good monday morning. i'm sara eisen with carl quintanilla. setting the agenda for us today, everyone is talking about the surprise cut out of opec ubs managing director has a bull case on commodities. oil's up almost 6%. is the upcoming travel season about to get grounded booking holdings ceo will join

us. unusually strong auto sales across the board hyundai with us. more than a million barrels a day cut from opec. brian sullivan talks about what it means for the commodities, for the fed and whether this was expected or a surprise >> well, carl, hi. number one, it was a complete surprise that's the thing -- i thought this was going to be a four-day work week with good friday huh-uh opec kept us on our toes working all day yesterday. came out of the blue and follows up on the 2 million a barrel day cut they made last october when we throw these numbers out, 2 million here, 1.6 million there, remember those are not probably the physical barrels coming off the market. can't make that point enough there's a lot of fuzzy math with opec they say this, countries overproduce their quotas or couldn't make the quota anyway most of the numbers i have read

so far this morning, guys, indicate 700 to 900,000 physical barrels will come off the market between now and july in july russia has another 500,000 they have already preplanned we can argue all day, is russia actually saying, we're going to take those barrels off the market, or because of the collapse of their economy, lack of investment, the western sanctions, the price caps, they simply cannot produce that amount of oil? whatever the decision, it's coming off here's what i think is the most amazing thing, carl and sara the price of oil is up today the oil stocks are up today. they're all lower than they were pre-invasion the price of a barrel of crude oil was what, 82, 83 bucks before the february invasion of last year. so, even with three -- call it 3.5 million barrels taken off or said to be taken off the market, the price of crude oil is lower

than it was just over a year ago. one does wonder, and you could probably talk about it all hour, does that show underlying weakness in the global economy >> the other question, brian, i think it raises is why are they doing this now to offset u.s. production, lower prices, and whether there's some sort of opec put now in place when it comes to these prices. >> well, how far down to you want to go on the political rabbit hole, sara? opec doesn't do anything about chance opec was supposed to meet today. today was thr ministerial committee. i thought i would monitor it for cnbc nothing will happen. the meeting was today. they did this before the meeting, which is spectacularly unusual. the financial times, and maybe some of my own reporting, indicates that there was an aggravation with the white house by opec because, because the

saudis in particular may have either thought or perhaps been given some soft assurances that we would refill our strategic petroleum reserve, perhaps, by buying more saudi oil. last week jennifer granholm, sara, who you've interviewed several times, at a hearing said it may take years to fill that spr back up. it's likely the saudis believed one thing from one part of the government, and then heard that and just got ticked off. that's the -- they use the word irritating, that's their reporting, not mine, or do they just see global weakness the china, the economy is like big foot, right? we keep talking about it but we never see it that could also be a part of the story. >> certainly a lot of discussion today about a soft promise that got broken, brian. i know you'll cover it tonight on "last call," 7:00 p.m. eastern right here on cnbc we'll see you tonight.

let's stick with commodities. heading into q2, our next guest says oil, gold and agricultural products are the places to find value. adding she's downgrading equities in favor of bond. joining us iss ali mccarthy. do we need to worry about inflation if they're all going up >> there's disinflation when you're talking about oil commodities have had four really tough months and a lot of it has been on inflation fears. a lot of it has been on growth fears. even last week we saw some of the reports that came out showing that china is, you know, perceiving to -- it's topping our expectations, right? so, commodities, which have had sort of -- this has been talked about a lot on your show -- the technicals have made their price performance and their price action quite negative when actually the story is quite about a lot of tailwind.

so, between -- we think whether you're talking about palladium, gold, agricultural prices, oil, what you're seeing is how much unintended consequences and geopolitics can move the market. and when you're talking about areas of the market that are dealing with a lot of geopolitical concerns, when you're talking about a lot of weather issues that we thought were going to be really negative, actually, again, becoming tailwinds and then when yao you are talking about structural and supply deficits, we think you'll see 20% in the bloomberg commodity index this year. >> again, wouldn't that be an inflationary problem if this is a market so excited about the fed cutting and disinflation and weakening of the economy, i do wonder what that would do. >> we have to see. so, you have a lot of things right now that are fighting. so, you have a dollar that's weakening. that's helping u.s. companies. maybe if you're talking about inflation, that that's not going to be as much of an issue with

these areas. actually, that's the reason we are in areas like commodities and that we have downgraded equity in that this is one of those periods where i know we always talk about, and as investors, especially short-term investors, which you do a lot of focusing on i'm much more long-term investor we talk about what's happening next week, what's going to drive things, why are we stuck in this range. why are equities trading at 4100 when there's so much heaviness out there? i think what's going on, we are in -- we're just waiting to see what happens we're waiting to see what happens with employment. we're waiting to see what the fed does we're waiting to see what the implications of a huge structural tightening in the form of financial institutions really pulling back. and so there are some major things that anybody, not just ultrahigh net worth individuals can do in their portfolio. the first is to lean into bonds. if we think rates are going down, whether they're going down in six months or a year, then not only owning higher-yielding

quality instruments, but instruments that have some duration to them and can appreciate have appreciate makes a lot of sense in and out of the u.s. the second is, u.s. markets are very highly valued relative to history. foreign markets, not so much leaning into that trade and getting away from growth, i know we love to talk about growth, but when you're talking about technology, very high valuations very high demand pulled forward over the last couple of years. and the third thing is commodities. and if you can get behind private equity, especially in secondary markets, you know, this could be a really interesting time >> the thinking about energy going into certainly the invasion of ukraine was not what we ended up with. >> right >> and we're 20% above regular nat gas storage. i just wonder, do calls like this get more difficult now because expectations have been so up-ended over the last 12 months. >> again, i would say that everybody was surprised at the end of last year

and the first quarter was a real disappointment to oil and energy bulls. the structural story about how much underinvestment we have and how much growth there still will be from engines like china, you know, it really doesn't make sense. we talked about the strategic petroleum reserves we talked about during the invasion of ukraine, we talked about how much of the sort of bread basket of agricultural commodities are borne in that area when you look at the growth and population of the world, whether you're looking at india, we need these things to keep although a lot is in the format of green, we still see oil demand growth growing at 10% for the next ten years again, we're underinvestment in that space. >> i'm curious what you're hearing from your clients, just pure sentiment one of the pushbacks against the bear case is everybody is

already super bearish and underinvested. >> you say everyone is super bearish and underinvested. that's with beta risk on i think there's a remarking to market what a 60/40 portfolio looks like so, it is definitely difficult to get people out of equities right now and into bonds because there's this expectation that, you know, i just want to get back to 4800 or i want to see that again the truth is, i think we're entering a very different regime where we won't see zero interest rates again. where the provision of capital is going to have a lot more long-term consequences both on the individual side and on an investment for corporations. and i think a more balanced portfolio -- people are looking for nuances. they're looking to get into -- i have clients asking about what i think about palladium. i've never had a conversation that specific. having been a derivatives expert for many years, covered calls,

selling is back when you have -- our year-end target is about where we are now the question is, how do you get through this and get some yield? we're definitely pivoting. there is definitely some concern about is there another shoe to drop and how do we get through that, and cash feels so good but we do think we're at peak cash yields. i know there was a comment earlier that as interest rates go down, money markets go down that's going to change the flow markedly as well. >> alli, good to get your updated views. alli mccarthy from ubs. >> good to see you. gm out with its first quarter sales. for that we'll turn to phil lebeau hey, phil. >> hey, carl take a look at shares of general motors, under a little pressure as the company reported q1 sales for the united states that topped 600,000 vehicles. that was an increase of 17.6% compared to the first quarter of 2022 full-size pickups, we always talk about this because this is the bread and butter for gm and ford, up 9.2%.

a nice boost in fleet sales helping right there. then when you look at evs, this is what so many people focus on, gm's q1 ev sales just in the united states topping 20,000 we don't have an exact number from the company it says, however, it is on track for 50,000 evs to be produced in the united states through june and then they expect that number to double in the second half the story with gm and evs especially here in the u.s. and north america, a big ramp up in production starting in the second half of the year all the way through 2025 back to you. >> great stuff obviously, watching ford and gm and tesla. speaking of auto sales, what should investors make of the unexpectedly strong numbers in q1 we'll talk to unhydai ceo carlos munoz. back in a moment

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the new york international auto show kicks off as major automakers are on full display hyundai debuting brand-new kona ev, jumping 16 year-on-year. joining us at post 9, hyundai ceo jose munoz i feel like hyundai has momentum in marketing evs how do you move that incrementally with the show this

week >> thank you for having me we are really so happy to just report the all-time q1 record, all-time march record, which comes also associated with the global very good results so, 1 million in q1, which was really outstanding 13% growth in the quarter. so, this week we are going to be in the auto show we're going to be focused on evs. we're presenting the all new kona and then it's going to be ev so, this time we're going to be having versions for ice and ev we are really, really happy because the kona won car of the year suv for both ev and ice back in 2019 and now we're launching for the first time ev first. it's really fantastic. >> the street, there was a debate a couple of weeks ago

about who is going to make an affordable ev other than tesla there's views the american automakers have no interest, they're making expensive pickups. is that a role for your company? >> i think so. we have a long ways to go. we are very, very happy with the sales of our e5, which is on a separate dedicated platform. we're launching the ionic 6, a passenger car, which is also built on the same platform so, there is someone in the industry that has the technology and viability to really develop a competitive ev, that's hyundai, i believe >> tesla is number one in the u.s. for evs are you two or three >> well, we ended last year as number three as a group, hyundai motor group. >> so, that's growing. my question is, what happens now that we have the i.r.a. tax

credit you don't qualify for that, not as an american automaker. >> so, we've seen first the industry is softening a little, even in march it was a better march than last year we're waiting for the full numbers. probably released by today but it's clear it's probably going down compared to january and february in that environment, we've had all-time record quarter. it's been driven by electrified vehicles mainlyhybrids. we've seen significant increase in hybrid sales. in our case, 1.3 points year over year. the evs have also grown, but at a lower pace only 0.2 our reading is very clear. the moment i.r.a. was launched, we lost competitiveness, we lost about three points of share in that segment and we've been taking actions to try not to lose pace actually, we've been growing but

not at the same pace as before even though we are disappointed with i.r.a. because despite the multibillion investment plan we have announced in georgia, in savannah with one assembly plant,one battery plant and ye another battery plant in georgia, our vehicles don't qualify because they are not assembled in the u.s., even though we made the announcement and the commitment well before i.r.a. was announced we remain 100% committed we think we'll achieve the objectives of the biden administration by 2030. >> this is the inflation reduction act. some people think it's a little protectionist, that kind of clause in it i would imagine you're one of them. >> yeah, we believe so being one of the few countries having a free trade agreement with the united states, we

believe we should be qualified so, anyway, as mentioned, we want to make all our efforts and stay the course. we are, in fact, already producing the genesis ev in our plant in montgomery, alabama we are paying attention to all the news coming from the treasury department to see if we can eventually qualify at least with this car. >> finally, you know, oil is a big story today because of opec. and oil's higher but for the quarters it was lower, i wonder if you think people who were thinking of adopting an ev were like, eh, i don't have to now, gas i cheaper. are consumers still thinking about that in the adoption process? >> i think so. i think so we've clearly seen the consumers paying attention to the price of gas. and then as i told you, one of the biggest growth in our case was coming from electrified vehicles, from hybrids, but also evs. no doubt that the increase in

gas prices is going to lead into increased sales of electrified vehicles if you look at the number we need to achieve, 2022 ended with about 6% mix of battery evs in the country. we need to get to 50% by 2030. so, this is growth of 6% to 8% every year, which is significant. so, maybe this is good news for the ev industry. >> what are the challenges in trying to do that for the whole industry was the supply chain and also the inflation in that supply chain is that fixed, the disruptions and the crazy prices of lithium? >> well, it is not fully fixed i think it's going to take a little bit longer to fix fully it's definitely way better than it was a year ago. that's why we still see an increase in the demand, even if at a lower pace, because still pent-up demand due to that. >> a huge week, the auto show. thanks for stopping by and talking about it, jose

>> always good to see you. >> good to see you. the european close and global markets is just moments away the ceo of booking holdings is with us. his stock is up more than 30% this year. how is the summer travel season shinapg up we'll ask him in two minutes lost a little steam, but still higher, about 172 on the dow at pgim we can help you rise to the challenges of today, when active investing and disciplined risk management are needed most. drawing on deep expertise across the world's public and private markets in pursuit of long-term returns... pgim. our investments shape tomorrow today.

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just a few minutes left of trade overseas in europe kind of a mixed picture. the oil and gas stocks like here in the u.s., are surging financials are flailing. names like harbor, gulf, shell and bp after opec cut. while ubs shares following more job cut speculation over there the big mover today is cinnaworld plummeting after failing to find a buyer for its business the story abroad today is finland, joining nato.

we continue to watch the geopolitical dynamic across europe with the war still going on in ukraine. >> a flag's going to fly above headquarters, the 31st member. once again, handing putin at least a realization that some of the objectives he had as part of that military operation not exactly going to plan. as sara said, dipped a bit red on the s&p, 4104 let's get a news update. >> carl, good morning. here's your cnbc news update at this hour. ukraine is rejecting claims that russian forces control the eastern city of bakhmut. the leader of the wegner mercenary group that started the assault on the city says this video showed his forces raising a russian flag over an administration building in the city ukrainian officials swiftly rejected the claim and said any talk of russian victory was not even close to the reality. the virginia teacher shot by a 6-year-old student has filed a $40 million lawsuit alleging the

school ignored numerous warnings she was shot in january by a student that the suit alleges had a pattern of troubling behavior the school board, the former superintendent and other officials are named as defendants. democrat campaign officials have listed 31 gop held seats they will target in the next election cycle it includes the george santos seat in new york and the colorado district represented by lauren boebert guys, back to you. >> thanks very much. still ahead, macy's shares jumping as jpmorgan gets bullish on that name and one reit name is oversold and could rally 20%. we'll break down both calls after a short break.

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two hours into trading time for a check on what's moving we go post to post with bob pisani the s&p did just go negative and so did financials. energy is holding up. >> energy is holding up and financials are a bit of a problem. we started with consumer discretionary because all the travel stocks are weak because of the moves in energy here's delta the airlines have been all over the place. it went from 32 to 40, back -- a big move up in january, a big move down in march

airlines rallied last weak decent volume, 4.2 million shares i want to show you exxon, because there's the big story right now. believe it or not, we are close to an historic high on exxon the old high was in february, about $119 there you see 12 million shares. the average is about 15, 16 million shares a day obviously, the opec news is moving up all the big oil names here again, this iss has only been up about 5% this year believe it or not, that is right near an historic high. sara was mentioning the financials once again, the bank stocks, the regional banks, the usual suspects, are trading towards the lower end of rates last week all stabilized key corp was trading between 12 and 13 all last week remember, it was $18 in early march. now stabilized you see trading towards the low end. if we break 12, that will be a warning sign because a lot of

banks have been in the stable range and all have been lower in the middle of the day. yes, we still have tech holding up very, very well a lot of other things are unsettled as the energy story from opec throwing a little curveball to certain aspects of the market sara, back to you. >> bob, we'll talk to you in a minute from the desk to two calls we're watching, sl green realty climbing on this call to outperform, noting it's the third most shorted reit in the country. let's bring in diana olick it's an upgrade but they leave their target unchanged at 30. >> absolutely. there's no question, carl, that this is undervalued by a lot a very low valuation something interesting in the report that really stuck out to me is they said catalysts are on the horizon, including asset sales and debt refinancing in the reporting we've been doing on the bank failures and what that means to commercial real estate, we've learned that

of the $270 billion in bank-held cre loans, about 30% of that is office and we're talking sl green office here. of that $80 billion in office, about half of it, according to colliers, is distressed. when you look at the office market now, where valuations are coming down distinctly, simply because of higher interest rates overall because it makes it more expensive to finance an office building, all the analysts we've talked to said there's no money out there to buy commercial office space no buyers. they're all on the sidelines no deals are being done right now. so, that brings in the question, how are you going to refinance at the higher rate and still be able to take these buildings out of distress, or be able to sell them off into a market, which as of now at least, is not buying carl >> so, the question is how much of the bad news, i guess, has been reflected there's been so much doom and gloom around this sector, especially with the regional bank trouble, diana, and what is priced in at this point, i guess we're trying to figure out

>> right we'll still see going forward, and some reports that we're beginning to see more back to office in certain markets, it's trickling up slowly. again, a lot of assets are in distress some folks i talked to said it may just happen, the same thing happened in the retail sector the last five years is when you have a distressed property, the owners are just going to keep paying on the loan at the rate they're at right now and the banks don't want these prompts back so, they're just going to kind of wait and see for a couple of years maybe even that long or wait to see when they could refinance later. they're not going to do anything on these properties right now. that's a possibility in office we saw it in retail. you know, it's a landscape that remains to be seen over the next year how much do we see people going back and what do banks decide to do about these distressed loans. >> diana, thank you. meanwhile, we to want highlight another call macy's surging this morning because jpmorgan upgrades the retailer to overweight the bank bullish after speaking

to management, calling it a favorable risk/reward as it nears an inflection point. jpmorgan points to multiyear ebitda margins for five self-help growth sectors, including luxury brands, digital marketplaces, refreshing of the stores the bottom line of the jpmorgan call is they think it's pretty cheap. trading at two times fiscal year '24 ebitda, which is 50% below the mall-based department stores and specialty averages >> again, a target that only goes up $1 on the upgrade. but we do know of all the consumer sectors in q1, you had things like home builders up double digits, department stores down six something like that. there's concerns about traffic. >> macro concerns that have laid on top of the more structural concerns around department stores and wholesale in general. actually, jpmorgan sees the macro pullback as an opportunity to buy macy's, it's been a self-help

story for years. how many stores have they closed over the last six years? i can't even keep track. >> the bloomingdale comps were not too bad. handing the baton over in the coming quarters. it certainly offsets the sell calls we got last week on foot locker and ross stores out of ubs. >> nobody knows what's happening with the consumer. because the consumer has been so resilient. we watch things like rising credit card delinquencies and debt we're not at stressed levels or not in recession the atlanta tracker for q1 is strong, near 3% and continues to go higher based on the consumer. so, it would make sense the consumer would weaken under the pressure of inflation and higher rates. but we're not seeing it yet. so, why some of these macro calls around some of these retailers are back and forth >> real disposable income still up three points from a year ago. we're getting news out of washington, getting comments from the white house on the opec cut. let's get to kayla.

>> the national security council's responding to the surprise production cut from opec saying the white house was given a heads up that it was coming but that it couldn't begin to assess exactly why the cartel is moving in that direction at this time saying the white house does not have a seat at that table. what it remains focused on is keeping prices down as they have been for american consumers. saying the administration is going to do everything it can to ensure market stability continues for consumers here in this country john kirby, the spokesman for the national security council, said the u.s. communicated to opec it doesn't believe production cuts are advisable at this moment given market uncertainty and that the u.s. has made that clear to opec plus as for exactly why opec plus went in this direction, he was asked specifically whether he thinks it's some sort of vengeful response to comments by jennifer granholm that it would take years to refill the strategic reserves that took oil prices even lower.

he said that he does not know whether that factored into this decision said it is still the u.s.'s intention to refill the reserves in a strategic way guys >> well, kayla, i remember last october, it was during the imf meeting when saudi arabia had cut production and secretary yellen and others in the administration were very vocal criticizing saudi for -- they called it misguided action on cutting when they were trying to cut higher prices. this feels like the friction and tensions have been building. >> yes i think notably the difference between what happened then and what happened now is that there was a big behind-the-scenes effort in october to get opec plus not to cut production back then it was weeks before the midterm elections. prices were firming up a little bit, and there was worry -- there was some correlation between gas prices at the pump and the way americans would vote at the ballot box. they had every motivation to keep prices low then they were trying to do that in a very concerted way of course, when opec plus went

ahead and cut production anyway, the administration felt like that was a little bit of a slap in the face. this time around, prices are much lower john kirby made a point to say, you know, it's $30 a barrel lower than it was a year ago in this situation so, certainly they feel like while there is market uncertainty, there is a little more space for consumers and, perhaps, it was a surprise but not as much of a surprise this time. >> yeah. helpful context. thank you, kayla well, even high-end travelers are cutting back on spending as wall street avrecasts some turmoil from trel stocks. hasn't happened so far for booking holdings stock's up 30% so far this year. ceo glenn fogle with us next

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welcome back we have 60-degree days in new york city, finally students on spring break you know what that means, summer travel is around the corner. with vacations this year expected to return even closer to pre-pandemic norms. let's bring in booking holding ceo glenn fogel. glenn, it's good to have you so, how are summer vacations tracking relative to the previous two years >> well, thanks for having me. and there's no doubt there's resiliency in the desire of people to travel i think there's still a lot of pent-up demand going back to the pandemic people couldn't travel for a long time. they got a lot of savings. they want to spend it. so, we're pleased with what's going on our numbers, we announced them in february, were very positive. we gave the january numbers, 26% room night, over 2019.

and every day you can look at the tsa numbers, they put them out daily, you can see how does it compare against 2019. over the last seven days, it's up a couple of points. >> still crazy high pricing? >> well, yeah. there's no doubt about that. i was staying in a hotel in new york city on thursday and friday night and i was absolutely wowed, that's a lot of money i was in miami earlier in the week, it's expensive, but people are willing to spend it. >> do you see any sign of a turn we're all trying to figure out what's happening with the consumer and how all these macro forces are going to play out in the economy. do you see it? >> well, you know, we said in our call, we talked about how things look good but we recognize there can be some volatility instability in the banks can cause people to feel a little concerned about where are they going to spend we are a very global company, so we look across the entire globe. seeing the recovery in asia, fourth quarter was the first time we saw asia having room

nights above 2019. that was the first time we had every region of the world better than 2019 for us that was a great positive sign so, yeah, maybe there will be something in the u.s maybe europe will have some issues seeing the tailwind in asia, that's nice to see >> that's actually a really good point, glenn i noticed some of the domestic china flight activity is really getting strong we have macau numbers for the month, which are incredible. people argue that until you get real trans-pacific flights, that strength is kind of not leveraged. do you see that happening yet? >> well, it's going to take time, no doubt about that. just something as simple as how much lift, how much air capacity is there in china. it's still limited i think the january numbers i saw compared to 2019, they only had a mid-teens percentage of 2019 in terms of available lift for outbound travel. it's going to take some time nobody doubts it's going to take time but it will come back. we're seeing other parts of asia

going nicely look, we're very pleased with what's happening >> but has your outlook at all, as you plan your business, changed after -- we saw the second biggest bank failure in the united states in history >> you know, here's the thing. i really try not to look at the week-by-week, month-by-month quarter. it's important we stay focused on the long term to improve this company. we can't control things happening with the financial system at all. that's not our area. we can make better products, better services, so when people want to travel, we're the person they choose. in the long run, travel will continue to expand better than gdp. from the long run, we have a growing pie and we have to get a bigger share of it >> what about the single unit vacation rentals, the airbnbs and expedias, vrbos, how do you fit in there competitively we've heard from analysts that you don't have as mauch

inventory. >> some analysts will say that we are very powerful, very competitive in some parts of the world, like europe someone needs a home, a place on the beach, a private villa or apartment, they'll go to booking.com, absolutely. in the u.s., not as much we're not as well known, but we are certainly growing rapidly and we have good numbers out about the growth we're seeing in what we call our ultrative accommodations that are not hotels in the u.s. we're planning to extend that. >> glenn, finally, airfares have been one of components of cpi that have been stubborn. the month-on-month numbers are stubborn do you hope any airline discounting going into summer now gets squashed? >> well, here's the thing. so, we're talking mid-80s per barrel that's not extreme right now it's a little up from where it was. but i don't see that really being a big factor in fact, costs for airlines when they go up -- in fact, it goes

the other way sometimes to maintain profitability at the end of the day, it's supply and demand. as long as there's demand, those airlines are going to keep those prices up. >> it really is crazy. so, what kind of trends are you seeing, glenn? for a while it was about domestic vacations because international markets were closed, so it was covid restrictions now that we're open, has international bounced back as strongly as 2019 >> well, it's definitely coming back there's no doubt that americans who want to go travel abroad, and we're seeing significant increase in people want to go to europe the usual suspects, london, paris, rome. athens shows up, which is interesting. people haven't been able to travel for quite some time people to want go to europe and now they're going. >> glenn fogel, thanks for joining us always good to get a taste of what's happening glenn fogel, ceo of booking holding. two of the biggest sports entertainment brands are joining forces wwe merging with ufc to create

this new company under endeavor group. we'll break down the math in a moment don't go anywhere. at pgim we can help you rise to the challenges of today, when active investing and disciplined risk management are needed most. drawing on deep expertise across the world's public and private markets in pursuit of long-term returns... pgim. our investments shape tomorrow today.

time for this morning's edition of "tech check," and we're looking at the math on the wwe. >> yeah, wells fargo calculates

that value lower, so how do you get to the 12? this chart says a lot here the big blank space, that's the key variable and that will determine what the market is willing to pay for the new company when it goes public. the tag on your screen, there was a 73% bump from the previous one. what this says is that tv rights contracts have been one of the most lucrative investments of the decade, plus sports and major conferences is at about $6.3 billion this year it's expected to be around $17 billion, and that's a return of 117% that's good. but if you held the s&p you would be up more than 250%, and

looking forward there's the big tech factor that could keep the money rolling in they are paying out google, remember, $2 billion a year for the nfl sunday ticket package. apple agreeing to more than double major league soccer's annual rates payments with a deal for the global rights to 1,000 games. the big question for the new wwe entity, can they leverage their combined skill in live sports and entertainment? a lot is going to rest on the upcoming rights expirations for the waveform we and ufc, but they may need nothing else but a tko to win over wall street? >> the tko, that's going to be the ticker getting a lot of chatter. wall street is buzzing about mcdonald's this morning. we will tell you why on the other side of this break

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mcdonald's in morning as it prepares for purported layoffs as the stock hits an all-time high today kate rogers has details. >> that's right. mcdonald's is set to inform corporate workers of the layoffs this week, and that's according to a memo that says its temporarily closing offices through april 5th so it can deliver the news to workers. the email states we want to ensure the comfort and confidentiality of our people during the notification period the memo did not say how many workers would be impacted by this move. job cuts were coming at the golden arches was reported with the restaurant expansion, and certain initiatives would be halted and deprioritized the organization was siloed and

called it outdated this is echoed in the most recent email here from hr executives at mcdonald's underscoring the need to, quote, shift from legacy mind-sets to newbie havers. it's not clear, once again, how many workers would be impacted, but stock is trading at an all-time high so investors like this news. >> yeah, created buzz when everybody found out the offices were closed but that was really just a rethink on culturally how you do things. maybe you don't want people sitting at their disk and getting calls from hr and having to take their stuff away in corporate offices, as we rethink the future of layoffs. we are talking about hundreds of employees and nothing major in

terms of cuts or mcdonald's joining the tech layoff, in other words, it's something they do for proficiency sake. >> yes and analysts also like the name head into the potential economic downturn they are looking to open up more u.s. locations and they are looking to accelerate that growth and hire from a position of strength moving forward versus was mentioned the tech layoffs we have seen over the recent months. >> you mentioned all-time highs today going back to '65. they had good strength in pricing, and once you put the pedal to the metal how much will we read into the first day quarter tells.

>> yeah, so far doing okay, the nasdaq almost down 100, and the broad market hanging in there. however, the bank weakness is something that will wear on psychology if it continues we do have that again today, and it's heavy and not panic selling but they can't get out of their own way. >> the question on the banks, what does regulation look like and the fixes look like? we have not really gotten them, as far as addressing the problems, and then where does profitability levels reset if that's what this is about and not a panic about bank runs, where does that level go >> i think the latter point is hopefully there will be a little partial clarity on that when they report earnings i do think it's a question of, look, you have to rerun your models, and how much liquidity and capital do they have to keep if the book value is in the

ballpark you are probably fine the problem is the economy is not cooperating with that call because you also will have potential credit issues. it then becomes a there's no hurry to buy them if they are cheap kind of a call that's where we sit. >> yeah, and mike mayo would argue no immediate capital races. >> yeah, a lot of income net >> it's been a busy week let's get to the half. >> i am scott walker live. front and center, where your money will work best in the months ahead what lies ahead for tech, the investment committee debating all that liz young, joe terranova, and steve weiss joining me today an interesting session the dow is doing quite well, and