these other services, in a number of years >> like a holo-deck situation. reach out and almost touch the

person. >> simulation. >> i'm simulating a drop from the 900 to 600. >> tesla. >> seeing the stock go down. >> i am here to remind people that there is a huge amount of money lost in the last, let's say, i don't know, 40 days >> by the way -- >> and we have to recognize that some of the creators of the product that's lost a lot of money were able to sell a lot. >> they were they were. >> yes. >> and you know, it's funny, some of the cloud names, too servicenow, someone is pointing out yesterday. >> yes, bill mcdermott i didn't think the quarter was that bad. >> and the stock was hit. >> what about nuance >> they put the proxy out, microsoft is buying the company of course, it's 56 bucks a share in cash, remember this deal was announced back on april 12th we got the proxy, and guys, it had something interesting in it that is worth, it is at least worth noting, i'm not saying it is going to lead to anything, but you know, you get the background of the trans action, you find out typically in that whether they talked to any other companies, was there any other

interest from other companies and it does appear that amazon was interested. >> really? >> at one point. >> really? >> let me read it to you. >> for alexa >> no, for this business on february 25th, 2020, a representative of a leading cloud technology and e-commerce company, i wonder who that could be, which we refer to as party d, conveyed interest in meeting with the senior leadership of nuance to explore a potential strategic partnership in health care, or to a potential acquisition. nuance and party d scheduled a meeting for april 9th of last year and of course, it was canceled deuce to the covid pandemic. and party d did not seek to reengage and nuance apparently wanted to have the microsoft deal and didn't reach out to party d to see if they were interested. >> and the prices were largely considered to be too high by a lot of people. >> too high or too low >> some people feel that microsoft overpaid. >> others feel as a public party, with the future where it is, that nuance would

actually - >> i thought it was a steal because it is a trojan horse to get into the server. and not that great of a quarter. and epic a private company that no one has been able to crack. >> this in no way means we will see amazon -- by the way, the regulatory could be tough. it's interesting, just to note with amazon. and based on that description, i'm guessing it's amazon and those people who would be potentially in a position to know. >> they want to be in health care they have made forays into health care and have not been that successful as of yet. >> and they could choose, if nuance stayed a public company, to have competed with them, right? and that might have been a bad thing. >> carl, do you use alexa? >> no. >> alexa - >> should i? >> i think alexa listens to a lot of things i have to say and i turn off alexa if i have a conversation that i think could

include, i don't know, any person that is probably paranoid, but alexa's been way too smart when i come home, alexa puts on the music that she thinks i like. i the other day called siri alexa by mistake and she said it was okay. >> alexa was not unhappy >> no, siri was not happy. i think alexa would be grumpy. >> got it. >> carl, back to you >> guys, a lot to watch here including this historic news, rick santelli, about open outcry at the cme, at least in most of the pits going away. the end of an era. >> it's the end of an era all right, carl. you know, i first stepped into pits, in the cme, in january of 1979, and pits were the center of action, it was like hay market riot, but it was organized and the pits in chicago became legendary so many visitors from every country on the planet, i

remember chinese delegations, japanese delegations, all trying to study the model of chicago pits and yes, it is the end of an era. although the option, the short rate similar to a t bill rate, will remain open, but of course the treasury options go the way of foreign exchange options and futures trading that left the pits several years ago it really is the end of an era now, in terms of the market today, we all saw the re-funding announcement and even though the news is being focused, it is no different in size. 126 billion from the fed re-funding and i said look at the re-funding prior to covid, and it was 84 billion, and the current pack is 126 billion, so these are big numbers. look at intra-day of 10s you can see it spiked when the announcement hit it didn't do much for the lackluster adp number. two week of 10s show that 162, it's taking a bite out

lost a little momentum and it looks like yields are more apt to drift lower finally, if you look at a one week of bunds, you can see their high water market is minus 16. and two-day dollar index looks like a range and open the chart up, 91 is the pivot and stay above that, and many believe we will continue to trade soft on dollar index carl, jim, david, back to you. >> rick, thank you very much. when we come back, the ceo of ubs, his first u.s. television interview since taking the top job at the bank as the nasdaq bounces a bit here up 74. don't go away. 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.

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ubs, out with earnings last week, a $747 million loss, that was related to of course, the failure of archegos, and this as its new ceo embarks on a transformation of what is the world's largest wealth manager, joining me now in the first u.s. interview since becoming ceo of ubs is ralph hamers, good to have you this morning. you talked a lot about archegos so i don't want to spend a lot of time on it, and one quick question to start, you talked

about improved risk controls on the conference call. what specifically are you doing to improve risk controls at the planned brokerage at ubs >> good morning, david thank you for having me on the show clearly, if you look at the first quarter, we first focused on keeping a very strong momentum, and that actually produced a good result, even after the loss, right? so our profit before taxes is up 14%, 2.3 billion but it did include a loss on archegos in the amount of 774. now, we were disappointed at that and we are taking it very seriously. and i have to tell you, i have been telling and updating the analysts and our shareholders as to what we're doing here we're reviewing different processes as to, you know, what worked well, what didn't work well, and clearly, some mistakes have been made, in terms of the processes that did not work the way they should have worked

so i think the first analysis here is a combination of a lack of transparency as to what was the true position. and beyond what you do with it, as a bank, with that, and then the oversight, and the concentrated position of the counterpart taking as a consequence of which you have the execution of the position, it will lead to, well, a massive flow to the market, and with that, we saw the prices drop in some of the long holds >> and some of what you're discussing may be the regulators changing rules and increasing transparency in the swaps market ralph, you spent a lot of time on the conversation call talking about your strategic view for the company in the future. and a lot of that related to technology almost a tech-driven reimagining. you say the first step in how we deliver the client experience relies on technology what does that mean? >> well, what it means is i think everybody recognizes that, that you know, for really a decade already, technology has

become increasingly important for every industry, but truly disruptive for many industries, and i think the financial industry has been a little bit slow in that, in picking up the importance of technology, although there's a couple of players that are truly leading this as you know, there are so many different players that show that you got to, have you got to embrace technology and make it part of your dna so basically what i'm saying here is we're banks, and we're normally focused on case, how can we service our client, how can we deliver best in class, which stays the same and it is just about the delivery, and the fact of the redesign of the delivery, of some of the product, some of the services, you've got to do that with technology in mind from the start and not thinking let's leave that to the technology guys, no, it's got to be run by the commercial guys who truly know what clients want and that is an important change

in my view. >> now, there was some criticism, i think i'm reading a report from andrew coombs, a bank analyst with citigroup, who said, listen, your presentation was full of buzz words, but lacked detail and seemed to indicate any changes will only be around the edges, rather than any big strategic shift. how do you respond to that respt criticism? >> look at the core strategy of ubs. we are the world's global wealth manager. so, therefore, our core strategy is being an asset gather and managing that on behalf of clients and doing that really well and there's nothing wrong with the direction. so to the extent people thought we were going to do -- there's nothing wrong with the direction. the wealth growth in the world continues. and i think the big change that we made to the sheet is we said well, in the wealth growth, if you look at the underlying trends, there's two big pools in

the world. the u.s. pool where we're a big player that's strategic to us, and the asian pool it's a really big pool and will grow even faster so these are already big pools and they will grow fast. that's the trend that we are going to have. and the underlying trends that you have to be much more precise is is the ones that has to do with entrepreneurial wealth as a theme for investing as well as the core element of china as a busy market that is really in need of some of the wealth products that we would deem as normal but still have to be introduced there so there is really some true opportunities there that we're focusing on. it's really that to dis. it's a true focus has to where we put our resources that is the difference >> raffle, you know, you're a

competitor in switzerland, so to speak, the other large bank credit suisse look it harder raising questions about the overall business model is it something you could imagine where they are encouraged to get together >> well, i don't know about that i think what you see with ubs is that we're a strong bank we do displace business from that perspective in terms of being reliable and predictable i think those are core components for wealthy clients to be able to bank on. and the first quarter on the back of the good results we have been able to further improve our basic core capital that we hold in order to ensure that the clients can really rely on us. i think that's the important factor for us, the organic growth, direction, and organic growth direction is the one that we

prefer raffle, i'm afraid we're out of time. but certainly look forward to having and continuing this conversation appreciate you joining us. thank you. >> thank you bye. got some moderate gains at the open pretty narrow range. energy up 2% for the overall markets, s&p is up 15. 'rba ia mewee ckn mont it beautiful. state of the art technology, makes it brilliant. the visionary lexus nx. lease the 2021 nx 300 for $349 a month for 36 months. experience amazing, at your lexus dealer. keeping your oyster business growing has you swamped. you need to hire. i need indeed. indeed you do. when you sponsor a job, you immediately get your shortlist of quality candidates, whose resumes on indeed match your job criteria. visit indeed.com/hire and get started today. - [narrator] grubhub perks give you deals on all the food that makes you boogie. whose resumes on indeed match your job criteria. (upbeat music)

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jim j a lot more tonight >> right pager duty that's a tech company. bed bath and beyond. everybody wants to know if they're going to make it obviously they are and new on the block, t are rane it's just been a horse and a trane. continuing our just endless look at companies that people care about and making a lot of money, and i think that's our job after being -- >> not every spac. >> not every one >> find me a spac that went up after it came on the show. >> there are ones that have strong businesses. there are. there are. but you need to be selective >> well, that's great. >> very selective.

>> yeah. i had the meant list at our restaurant last night. he got some things right more than spacs. i should have asked him. i'm thinking of a spac that's not lost money, but he wouldn't be able to find it >> jim, happy sincinco de mayo. >> when we come back, freeport and t mobile and ssm services. don't go anywhere. 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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welcome in to "squawk on the street." tight range to start the morning on this wednesday. dow is up about 40 points. s&p up about 11 or so. we're watching the facebook decision on the former president. and now ism services let's get to rick santelli >> yes thank you, carl. do remember, ism services is the new-comer of the ism number groupings. started in 1997. the highest number ever was 63.7 last month's read. but this month's read for april,

pulled back. 62.7 is the current read 62.7 one point under the last look. the all-time high water mark it's a bit of a disappointment more were expecting a new fresh high water mark. maybe 64 and higher. it's still solid and we all know the service sectors where all the gdp horse power is and reopenings should give the number a lift over the next several months morgan, back to you. >> yeah. somewhat of a theme, though, in terms of the some of the readings we've gotten this week. we are 30 minutes into the trading session. here are three stocks we are watching right now facebook the company's oversight board deciding to uphold that ban on president trump from the platform it's a 35-page decision published. we'll dig into that in a moment. lift, liftingoff the los was smaller than expected revenue beat the company is also claiming to be profitable by at least one

measure by q-3 plus match group beating on the top and bottom lines strong current quarter guidance as it anticipates a surge in dating, post pandemic. shares up 5% >> morguen, you mentioned facebook and that ruling from the oversight board which has a few layers to it we have the latest >> let me try to cut through the layers basically what the oversight board announced this morning is that the suspension of donald trump from facebook is being upheld they say that decision was right given the potential for violence and the potential for danger as a result of trump's comments on facebook those comments that were taken down on january 6th. so it was necessary to protect public safety. but this oversight board which remember was created by facebook itself, is rejecting facebook's indefinite penalty of the former president. they're calling on facebook to review all this within the next

six months an issue affirmed decision they say facebook can do what it wants but they want clear and definite rules around exactly what is going to apply to mr. trump. they say those rules should apply to trump and also to everybody else and all other world leaders on the platform. why is this important to trump take a look at the numbers this is what the former president spent on facebook in advertising back in the 2020 campaign $160 million spent by former president trump compared to $117 million for biden. that gives you a sense of just how important facebook was as a messaging and fundraising platform for the trump campaign in 2020. and, of course, it tees up any 2024 campaign that the former president might want to mount against joe biden. this is an enormously important fundraising platform for the tump people. even though trump is known for using his own thumbs to type out twitter messages which he's banned from as well, facebook huge with fundraising and

organizing this board now with some harsh words. they wrapped up a conference call with reporters and said that facebook essentially shirked the responsibilities here in punting this decision and the review of it to the oversight board and now the oversight board is punting it back to facebook >> some of the quotes on that conference call are really striking the co-chair says the indefinite penalties don't pass the international smell test and then goes onto say the board says we are not cops raining over the realm of social media it was almost a scolding of management >> yeah. it really was. and this coming from this independent board which they say their decisions on facebook are binding. it's not clear what actual power they have over facebook given they were created by facebook itself but it was a tongue lashing from the board members which say that facebook essentially was not following the rules and was essentially making it up as it went along with donald trump in temples of whether there was a

newsworthiness standard for the comments or whether he needed to be taken down because of the threat of imminent danger. they want the entire facebook process to be reorganized here around world leaders and everybody else to come up with clear rules. one of the things they want is for anybody who gets in trouble in terms of facebook's rules to know how many strikes are against them and when they're being banned and why they're being banned they say that's not transparent at all they want more transparency around all of this tough words here from the board for the folks at facebook. >> i think a lot of people are looking for more transparency. we'll stick with tech right now. shares rebounding a bit after yesterday's selloff. that's apple cloud stock semis get smacked hard josh limipton has more on the bg moves for us >> the nasdaq is bouncing back early trading. the index just posted the worst daily performance now since

march. suffering the third negative session in a row fifth negative session in six. one source of the pressure we know has been apple. tim cook's company smashing expectations with that last earnings report. but apple has closed lower in the five of the last six trading sessions down about 10% off the all-time high they'll keep in mind still up about 75% over the last 12 months a red hot sub sector cool heerg is the cloud stocks. the clou posting four straight days of losses down about 10% over the last three months evaluations are stretched after remaskable runs by some of the names. though earnings have been solid, they say the bar was set high. notable recent laggards we point out are coupa, zoom, 50% off the all-time high and twilio reports after the close today. the smh clocked the fifth day of the losses in the last six

sessions over the last three months, overperforming two notable chip names to watch, n vid ya and qualcomm. >> josh, thank you that is a good setup to get us started with the next conversation we're going to bring in the senior analyst at b of a securities and a portfolio manager. welcome and good morning to you both chris, i'll start with you the selloff we've seen pretty broadly within some of the different tech names, what would you attribute that to? >> so i think the tech is going through a corrective phase there's rotation within the market you know, higher inflation expectations have caused a steeper interest rate curve on the long end and that depresses valuation multiples. so i don't think it's something to get concerned in the long term but we are seeing money flows

that are rotating. and for longer term investors, we think there's going to be some great opportunities that are going to present themselves. but i think you have to be patient. you know, we've talked about semi conductors here, and it's really facing a perfect storm on the supply chain side of things. and it's going to take time to correct. but i wouldn't give up on technology they've got really good growth rates. but right now things like oil and financials are doing better. but we like better balance sheets than most of the energy companies out there. >> you see a broader rotation into more cyclical stocks. a reversion of the mean rather than concerns about rising rates or even capital gains tax increases? >> i think it's more combined with rising rates which ultimately i think should correct itself inflation is here. it's across multiple areas but when i look out a year, is that something that's going to

be continued i think it's more ep sodic here that we get through this, and then the market corrects itself that way >> it wasn't that long ago that it was as goes apple, so goes the prodder market when you look at the year to date performance, it's underperformed the dow, the s&p, even the nasdaq. what would you attribute the underperformance to and is there an opportunity given where we're seeing shares trade? >> thanks for having me. you pointed out shares of apple have lagged the broader market this is notable. typically when apple goes into a big product cycle like 5g, shares outperform. you actually saw a huge outperformance of apple over the last two years if you look at the 2018 and 2019 timeframes, the outperformance was very significant you had two years of 80% returns which was maybe 60 points of

outperformance so an underperformance over here is somewhat to be expected when you're hitting these really tough comps and hitting the best numbers that you have posted in a very long time for two quarters in a row, and yet the stock underperforms. they are looking to earnings growth for the following year. 23 roughly flat versus 21 you have two years of challenging growth that's the main concern as they look to other names that don't have in a sort of an overhang. >> chris a few moments ago you said you expect to see opportunities. what are they right now? >> so i think one area that investors should be really taking a hard look at is semi cap equipment. there's clearly national interest to build out our manufacturing and to bring that back home. we are seeing that from the

primary manufacturers that are looking. we also potentially have infrastructure coming in from our government that supports that as a strategic national security reason, and we think that that's going to bode very well for semi cap equipment manufacturers. you know, currently right now i think that they're still trying to ramp up their production. they've been producing as much as they can, but we think that's going to continue. so that would be an area that over the next quarter or so, i would be looking as an investor. >> you have a good note out on apple this morning you talk about the tough compares starting to hit the product line in the december quarter, but man, some of these app store comps are already there. >> yeah. carl, exactly. that's right like, when you think about the tough comps hitting the services segment, last year during the height of the pandemic, there

were exceptionally high download rates around the app store, usage of services really skyrocketed. you're seeing the flip side already when you look at numbers in april, you're comping 30 % growth versus a year ago and now you're growing mid teens that's a huge deceleration when you put that in the context of what you're going to get over the next several quarters, it just limits the up side. and then you've got the added regulation and taxes and everything else. but the drivers of up side get capped when you comp these gigantic numbers and services is the first sign and you're seeing the stay at home beneficiaries from last year that really did quite well last year, but now are comping those and you see all sorts of metrics an active message and downloads decelerating i think that's happening at apple. it's not unexpected, but those are the law of large numbers in a profitable services business

it's going to decelerate over the next few quarters. >> chris, always important for our viewers to know. you've had a strong 12 -month return at the growth fund. what is it right now that you feel will be a position that you'll look back on a year from now and say man, i'm glad i bought more of that? >> well, i -- look, i think it's still in the semi and the semi cap equipment area but i will give you a small cap company that we've owned for a while. i think it's going to do well. it's called aspen arrow gels it makes thermal insulation that goes into electric batteries they're working with most electric battery companies out there, and we think the runway that they have and the expansion that they're planning over the next couple years is really going to be great for a long-term investor but when you look at a company like tesla and you say that's all that i can play, i would look to the supply chain and aspen is in that supply chain of most every electric battery out

there. >> all right we got a big hour still ahead. we're going to leave the conversation there thank you for kicking the hour off with us. as we head to break, let's look at the road map for the rest of the hour shares of t mobile are up nicely this morning over 3%. the ceo is going to join us talking act the results of cyber growth and of course, 5g >> commodities jumping to the highest in almost a decade the ceo of free port is going to join us. the stock having doubled in the last six months. and what will it cost you to hitch a ride to space? tickets going on sale. we have details if you're interested a huge show ahead. don't go awa - welcome to three brothers bakery. - we have cinnamon, apricot, and raspberry. - we have a location that has experienced four floods, a fire, a hurricane, and obviously now we're in the pandemic.

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part of their business as the bike that is a turn around in strategy or at least in policy from the company >> yeah. the tread plus treadmill voluntary, but a reversal for the company and a reversal for the stock. it's been getting hit a bit lately speaking of a stock that's gone up demand for capper has increased as the world shifts toward a lower carbon future. joining us now is one of the top copper producers in the world freeport-mcmoran chairman and ceo richard, it's been a long time and a long journey for you. but what a head-spinning year and a positive way let's start just by talking about the opportunity that you see for copper in terms of carbon reduction and explain to our viewers who may be unfamiliar with it why it has become such a key source of demand >> it's great to be back, and it

has been way too long. we are really entering into a whole new era for copper f freeport is the foremost copper company in the world carbon reduction is important to that any investment to reduce carbon requires copper. goldman sachs estimates that in the foreseeable future 5 million tons a year of demand just from carbon investments but it's way beyond that historically, at least since the early 2000s, china has been the only story for copper and demand growth now that demand growth is expanding to the developed world, the developing world, carbon is one piece of that. electrify kags, 5g, infrastructure development and covid recovery all these factors are coming in

to make this -- we've had a great run in copper, but we're really looking to a really positive future here >> should we anticipate that there is no down cycle any longer i mean, it seems hard to imagine even when we hear that typically, it's met not that much later with perhaps a surprise >> no. my career in natural resources is very long, and i always say that there's events that none of us can anticipate that could well happen. but i'm talking about the fundamental story for copper is a long-term very positive one. whether we have some geo political event or economic recession, that's always a possibility, and that's why we've worked so hard to get our balance sheet in a strong place. the way for success for a company like ours is to be a right strategic view, but to have a fortress balance sheet that keeps you from getting really creamed when things go

wrong. it could happen. but even if it does happen, the fundamental story for copper will be intact >> yeah, and i can remember when the balance sheet was in a different sheet. the demand side is what we've been talking about what about the supply side is there a scarcity of resources? how long to develop new sources of copper that given your comments are certainly going to be necessary >> yeah. the other story that emerged in 2000s along with china was historically copper supply sources were abundant. when prices went up, the world turned around and geologically there wasn't copper, and there's all these other barriers from community, environmental issues. and so it's remarkably different from other commodities that the opportunities to develop supplies are being limited, and any investment five to ten years to get new copper-owned stream

we're heading for a situation in all likelihood, strong demand, scarce supplies, significant def deficits that means there will be scrap recovery, substitution, and with that a high copper price >> it's morgan, there's a big debate going on right now about whether we're entering a commodity super cycle. how do you see it given what you're seeing right now? >> when people talk about that, they're generally talking about a broad range of commodities we're focussed on copper one thing our board has made a commitment to, and i just became chairman that's going to be our business. we're not going to get diverted into diversification efforts so i'll speak for copper as i said, i just -- i'm thrilled i mean, particularly after living this past year with covid. to see how the copper market has come about i was always confident in our business and assets and people

but to have this emerge so quickly is head spinning and i can't stop smiling and then this is not the end of this i mean, because what we talk about carbon reduction investments, they're not a part of the market today. that's coming. we have seen copper go from, you know, 235 predictions from lower a year ago to 450 now. and we got these big wave of new sources of demand from not just carbon reduction, but just fundamentals underlying the word so yeah, i think copper is in a super cycle. i'm not going to speak about other commodities. >> okay. i realize the carbon piece of the puzzle is a growing one and one investors need to increasingly pay closer attention to china is a big driver for copper i mean, we're seeing signs according to some analysts that are focussed on it and writing about it there's a curtailing of infrastructure and housing spending happening in that country. how do you see the outlook for

china? and is that a reality that could in the near-term have an impact? >> before covid, china was pivoting away from infrastructure spending to building up its consumer economy and export economy and after covid stimulated, they returned to infrastructure the rate of growth in china has been falling and it will continue to fall but the amount of consumption today is more than half of the copper in the world goes in there. so even with the changes, china is going to be a huge consumer of copper. it just is not going to be the end all and be all for the copper demand. it's expanding, but china -- and look, since i became ceo in 2003, there's a persistent drum beat of an impending doom in china. you know, for various factors, and apart from politics and all that, that country has done a

remarkable job of managing the economy and improving the standards of living for the people and the demand for copper is going to stay strong >> finally, richmard, those who know your company well can point to unexpected diversions in terms of business focus. can you promise investors that you're going to stay squarely to dused on copper and not make a move given the good times into perhaps other areas? >> yes yes. i mean, david, you know this this has been a long and winding road i had this same view ten years ago of focusing on copper, returning cash to shareholders, being disciplined in investments. the board at that time went a different direction. that's history now we are -- we got a board that's really understanding the business we just added two great new board members.

and no, we're committed to copper, and we believe that just the reasons i said, that it's going to be a great future here we've got a business looking out. there's a wealth we've done now. looking out to '21 and '22, we have a business that if the day's copper price is $15 billion of ebita with 2 billion of capital spending. >> that works. >> and that's sustainable. now, we'll find new projects to invest in, but those aren't going to come in the near-term but that -- anyway, think about those numbers. >> i will. and i'm sure our viewers will as well richard, good to have you back with us. look forward to checking in and seeing how the work toward the numbers is coming along. thank you. >> yeah. thank you. it was great to be back. >> take a quick break here check out shares of gm earnings beat, revenue a bit

shy. they did reiterate the guide they say results were helped by strong auto pricing. here's the ceo on squawk earlier this morning we'll be right back. >> we're focussed on producting our highest demand vehicles and those that were constrained to build more full size trucks and suvs are electric vehicle products. it gives us confidence we think q-2 will be the weakest for the year, but then we see recovery beginning in q-3 and in q-4, and we just continue to work at it every day

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virtually. india was invited to attend the event in london despite not being a g7 member country. reuters is reporting eli lilly employees are accusing the company of down playing serious quality control problems the fda is investigating the plant where several treatments are produced dr. anthony fauci telling the "today show" he believes the fda will green light pfizer's covid vaccine for those between the ages of 12 and 15 within several days data showed the two-dose shot is 100% effective among this age group. you're up to date. morgan, back to you. >> thank you it is now time for our etf spotlight. we're taking a look at kathy wood's arc innovation, ticker ikk, trying to rebound after dropping almost 30% off the february high the fund down more than 80% over the past week of trading

take a look year to date all the names are still in the red. teladoc down more than 30% for 2021 up next, facebook's board upholding the ban on president trump's account. we'll talk with the co-founder of the board and later the ceo of t mobile after reporting results. don't go anywhere. ♪ ♪ (upbeat music) ♪ ♪ ♪ ♪ ♪ ♪ ♪ ♪

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the facebook oversight board voted to uphold the former president's suspension from the social media platform. with us is carol kaldwalder. great to have you with us. thanks for the time. >> thanks for having me. great to be here

>> i'm look agent the statement from you today the decision shows the oversight board experiment has failed. why? >> because it's kind of the whole thing revealed it to be a completely pointless charade pointless essentially set up this body as a pr device and it did that because it's trying to off load the most difficult decisions it has to make to another body and so that it doesn't have to take responsibility for its platform the oversight board in complete fairness said no way you're actually responsible for this and so it's punted the decision back to facebook and so it's -- you know, it's an extraordinary thing. we've had months and months now of this. and yeah, facebook's attempt to just kick it down the line and to make somebody else make these experts take responsibility for it has absolutely failed

and i think they have been really embarrassed and even humiliated a bit in the process, i would say. i think there's a lot of people not buying it this morning i think you can see that in the reaction to what's going on. >> yeah. i think a lot of viewers would argue if they're not humiliated by what's been said about them today by their own creation, then maybe they have no sense of humiliation. i wonder whether or not you think in six months they will find some way to face the music and decide either way how this is going to work for trump and for any other user who uses the platform to incite violence. >> or are we going to end up in an even more absurd situation where they punt it back to the oversight board? are we going to kept in this recurring loop i mean, that was what there was a call earlier one of the co-chairs suggested that could happen. it's just that nobody wants to

take responsibility for the decision but it is facebook's responsibility being that they are a private company, and the sort of preposterous thing they've done to set up this body and to cloak it in the language of a supreme court, you know, which is making decisions, it's just -- i mean, it is ridiculous facebook is a private company. it is not a country. it does not have a constitution. it is not bound by the first amendment. i mean, and i do think that has been -- that myth has been punted today, and i think that is very helpful, and i think it's a sort of the emperor's new clothes, really. >> right do you think that the way in which this model, that they have chosen, is working out, and obviously it's been met with a lot of derision as we're speaking right now, is going to discourage other companies from trying to do the same type of thing? >> let's open so because, i mean, the point about it is that this is a huge

distraction device the homes of facebook happening gl globally across the world in the spreading of misinformation and disinformation and the failure of facebook to take action over that is what we should all be looking at now that's what we should be jumping up and down. this single content moderation decision which is being examined by a corporate board is kind of neither here nor there you know, it's like the world is on fire, and over here we have some instead fireworks going on. it's sort of facebook's pr team that put out as distraction. and you know, and i kind of -- the thing is about it is the board i think joined in good faith. they are great experts but they are being used they're being used by facebook as political cover and i think what was kind of

interesting in the decision that they said today is that they're kind of acknowledging that and i think that is why they've turned the tables and just sent this back to facebook and said nope, not on us. this is on you >> yeah. that is one of the more fascinating parts of this. what are your expectations as to what actually happens? do you get a sense in do you think facebook says okay, we'll agree with our board >> i mean, i honestly don't know i mean, the board makes some good recommendations about the fact that this totally untransparent policy there's a lot of people who are angry that facebook goes around deplatforming people and doesn't provide any explanation. i think there's people in america who will be upset by this, and they should rightly be, because this should be a transparent process. facebook should explain why they're booting people off they should have a code. you know, it should be absolutely clear, and that's -- that isn't the case at the

moment it is completely cloaked in darkness we don't know what goes on behind the scenes. i kind of -- again, i hope that that is what is revealed by today. and as i said, the oversight board made good recommendations to facebook about that but they're not binding. and one of the most extraordinary things, actually, about the decision today is that the oversight board say they asked facebook, i think it was 46 questions including what was happening with trump's facebook page, and how -- what the algorithms were doing on january 6th. and facebook has refused to answer those questions so it won't even -- facebook, it won't answer journalist questions or even respond. i'm a journalist at the guardian and observer in the uk they don't even respond to my queries these days

>> well, try -- >> now to its own board. >> yeah. try getting them on television that's another issue entirely. although, i will say stock's not changed. revenue at a three-year high growth rate. there's very little urgency one could argue for them to make changes, but we'll see if it happens. we appreciate it a big day of news. >> thanks for having me. up next, t mobile beats the street we'll talk about subscriber growth and building out e th5g network with the ceo we're back in a moment ted by le. the remarkable gx and lx. lease the 2021 gx 460 for $529 a month for 36 months. experience amazing, at your lexus dealer.

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welcome change. find out why investors should prepare for a bumpy may more "squawk on the street" coming up.

this is wealth. ♪ ♪ this is worth. that takes wealth. but this is worth. and that - that's actually worth more than you think. don't open that. wealth is important, and we can help you build it. but it's what you do with it, that makes life worth living. principal. for all it's worth. t mobile shares higher raising guidance after strong customer growth. the ceo joins us to discuss.

mike, thanks for coming back with us. >> of course it's a pleasure to be here >> strong results and it seems like at least from the notes from analysts on wall street this morning, that the company is very much firing on all cylinders in terms of the growth, the numbers you put out and this integration, post me merger the one thing i'd say is picky is valuation of the stock given the run recently in shares are you nervous or concerned that investors are getting ahead of themselves in terms of how high the expectations are now being set? >> not at all. a month ago we laid out a five-year plan for the investment community and showed the massive cash flow potential ahead for this business. we're excited about this synergy-backed model that we have from bringing the companies together it's allowing us to do something the others can't do. simultaneously deliver the leading growth in the industry

while growing profits and cash flows. that's just a fantastic opportunity for investors over the long hall. >> it seems like consumers are really getting excited about 5g, and that that's a big driver of the growth you've seen in terms of subscribers i wonder how that's translating to upgrades of 5g phones like the iphone >> well, it's -- customers are finally starting to notice this industry has been talking about 5g for years while customers have been sort of side eyeing it. but now with the networks arriving, particularly t mobiles, we're covering 1.6 million square miles of this country with 5g. that's more than one-third more than at&t and verizon combined and customers are noticing so now there's this demand for 5g phones starting to pick up, plus the market's returning. we've had a muted switching environment for the last year as customers haven't been in retail and that's changing. it's starting to change. and that's a great opportunity

for t mobile we're very much a company positioned for this return to normalcy, because when people switch carriers, t mobile is the net gainer we're starting to see it happen. >> it was only a few years ago that wireless plans, especially given the pricing competition we saw that was driven by t mobile and at the time sprint were seen as a key factor keeping a lid on inflation. now that we've gone from four to three, and i realize there's stuff in place for the next couple years around pricing for the company post merger, but when i see increases and growth in average revenue per user, i guess put context around that. and longer-term, what do you see the price for trajectory being >> we're not driven by promises. we're keeping prices low because our growth comes from taking share and growing subscribers. that's what's always made the t mobile model work. we're the only company in the

market right now, or in the history of this industry that's positioned to be able to offer simultaneously the best value, lower prices like you said, and the best network at the same time customers no longer have to choose that's a phenomenal opportunity to deliver revenue growth through subscriber growth. and so we don't have to price up this business to grow our revenues we can stick with the model of being the value player, but now we're attracting higher-end customers that want to buy up our chain, including our new premium offer, t mobile magenta max. it offers the industry's only true unlimited plan which is what 5g is made for. >> mike, it's david. you know, there's a growing dispute between your company and dish and its chairman. it's specific to your decision to shut down older cdma phone networks used by millions of dish customers of course, our viewers may recall they bought the boost prepaid business as part of the

divestiture package that sprint and t mobile had let me quickly read your quote from the conference call last week and have you respond, if i cay. he said you become the grinch. right? so we've seen the story before, right, they steal the toys and they're stealing your buddy's phones out of their hands. it was because the grinch's heart was too smaum. so the carrier has become the uncaring carrier your response? >> that's classic charlie. we actually don't really have a dispute with them. it sounds like he does but we're moving ahead with this upgrade for customers for a reason the american consumers can't be left behind and be on the wrong side of the digital divide every few years upgrades in technology comes and the result is what we're seeing today networks with massive capacity and customers that are able to connect and, therefore, participate fully in the economy. and as it relates to sprint customers, the ones we're responsible for migrating, we'll make sure every single one of them gets a hand set that's

compatible in time including a free 5g phone if that's what they want. we've announced the programs for customers. and we'll make sure not one single customer is asked to pay a penny more for this 5g, 4g network weir migrating them to most people already have a hand set that's interesting, within our agreements with dish doing the same thing for boost customers that's their responsibility. >> right they said they had until 2023 and you're moving faster than you originally said you would. >> we're moving fast for a reason you know, people want tens of people rely on these high quality connections and we gave them more than twice as much notice around this upgrade as we're contractually required to do because we wanted them to get after it we haven't seen them getting after it the way we are for sprint customers but we have a larger base of sprint customers than they have and we're going to make sure every single one is migrated on time i expect that they should do the same thing for their boost customers. >> mike, finally, i know i asked

about the space-based broadband offerings coming before, but given the news yesterday that spacex says it has over half a million orders for the starling satellite internet service and see you did offer the home internet as well, how would you assess that competitive landscape. do you see a company like spacex as a competitor or complement for future partnerships? >> it's a potential complement i'm very excited to see these developments i've been somebody who likes to get off grid and have always seen the limits of, you know, when you're out on the water or in the mountains of today's infrastructure, and it's fantastic to see what they're doing. we'll see households pick up on it as well i think innovation is fantastic for the market what we're doing is providing very high capacity 5g to places where there's never been broadband competition before at scale. 30 million households covered already. and ready to become subscribers

of t-mobile's broadband. we're here today with a higher capacity offering and, you know, i think these future technologies will be great complements to what we're seeing from 5g and landline infrastructure. >> thanks for joining us mike seevert. >> of course. >> shares up 3.5%. carl >> coming up on "techcheck," guys, this morning a first on cnbc interview with the ceo of core sierra reporting first results since going public back in march shares are down 32%. we're back in a couple minutes the pursuit is on. the pursuit of outperformance at pgim. with deep expertise to outthink across multiple asset classes, actively managing investments in the world's public and private markets. outscale, with the resources to serve 1,500 clients in 52 countries. and outlast, with long-term conviction that looks beyond today's volatility. join the pursuit of outperformance at pgim. the investment management business of prudential.

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blue origin preparing to sell tickets to space we haves the details, at least some of them getting a quick check on where the major averages stand at this hour it's a very tight trading range to say the least the s&p, 4175. the dow basically flat right now and the nasdaq is the out perforr autalf meupbo ha percent. "squawk on the street" will be right back card? you do. round the clock fraud protection. one of the many things you can expect when you're with amex.

welcome back jeff bezos blue origin will begin selling trips to space today. for tickets aboard its rocket and capsule combo, the capsule, which launches atop a 60 foot tall suborbital rocket can carry six passengers past the edge of space in an 11 minute to experience a few minutes of weightlessness, views of the

earth's curvature. blue origin will become the latest company to sell rides behind virgin galactic, which is under pressure down about 1% in anticipation of this news. we're also seeing spacex offering orbital trips including the first-ever all civilian mission by inspiration 4 slated for this fall. we're awaiting the key details, including ticket price, bluts for reference sir richard branson's business virgin galactic sold 600 tickets at a price between 200,000 and $250,000 apiece, reportedly blue origin could put a price tag half a million dollars when it unveils the sales game plan later today. in case you're wondering why today, the 60th anniversary of alan shepard the out >> that blue origins' capsule is named for, became the first

american to travel to space. >> what do i get how much time do i get >> an 11-minute ride. >> 11 minutes. >> from west texas. >> got it. that's an expensive 11 minutes but an experience you will never actually be able to replicate. >> exactly so we will see what we get on pricing. we will see what we get in terms of a timeline for trips to happen in the meantime that will do it for "squawk on the street. "techcheck" starts right now ♪ happy wednesday. welcome to "techcheck. i'm jon fortt with carl quintanilla, deirdre bosa and julia boorstin facebook's oversight board doesn't do what many expected and gives facebook homework. we'll try to explain what took them so long to come to the decision and what it means