good morning fed chair jay powell adding more weight to the possibility of the 50 point interest rate hike before fed leaders are going to go quiet heading into the next meeting. it's a harsh world after all florida politicians vote to strip disney of the special status that its held since the '60s more fallout over the so-called don't say gay law or parents rights law depending which issue you're on. and warner brothers pulls the plug on cnn plus the streaming experiment will end after weeks in operation that is amazing. it is friday, april 22nd, 2022 "squawk box" begins right now.

good morning welcome to "squawk box" here on cnbc i'm andrew ross sorkin along with joe kernen. becky is off today let's show you on this friday morning after what has been a wild week. we have so much to talk about, joe. u.s. equity futures at this hour nasdaq down 50 points. s&p 500 is off 15 points let's show you treasury yields this is on the back of the comments from powell that we will have in a moment. right now, the 10-year note flirting with 3% joe, now flirting at 2.945%. >> we can round that up. powell is about 25 basis points below the most hawkish members of the fed now we're hearing 75

fed reserve chair jay powell says 50. he says it is essential that the country tame high inflation in the final comments before central bankers go into the quiet period i guess. i think someone is saying something. >> we try to keep them from the quiet period >> powell said aggressive rate hikes are possible as soon as next month check it out. >> i also think there is something in the idea of front-end loading. whatever an accommodation one thin thinks is appropriate. that is putting 50 basis points on the table we make the decisions at the meeting and make them meeting by meeting. 50 basis points is on the table for the may meeting. >> he made the remarks at the imf panel moderated by sarah isen as he spoke, market pricing for

interest rates increasing got more aggressive. according to the cme group fed watch tool, the 50 basis point rate hike in may rose more to 7% not just like antibiotic, i guess, andrew. not exactly like that. you figure you have an infection. give me a quarter of my antibiotics now and see how it goes next week give me another quarter. you want the dose. knock it out some people have used that analogy. if you are just creeping higher from emergency levels that haven't made sense for a lot of years. we had one thing after another variants and shanghai. >> maybe you want one big shot a voelker like shot?

>> do you think anyone ever says 100 basis points depends on what happens. >> if they said 100 basis points, what would happen? contain inflation? >> that's the other thing. that's a pretty blunt instrument we will slow things down and hopefully people will not spend as much. the economy, you know, won't grow as quickly. then inflation comes down. is it supply chain is this going to ease a little bit on its own i think. >> supply chain is two things. supply chain is the physical supply chain and then the supply chain is also the labor market which is its own supply chain and that's a problem that does not seem to be abating. >> and the demand side, i think netflix is learning that people aren't just going to pay

whatever if it becomes too expensive, you get the first couple flights under your with belt and vacations under your belt, then drive somewhere for $5 a gallon gas. then say i've been there and done that. maybe this elasticity we see with people goes away. maybe supply eases, demand eases. >> do you remember when we would have conversations and interviews and i remember talking to reid hastings and w talk to the guys in media and come up with the question. how many of these streaming services or apps will people buy? that is the question you ask they would act like the question was illogical and then -- >> and cord cutting for channels

that $30 a month the idea you spend $70 a month for five services. why is that not the subject of the same economics i'm talking on cable i love cable it is hard for me to move. >> the bundle. we talked about it >> i love the bundle >> get out your salt shaker. everybody is saying take it with a grain of salt. it is a good deal for the consumer i argue. often times has been one of the great business models of all time for the businesses that operated them. >> comcast is -- the parent company -- less affected by disney or discovery or any of the companies that seem more dependent on the success of screaming. we have a lot. we have a lot. broadband and business we do, depend.

peacock is important it is not like disney plus it is amazing. what's old is new. demise of the cable bundle may have been exaggerated. we'll talk about cnn in a little bit. >> i wonder if the whole industry had decided maybe this is against progress. if the industry, five or seven years ago, instead of chasing what might have turned out to be a feverdream that is netflix, decided we will try to protect the bundle or really focus on the bundle would it have been a different story? is that a backwards thinking the toothpaste out of the tube it would always go directionally this way >> 2.5 million added versus losing 200,000 that is not the same what is the standard of deviation on that guess?

>> you are talking warner media adding 2.5 million versus net netflix? >> the expectation that netflix would add that reid hastings, i have never seen him -- ceos are people, too -- they always can't put on a happy face that was a quick 180 degrees was it overly confident to where we don't have competition or we don't have password sharing or never have an ad that would never happen here it is sad for me to watch that he was like a different guy. i thought rich greenfield was a different guy. rich seemed like -- that was a shocker for a lot of people, was it not >> right >> it must have been >> a shocker for them. >> if you can lose 35% after you are already down a lot, on a

company that size. you don't see $50 billion market cap losses that is rare except bitcoin this is you. we were talking about disney and disney plus. we should talk about disney world. the story we have talked about for the past week. this happened in florida yesterday after approval by state lawmakers. governor ron desantis is signing a bill to end the special self g governing status. this is a reaction to disney's criticism of florida's so-called don't say gay law. i know there are different views of what the law says which limits early schooling on sexual orientation and gender identity it would dissolve the special

district to allow the company to build theme parks and experiences and hotels and other attractions with little to no oversight and spares local tax bills. they are getting rid of the district and that sticks local counties with bigger debt. close to $1 billion in debt, perhaps. we had a state official on yesterday who claimed that was not going to be the case later this morning, we will speak with two florida state representatives on this issue. one from each side of the political aisle. a discussion you don't want to miss what do you think, joe >> the same individual it's congress member fine. >> i know fine is coming on. if you are a business executive thinking of moving to florida today, you have any different view than you had yesterday about what with the implications are in the state like florida

around politics or taxes >> i don't understand -- the only thing i don't understand is why the end of the tax break for a big company -- it seems like that would lessen the amount of taxes that the taxpayers in the state would have to pay. you know what i mean if disney is no longer able to avoid what other corporations need to pay. why does that result in higher -- >> there are two issues. $1 billion of debt in that area that gets transferred over to the municipalities my understanding you are right. disney on a longer term basis pays more in taxes we can talk about this with our gu guests that may pay for some of that debt in terms of debt service.

florida has always been it this place that marketed itself successfully as open for business and as business friendly i don't know if apolitical they made a deal in the 1960s t have disney come i wonder if this changes perc perception i had a ruview it was a terrible mistake in new york for amazon to come here and a tax benefit offered. not only was the offer rescinded which i thought was a mistake, but the way it was rescinded the way, to me, spelled doom it sent a message to businesses around the country that are thinking to come to new york the politics of new york are complicated and may not be where you want to be at least not in long island city

that message sent to other businesses >> the people of florida will decide if they like what is happening, obviously if you remember in georgia, politicians -- not politicians -- but corporations made certain decisions based on legislation there, too more and more they are delving into what heretofore would not have been necessarily something that they would do that they have pressure from employees and customers. let's say is it wrong to say there are culture wars involved? >> i think a culture war is upon us >> it's upon us. both sides are dug in. >> it's ongoing. >> it's not the first time obviously. it is painful. sometimes, you know, something has to happen.

i don't know you hope that something eventually good comes out of it. you hope it doesn't take something like -- remember back in early -- earlier this century? we all came together for a millisecond after september 11th we are very divided right now. i don't know what brings us together >> we'll hug it out, joe. when we come back, a key message from earnings season airlines making their way out of the pandemic duoldrumsdoldrums. abrupt end for cnn plus. what they say about the sudden shutdown ahead of the streaming saturation don't go anywhere. >> announcer: this cnbc program is sponsored by baird.

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to be above 2019 levels in a few weeks. >> we are seeing the next six months incredibly strong we see business demand coming back at a rapid rate international travel is opening up those are encouraging signs. >> the messages from three of the biggest airline ceos on cnbc this week. saying demand for travel is coming back as the pandemic receipts airline stocks surged coming out of the quarterly reports now with her picks with the stocks in the airline sector is the aerospace and airlines research analyst these guys like to be positive they had a couple of lean years. is it really as good as they say? is business demand really coming back that quickly and

international travel, sheila, or are they hoping? >> joe, i was hoping to do the segment. i want to be a cheerleader for the airlines i think airlines have positive momentum there are concerns to answer your question, business demand is coming back it was only at 50% 2019 levels to start the year. it ended march at 70% the next recovery is the corporate coming back and inter nationality travel we have seen improvement as europe reopened. parts of asia are reopening with the exception of china >> it is all spring loaded, it seems like how long does it go above trend until it settles back to what will be the level we see for intermediate or long term? short term is a bit spring

loaded does it moderate >> historically, airline revenues for the u.s. airlines are 1% of gdp. right now. it is tempting to say airlines are .6% of gdp airline revenues were below 2019 levels at the beginning of the year the recovery is what happens with corporate we don't think all corporate comes back some are permanently removed the best way to gauge is where delta delivered. international comes back it will take time until 2024 because asia lags and china is slow to reopen. >> you are not in love with all of those how many buy ratings >> we have one buy rating

we are worried about two things. pricing. airlines are getting great pricing. we were told to be bullish prior to the quarter pricing is passing through with the low-cost carriers globally what we are worried about is pricing not airline prices, because they are not as significant, but the host of the miami hotel room or the hotel bar that is more does the consumer pull back on spending number two, we are concerned about cost inflation for the airlines and labor availability. airlines have capacity cuts because they don't have the labor available. it is not only the pilots, but ground workers >> really? do you have a rating on boeing out of curiosity >> i do. i learned. i had a buy on boeing for some time that's another one that is of

interest to investors. i think boeing starts to really work once you get things going. that's not related to airlines, surprisingly u.s. airlines are doing well for boeing one is the 737 max flying in china. that is important. china is 40% of the backlog. they are still not delivering to the region 787 delivered globally that will end in 2020. that is why you are seeing the stock price. then third is international traffic improving which we are seeing we need to thsee those three to get bullish on boeing for the year china is one of the biggest holding back right now >> sheila, where do you land right now with jetblue and spirit and frontier?

who wins it? more importantly, what the government think s about it in the environment like this? >> the u.s. consumer wins. what is happening in the u.s., domestic capacity is slated to increase 25% that will be great for the u.s. consumer pricing regardless which airlines combine that's why we are also worried about what happens to pricing as we see supply come into the market with the u.s. carriers refresh their fleets >> sheila, are you gambling that washington says that one of these deals is okay? one of the deals is okay and the other sisn't? the issue of you believe some capacity constraints and we see he what happens to price and how that factors into the thinking of regulators right now? >> we have seen regulators combine across we had a deal fall apart with

lockheed martin. we are cautious. >> okay. sheila, thank you. i appreciate it. good to see you. >> thanks. we have more coming up on "squawk box" this morning. let's tell you right after the break. details on elon musk's offer to buy twitter. funding is, well, secured. sort of. we'll talk financing stay tuned you are watcngsqwkhi "ua." >> announcer: squawk picks sponsored by wisdom tree the modern alpha pioneer

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musk's drive to take control of twitter. this is from "the new york post." he is speaking with thoma bravo about the buyout bid musk doesn't want to pay for twitter by himself thoma bravo would not move forward unless it worked with musk musk is now exploring a tender offer for twitter. iec given he hasn't heard back from the original bid the offer of $45 billion to finance the deal from morgan sta stanley. musk gave more color on his designs for twitter. posting if our twitter bid succeeds we will defeat the spam bots or die trying or authenticate all real humans

figuratively >> i wanted this i always thought if you could create a social media company that actually where every person is authenticated one account. they know you are an actual human being. the idea of on-boarding them is complicated and costly >> i think i only have one person, really, one hater. they have thousands of accounts. you know what i mean >> i do. >> he or she always says the same thing says the same thing over and over and over. i block them and they come back under a different name there might be more than one will this work with poison pill in tact? if he makes it tender and people

tender their shares and the board has nothing to say about it >> sure. sure if he actually decides to do it. it would be interesting. will the board turn them down? will the board try to find a white knight he is trying to put them in a box. i don't know the end result. i wonder if you have to team up with somebody else i know he says he has the equity he wants to put $20 billion of his own money are talking aboutc are we fixated on this because we're in the same business it is an interesting story >> i think we do if twitter is an indication of what people are talking about. maybe it is not. it is an escape. >> quick decision by our friend.

i don't think anyone should be comfortable over there at regular cnn. he is ready to -- i don't know -- and new management is ready to shake thing up. what went wrong? short lived cnn plus what is the broader industry take away after a tough week for streaming in general conversation that, i don't know, i hope you don't want to miss it we were talking about whether don't. you don't want to miss this. "squawk box" will be right back. >> announcer: executive edge is sponsored by at&t business at&t 5g is fast, reliable and secure our best deals on every iphone - including the iphone 13 pro with 5g. that's the one with the amazing camera? yep! every business deserves it... like one's that re-opened! hi, we have an appointment. and every new business that just opened! like aromatherapy rugs! i'll take one in blue please! it's not complicated.

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welcome back to "squawk box. the big bet cnn plus shutdown on april 30th which is weeks after the launch let's bring in the axios media reporter sarah she has an article out over the collapse of cnn plus

sarah, take us inside. what happened here >> cnn executives have been working on this for two years. leading up to the discovery merger after that happens, the ceo comes in and there is friction with he and jeff zucker. what happened is the closer thi year, they did not have di disclosure of what was happening to cnn plus. they thought publicly that they were kind of unsure about the asset. interview on february 4th on "squawk box" indicates i have not seen a business plan and don't know what is going on. there was a misaligned communication and incentives instead of stopping the brakes on the service before the

merger, cnn and executives decided to continue moving forward. then after the merger closed, discovery was quick and decisive about shutting this down sources told me in the days following the merger is when they took action cnn's new president or head who is supposed to start may 2nd has been in daily meetings at discovery. as we reported this week, they laid off cnn cfo they cut marketing spend the writing was on the wall. ultimately, these two companies had a very different take on the asset and honestly if it would work long term >> joanna, when you decide something is not going to work, it is better to end it early than keep going. the look at the costs and why not try for longer if you know it will not work or you really think it will not

work, it is better to get the distraction over with. what i would ask you is the question of streaming in the context of the week. we have seen all questions about netflix and cnn plus do you put those togetherin any way? >> i feel i should come on the show and ask sara questions. she has lots of answers. two thoughts one sara brought up is there was confusion inside the company there was customer and user confusion. i heard from people saying i subscribe and i thought i got lineal cnn they weren't getting that. there was customer confusion as well that goes to the question, andrew, okay does this log in with the netflix news and everything else with streaming it does in the sense consumers are not going to pay for 100 streaming services it doesn't make sense. we have to budget. we have to look at how much time we have.

looking budging and time and money. we cannot pay for ea number of streaming services am i paying for this am i watching this versus another news outlet or "bridgeton" or whatever else they watch at night. >> sara, go back to the internal politics there is a view that the folks at at&t or former warner media and cnn plus tried to jam this through. if they get this launched, although their new owners would not like it and if they launch it and have quick success that they would not shut it down. is that what you think was happening? >> that was part of it there was a stake a claim of cnn

over the merger. there was fear this they did to the launch this, the cnn strategy would belong to discovery and not cnn. there was the weird question of the 700 people you hired? if you hired them to create the service and content and never launches, it is a morale problem anytime they do something moving forward. i agree with you there was politics involved and concerns about how does this look politically with employees? >> sara, we also in that interview you mentioned with david, i remember we were at pebble i asked david about the elephant in the room, but the man behind the curtain. that is john malone. we heard rumblings about john malone he likes this. he wants this. can you comment on what you think this means for the network

cnn? if david, and i know him and we have known him for 35 years. he was one of the founders of cnbc he is very decisive. i don't know if i would feel too comfortable at the network right now. i think anything is possible watching how quickly this happened do you think david is aware of that and he will say the rest of you are fine i love cnn it's a great asset you don't need to worry or are big changes coming there too >> they are coming 3 billion they need to come up with you can expect cuts across the board at warner media. in the near term, it will be on the back end sales and marketing. i don't think he will tear the newsroom apart to the point about john malone, he is not shy about saying he wants cnn to come back to the center and core. under the zucker cnn, it shifted to the facts first anti-trump

positioning that the new discovery leadership wants to pull away from how that will change cnn, i've reported that the 9:00 p.m. slot opened that was taken by chris cuomo, don't expect that to be a news program you will see efforts on the lineal tv efforts because that is what malone is prioritizing sources told me the new warner brothers discovery leadership is willing to lose money. cnn makes $1 billion in profit a year they are willing to lose ad revenue on linear tv just to bring it back to center. there will be newsroom shakeups. i don't expect that in near future in the near future, you will sigse layoffs on the back end. sales and marketing, et cetera

>> there was chris wallace and kasie hunt hired and others. will they have a place on the lineal channel how will that breakdown? >> some folks may find something in lineal. i hear chris wallace moving over to lineal tv others may not there is a conversation where programming will go. one it will go to cnn's free ad supported app. that helps them because most people download the app on their phone. not on the smart tv. if you put a little video there, it allows discovery to sell addressable ads. that is one place it goes. some of the other shows will probably be tacked on to hbo max. remember, it is kasie hunt and chris wallace, it is also eva

longoria and an others they don't want to axe all of the programming. some of the shows that have not launched, those will be considered we have a bunch the programming they need to get off the ground. >> joanna, we have to go in 20 seconds, do other news outlets -- looking at cnn plus, maybe we need to compete with that -- do they take their foot off the gas? >> i think they put on the brake. the brake is the one to hit right now. just seeing where some of the streaming launches have gone bad. look at quibi? they had a similar play. give the people something new. hit the brakes you slam it. >> the brake is on sara and joanna, we have to get to break thank you. when we come back, tracking the winners and losers in the financial sector with multiarea

h year highs you can watch us anytime with the cnbc app stay tuned

welcome back to "squawk box. i'm dominic chu. it is time for the sector

nonics the sector on the financials the fourth biggest in the s&p. worth 11% of the total index weighting. it has been out puer performing. keep an eye on that. interest rates driving a huge part of the story. a lot of focus on 10-year treasury note yields certainly interest rates risen and financial stocks and banks have fallen. what are the things to watch is not the bank stocks. they are not out performers. the biggest under performers in the financial sector are asset managers

t. rowe price and franklin services watch if that continues. the best performing ones are not banks. best are insurance companies within the sector. wr berkeley up 29% and cincinnati is up 23% the asset managers are stealing the headlines from the banks although, joe, the banks are the most important since they make up the bulk of the market cap in the index. insurance and asset managers and financials back to you. >> the guy that started cincinnati financial, dom, i knew him he had a very modest house next to a golf course that i grew up on he used to collect golf balls. he is worth $1 billion he used to collect golf balls and give them as gifts from his yard that is how you get to be worth $1 billion

>> i grew up on the golf course and my dad still has rubbermaid bins full of golf balls over the years. halove the cincinnati stories. >> tnks, dom we're coming right back. at fidelity, your dedicated advisor will help you create a comprehensive wealth plan for your full financial picture. with the right balance of risk and reward. so you can enjoy more of...this. this is the planning effect.

welcome back to "squawk box" this morning retail investors could be less bullish these days according to a weekly survey investor sentiment below 20% for a second straight week also after trading exchanges like robin hood and charles

schaub and coin base good morning to you, sir >> good morning, andrew. how are you? >> congrats. we have a nice little name check for you there below with the new company. tell us what's happening, and tell me sort of more broadly how you think that sentiment, if you think it feeds on itself could >> i think, an tew, if you look at let's go back 18 months we were putting out these unbelievable volumes, you know, never seen before. now we're in a range where i think we're seeing more sustainable long-term volumes. and so you compare now to back then, what's the big difference? i think a couple major things. first one being people are going back to the office you guys are back in studio primarily, so you're seeing things like that

a little bit of a time out number two, you have gamestop, you have amc, a lot of sexy stories, if you will right now look at the story just came out about the streaming services and netflix, something that was such a high flier now you see the doubt in a lot of these companies going forward, so i think the confidence in retail investors fades along with what we're seeing in some of these stocks and then finally, you know, we have the two biggest questions, number one being how is the fed going to react to inflation? i think with many of these stocks, you know, we heard a lot of really aggressive talk over the fed overall which should be good for these companies but is this going to happen fast enough to keep up with a lot of the expectations >> help me with this we've got bitcoin on the screen

right now. i don't know if you can see it, but we're looking around 40,000 right now. off from the highs clearly and you can say that correlates with the nasdaq to some degree do you think it correlates with the retail trade, or in some ways has bitcoin and some of the crypto actually held up better than some of the mean stocks and what does that say about sentiment right now? >> i think many of us thought for a long time bitcoin was going to be the sort of ultimate retail indicator in many ways. and i think we're seeing it's lasting -- two things about that, andrew first of all, it shows that there's becoming more acceptance of digital currencies in general, maybe more particularly bitcoin so more people are holding in their portfolio it is a good indicator

these retail figures they haven't necessarily gone anywhere people are still participating, but they're not necessarily participating at the frequency which they were participating in 18 months now when they had more time >> i want to thank you we'll see where this is all headed we're going to have you back to continue this conversation we've got a lot more coming up this morning on "squawk box. thank you. when we come back, a harsh world after all. we're talking about florida. florida lawmakers voting to strip disney world of its special government status. we're going get pretty unique insight this morning about all of it.

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welcome back to "squawk box" right here on cnbc i'm andrew ross sorkin along with joe kernen. becky is off on this friday morning.

lept let's show you futures at this morning. dow off about 95 points right now. a couple headlines to bring you. if investors had any doubt that larger fed rate hikes are on the table, well they don't have them anymore. fed chairman jay powell telling international monetary fund event that a half point rate hike was, quote, on the table as the fed ramps up efforts to fight inflation. the next meeting taking place mark your callerders march 3rd and 4th. meantime cnn's new streaming service, cnn plus will shutdown after just weeks after it

debuted. the decision following the completion of the deal which shifted cnn's ownership from at&t to the newly named warner bros discovery other content will shift from other platforms like hbo max and we're already hearing some of the big talent may move over to the linear channel here >> i would think could chris wallace do a 9:00 p.m. straight news show? is that something that may be -- would it qualify >> i think they're going to try to find homes for a lot of the tal want that was cnn plus exclusive, and i imagine some of that program will also find its way as we discuss to hbo max and in some ways to larger audience. a lot of folks i think in the past couple of days in the media land and cnn plus land are thinking what happens here and i'm sure there are going to be a lot of people who lose their jobs in the process but

it's possible there's an even bigger audience for some of this >> combined with all the shark week viewers all of media is like shark week most of the time let's get to dom chu with this morning's market movers. it seems like we just left you, dom. here you are again, which is like a bonus >> it's the beauty of lin year television but anyway let's talk a bit what's moving as well this morning right now because what we are seeing is some of the major growth and technology type oriented names, social media hit really hard in yesterday's trade because of the macro environment for not just interest rates but everything else, there are some fundamental stories as well. we'll start with social media parent company snap.

they came off yesterday's closing bell and announced on the headline was a fairly disappointing result profits came in worse than expected revenues came in worse than expected but all of a sudden you saw the daily active users came in more robust and so a mixed picture on balance of snap chat shares down about 1% right now and down about 41% in the last year the technology and communications services trade was very much the down side yesterday. and we're watching to see if there's some stability right now. i want to kind of key you in on a handful of names here. end phase energy on the solar side of things up fractionally, down fractionally. all seeing some sort of marginal or fractional movements up or down these names were some of the absolute worst performing stocks in the s&p 500 yesterday, down anywhere from 6 to 12-some

percent. so a big move lower on some of the fears of interest rates playing out, and one of the place to keep an eye oncrypto currencies we've been talking a bit about bitcoin trying to hold above that 40,000 mark we're still above there right now, 40,500 where they're down about 2% either, xrp, light coin among some ones showing down here. keep an eye on that bitcoin and everything else. i'll send it back to you >> thank you, dom. and maybe we'll see crow again can only hope. >> let's talk musk this morning because, boy, does he seem willing to risk a large part of his tesla fortune now for twitter. i want to get robert frank on with us right now because he's been looking to all of these issues, financing and everything else what is happening here >> well, andrew, financing

secured this time actually on paper. he secured $46.5 billion in financing that's of course to take twitter private so there are three main sources of funding here. the first is $13 billion in loan from morgan stanley, b of a, barclay and others these are effectively claterized against twitter going forward. he's going to borrow another 12.5 billion against his margin loan through his tesla shares. bankers say he'd likely have to pledge around $65 million for his tesla shares for that loan that's about a third of his total stake for tesla. that's on top of his million shares he already pledged for margin loans years ago he's going to put in another $21 billion of his own equity. this will be cashed from either selling tesla shares or selling some sort of ecwtdy stake in spacex that stake worth over $50 billion today. so bottom line about two thirds

of this financing will come out of his own pocket, and it could lead more than three quarters of his tesla stake pledge as collateral he does have a cushion here. he just received this week another $15 billion of options as part of that massive 2018 compensation plan. now, he can't sell those shares for at least five years, but he can pledge them as collateral. so, andrew, another example of great entrepreneurs are comfortable with risk taking a lot of tesla risk for twitter here >> robert, two questions how much of this is locked and loaded in terms of the financing? is this the equivalent of the old highly competent letter that drexal put together back in the day? or do you believe that the financing really is in place ready to go? >> well, it's solid. it's on paper. he's got the $13 billion from the banks. all the banks are committed. there's a very long sec filing

yesterday and that is locked up, that is solid. you know, the rest of it the margin loan he does have enough shares to pledge those as collateral it's a lot of collateral, $65 billion for $12.5 billion loan so he's got that cushion the 21 billion is the big question where's that going to come from? does he truly have enough nonpledged tesla funds to fund that he doesn't have much liquidity so the big unknown question here to the degree this is still unknown is where that 21 billion in ectwitty and cash is going to come from. >> with the poison pill in place can he still tender? does it make any sense to try to tender if you were going to without the board officially taking that off the table? >> you're the deal guy you tell me.

it's going to be more complicated and expensive for him to do it with a poison pill. it's still possible through a tender offer but what do you think of that question >> i think this is the force of that issue i think with the poison pill in place the whole thing becomes almost irrational because it becomes irrationally expensive at some point. >> yes, yeah but what do you think that level is >> that's a good -- that's a great question i'm not smart enough to have a great answer for you right now >> guys, if there was any worry about tesla shares being inflated, that report from earlier this week couldn't have come at a better time. i mean if i was a banker i see that -- >> joe, it's so well-timed not just -- not just for the share value but because of those results he got this additional $15 billion in options that provided the next -- >> he hit every goal --

>> brilliantly timed and all happened on 4/20 >> i don't feel that bad about -- i feel like it's less of a total moon shot when you look at the kind of growth that -- think of the supply chain eases. he did this without some supply chain easing >> it's a volatile stock it's a large amount to pledge. >> let's talk more about tesla, and joining us for that stephanie link, chief investment strategist as well as a cnbc contributor. you're contributing a lot, stephanie. >> especially this show. >> and dan ives. right from the very start you thought he was going to get it, you still think he's going to get it, i guess.

>> he's going to start that process and put more pressure on the board to ultimately come to table and negotiation if he gets to 30, 35%, but the financing yesterday was key. i think he was skeptical he could get it he detailed that and i think that's really the key right now is that it all comes down to game of thrones, does the second bidder come in, dozen the poison pill white night come in, and then does musk potentially partner up with a de to help him get the bid? >> that took a while >> well, i think that's an important point because, you know, i was covering that for years. you know, a board member of

tesla and close friend to musk an 18-month protracted but a lot of pointers in there in terms of what could happen here i mean, they played the long game shareholders bowed it in court, and i think musk laying it out in terms of the financing is key. now, of course for tesla investors the head scratcher is why would you want to trade caviar for $2 slice of pizza in terms of shares for twitter, but it comes down to, you know, that's really musk's view right now, and i believe the board back against the wall poison pill does another white night come in? >> i would definitely trade caviar for a couple pieces of -- it's not even close i don't think. >> dan, you want to stick with tesla. i want to get to stephanie about something else but go ahead. >> one question for dan, which is what do you think the chances of salesforce come at this

he also is the co-ceo of salesforce salesforce made a run at this company before their stock took a hit, does that change? is there value in twitter or the sentiments of twitter for the salesforce enterprise universe >> yeah, i mean obviously there's a point they were looking at twitter in terms of some of their report and it looks like the deal has been such a disaster for salesforce i think they would be really shy to go after this, but the problem you have to change the model. so i definitely feel it's a much financial buyer than strategic especially given what we see here with twitter. >> stephanie, tell me i can buy

netflix 70% off, a 70% off sale from its highs why is that not a buy with both hands? or is it in your view? >> well, it's not only 70% off but also only trades at about 20 times earnings now and unfortunately, the stock doesn't trade on earnings. it trade on subscribers, and subscribers were disappointing and i think they're going to continue to be muted going forward until they fix the password issue, but you also have a ton of competition in streaming. i wouldn't own any of them quite honestly just because i think this competition will stay very, very strong. these companies are going to have to all spend a ton of money for content or improving content. and this sector was also a big beneficiary of stay at home trends, so you now have tough comparison so i'm not saying that netflix it you had a three to five year

time you wouldn't want to nibble a little bit, but i think you have a lot of time >> really? because i just don't see how a stock can go -- we've seen it again and again and again, but universally loved the, you know, cadillac, the mercedes-benz of media at 700 and still the same company. 200,000 subscribe -- really? it's not -- it just seems i don't know sentiment wise when it's universally loved you don't buy it when it's universally hated and no one is ready to step up that seems like when you should buy it >> that is totally the way you make money you buy low, sell high most people don't. it's very hard to do i'm just simply saying what are you getting for 20 times earnings you're actually getting 10% revenue growth that doesn't seem very appealing to me. so i think you have time they'll get this fixed, they'll figure it out, but they'll have to spend a ton of money to get

this fixed >> okay. you can buy three times as many shares as you could six months ago for the same price not quite but -- >> but you could buy a lot of other companies that are seeing strong momentum, right >> history is littered with fallen angels that fell further. we know that that's a good point. all right, stephanie, thanks dan, you hear anything, know anything, let us know. call somebody that can get through to us. have you -- i can't say that have your person call my person. i don't have a person but maybe you have a person. >> and joe, this soap opera it's a get out the popcorn moment there's going to be a lot of i think twists and turns ahead >> let's talk about that pop secret, butter, no butter? i'm open to suggestions. do you pop your own?

>> i like movie popcorn no butter >> okay, sorken? can you weigh in >> let us stick with skinny popcorn. >> oh, never mind. why did i ask? i'm thinking about the melting a whole stick of butter and melting that on. >> i know what you're thinking but i'm looking out for you. >> okay. all right, fine, fine, fine. >> and it tastes the same. with enough salt it tastes the same >> let me guess and you'll only eat it between -- got to remove it, eat some and put it back on between all that >> if you're at the movies >> yeah, exactly earnings just out from american airlines am i done? 273 a share compared to consensus estimate of 2.44 "squawk box" is coming right

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at vanguard, you're more than just an investor, you're an owner with access to financial advice, tools and a personalized plan that helps you build a future for those you love. vanguard. become an owner. now the answer to today's aflac trivia question. what is the worst performing stock in the nasdaq 100 year to date the answer, paypal >> welcome back to "squawk box" this morning this week the supreme court rejecting a request to overturn the salt limit from new york and three other states the cap putting a $10,000 limit on the federal deduction for

state and local taxes. joining us now to talk tax policy, inflation and much more is harry wilson. and now republican candidatefo new york governor. harry, good to see you >> good to see you, good morning. >> i want to talk autos and tesla with you in just a moment as well given your role in the auto bail outs now many moons and years ago. but what do you make of this decision and how it's going to impact states like new york? >> sure, so i think the decision was predictable. it's clear the lawsuit had no legal merits the time to stop this policy change was at the time it was being made into law, and that didn't happen obviously. one, it's obviously very detrimental to states like high tax states like new york they've lost $30 billion of taxable income to other states that's an impairment going to hurt the state and raise the burden of other taxpayers going forward.

what it really means blue states that are high taxed need to get their act together in order to be competitive and keep their people >> harry, obviously you're running for governor of the state. what would you do at this point given there's going to be less revenue? >> so, look, i think the answer is you have to deliver a higher quality source at lower cost if you compare new york to other states, the data is out there. it's easier to get at than the private sector you can see new york seriously underperforms. in the vast majority of services whether it's public health, public education, infrastructure, et cetera. and yet we spend more per capita than virtually any other state in fact, we spend 50% more per capita than massachusetts, a deep blue state next door. it gives you a sense just how far-out of whack new york is the real answer is being much more disciplined with taxpayer

money and making sure to deliver higher services at lower cost. >> new york is a deep blue state. you're running as a republican in a deep blue state with the mandate of trying to as you just said offer more services or better services for less cost, which probably means going after the unions, given that when you talk about infrastructure cost look at the subways, mta in new york why have things cost as much as they have? it's because the unions have pushed some of those prices up how are you going to -- how are you going to work with the unions if that's the answer to make that pricing match? >> sure, well, the politicians at the negotiating side and taxpayers who fail to deliver for taxpayers time and again what you see are politicians are more interested in keeping themselves in office and giving out taxpayer money to do that rather than being fiduciaries for taxpayers. that's why i place the blame whether it's the union or any

other counter parties it's their job to negotiate for their interests. and they've done a great job at the expense of taxpayers but because the politicians have done a bad job defending taxpayers. i've spent 30 years going through complicated turn around, and we've had to work with stakeholders from unions to bond holders, suppliers, et cetera. and in all cases we've managed to come out with win win solutions that ultimately involve short-term sacrifice for long-term gain whether we managed to do that whether general motors or any other companies the way we do it in new york, it's a really developing common vision of how everybody can benefit and what that to get there and rallying people to come together to drive towards that common vision mostpeople it's hard -- it's harder than just giving money away but the right thing to do and put new york at a far better footing than we are today. >> harry, give us your sense of tesla. we just had this earnings report

and i ask you about tesla because this is a company that never needed a bail out. you could argue took a lot of capital bail out of sorts but it never worked it was never a government bail out. and when you look back at the bail out, do you look back on that proudly do you say that was the right decision, wrong decision there are still people who debate how that all went down. what do you think? >> so tesla first. i think what elon musk has done is just incredible no one had built a successful independent car company in a century. and elon did an incredible job of tesla this last quarter was extraordinary. given how much tesla has already grown is pretty impressive, but they also had pricing power, through margins, he's done an incredible job and because he's developed incredible products consumers really want. and that's core for any business you know, in the case of general motors and the work we did now

almost 13 years ago at that point they've been shrinking for 55 years everybody said it could not be fixed. they're losing $4 billion a month at the time. and the work we did with the management team was develop a plan that put them back on good footing and they've had record profits ever since >> fair enough >> i think it represents the renaissance of the american auto industry >> harry, we'll have to have you back and have a big debate with you about subsidy for corporations in new york you've seen that debate plan in florida with disney right now. we'll see you hopefully in the future soon. >> thanks, andrew, good to see you. still to come, disney on the brink of losing its special status in florida. we're going to talk to political strategist about what it means for the mouse house. that's next. and as we head to break, quick check on the markets

nad dack has turned positive stay tuned you're watching "squawk box" on cnbc

[copy machine printing] ♪ ♪ who would've thought printing... could lead to growing trees. ♪

welcome back to "squawk box. the futures right now, the dow still down 71 points or so you can see the numbers, nasdaq the only one that's green. the 30-year now flirting with 3% right there you can see 2.937.

earlier we had ten-year still below, still below at this point even though we heard from jay powell 50 basis points perhaps in the cards american express came out with some numbers $2.73 a share. results getting a boost from increased card spending by younger consumers and some small businesses >> okay, let's -- we've got to do some booze news it's a friday and it's happy hour somewhere, right? said it would take a $1.1 billion impairment charge as a result. the beer maker had suspended sales of its bud brand last month that follows russia's invasion of ukraine and sam adams reported quarterly loss of 16 cents per share analysts were expecting profit of $1.97 a share earnings also below.

earnings out from verizon. adjusted profit coming in now at $1.35 per share. verizon lost 36,000 phone subscribers during the quarter but that was fewer than the roughly 49,000 we've got a lot more coming up on kw"squawk box" in just a moment we're coming back after this

welcome back to "squawk box. this morning florida state lawmakers passing a bill last night revoking disney world's special tax status in the state. take effect next june. joining us right now with disney's options pollster and political strategist frank, what do you make of this? what does it say about where we are as a country, but what does it say about the state of florida as a place for business? >> well, it says that we are poisonous and toxic, and the fact that a governor who arguably has one of the most successful records in america in terms of economic development, in terms of business is arguing with arguably one of the most popular, respected companies on the face of the earth, it is -- it's a tragedy, and it's a tragedy over language, and it's

a tragedy over strategy. if this is a debate over whether first graders should be taught sexual identity or sexual development, the public overwhelmingly says no but if it's a fight over the phrase don't say gay nobody wants discrimination or punishment and this is when framing matters so much. the language that the business community and the political community uses determines the outcome of the debate. this never should have happened. corporations should not be involved in politics according to the american people individuals not only have every right to speak up but they should, and it's the responsibility of businesses to help them to give them a voice, give them a platform but the public says it is not a responsibility for the corporation itself to speak up and speak out. >> so, frank, who wins this debate, and how much of this debate is about this bill

versus -- there's some people in the country look at this as a debate over free speech which is not just free free speech over individuals but companies. >> it's a debate over everything that's wrong great question because it goes to the conflict happening in america today. the idea we're not trying to win a discussion, we're not trying to promote policy, we're trying to destroy the other side, ron desantis is one of the best politicians and he knows how to do this well disney has a voice and people listen to what disney says the problem is that these two sides have come at each other so directly and there is no winner in this. anything that undercuts a company that does so much good for so many people in so many ways isn't healthy for the american economy and the governor -- >> here's the thing i don't think anyone knows what to do

about. and political leaders are watching this broadcast right now and you get in a situation like bob did where you have a company that does a lot of business in a state, it's hearing from its employees in that state but also in other parts of the country given they're affecting multinational business, and they're thinking we got to go to bat for our employees, and if we don't go to bat for our employees then we're going to have an even bigger problem in so far they're going to strike or protest how do you think a business leader is supposed to grapple with that inin fact the polls you're looking at right now are suggesting the american public doesn't want businesses to be talking about these issues >> they don't. tay want businesses to defend their people they want businesses to provide benefits and to recognize things have changed over the last two years. they expect businesses to make meaningful measurable advances for the people who work for them, but they don't expect businesses as a company -- and

by the way we would this fight with mitt romney in 2012 when he said corporations are people, too. the same people who condemned him saying that, no, this is an entity, this is not a person are the same people who are arguing that a company like disney should be directly involved in this i think bob has an impossible tightrope to walk, and he's been doing it as well as any ceo that i have seen. and he's been able to do it up to this point by giving voice to the public now you're running against politics and when politics gets involved -- i know you're going to jump in but when politics gets involved and this is a presidential campaign, it's a whole new game. >> we -- actually i think you framed it there's people that say it's a parental rights bill, and like no one -- it's very hard to disagree parents don't want to have a say in what

they're young children, you know, are learning or what's being discussed because we saw in virginia that was a pretty potent issue on a different subject but we see how potent and how that resonates. on the other side you've got the point -- you know if you call it a don't say gay bill or no one wants discrimination what would you suggest disney had done, not even weighed in -- so was florida allowed to address that issue because it's sort of public and i think legislature, republican governor for whatever reason, you know, that's a law they thought they needed to pass. should disney have come to the -- the defense of its lgbtq workforce, or what should disney have done, not weighed in at all? >> the two ds and two t's that people must have a voice and must have a vote, and which it

did that disney did promote that and then there's also the two ts, time and treasure. which disney can say we're going to give you the time and support you financially to let you know we're on your side but when you start to turn off the people, the consumers, when you start to lose subscribers, when you start to as a company, an entity, you start to lose the people who are there for your business, that is a step too far. the danger in all of this is that we have a political system right now and such poisonous toxicity that you can't even have a discussion like this. this is an important social issue. this is an important cultural issue, and every voice must be heard. but as a corporation there's a point that it should not address, that it as a company should not -- should not give voice, but you've got to give voice to those people. and everyone who's protesting

and marching, not only do they deserve that right, but that right should be protected. every consumer who does not want this taught to their children, they have the right to be heard, and the problem is we all want a winner and a loser we all want someone to look awesome and someone to look terrible, and that's why our system is so broken, and the business community i heard you, because there are ceos watching right now. don't get in the middle of this fight because you cannot win and for every politician who does this, you're making your state, your community, your people weaker and you're adding to this ugliness that we have to stop >> hey, frank, before i let you go talking about wins and losers, weigh in on kevin mccarthy winner or loser what happens i mean this comment that came out in this book, he said it was a lie trying to suggest that he didn't say that trump should resign then he said -- the tape came out. it's like the sky is blue and it's raining out is he a winner or loser this morning? what happens

>> today will be his worst day as republican leader tomorrow will be les bad by the time he gets to the middle of next week it won't matter when you've got grave sites of 9,000 ukrainians dying and sites like the one i reported on just now, when you have ininflation running at almost double digits, kevin will have a bad day, but the public is far more focused on the impact to themselves than what's happening to them than they are the political intrigue. >> always a fascinating perspective. we appreciate you bringing it to us this morning. we're going to continue this conversation next hour because we've got the florida lawmakers from both sides of the aisle who were behind this and fighting it out, they're going to be here to discuss the bill and the battle with disney, joe that is coming up. we had a congressman on earlier

this week about poking a hornet's nest. and we'll hear that i would think. cleveland cliffs stock rising sharply over the past three months thanks to soaring commodity prices the company's ceo joins us right after the it break and if you would we'd just suggest perhaps you might want to consider watching the shares of retailer gap this morning the company cut its sales growth outlook amid increasing competition and more promotions. also announced that the old navy president and ceo nancy green is departing. that stock is down sharply it's already almost single quk x"ilbe down almost 17% "sawbo wl right back. ♪ ♪

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welcome back to "squawk box" this morning first prosecutors issuing an international arrest warrant now for former nissan chief carlos ghosn, the soap opera. wow. according to reports the warrant was issued for over $16 million in questionable payments between the reknown use of alliance ghosn once headed and the company. the drama continues. of course he smuggled himself out of japan after being imprisoned what a remarkable story and we're going to keep our eyes on that meantime another starbucks location voting to unionize, but this one may have added

significance the vote concerns the company's hometown of seattle. the vote was 38-27 the group workers united saying 26 starbucks locations have now unionized nationwide unbelievable >> snap shares snap shares lower in the premarket after the social media company posted an adjusted loss of 2 cents a share analysts had expected a profit of 20 a share. snap concerned with sales growth outlook for the current quarter, stock initially rallied after its results posted, but then later turned lower cleveland cliffs reporting better than expected profit and revenue for the first quarter sending shares higher in premarket trading. joining us now is the chairman, president and ceo of cleveland

cliffs it's great to see you, sir, and it gets a little bit hard for layman to understand exactly how you benefitted here, but stock prices have fallen recently. this was a demonstration of the wisdom of fixed price contracts. did you change or go back to that could you just explain how that works or how that benefitted cleveland cliffs >> great to be back with you at "squawk box. yes, i think you got to the point. with our business model is different. we don't believe that volatility is necessary or something that is like avoidable in our business actually i believe that volatility is a self-inflicted wound. we are by and large a supplier we have by large the largest supplier of steel to the

automotive sector. so we are -- renegotiate we are not going to be exposed to the fluctuations of the ups and downs of this and that's the way it should be >> also a bit arcane but i think it's worth talking about especially when we see how -- how vulnerable we are as a country to supply chain disruptions around the world and how important it is maybe to have feedstock in this country once again can you go into cleveland cliffs and the stock important for that you are less dependent than many of your competitors on what's happening, less affected by what's happening in russia and

ukraine. that's another great point my competition relies on important big iron and from russia and ukraine we're talking over 4 million coming from russia and ukraine out of 6 million tons. so it's a lot. so first quarter was not an issue for them because vessels were sailing and some materials were on the ground here in the united states. the real deal would be second port we produce all of our big iron among all the producers in the united states we are the only ones that don't import we produce everything in minnesota, michigan, ohio,

pennsylvania, so we are self-sufficient. and they will make a change in a world changing fast from a steady state peaceful world to a world at war >> do you have a feel for this latest -- would you call it a super cycle in commodities or at least in metals? and how long that's going to last, and will it be solved as it usually is by the prices go up but becomes more attractive for people to expand production so they do it until they do it too much and then prices come back down, or is it different? that's the problem with the self-inflicted cyclicicality if we look at these numbers and compare we are working to eliminate volatility

for more than two decades in this country due to the control have volatility was part of the deal we're eliminating volatility bring return on investment and bring return on capital and can be supportive for both ourselves and our clients. we don't need the volatility the volatility doesn't help anyone we're proving that quarter after quarter and continue to do that. and expect it to be even more. >> can you -- can you deal with dumpers around the world still do you need the government's help can you compete just based on how well you do things, or do you need help?

is there still a major problem with dumping >> look, bad players will always be bad players but bad players will always act with support from the inside the insiders are the ones that enable the bad players you're going to see russia producing big iron even the two companies that import big iron they're not importing from russia anywhere, that big iron will end up somewhere end up in india, china, africa, somewhere let's see how it will be happening. we'll be watching, and we'll be

alerting cbp and the u.s. department about these practices. >> thank you that's a good-looking start and nice gain today as well. thanks very much good to have you on. coming up a big hour ahead tesla out with strong earnings report this week so what does this mean for the legacy car makers? we're going to talk to mark fields for whether or not the brands can catch up and then later two lawmakers weighing in from florida on the sunshine state targeting disney after the company got vocal on the so-called don't say gay law. we're going to break it all down and debate it. stay tuned quk x"omg ghba"sawbo cinrit ck

good morning dow futures pointing lower after a tough session yesterday, getting ready for the time trading session of the week. and we have earnings from two big shots in the index that we're going to bring you those number and it's been a big week for elon musk, record quarterly

profit for tesla and an evolving bid for twitter, financing secured maybe. details straight ahead and florida versus disney, two local lawmakers are on hand to debate the sunshine state's move against the special government status disney has held for more than half a century. final hour of "squawk box" begins right now good morning and welcome to "squawk box" right here on cnbc live from the nasdaq market site mr. kernen looking good. i'm andrew ross sorkin along with joe becky is off today this friday morning. u.s. equity futures with the market open about an hour and a half from now. nasdaq has come back, up about 32 points.

s&p 500 off about 2.5 points we'll show you treasury yields flirting depending how you want to round up or down with 3%. we're 2.192, joe so moving close. some of those comments yesterday from chairman of the fed >> from the two year no inversion there. and earnings out from two dow components in the last hour. american express earning $2.73 a share. results getting a boost from increased spending from small and medium sized businesses as well as younger consumers. goes the parents got that coming verizon also out with earnings, adjusted earnings $1.35 match wall street estimates. verizon did lose subscribers

during the quarter but fewer than anticipated let's get to those comments by federal reserve chair jerome powell, but he said it's, quote, absolutely essential now that the country can tame high inflation. powell saying aggressive rate hikes are possible as soon as next month >> i also think there's something in the idea of front end loading whatever accommodation one thinks is appropriate. so that does -- points in the direction of 50 basis points being on the table certainly we make these decisions at the meeting and make them meeting by meeting i would say 50 basis points are at the table for the may meeting. >> powell making those remarks to an international monetary fund panel those sentiments weighing on the markets this morning and tech shares got more aggressive according to cme group watch expectations for a

50 basis point hike in may they rose to more than 97%, the next meeting may 3rd and 4th, joe. >> yes a lot of meetings per year with those guys then they're going to be in a quiet period for once. we'll welcome that let's get over to mike santoli he's watching the markets and what's happening on the surface of the range bound index rates go up and things get range bound, i think >> it's pretty textbook i think in that sense if you want to zoom out a little bit. pretty ugly down side reversal you mentioned yesterday although it didn't seem to resolve anything it keeps the s&p 500 right in this range and a little bit of lower end. do like to point out you're going back to sort of last july when we first got to these areas so really kind of a nine month churning period. obviously big fourth quarter rally, kind of some exuberance

there. that's mostly been wrung out there i would argue. and take a look at what a balance portfolio, so to speak that somewhat traditional 60-40 stock bound portfolio. you're losing money on the bonds and bonds have crashed in value more than they have at this point of the year pretty much ever aor is an etf that more or less approximates a portfolio it's underperformed straight stocks this year and that looks a little more precarious it's not too far from those lows mid-march. your kind of capital constraint right there, and it feels as if there's not a great sort of buffer for what's going on in the markets. however, you talk about below the surface of the indexes the equal weighted version of the s&p 500 only about 4% off its high here's a six month look at that

against itself you see the out-performance right there, almost 4 percentage points and then you have megacap growth obviously dominated by the largest s&p stocks, that etf and the megacap was the big outperformer became huge like 25% top five stocks in the s&p 500. that's also obviously having a bit of an unwind as we get into this year. >> don't you think there's a consensus range bound markets always resolve like a break out higher and i think that doesn't always have to be the case, but don't we kind of think we're going to tread water for a while and start back up. is it possible >> i think it's very consensus you're right that, in fact, you know, look, until further notice the recent lows, i don't know if

you feel like there's a lot of it and that's why they have to break quickly, but all you have to do is look at the typical track for a mid-term election year, and we're following it right now. and it has been range bound or you want to look at 1994 and what everyone is pointing to in what the fed is doing, aggr aggressive tightening in the mid to late economic cycle and range bound for most of the year, not a huge drop, peak drop in the s&p 500 that year, but it was very frustrating, small crash bounds so i think it fits the patterns you might look at but i totally take your point. there's no guarantee this has to just sort of slingshot higher from here if we get out of this range. >> right if you go from 800 on the dow to mid-30,000s that's usually a pretty good bet that things resolve themselves >> right >> but there have been decades >> eventually. and you doubled in two years to

keep in mind before we had this -- >> all right, thanks okay, coming up disney's special self-governing status in florida set to be revoked. two florida lawmakers on both sides of the issue will be with us in just a moment to debate all. but first can anything or anyone slow down tesla? former ford ceo mark fields is with us next to talk about what the legacy auto makers can do to compete. you're watching "squawk box" right here on cnbc we're back after this.

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exploring an off to help finance that deal from morgan stanley and other firms and they say musk gave more color on his designs for twitter posting and if twitter succeeds we'll defeat the spam box or die trying and we'll athenticate all real humans. and joe, you had asked the question about this poison pill. i think there's -- the effort is going to be to put some pressure on tesla's board to remove the poison pill. by the way, they've also given all the financing and banks involved, kind of locked up a lot of the potential other banks that could provide financing for a white knight or a another bidder strategically it's going to get interesting to watch how this all gets played out. >> i would just say the people that raised an eyebrow when musk first started this and pointed back to, you know, funding secured for the 4/20 tesla

thing, there was a little -- maybe they -- do you think he's affected by that it's like, oh, you don't believe i'm serious, let me show you i'm serious. >> he's clearly serious. by the way, the question is does he have to go a little higher? does he have to go to $60 to force the poison pill away >> has there ever been a fair and final offer that people stuck to if they really wanted it sp it it's never the final offer, is it >> with twitter's board if there is no other bidder it becomes musk versus the plan which is to say you're going to start to see i think twitter will say here's what we can we can do on our own over the next two years. what is that number versus whatever number you think elon musk comes in at >> he doesn't have a -- almost

reminds me of zazlov and cnn he wants to make cnn what it used to be even if doesn't make as much money. we understand opinion is where the money is for ratings, but it's expensive to cover wars and to cover -- >> sure, but then that raises questions. look, i think elon musk historically has made investors money. i know he said he wouldn't do business an as economic machine, but you're not going to have a private equity firm partner with him or other guys if he's not going to be able to show them he's going to "a" pay them back, and "b" pay them back more >> how does twitter make money >> advertising >> i don't like when they advertise, and don't think just cleaning up the perceived bias

at twitter is going to all of a sudden -- half of the political aisle is going to come back on twitter and start spending money on ads they see on twitter i don't know >> by the way, the problem is not half the advertisers aren't advertising on twitter because of the policies. >> no, but if you've lost a lot of people like if you're going to be this way i don't want to be on your -- >> the economic challenges that twitter is facing in terms of monetizing its users hasn't been they don't have the users or half the country, i don't think it's a political thing i think it's the experience of the advertising hasn't worked as well, clearly as well as, for example, as what you see on an instagram or other platforms or a facebook >> andrew, you saw -- i mean elon musk might feel differently. we never discussed that unbelievable tweet what he attributed the netflix problem

to netflix had the woke mind virus that totally infected with the woke mind virus. what a great comment, and i don't know there may be something -- elon at least feels that way elon at least feels that way, and obviously that plays into what's going on. he's turning into peter teal i think and god bless him. i love both those guys >> we'll continue that but let's talk a little tesla for a moment now because the car maker demonstrating its stranglehold on the electric vehicle market reported record quarterly profit on mobile sales. other car makers aren't sitting on their hands, and we want to try to understand if they can catch up and joining us now is mark fields mark, it's great to see you. you look at these numbers and a lot of the dream that elon musk presented is -- is coming true that's what's happening here and then you start to look at

the gms and the fords and everybody else and say can they really catch up? >> well, i think they can. but, listen, to your point when you look at the quarter it was a pretty stellar quarter and a very uncertain economic environment, in an environment where input costs are going up, they were able to increase their revenue, their volume, their margins, their profitability, and at the same time launch some pretty big plants in two parts of the world that being said the auto makers, the established auto makers are getting their act together i mean at the end of the day tesla's advantage is first and foremost their software and battery company. they understand not only the battery chemistry, they also spent a lot of time on understanding the manufacturing of the battery and if you think about the auto makers they have always focused on for example the engines in their vehicles because that's the biggest, you know, input cost for their total vehicle cost

so they are now really spending a lot of time in investing in resources and things of that nature and partnering with battery manufactures, et cetera, to get just as good strategically at understanding battery packs and manufacturing as they do internal combustion engines. >> mark, i don't know if you can see we've got ford on the screen, general motors on the screen, toyota on the screen how do you rank order then in terms of where they are on evs and their ability to compete if you think they can on tesla within that marketplace? and by the way, also recognizing that there's going to continue to be for at least some period of time, and i don't know how fast you think it's going to go away combustion engines? >> well, first to that last point. when you look at some of the elements that go into making a battery whether it's cobalt or nickel, et cetera, we know there's going to be a mace match

between demand and supply right now. and so that begs the argument that says the long tail of internal combustion engines, this is going to last a bit longer, that being said to your question about who's in the lead, i would also put vw in this list as well. but, listen, when you look at ford they've already proven that they can produce vehicles and bring to market vehicles that people really want and value you look at their mach e, sold out on that. i think they're really getting their act together i think general motors obviously they're going to launch 20-some odd products in the next couple of years their new hummer is sold out and in vw's case i mean they're actually the largest seller of electric vehicles in europe right now as they pivoted to evs. so i think all three of those oems are really getting their act together and the one a bit of a dark horse is toyota because they focus so much on hybrids over

the years, but they have a reputation for staying very quiet and then making a big splash in the marketplace. and i think they will over the next number of years >> so when you look at a pie chart and you look at where tesla is today, and when i look at that pie chart i'm saying not just market for evs. i'm saying market for autos writ large, what do you think that pie chart looks like five years from now >> you know, i think when you look at an industry, the industry is going to continue to grow as we get through these supply chain issues. the global industry is going to continue to grow so i think what you're going to see is obviously you're going to see tesla continue to gain market share given the -- the, you know, increase of evs and their brand. that being said i don't think it's going to change too much. i think tesla will get a little bit of bigger piece of the pie, but i think the established oems as i said are really getting

their act together and i think the thing for tesla that people really underestimate, listen everything is going really well right now, but the real proof of the pudding is they go to mass adoption of their vehicles is the loyalty rate and that rate is basically when you buy your first tesla do you come back and buy your next car? will it be a tesla and i think all the things they're doing, all the kind of growing pains they're having with quality and service and things of that nature, that is -- that is yet to play out. and that's where the established oems really, really shine. >> where does the autonomy piece fit in this conversation elon musk saying they're going to double down on autonomy, robo taxis coming by 2024 >> he does have a track record of eventually delivering on those things listen,a tonomy is going to be

very focused on major dense urban areas. it's going to be -- i won't say a limited market, but it it's not going to be as ubiquitous as the total automotive market around the world because there's certain use cases for that you heard elon the other day say their objective is how do you get the cost per mile of using an autonomous vehicle down to the level of taking mass transit, a bus, a train or things of that nature? there's still a lot of development that needs to be done to master autonomy. listen, one of the things they still have to master is weather, snow you know, they haven't yet mastered -- all the really smart folks in the industry working on this including tesla hasn't mastered the fact when it snows you can't use autonomous vehicles it'll play a part but i think it'll be in major dense urban

areas. >> stock price right now $1,000. what's the fair value? >> well, fair value is what the investors think it is, and right now they're calling it at $1,000 so who knows it's kind of detached from, you know, traditional financial analysis >> okay. mark, always good to see you appreciate it. thank you. >> all right, see you. when we come back a debate you don't want to miss two lawmakers from florida weighing in on sunshine state targeting disney after the company got vocal on the don't say gay law. stay tuned you're watching "squawk box" right here on cnbc to support underserved communities... ...helping us all move forward financially. pnc bank: see how we can make a difference for you.

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with inflation at 40-year highs health care costs are surging. current and future retirees will likely see medical expenses make up an even bigger part of their budgets. our senior personal finance correspondent sharon epperson talked to some women who are worried and are stepping up to help curb those rising costs >> reporter: when kathy martin turned 50 she hit the gym. >> i want to be active for as many years as possible >> reporter: what worries you the most about health care

costs? >> not being able to access care when you have to prioritize your living expense versus health care, that's a major problem >> reporter: martin is in good company in this silver sneakers fitness class whose members are working on staying healthy but worried about the future >> what's going to happen when i get older? how am i going to be able to pay for the care that i need >> reporter: premiums for medicare part "b" for those 65 and older increased almost 15% this year, almost double the pace of inflation. according to one estimate if health care costs remain this high over the next two years a healthy 55-year-old couple retiring at 65 is facing an additional $267,000 in medical expenses total health care costs for the same couple could exceed $1 million. that's nearly as much money as they could expect to receive in social security benefits during their lifetime >> whether you're affluent or whether the average person, i'll

tell you what, when you look at your social security check you're paying for health care. >> reporter: regular exercise may keep your healthy but overall health care costs keep going up if you're worried about rising medical expenses,financial experts say the first thing you should do is understand what your health insurance will and won't cover. >> you really need to look at the coverage in those types of plans to determine what makes the most sense for you >> reporter: instructor melanie scala has been teaching this class for over a decade. >> i'm here to help them to not have medical costs i'm here to help them exercise and feel better. >> reporter: yet staying healthy also requires planning ahead to be able to afford health care costs in the future. u.s. employers expected group health insurance premiums to increase about 5% this year, so many retirees were shocked to see a 15% jump in medicare premiums for 2022.

experts say that increase is largely due to uncertainty around the pandemic and coverage for an expensive new alzheimer's drug also they say higher costs for goods and services for health care providers and higher wages for nurses and medical staff are likely to continue to drive health care inflation. joe? >> thank you, sharon sharon, what happens if you never plan on retiring and you plan on finally leaving on a slab is there a different -- no, i'm just kidding that one was for andrew. what financial moves can consumers make now in anticipation of rising health care costs during retirement >> you know, the most important thing to do, joe, is to save more i know people don't like to hear that all the time but it is very important to do. and you can actually save more in retirement plans after the age of 50 with catch-up contributions. so you can do catch-up

contribution to your 401k, put up up to $27,000 put in to your ira, save up to $7,000 this year and consider health savings accounts these accounts let a single person put in 3,650 this year. a family $7,300. the thing you don't want to rely on retirement because most companies no longer do that. >> the people elon musk is -- he's talking about they don't identify themselves. they keep saying retire, retire. and you know who i bring up andy ruiny. he died a month after he retired at 92. >> what you need to do, joe, we were talking about skinny

popcorn early. i don't know if you checked out sharon epperson's twitter feed hula-hoops she's hula-hooping with her mother to stay healthy it is awesome. great exercise to stay -- >> i swear to god, i do it, it goes around once and drops to my ankles what am i doing wrong? plus i need an extra large it's all stretched out oh, we got a hot debate coming up what i just heard move along coming up, florida versus disney state lawmakers feud with the entertainment giant is escalating and now the magic kingdom is set to use its special tax status a pair of lawmakers on either side of the aisle set to debate the next issue stay tuned you're watching "squawk box" on cnbc and aiming to protect millions of acres of land. so we can all live better.

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welcome back to squawk in two days this week the florida legislature passing a bill if signed will allow the special district of disney world to no longer govern itself good morning >> good morning, andrew. this is just a stunning defeat for one of the most powerful state lobbying machines in the country. the florida house yesterday passing that bill that would eliminate disney's self-governing district. the governor expected to sign it later this week or next.

now, this despite a 50-year partnership between florida republicans and disney disney's political contributions in florida totaling $50 million between 1996 and 2021. that's more than twice as much of that going to republicans as democrats. disney's corporate-pack gave $300,000 to republican legislatures who wound up supporting this bill including more than $100,000 to the friends of ron desantis-pack disney employs a team of 38 lobbyists in the state capitol of tallahassee that's more than any other company. its influence over the florida chamber of commerce so powerful that other businesses call it, quote, front man for mickey mouse. now, on issues disney has most famously blocked the state's attempts to expand casinos and gambling and shaped state laws on everything from sick leave. and consistently gets special

carve outs on state legislation including the most recent social media law which of course will be reversed. desantis now sees his political end campaign fortunes elsewhere. in an e-mail to donors this week he said he was getting rid of disney's, quote, sweetheart deal that was negotiated and preserved for a decade by the powerful including those in his own party. andrew >> what's been the reaction, by the way, by others in his own party not just in florida itself but around the country >> well, i can only say within florida he has the full support of the legislature this is one of the most locked step legislatures and governors you can think of in the country. we have this divide in florida between the old republican party and the new republican party and in florida, you know, they're all moving onboard with

the new republican party nationally it's a little bit more complicated >> robert, thank you for that report we continue this conversation now, joe >> we are. here to debate democrat state representative she represents orlando and back with us today the republican state representative randy fine good to have you both on and congresswoman, i just i saw one thing and i'm wondering if you -- if you really believe this or not. you're quoted or tweeted something this is not a democracy. this is one-party rule drunk on power and bullying anyone in their way into submission. i mean, we've seen this movie before, haven't we, hannah you remember, i don't want to pick on blood alcohol content b obamacare, but there are times either federally or in the state

the legislature has the guvership. would you really call that bullying and one party rule when it's just the constituents elected those people and then they do what maybe the constituents wanted. >> thanks so much for having me. i think it's pretty clear as someone who's never taken a penny from walt disney world we should rein special. governments should not be weaponized to cancel one company because they expressed freedom of peach that you did not like that is not appropriate use of government and to be clear this entire cancellation is a zrkz from florida republicans erasing two congressional seats from minority access. it's disappointing to me not only do we waive the rules to

skip debate yesterday but continue to find situations where the people in florida are asking us to fix the housing crisis, they're asking us to take care of real life issues and instead we go up to tallahassee to kill jobs instead of create new jobs and potentially with this decision increase taxes to county residents. >> congressman, we had you on earlier this week. there has been some yammering on what this will mean to taxpayers in florida i think you made the point it's not going to increase taxes if disney isn't covering some of the things it covers now that was what some of our reporting showed here at cnbc. >> thanks for having me. a great day today where we've actually proven something that she claims she wants, that money doesn't influence politics and here yet again we get to see the

s charlatanism we see from the left disney doesn't pay any of this disney pays taxes and those taxes are used to pay certain services those taxes will continue to be collected by the counties moving forward. >> what about the debt, congressman? >> they assume the debt. that's absolutely true but they also assume the revenue that is used to service that debt you get the negatives and the positives. local politicians have been telling us for decades they don't like be preempted by the state. literally allowing a company to secede from the state and govern itself, i'd expect these politicians who love to talk about local control to be dancing in the streets with the idea this huge property that they have been exempt from overseeing will now be theirs to deal with. >> if i may respond so the tax that reedy creek collects from

walt disney world is not going to be completely taken over by local counties in fact there are caps the county could even charge from municipal services tax assuming residents from that area even want to be taxed via the local counties when it comes to the debt it must be absorbed by those local officials. and the orange county tax collector and the orange county mayor have already made comments this dramatic shift is going to have an impact on taxpayersch and to that point it's not like other businesses do not continue to get special perks from the republican party in fact, miami dolphins just got a tax break this year. mr. fine has carried bills for other companies while receiving tens of thousands in unpolitical contributions. so we've got to call a spate a spate. it's deeply inappropriate especially when you don't even give time to hear from

stakeholders this special session was amended so quickly there was not even public testimony in the committee room because folks could not get to tallahassee in time that's not good government >> i would just add this, it's not true and again, democrats lie it's what they do. the counties will be able to create an mstu to collect exactly the amount of the same revenue. yes, you get the responsibilities and you get the debt but what's unfortunately is seditionists shrieked and hooted like a bunch of thugs on the floor yesterday. there were many members who did want to discuss this issue and if they kept their mouths shut and stop screaming and yelling -- >> congressman, you can look at other examples when the shoe was on the other foot you wouldn't see republicans -- you look at this situation in georgia, i'm

sure the conservative politicians in georgia were -- were unhappy when major league baseball moved or when delta spoke out. i mean, what is your real -- should corporations not be entering into the culture wars and that's different than actually having a legislature penalize the corporation for entering into the culture wars >> i would just say this i think companies should provide products and services the customers want i think all these companies that engage in politics whether on the left or right are breaking their fiduciary ability to their shareholder. i'm actually a shareholder of disney when you come and attack the values and attempt to bring your california values and lie about legislation that an overwhelming majority of floridians including biden voters by a 23-point margin support, when you say

you're going to use your special privileges and try to upend the laws of a state you're against, you poke the bear, the bear may come after you >> congresswoman, does it rub you the wrong way at all that disney's never said a word about china and they operate in shanghai, and there's uyghurs under internment and there's -- really, they -- a lot of the -- the nba or other companies will speak out about perceived injustice in this country, but where they're making a lot of money, where some would say the injustice are exponentially worse, totally silent. that's definitely some hypocrisy there, wouldn't you say? >> 100%. and that's why i've never taken a penny from walt disney world in political contributions growing up as a working class kid in orlando i couldn't even afford to go to disney

i think there's a lot of hypocrisy here coming from the right. and it's unfortunate because if you want to talk about free markets, i'm your girl, let's make it happen but you've plot addressed universal studios having two special taxing districts you haven't addressed what continues to be a heavy hand of government in giving treats to those who are nice to them and punishing a company that not only spoke in defense of lgbtq plus kids but has paused political giving in the state of florida, and that's what really this is about, florida republicans want disney to get back in line, continue donating to tear coughers and be silent in the face of injustice and i don't think corporations who have an effort to recruit diverse staff see it in their best business interest to ignore these types of dangerous policies being passed out of legislatures like here in florida. >> representative fine, what do you think? >> again, i think it's from a

party that doesn't fundamentally understand economics i've got $20,000 from disney but all of it was before they went crazy. i think what it shows you can give $100,000 to ron desantis or $20,000 to randy fine and it's not going to stop us from doing the right thing. >> but representative fine, doesn't this move show that this state and your party is willing to use a stick to get -- to get corporations in line with your politics in the moment and what does that say other corporations around the country that are thinking about doing business in florida? >> i think what it says if people want special privileges like disney has enjoyed for 55 years when you're a guest in the state you need to comport yourselves accordingly if my 14-year-old or 10-year-old want to take them to disney world they're not entitled to that >> if they're dm come and in the state and they don't get special privileges you're not going to

go after them in some other way? >> of course you have to keep in mind disney has enjoyed privileges for 55 years that -- >> that is not true. >> there's no district tha exempts them from zoning or regulations, no lego land at special district, none of these. so disney has enjoyed an vaenl its competitors do not have. if you want that, you should comport yourselves >> that is not true. universal studios actually has two special taxing districts also received multiple tax breaks from the state of florida including the urban tax break which i tried to repeal and republicans will not give a hearing to and to be clear, what does purport mean does that mean disney maintains silence in the face of task members asking them to take actions and they continue to donate money to republicans?

who defines what free speech is in this state? and that is why i'm concerned this is undemocratic and un-american. >> we need to end it there we'll do it -- maybe we'll see this is not going away florida state representatives thank you. >> we're just getting started. >> we don't usually -- sometimes but i think the mike's office. i've seen you howling at times and hoot and howling but usually it doesn't go out thkflyanul >> it's like every day that was like a microcosm of what's happening in america.

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tending hives of honeybees, and mentoring a teenager — your life is just as unique. your raymond james financial advisor gets to know you, your passions, and the way you help others. so you can live your life. that's life well planned. i'm dan o'dowd and i approved this message. you are watching actual videos of the tesla full self driving technology as recorded by the drivers. from turning too tightly and hitting a pylon... [ expletive ] to swerving toward a pole. jesus. watch the bicyclist on the right almost get hit before the driver takes over. sometimes it seems the tesla

doesn't want the driver to take over. i'm trying. this driver had to hit the brakes when the tesla didn't understand a detour sign. ok. here it almost hit a truck. obviously, i had to take over. and here it swerves into an oncoming lane. look at that! often, the tesla doesn't know what it wants to do. what is it doing? or just doesn't know how to turn. jesus, oh my god! tesla's full self driving software for drivers and pedestrians, it's unsafe at any speed. tell congress to shut it down. get down to the new york stock exchange right now jim cramer is joining us i have two pieces of business with you, mr. cramer. >> sure. >> i need to hear about what you think about that fabulous interview that sara eisen did with mr. powell and gang

we got the 10-year now flirting with 3%. and what you think it'll be to the markets. i got to get your views on what mr. musk will do next with the reality or nonreality behalf is happening here >>well, i know -- i thought sara did a great job. i found that the idea that there was anything regulatory there was that bullard was talking about 75 and looks like 50 business people want it higher because they're tired of people asking for price increases i'm on board now i think musk has them in the following way, which is, look, we're going to -- if he drops the stock goes there stock goes to 33 you want to be responsible for that drop to 33. then go ahead. i'm going to walk away so i don't know. i mean, you have a real process board there. really great we don't know who is the actual negotiator but, you know, you have a

chairman who is not going to let that go to 30. he's not. >> you think -- there's cleverness to this, which is he's now -- this is elon has locked up a lot of banks in terms of financing it makes it harder for a white night to -- white knight to arrive on the scene. does it go at $45 or higher? does it become effectively this versus the twitter plan? will anyone believe the twitter plan what do you think happens? >> no. the twitter plan has no credibility. direct messaging can be used by any bank i think he sees that and more promise than what they've been using. they have some good technology i think they have to give it to them they have to give it to them because look what is happening everything is falling apart in the sector i think that if i were musk, this weekend i would cut my price. i would say, guys, it's now 48

it's going to, you know -- >> wow. >> like you said when i looked at goldman we exploited offers we'll pay you 100. if you don't make a deal, we're going down to 90 and then 80 if i were musk, i would lower my bid or say i'm about to lower my bid and then wish for my best and final. >> okay. mr. cramer -- >> he's torturing them he's torturing them. these are people not used to being tortured. >> we'll need a little tequila. >> mescal. >> smokey? >> well, my wife's is less smokey because it has agave leaf you'll love it best in show and class of its own. >> have a great weekend, jim. >> you too >> absinth i've seen it on tv

shows. it looks crazy i don't think you can buy it anymore. market rates with jay powell saying a 50 basis rate hike is on the table jeremy segal i thought about you when i was talking to mike. we're range bound, he said it makes sense in a rising interest rate environment that the markets are range bound. i said it seems, jeremy, professor, i wonder if you agree. we think range-bound markets resolve themselves with a break out higher considering that in 1982, we were at 800 and now at 30,000 plus it's been a good idea to stay long when you're in a range and it breaks out. do you think it'll happen again this time? >> well, first of all, a range is not -- as long as it was range bound back in the '70s and '80s it's been range bound for three or four months we have to see if the bottom

holds. you know, i mean, i'm glad the fed is finally saying -- they're finally getting it i think what powell said and sarai sara eisen did a great job we have to front load that i think he's on board for a series of 50 basis point increases. you know, something i always look at and financial press doesn't is the money supply and we need to see that slow down. that's coming next tuesday we get it as a monthly indicator. we had a good month, you know, last month when we looked at the february data. let's see if we can continue until you get the slow down, you are not going to control inflation. that's what gave me the clue there was going to be so much inflation last year and this year and i think that is really what you have to look at, if you're going to control it the fed still has to be on it. they're getting there. they're way behind the curve but

at least they're getting there better late than never. >> if businesses are sort of telling the fed to go for it, you think that market participants will embrace a faster move, jeremy? >> yeah. >> yeah. they know out of control inflation is really bad. and that will require a voeckler moment, which we don't want. i think they should go with 75 and i think bullard will dissent again on the favor as you were saying, i think yesterday, joe, take your medicine at once not a quarter every week and let's get it over with we need to slow down the super hot economy and get a handle on the inflation. i think the market wants it. >> all right professor. we'll see you next month maybe white dog it again i'm not sure with graduation coming up in that part of the world. good to have you on. good to have you on this

morning. we'll see you later. thanks it's good to be friday we're down another 100 now triple digits. i don't know are you going to have some popcorn or what did you call it? >> skinny popcorn. bethenny frankel. >> it's like air i need the movie butter popcorn. make sure you join us next week. fry-yay! "squawk on the street" is next good friday morning. welcome to "squawk on the street." i'm carl quintanilla with jim cramer and david faber fed chair powell's remarks that 50 basis points are on the substantial for may. the 2-year yield at 2.8 this morning. road map begins with the fed's hawkish pivot and the investors