"squawk box" begins right now. welcome to "squawk box" on cnbc. we are live from the nasdaq marketplace. joe is out today. andrew is reporting live from the world economic forum in davos right now. a lot of it relates back to president trump. we have breaking news just about everywhere you go. i heard your interview earlier today with julie. i thought that was interesting with the international ceos are thinking. >> reporter: there is a firehose of news. we have reactionrom ceos across the world in davos.

many are monitoring trumps executive orders in his first days in office. we could tell you what happened on stage yesterday. j.p. morgan chase said publicly, that the bank is set up an official war room geopolitics, we heard from germany's each of these executive orders and try to understand what they mean, not just to the bank, but to the banks clients. on trade and geopolitics, we heard from gensler, reinforcing that the u.s. is the losest ally outside of europe. he talked about advising for cool heads. you want some cool heads in the first days of the trial presidency. there has been a lot of that idea that has been trying to be pushed out, given how there are many folks that don't seem to have cool heads about this. we did hear from the ukrainian

president, they gave an address after trumps inauguration. he says that europe needs to step up and supports president trump's demands that nato spent 5% of gdp on defense. he is hoping that europe will step up to do that to protect ukraine. we will see where that goes. we have a host of news. we have a lot of a.i. we have so many folks lined up. we should just tell everybody who is on tap. and a couple moments, we will bring you an interview with with marc benioff. we also have the ceos of cisco. we also talked to jamie diamond from j.p. morgan. we also went to talk to

microsoft, that will not just be the only exclusive cloud partner with open a.i. we will talk with him about that for the first time. we will also talk to the ceo from uber. goldman sachs, and the ceo of coca-cola. we will go around the world with the iggest and most important companies in the world. so many things are coming out. i don't even know where to begin. the president of the nasdaq was speaking there. they did pick up an interesting anecdote, talking about the trump administration, and how ceos are looking at all of this. he says you should be thinking, need to be in the room and part of the discussion, so i don't become an unintended consequence. maybe that is why you have seen all these pilgrimage to mar-a- lago and washington, d.c. to make sure they get their points made, hoping to get their perspectives through to the administration. no better way to do that than to show up in person.

we have earnings that are coming out today. we will be speaking with the cfo of johnson & johnson after their earnings get out. we will talk about everything they are seeing. we will speak with the procter & gamble ceo to talk about the big issues that international companies are facing as well. you touched on that this morning with julie. we will get into the issues that they are facing on an operation basis. you will be fascinating to hear the numbers. we also have the stargate news. that has become the issue of the hour. i will let you take that part away. >> the stargate news, what is the feeling? what is the feeling that people see? is this real investment, or investment they are hoping to build over time? >> reporter: there is a major question. it is fascinating. there are so

many component parts. one part, the idea that sam altman, standing behind the presidential lecture and with the presidential seal. he is the greatest nemesis of elon musk, who is as close as anyone to be to president trump. you will recall that i interviewed sam last december. one of the big questions i was on everybody's mind, they were incredulous of the time. i said, are you worried that elon musk will try to block you or be a threat you by using his relationship with president trump? he did say no at the time. people do not believe him. we now have video of who was right. interestingly, accident analysis, elon musk took to twitter thing, they don't have the money. look, the truth is, i remember when sarah first broke the news that softbank was looking to

raise an enormous amount of money. i said i don't think they have the money. where is the money? the question of the money is a real question. nonetheless, the idea that we have ellison, and now you have softbank together, that is big. it creates real questions about the relationship that open a.i. has with microsoft. that is something that marc benioff raised. for those that have not been following along, will get you caught up today. we jumped into this. if you did miss the headlines yesterday, some of the world's most prominent tech leaders are pledging as much as $5 billion into building a.i. infrastructure in the united states over 4 years. the joint venture is called stargate. it is being led by open a.i. and softbank. it has partners, oracle and mg acts. this was timed with the start of the trump

administration. it was announced yesterday in an official white house ceremony. the world leading technology giants are announcing the formation of stargate. with that name down in your books. i think you will hear a lot about it in the future. a new american company that will invest $500 billion, at least, in a.i. infrastructure in the united states, and moving very rapidly, creating over 100,000 american jobs, almost immediately. companies committed $100 billion to the venture, reporting projects that are already announced under the by the administration. they plan to invest up to $500 billion over the next 4 years. the first data center will be in texas. as i began construction last year, will be operated by oracle and used by open a.i. i don't know if you saw the ceremony itself, larry ellison was sending this thing we

cannot do this without you, looking to president trump, basically saying it is already being built in texas. the other fascinating piece of news is he was asked during that session about whether elon musk could ultimately take over tik tok. he said he would love to see him on it. he says he would also like to see larry ono. might see a joint venture on that front. i want to show you this piece of taste -- tape. we have open a.i. big partner in so much as they were an exclusive cloud provider, providing azure services for open a.i. that will change. i sat down with the salesforce ceo, marc benioff, asking him about stargate. this is amazing. these are people that made our whole industry. you look at larry ellison,

think you know he is my mentor. i have spoken to him about his vision for how to cure cancer with a.i. you rolled it out yesterday at the white house. i am extremely proud of him.>> reporter: you think will happen? elon musk has been suckling at the dawn the money to do it. for i can tell you, it is kind of funny, i would say, don't short larry ellison, were elon musk. these are two very good friends of each other. larry has a vision for the future of healthcare. that is why he has been focused on these incredible institutes in los angeles and oxford. they have a vision that they will use the technology that was high in your you get a blood test and you can see what's going on in your blood. then you use a.i., and build therapeutics for each individual.

>> you think this could impact microsoft? and that open a.i. was exclusive to azure. now they will be on other platforms? does that matter? >> it is important that open a.i. gas to other platforms quickly. microsoft is building their own a.i. i don't think they will use open a.i. in the future. they will have their own frontier models. they said it is too expensive and too hard for them, and they want their own. >> you think this is the beginning of the fisher? this could be the moment? >> i think that happened a while ago? for that happened a year ago in davos. they were both on panels together. they were not getting along well. persona non grata. >> were you surprised at the deal, insofar as you had sam altman behind the presidential podium.

he is a great nemesis of donald trump's great friend, elon musk. >> we all have to regain our beginner's mind. that is a phrase that i cherish myself, when i started my meditation this morning. it is about regaining your beginner's mind with the political ministration. we need to do that and see how things will play out. >> how has that been? someone is been a democrat for many years. this election, using it all play out in front of you. >> i have never been a democrat. i was a republican for many years. i was in the bush administration. i became an independent after that. i have said i am not a republican or democrat. i've worked with five or six different presidents. i can work with anyone, that is how i roll. i will do what i can to support the administration. i will both of the united

states of america. >> what you make a big going to washington? >> that is a moment. i don't think i have ever seen some of those images, with everybody together. these are not best friends all gathered together looking like they are having a party. they are all actually very serious competitors. for some people are very excited about that. there are other people saying that they are bending at the knee? to know. number one, the united states of america has a tremendous lead in artificial intelligence and technology. the vast majority of the frontier models, the a.i., and the research that comes out of universities, you are seeing that manifest in technology companies. you see that right here, playing out. these are the leaders of the

most important companies. they are all americans. >> i wanted to talk to you specifically here in davos. so many of the things that emanated here, that you and i have talked about over the years, that related around esd, and climate. i think it is fair to say that davos is under attack. >> i do not agree. number one, obviously, donald trump and clouse law -- clouse schwab are close friends. they spent a lot of time with each other. you will see donald trump, at the conference virtually, and i'm sure you will see him here next year, physically. he was here when he was president 4 years ago. i think, you probably remember that i worked very hard on the trillion tree initiative. with donald trump, we launched it here.

i think you have to find your way with donald trump, and the things he cares about. one thing he cares about is things like trees, oceans, and air. if you listened what he says and you focus on those things, you can make a lot of progress. let's talk a.i.. i'm curious, where you think we are. >> now we are talking about something important. >> i spoke to the leader from anthropic. with the timeline that he is talking about, something close to agi, is much shorter than i would have imagined. we are talking 2 to 4 years out. you make comments that microsoft subversion of open a.i. is like clipping. for that is true. for we are two or 3 years away from having to reshape society, and you're saying, the thing

decided to work. for we are in the copilot has failed. it has no adoption. for you can talk to gardner and the analyst reports. it is not what a.i. was meant to be. it is what we just talked about, the world economic forum, which has always use salesforce as the fundamental data infrastructure, is running with agents. we have agents and humans working together for the first time here at the world economic forum. that is incredible. it is making everybody's lives so much easier. i have a digital agent. we went through on my phone. i can work with it and talked with. he knows what sessions i am interested in. he knows ho i am friends with. i am having a much better experience at davos. >> when we hear people talking about large language models and $500 billion investments, how are we supposed to think about all of that versus what you are doing with agents?

>> every company will become agent first. to what america first and agent first? >> yes. i'll give you an example, the world economic forum is ages first. you are working with the app. the app is an agent. the agent is helping to guide you through the conference. if you go to the website, you can see the we have the agent later on customer support. we get 36,000 customer support calls every single week. if you look at the montgomery county dentist, 10,000 of the calls had to go to human agents. we have 9000 support agents. now only 5000 are going to the human agent. the a.i. is not 100% perfect. about 95% accuracy. this is an amazing moment. those agents and humans come together to resolve customer support issues. the large customers that are deploying this, i was with dave mckay yesterday, they deployed

the agent technology in wealth management. they have the ability to augment. they have an unlimited workforce in the wealth management to sell, service, and market wealth management projects. >> you see massive investments in these numbers. you are saying, you don't have to do that? >> yes. that is hard for people to comprehend. >> 2 it out of the top 5 models , we are delivering agent that scale to all customers. we are going on everybody else's investments. the infrastructure game is an incredible game. it is not a game i want to play. we work with amazon and google, and other companies. we can go on their infrastructure with our software.

this is why we are the second largest software company in the world. we can help to automate the companies. we help them connect with their customers in a whole new way. they will all have to go agent first. it is a moment of transformation that i have been waiting for. you've known me a long time. i have never been this excited about our industry. i would say why. it is simple. for the last 25 years at salesforce, and 13 years at oracle, is about helping companies manage information. now we are making the transformation to digital labor. we are a digital labor provider. that is incredible. we are not just about managing information, we are about supply digital workers to our customers. in your head around the idea, that is like not any of the people on the other side of the cameras.

they are digital agents. that raises another question? what do you think the workforce looks like 3 to 5 years from now? is it fundamentally different? for you know what it says. we all have to get our head around, we are about humans, with agents working together. to that is now. 5 to 10 years ago -- from now, same thing? to these are the three words everybody wants to say. it is the drop the microphone moment. you say that, i am not as focused on agi. if agi helps us do that in the faraway future, fantastic. right now, the a.i. is very good. it is not perfect. you use the products . you know you hit limits. for how much of the code that you are writing these days is being written by humans versus

digital labor, as you describe them? as for this is the first year in the history of salesforce, after 25 years, i will not hire any new software engineers. for in this regulatory apartment, which is much more open for business, and you look and see that there are things he would like to add to what salesforce is? >> we did amazing things, we did one last acquisition. we have done 60 acquisitions. when i look at our product line, we do sales and service, we do marketing, we can commerce, we do analytics. we have rewritten the mold them into this one common application layer. we build a data cloud on it and built a layer on top of it to integrated. the idea that we will add or purchase something new, we are

looking for those things. right now, the product line is so rich and full, so competitive , you really have to have an incredible value proposition to get me excited about buying something? for what will happen to time magazine? >> you probably know we had first of the year. few went on that issue, you may have saw it was the first time we deployed an agent first technology, where you can work and talk with the article. >> are you selling the magazine? >> there is no deal to sell time magazine. three big pieces of news on that. he is not selling time magazine. two, the idea of digital labor. it is almost mind blowing. he talks that it as if they are people. it is digital labor on an individualistic basis. the third will talk about the talk of the town here in davos. there is a genuine fissure between microsoft and open a.i.

, a fight between sam altman that he said started here in davos a year ago. that is a candid moment. we will talk to the ceo of microsoft about all of that here on "squawk box". marc benioff is optimistic about these agents, and what it is doing to the salesforce business. he has managed to accomplish a lot without spending nearly the kinds of money that we have seen from the big, large language models. for the idea that painting this back to your ago is when the real cracks between microsoft and open a.i. showed up on stage in davos. the idea that the ceo will be here to bed is something to look forward to, think about

with all of the issues going on. a.i., and watching what goes through with all of that. the whole idea of the technology companies trying to work with this administration, try not to get left out, and being in the room for the decisions, that is pretty important. i do want to tell you quickly about breaking news that is just out. johnson & johnson is room ordering the quarterly reports. the company earning $2.04 per share, better than the street estimates. revenue came in better than expected at $22.52 billion. and the healthcare giant is giving earnings guidance for 2025. this is a range for operating guidance that falls above estimates. they're looking for profit for your $10.50 to $10.70. that compares to the consensus forecast. this is the operating earnings would be 1075 to 1095,

when you exclude the charge of about $.25 due to an unfavorable effects impact due to the rapid strength of the reevaluation of the u.s. dollar. that is a big story will hear from a lot of these multinational companies. will the wall street analyst out to make up for that to see what happens with these issues. shares are up i 1.3%. obviously they are at the center of how the administration will be handling its thoughts on negotiations with the drug companies and what it will do with the ira. we might be looking at how they could be wanting to tackle different ways of getting at cheaper prices, and who bears the brunt, and how this comes down. we get a chance to talk with the ceo, here on cnbc.

expectations. when we come back. joseph wolk will be coming in. netflix beat estimates. the company says they are raising prices. they had a huge number of new subscribers for the uarter. it is amazing, even though they say we don't focus on subscribers. we have the details after the break. the stock is trading about $1000 per share. the ce >> there's tax here when "squawk box" comes back. >> you make with one. >> can impact the other.

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>> netflix shares are soaring this morning, the company's fourth quarter beating estimates on just about every metric. revenue grew by 16% to two and a quarte the fourth-quarter beat estimates on every metric. the revenue grew by 16% to $10.25 billion.

shares doubled to $4.27. that was better than the street was expecting. company added 18.9 million subscribers, shattering the essence of a .9 million. first-quarter revenue guidance came in slightly below with the street was expecting. as a result of its confidence, and demand, netflix says it is raising prices by anywhere from one dollar to $2.50 for each plan. the extra member goes up to $8.99. standard with ads is up by a dollar. the number of subscribers they pulled in is staggering. it is staggering. we are kicking off more news here in davos. it is day two here on "squawk box" we are here with robert smith . it is always good to

see you. we have about 1 million questions about private equity and the trump administration, had a.i. when we just start with what you're hearing on the ground. >> and i were talking to everybody. what is the biggest little lesson you have heard behind the scenes. for one of the most important reasons i am here, we completed 15 months ahead of schedule, the edison alliance, phase 1. in 2021, we said we wanted to digitize and bring 1 billion people online. we have our partners, called champions. we are now 1.2 billion people, 15 months ahead of schedule. they are like why do you come to davos? this is a major initiative that you could not do without the support you get here. we have the corporate partners, international partners, we have 200 champions from around the world that made this happen. they better the lives of so many people. we have 2.5 billion more people to go. the next phase will be digital a.i. in the places using a.i.

in these environments. africa is one central place we are focusing on. >> that is very cool. as an old friend of mine, give me that she. giving the gossip. >> of course, jen a.i. is all the talk. is it hype, is it real? is it fiction? you are hearing perspectives. i can tell you, we have 89 software companies. we are making the hard pivot to generative a.i. . the roductivity measures we are seeing are astounding. they are staggering. to a great extent, it will create productivity benefits for our customers. >> i don't know if you heard marc benioff before, but there are two sides to this. you have one on from anthropic, talking about agi that is a few years out and revolutionize everything.

marc benioff is saying that the microsoft copilot is clipping. where are we? >> i will say somewhere in between, it is unfair what they said at microsoft, they have phenomenal technology in the air foundry. and how they are driving that, you will not see everything tomorrow, but the productivity measures that we are seeing with them, and others, they spend time with our ceos. we are using open a.i. and other systems out there. it is astounding what you can accomplish. we will each have multiple agents working with us every single day. we have 120,000 employees. the productivity measures will be quite remarkable. i was a closer to where the son said. we talked earlier about the ipo pipeline. the companies you have not been able to exit, that you may want

to give the u.s. pension funds that are desperate for their cashback. what will happen? >> i think a couple things, while there has been demand for these, the market will open up. we are very bullish on it. what has actually occurred with the new administration as people think it will open up the m&a environment. those not wanting to get caught up in activities are now leaning forward saying, all right, let's start reinitiating talks. >> you have been in the bolt on business for a while. irena kohn did not like that. >> she is not there anymore. >> you're talking major shift in terms here. we are looking at the end of est , and the end of di, president trump is talk about making that

permanent, he wrote an executive order about the end of di, what you personally think of that? to i think diversity is everything in business. i look at the facts. we have diverse teams, teams are more productive. we help reduce those that don't. they also just that. how that gets implemented and executed is where we have dialogue and debate. i think companies and executives that understand the importance of diverse thinking and the work they do and the products they deliver, and the market they start will benefit long-term. for you have robbie starbuck out there, that is torturing the companies that do di programs. there was the anti-di activists target j.p. morgan chase. >> these are both good guys. >> is there a way to do this? if you are right, how do you

hire people under those circumstances? for like all executives, they will find the right way to maximize the opportunity. we are trying to minimize risk and maximize opportunity. the data also just that. when you go to the teams that we have diverse development teams, we are operating in 180 countries. they are more productive. you see the work they come up with. it is astoundingly better. we will navigate through this. we have to navigate through this. there may be laws that change your life to make adjustments, but people will do the right thing. companies and good leaders, they will want to attract talented people. >> i want to have you back. you also have a book coming out. it is in august. it is on march luther king. >> it is exciting. you think about the speeches of martin luther king, and what we were doing was tracking elements of my life. my mother took me and my brother to the march in washington. it was some 60 years ago. the impact of that in my community and the impact throughout my life, and his efforts are things that i did

not comment on. i used to speeches as a reference and a challenge to the community of people to read it. >> i look forward to having you back. i wonder what he would think of what is happening now? robert smith, thank you very much. we have more coming up here on "squawk box", lived in davos, switzerland. we had the ceo of cisco. we have the ceo of j.p. morgan at microsoft. we have the announcement of stargate, and what that means for open a.i. we have the ceo of uber and coca-cola. it is an all-star lineup. come right back. ♪ ♪♪ ♪♪ at state street, we know everyone's trying to get somewhere.

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>> the community. >> the chef is in. >> good morning and welcome back to squawk box. i'm becky q good morning welcome back to "squawk box", live from the nasdaq marketplace. we have enter reporting live from davos. we are in the green once again. yesterday, you saw a decent gain for the market. the dow was up by more than 500 points with a gain of 1.25%. the s&p is less than 1% from

its all-time high. dow futures are up by 70 points with s&p futures up by more than 25. the nasdaq is up 185. with the biggest gains with technology, not a surprise after the a.i. announcements from last night. johnson & johnson chairs are higher this morning after the earnings and revenue beat expectations. joseph wolk will join us with what they have seen with the finished quarter, and what they expect for 2025. his doctors indicated off by $.23. we are waiting for quarterly earnings from procter & gamble. we will bring you a first on cnbc interview with joe moeller. it's for cisco is increasing a.i. capability. joining us now is the cisco ceo. we have a few brc questions for

you. let me do this with you, if you would indulge me. before we hit a.i. , what you think of the terrace? you have been outspoken on tariffs. you talk about a.i. being a conversation, the other big one hard terrace. to thank you for having me. it has been an interesting discussion at the business roundtable. every company has different nuances about their business that would lead them to be supportive of certain tariffs and be afraid of others or dislike them. for us, we have been distributing our dislikes supply chain. we built geographic diversity, not just on final spots, but going back to the supply chain and moving things into different countries. we will have to wait and see how they roll out. if you talk for the purpose of cisco. we don't with them last time and

we have adapted since. we will deal with them again. >> what are you doing in this moment? we did hear from j.p. morgan saying they created a war room to assess and analyze each of the executive orders to figure out what to do about them . >> for tariffs, we do exactly that. we know the exact dollar implication of every every tariff and what makes goods happen. obviously, we have a whole barrage of global tariffs, there are not many places you can run. we will have to wait and see. >> we talked about the stargate announcement in the u.s. as a relates to a.i., where do you feel like cisco fits into the larger a.i. infrastructure? >> we are having a lot of success underpinning the gpu clusters in the cloud providers. we think we have the potential to play the same role in this particular project. >> have you been involved in

discussions? >> not yes. >> it will happen. it's to to call larry or sam? for we will call somebody. >> in the enterprise, we have integrated stacks that helps folks deploy a.i. we had creamer curry last week with a big a.i. defense. we have a lot going on with the infrastructure side. we have new silicon that we are designing. we are having a lot of success. >> what of the other big topics? we call this the vibe shift. we have some of these softer issues. going back to the prt hat, back in 2017, verity came out and said, profits not the only game in town, we are here for our communities and clients. it was part of this esd, di, all of that. you could argue

that the election of trump is a rebuke to all of that. everything we talked about here at davos, a lot of them. i am curious how you think of that with your prt hat and your cisco hat on ? >> it is complicated. the different stakeholders that we talked about, the reason we believe they are important is because they contribute to us running a good business. i don't think those are at odds with each other. on the di front, there is a subset of initiatives under the di brand that were particularly disliked. i think the whole thing got blown up because of that. i do agree with what robert said earlier, if i'm sitting in a room to solve a complex problem or to chase a big opportunity, i want a lot of diverse brains in the room. i don't care visit gender or nationality, or diversity of experience. diversity is a business.

the pendulum did swing. i think was a handful of issues that triggered it all. >> the other thing will be tax cuts. how involved will you be in? >> very involved. >> the rate now is 21% for businesses. the president talked about bringing it down to 15. there was a period of time of the business community was cool with 23%. what are you cool with? >> i don't know who said they were cool with 23%. it is a complicated year for taxes compared to 2017 when we went through this the first time. we will be very involved. we have been active already, working with jason smith, and others. the reality is, we have a different situation that we did in 2017. interest rates are up. we have a deficit. we have different issues that they will have to be solving for. we will be working with them. it will be a complex thing to

solve. it will be simpler than it would have been with a mixed government. for i am curious about china. you have been outspoken about china. you have, on air for a long time. i am curious what you think now about what the relationship will look like. we talk about tik tok as a chess piece in this larger negotiation. we are looking at the chip sales going to sign up. some of the chinese a.i. guys claim they are almost as good as open a.i. and they are using chips that are less expensive, and not nearly as fast. for we have all heard that. >> is it true? >> i don't know, but that's what we have heard. this is my fundamental belief. i am happy to see president trump to reach out and start a dialogue. i have always said, the world and the global economy need the u.s. and china to coexist. we don't need a battle. notwithstanding what is going on with the technology issues that we all face, the best

outcome is for us to find a way to coexist. i am pleased with that. our business in china is immaterial at this point. we do rely on them for some components in the supply chain, but i would like to see the discussions continue. >> i do say brc has that is something that everybody knows. this is the business roundtable. >> i am the chair, josh runs it. >> they represent some of the biggest companies in the united states. thank you, andrew. when we come back, johnson & johnson is out with your earnings. the stock was down. let's look at that stock again. yes, it is off by $.65. the company did beat expectations. they are warning about headwinds in the coming year, including

the stronger dollar, and what that will mean for international corporations. the ceo, joseph wolk will join us for a first on cnbc interview. "squawk box" will be right back. change for 125 years, always looking forward, anticipating risks and trusted to manage over $1 trillion in assets worldwide. solving for the needs of investors today and tomorrow. that's the power of nuveen. >> brian tried. >> to stop. >> you from switching to coupa missus, sir. >> she's not. >> a friend. >> sara. >> brian. >> so i was right about coupa. >> tell me. what do you like most about their ai powered total spend management platform? >> ai that predicts.

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it's. >> fun. >> but we all wished we could just follow the markets and talk. my ambition was to be able to pay my bills and not have to constantly be selling. in today's world, i would urge a lot of people to get. financially savvy. squawk box and cnbc. it is my home. it's the greatest job in the world. >> welcome back everybody. johnson and johnson reporting earnings and revenue that welcome back. johnson & johnson are reporting earnings and revenue that beat analyst expectations. the stock is off by 0.3%. this is johnson & johnson's executive vice president, joseph wolk. let's talk about what happened. for the quarter, you beat expectations on the top and the bottom line. you gave guidance on what to expect in 2025. where do you want to start? >> it is a pleasure to be here

with you today. 2024, fourth quarter was a solid quarter was 7% growth on the top line. it did fit in nicely with a solid year, with respect to how we were able to develop the significant, scientific advancement for patients with serious illnesses like multiple myeloma, bladder and lung cancer , and cardiovascular disease, and mental health. it was a banner year on the front. we were able to generate $20 billion of free cash flow, and come out every quarter, and meet or exceed the top line and exceed eps every quarter. as we go into 2025, we have significant headwinds with multibillion-dollar headwinds. you think about the china economy, the source of growth, you have additional rebates due to party redesign. you also have bio similar competition coming to the u.s.

for the larger projects that treat psoriasis and inflammatory bowel disease. most would be contracting growth rates, we are confidently leaning in with 3% operational growth. we can do that because we have 26 products or platforms that generate more than $1 billion in revenue, and it was on the horizon in the pipeline that i spoke of. more presently, when we get a chance to speak with the analyst this morning, is 9% eps growth on an operational basis. we have the premise of 300 basis points of margin improvement. some of that was the national and natural tailwind in 2024 to secure the pipeline. if there is any disconnect, it is the foreign-exchange then you mentioned. this wet strengthening of the dollar, from the last quarter, he was 1.10 ratio.

today, it is at 1.04. that is about $1.7 billion on the top line and $.25 on earnings per share. we do think once the analyst community has a chance to digest this, they will see the meeting expectations and a healthy bottom line here >> the stronger dollar will impact every big international company. it is a bit surprising that folks of figure that out. if you have been watching this, it comes through clearly. >> they did a great job at the j.p. morgan conference, explaining it to the investment community. we do wish the models were updated. less than half of the models were updated for that impact. once the noise clears, you will see positive sentiments around the topline expectation of 3% growth. we did signal that back in 2023, when the product loses

discernment due to a patent, we plan for. >> let's talk the slowdown in china. that impacted other big openings like the procter & gamble's quarter. he did one about the slowdown they saw and the china business. it was significant. is this an issue of the chinese economy faltering, so there is not as much money to be by consumers? is this an issue where china is replacing u.s. companies and products with your own products? >> it is a blend of both. the big catalyst in china is around volume-based pricing that they have. because the economy has slowed down, the volume and some of the outlying districts where the prescribers were covered, did not follow through. if you look at the pharmaceutical business, that performed pretty well through the course of 2024. it is largely a medical technology matter.

we have a bit of a pessimistic outlook. as i rebalance, that will be a source of growth going forward. for i know you were in washington for the inauguration has many business leaders were. what is a change in administration mean? i think about the pharmaceutical companies in particular, the ira, what happens with that? what are the upsides and downsides with coming to a new administration? for great job of your coverage in washington. it was exciting. you are there at a moment, and an historic moment for the u.s. i would say, really, we are optimistic about what could potentially happen with the trump administration for the second round here. progrowth, pro-innovation, pro- business, pro-american business. these are things that align well with our strategy. i think about it from two perspectives, you heard me speak on the show about tax policy.

we are very encouraged. we were proud to announce the addition of a new facility, due to the tax act in 2017, that would not have been possible a decade ago. we have a 21% rate that is not necessarily advantageous. on a piece of paper, you can make the justification as to why he would add jobs capabilities here in the u.s.. i think about it from drug pricing, which is a topic on the minds of many. i hear the administration speaking about transparency around the middleman. think about every drug spent on this, every $.50 on the dollar does not go to the innovator with the manufacturer, he goes into the system. it goes to pbm's and insurers. everything about co-pays and insurance premiums, the out-of- pocket costs that the patients incur, they have gone up more

than 50% over the last decade. we have to get those discounts in the hands of patients that need the most. there are things that can be done easily with respect to co- pay reform. calculating the co-pay off of net price instead of list price. having the transparent discussion around that, which is where the dministration seems to be heading, is certainly good for the industry. it is good for business. it is good for america and american patients. >> it is such a complicated system. it is hard to track down where the numbers go and where the increases go. americans know they are paying more. your line of thinking is it is the pharmacy benefit managers and the insurers that are the ones lining their pockets? for to give you an idea at johnson & johnson, the average discount and rebate across our portfolio was 58%. we were recording less than half, only about 40% of our

gross sales. discounts and rebates and went to pbm's and insurers. those discounts and rebates are not getting to the patient. the co-pays are going up and premiums are going up. we have to make sure there is clarity around. i think it could be beneficial, not just from the patient perspective, but a government spending perspective. if you look at the discounting that goes on, it is sometimes double dipped with medicaid. for i am afraid folks will get lost in the details, this is the regulation that says hospitals in poor areas, maybe it is rural or urban, are granted discounts from the pharmacy companies to get cheaper medication. the big issue with that, from the people i've spoken with is over the years, it has been abused. wealthier hospitals come in and

buy up one of four hospitals and they get the cheap drugs and ship it to areas on the mainline in philadelphia to places where they would not have qualified for that. it is not police very closely. for what we are looking for them to do is to apply the tools in the law to audit. there have been audit findings saying there has been double dipping. just an imbalance of how these discounts are being applied. and the programs have grown 25%. there is an imbalance of how the discounts are being applied. they're not getting to the right patient. one thing i will say, donald trump sounds like he definitely wants to bring drug prices down, and was make sure americans are getting cheaper prices. you can circle the language he has used around pharmacy

benefit managers. bernie sanders has said that he would be willing to work with the trump administration if it does things like bring prices down. there are 70 cooks in the kitchen on this. it is such a complicated system. if it means that the ira sticks around, and they can negotiate drug prices, or tell you how much they will pay for certain drugs, what does that mean? >> the first thing i would request that senator sanders is to make sure he is using right data. often the person about u.s. pricing versus the rest of the world pricing is using a list price in the u.s. compared to a net price outside the u.s. there is a difference, but there are benefits to the difference. it is not as exaggerated as some make it sound. it is important to understand that the american system, we have the best universities in the best positions in healthcare providers. americans have the best access. you think about drugs, when they are approved. they are normally available

within days after approval. certainly within the first year. if you take a country like canada, it is almost 2.5 to 3 years for the same drug approval to get to the patient. you think about cancer, a very serious illness. when you are diagnosed, you want the best possible care. since 2012, there is been about 130 cancer medicines approved. in the u.s., 94% availability of those drugs. in developed countries, the g20, that same availability is only a 46%. we can't throw out of the system to provide the best healthcare coverage, with the latest scientific advancements to patients, and throw it out because of a pbm and discounts that are in the system not getting to the patient. >> joseph wolk, thank you for walking us through this. this is a conversation that will continue. there are so many parties

involved here. joseph wolk from johnson & johnson, we appreciate it. >> reporter: it is just after 7:00 dam on the east coast. it is 1:00 p.m. here in davos. you are watching "squawk box". we are showing you the futures, before we get to the next big guest of the morning. we are looking at green on the screen. the doubt is up about 115 points. we are looking at the state of the u.s. economy had so much more, we have jeremy diamond,. it is great to be here. i do miss you. we have jamie dimon. as for i will start with this. last year, you were here. in your words, they went around the world. you told our audience, you have to respect the truck about her.

you said that trump got it right on a lot of things, including immigration, and other things. i am curious, you did watch the reaction in real time. you got calls and emails, and also to things. did not just happen the day of, but for months afterward. what was that like for you? >> i am thrilled to be here. of course, if you ever have an opinion, as you know, it comes up everywhere. when people are responding to, so he said. it is just about a snippet. i am used to that. i was just make the point, respect the voter. the problem with putting the moderna box is the voter might be voting for different reasons than you think or i think. respect why they may have grievances or they are angry. we had problems of the border wall that they on't need to spend more money. the economy was growing enough.

we have not grown for the bottom 20% for years. we should respect that. people automatically get angry over an issue, takes away the ability to analyze why the persons voting away. >> how do you vote now? maybe, where he said, not that you were cautiously optimistic about the economy. there is a lot of optimism by u.s. ceos. you said you were cautiously pessimistic. why? >> i was probably making a joke. i do have more caution around a bunch of subjects. america is an unbelievable place. pro-business growth is great. i hate the word regulation, sounds like you're trying to get away with something, but the bureaucracy, the american public knows the bureaucracy is extraordinary. it has been a lot was like a cancer. it damages everybody. what i am cautious about is the

spending. that is a global issue. and the related, will inflation go away? what if rates go up? the prices are elevated. that is one issue. the important one is ukraine, iran, russia, north korea, and the related role of china in that. that has a very concerned with how it will affect the world for the next 100 years. i don't know things will get resolved in the next year or next few months. as to what about the tariffs? that is what everyone is talking about. trump talked about tariffs yesterday. your colleague was on stage talking about how your team has created a war room looking at these executive orders as they come in, trying to assess what they mean for the bank and your clients. for war room might be a bad word. this is a real time analyzing team. we get 1 million questions on

stuff like that. i look at tariffs, they are an economic tool. they are an economic weapon, depending on how and why you use it. people argue if it is inflationary or not? if it is a little inflationary, stiffer national security, so be it. get over it. national security trumps inflation. the question is, how they get used? can the be used to bring people to the table? yes. is there unfair trade? yes. are there state owned subsidies? yes. how it gets laid out, we will find out. >> on the topic of the markets, we were talking on the broadcast that an article in the wall street journal that was looking at the beginning of presidential terms. we are at historic highs. i wonder whether that factors into your thinking that being cautiously pessimistic about where the market goes in this

environment? >> the prices are kind of inflated. talking about the u.s. stock market. they say sovereign debt is priced pretty well. they are elevated. you need good outcomes to justify the rices. having new strategies helps make that happen. the negatives can surprise you. >> i think she has a question. for hello, it is great to see you. second of all, the stronger dollar, how do you weigh into that? we just finished talking to joseph wolk from johnson & johnson. procter & gamble will report this morning. we have a rapid rise in the dollar. tell me something for the international companies, when you look at the potential for tariffs and retribution, how do you play that out?

is that something you are looking at in the war room? >> i don't think it is as important as people think. the stronger dollar is an outcome of the other things. all things being equal, an american president were secretary of treasury, it means that we are looking at strength, generally. it will bounce around. tariffs can change the dollar. the most important thing is growth. we should be wishing for that. you will have some negative effects. most people will be voting for better growth around the world. for the world needs more growth. even being here in europe, you talk to european nations, and how the gdp stagnated for the better part of 15 years. growth is the only real solution to reduce the deficit and reduce debt and make the investments necessary to grow.

i think it is private capital. we have to be careful thinking the government can fix all these things. >> you think other nations, do you think they are recognizing that, thinking they need to change their ways to be more like the united states to change tax codes and bring in private capital? >> totally. i did hear a bit of the speech from the president yesterday. i did meet with chancellor reeves from the uk. i don't think there is anyone that does not understand that they need more growth. there are certain things that people act on that have limited growth. is the general antibusiness sentiment. everyone realizes that. the real trick is execution. you can talk about it all you want. that to execute the report. a lot of people are talking

about the report, in the united states, same thing. people are talking about how damaging this is been. for what you think about doge. what you think about the ole of elon musk's ? >> elon musk and i have hunted out. he came to one of our conferences. we settled some differences. you to look at him, spacex, tesla, neurally, the guy is our einstein. i like to be helpful to him and his company, as much as we can. i think it is completely rational for somebody to look at our government and say, it has been effective. you look at the grievances. you have inner-city schools and education, income did not go out for the bottom 20% for the

better part of 20 years. we deserve good government. i don't think anyone thinks sending another trillion dollars will give us good government. the government needs to be more efficient. it should be outcomes-based. i say department by department, so i wish him the best. you read about all the people in it. if we can be helpful to them, i will be helpful to them. to on top of the bank. profit raised 15% in the fourth quarter. where are you? one of the things you have done ? without pandering to you, will give you credit for a moment. the bank is stronger than it has ever been. you have been opportunistic about buying things and being in a position to buy things when the moment arises. when you think about investing now, on behalf of the bank, what you even look at? >> i don't think doing a big deal is in our cards.

so that we did to help the united states. we have great people. i feel blessed with that. obviously if you don't have good people, you don't have a good bank. in terms of investing, i could go country by country, area by area, and then we could invest and grow. investing shows up as bankers, physical locations, and technology, and marketing. we spend a lot of money in marketing. we think we have gained shares in wealth management, retail, small business, and big pockets . we talked about the yellow and the red, where we are not very good. that could be in vietnam. those are huge opportunities over time. it is to know if you saw this in the wall street journal, the anti-di activists, there has been a vibe shift. we look at the rebuke of di,

why starbuck is going out there , you have activists going into your company. >> are you aware of this? >> bring it on. for what you think your approach be, given we have seen a whole number of companies effectively ending these companies, under pressure. it is worth pointing out, one of the first executive order some president trump put in place was to end dr within the government. >> i don't like monikers. it makes it sound like a binary thing. let me tell you what we do and what we have always done. it does not mean we will change policies going forward, we have always done our own thing with clinton. we get people criticized with the climate. we finance oil and gas and solar and wind. we finance companies. our outreach, it is commercial.

it is 90% for profit. we will continue to reach out to the black community, the hispanic community, the veterans community, l.g.b.t.q., we have teams with second chance initiatives. where i go, with blue states, red states, governors, they like what we do. we are not trying to pander. if you point out something that we are doing that is wrong, i would change it. we will make modifications going forward. we are proud of what we have done. we have lifted up cities, schools, states, countries, companies, and we will do more of the same. as for you and so the act was to go pound sand? >> if they have something we're doing wrong, i will is and what they have to say. it's for to ask about this topic, because the president is all in, bitcoin, strategic bitcoin reserve, you can purchase a trump coin. as to

what you make of this? this could be a true shift. you talk about the strength of the dollar, don't you think happens to the strength of the dollar if bitcoin becomes reserve currency? >> we use block chain. there is use for block chain. we have the j.p. morgan deposit token. i will not talk about the bitcoin. to you talk about it plenty refused to talk about aol all the time. as for maybe this speaks to speculation, in terms of the markets, what you make of the public market. people are gambling on sports. as for what is a show, casablanca? there has been gambling going on for a millennium. for i have no interest.

i have no interest in the subject. people will speculate, some will win, and some will lose. >> lastly, we do ask questions, it is a succession question. daniel pinto will be stepping down. he has been, if you get hit by a bus guy, who takes over? how do you feel about him stepping down, how long can you continue doing this? >> daniel has been a magnificent partner. he started as a kid in argentina. he ran trade in latin america and then he ran global trade. he helped build one of the best investment banks the world has. he has been a partner of mine. he is trusted by everyone. he is not going away. hopefully he will stay as a vice chairman after that. he has some of the best capabilities. there is a time.

daniel leaving, he leaves a vacuum, but it is good. now other people can fill the vacuum. i am blessed to have great people. we are working on the succession. we are convinced we have a good one. in sacramento, she says she does not know my job. i cannot tell people if people will want it or not wanted. she is devoted to the company. she will stay. brings huge continuity. she is willing to work with any of the people that you would speculate as successors. for 2028 is around the corner. >> i will not go for any office. >> is that off the table? for i will make any promise to you. i will make a promise to anyone. i don't intend to do that. >> jamie dimon , thank you. thank you very much.

earnings are just out from procter & gamble. with travelers, they earned and adjusted $9.15 per share. that was well above what the street was expecting. revenue came in line. you can see the stock popping on the news with 4.1%. we look at the dow futures that we see this. like the dow is indicated up by 132 after strong reports from these companies. procter & gamble just reported, and they are registering a beach on the top and he bottom line. that stock is up by 3%. you are looking at big gains on better than expected earnings coming through. that will drive things. we talked about how the markets are priced at historically high levels. the only thing you could hope for, the reason you expect work growth is if the companies beat expectations. that is what we are hearing this morning. when we come back, we will

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>> proctor and gamble out with its second quarter results this morning, beating on both the top

and the bottom lines. joining us right now to break down that report is john mueller. he procter & gamble are out was the quarter results this morning, beating on the top and bottom lines. joining us to break down the reports is nvidia, the chairman and ceo. thank you for being you. your stock is up by 3% after these numbers came in better than expected. what was fueling things during the quarter? >> where re-acceleration of topline growth in volume and sales, particularly in north america and europe. in north america, we were up 4% on sales, on volume growth of 3%. europe is up 4% on volume growth. that is growth across the board. 9 out of 10 categories are growing sales. the team is executing the

strategy. they are delighting consumers. the results reflect that. >> from where you see things, we have a strong economy in the united states and europe? >> yes, reasonably strong consumer participation in the categories that we compete in. also, we are very strong in northeast asia. obviously, china, the middle east, it is a bit weaker. if you look at the broader region of north america and europe, they are the largest. they are performing very, very well. to china was an issue last quarter. you talk about what you have seen with sales slowing down. is that because of a weaker economy? that because chinese manufacturers are pushing their own brands, what is happening? is that the situation that you balls and gets better?

>> it is getting better, as we speak. last quarter, you are absolutely right, we had sales down 15% compared to a year ago. in the last quarter, we were down 3. some of the big brands of warnock growing group during the quarter. sk 2 was up. the baby diaper business, is up declining birth rates. we are bringing a lot of innovation to the marketplace in our haircare business and our skincare business. we look at china as a source of mid and long-term growth. you look at the demographics, you have an aging population, and a population that is growing, as it relates to income. it is forecasted to add 200

middle income consumers to their ranks by 2030. that is a market we continue to invest in. >> let's talk through the idea of tariffs and the potential for trade wars. with tariffs, you have done a lot to spend money in the united states to boost manufacturing. you spent $6 billion to do that. potentially does not impact you for the tariff news. china has spoken out pretty quickly, saying that trade wars don't help anybody, in terms of what they have heard and threats from the administration. let's talk about tariffs, where they don't matter, and potentially, if it blows up into something bigger, maybe talk about what you have done to invest in the united states first. >> first of all, in our product categories and production, proximate to consumption, the highest component of the cost to good sold is delivery cost.

for smart economic reasons, for long time, we have been localizing our manufacturing base as much as we can. that puts us in a pretty good place to start with. we also learned a lot, as many companies did, during covid, about the fragility of certain points of our supply chain. as a result of that, we increased its resilience, by increasing the number of possible source points. that has helped us. as you said, largely due to, or enabled, by the tax reform regulation of 2017, we invested a lot in manufacturing in the u.s., because it became more profitable to do so. we invested in our organization.

the irony is, as we talk about tax reform, we are paying more taxes today to the u.s. than we did in 2017. it did work out well for everybody. we are fans of free trade. we will manage, as best we can, with those kinds of initiatives at our back. >> do you worry about any issues with the chinese government, commencing the chinese people that they do not want american brands, if this blows up into a trade work? as for the last time i met with the chinese ambassador to the united states, he started the meeting by telling me, my family wakes up to your brands, they go to sleep with your friends. your brands are chinese. we have worked very hard to weave our brands into the fabric chinese life. there are no guarantees, but our product categories, people

really selected brands and stay loyal to brands based on their performance. that is what we are primarily focused on. the rest is whether it rains or it is sunny, and our job is to wake up and delight consumers. if we continue to do that, we will be in a good place. >> we just saw jamie dimon is saying that we like a stronger dollar. it can be an issue for international companies , when they are dealing with the effects of things being sold overseas, not being as valuable when you bring the profits back to the united states. what type of the headwind will be in 2025? as for my friend, jamie dimon, that is easy for him to say. the stronger dollar hurts us from the bottom-line standpoint.

we have seen an acceleration on the strength of the dollar in the last couple of months. it had an impact on the quarter. we did overdeliver. it will have an impact on the balance of the year. it is a headwind. for how you handle that? what does that mean from the operations basis? you are standing by your guidance for the year. you have to make up for it somehow. >> several years ago, as we came out of covid, we had the combination of foreign exchange, commodities, and transportation cost escalation. they took out 50% of our profits over a two year period. the team offset all of that, and more, through the focus on productivity. we remain focused on productivity. we have about $1.5 billion per

year to deal with these things. by the way, not only did it offset the impacts, we grew. they did increase at the same time, the pending on innovation and commercialization of that innovation. i have a lot of confidence in our team. it is not easy. we will have bumps along the road. we will continue the journey of innovation and superiority, enabled by productivity. that should take us through the day. as for it sounds like the team deserves a raise, john?[ laughter ]to be careful, becky. >> i want to thank you for being with us. procter & gamble shares are up. we appreciate your time. let's get over to andrew in dominoes. president trump is

announcing a new joint venture called stargate to build and grow a structure in the u.s.. oracle is to commit $100 billion to start. it can be up to $5 billion over 4 years. microsoft is one of the partners, joining us for an exclusive interview. is so good to talk to you in the midst of all of this. we are trying to understand what it means, whether it is possible to get to $500 million, and what is specifically means for your partnership with open a.i., given they had been using azure, exclusively. now they will be on other platforms. >> any time a company that is sponsored, and is a seed investor, raises money from others, it is a good day for open a.i. . our partnership continues. we will be a technology partner . we have a partnership with

open a.i., you talked about being exclusive. we have iv access to microsoft that continues. now there will be more. we have share arrangements that are great, and open a.i. is committed to a safe and significant rate of azure consumption. it is all up, as far as i am concerned. this will excel the model work, which excels the ability to go to market with those models and grow our business. >> we have one of your competitors on this morning, marc benioff, that has been critical of the partnership. one thing he said is this is a demonstration of a fissure between the two companies that you will go off longer term and build your own frontier models. there is a disconnect of some sort between those are running

the program. can you say to that? >> i think the partnership with open a.i. is a critical partnership. we love it. it is working. he created a loss of value for us. we plan to just continue. it is true that on azure, there are other open source models. we have small language models. we will continue to have them. customers will demand choice. that is fine. we make sure we support it. having the leading model on azure, exclusively, is good. >> i talked to sam altman. he says i don't think we are disentangling. he said look, i will not pretend there are no misalignments or challenges, obviously there are some. he thinks it is tremendously positive. what are the things where there is not alignment? you put open a.i. as a competitor on your list.

i thought that must speak about your ambitions long-term. to for us, one thing that stargate is beyond, sam wants to continue to build out more computing for him to train more models. he comes to us first to meet the needs. we clear it, if not, he can go to other providers. it does work out well for sam and us. we are supporting both his needs, and keeping the integrity of what we want as the strategic value. >> you have invested $80 billion already. how much money have you put into this? >> microsoft is investing $80 billion in capital each year. i am not in the details of what they are investing. for when you look at that $100

billion commitment, $500 billion potential, elon musk took to twitter and said, they don't have the money. the money does not exist, as is as if this is not going to happen. what you think of that? for all i know is, i am good for my $80 billion. we will do that to build out azure. customers can count on microsoft with open a.i. models being everywhere in the world. we are serving open a.i. models. that is what i know. for the discussion on whether there is a wall, whether the scaling laws will continue at pace. sam altman has been saying that they will not continue at pace. one senator has been suggesting that it gets more complicated, sooner than we may imagine. what he went on that? >> both of those are true. the reality is, i don't think there is a wall. things get harder with scale.

and wrestling with it, it gets harder. what sam and the team have shown is the time to commute -- computers, and to have infinite scaling, compounding in some sense, the scaling laws. what used to be a six-month dumpling might be a three month dumpling. the scaling walls are very much alive. the question is, how do you take advantage of all the capability? >> where are you on your own frontier models? you have your own efforts that are underway, what is a look like? when will we see that? what is that ultimately do? you have done well with open a.i., that could be a spectacular investment unto itself. how does the whole landscape shift? for we have access to open a.i., we will not be doing things twice. we are happy with the access we have, we do have

other models that we built. with the public model that we talk about witches and slm, a small language model. it is best in class for its size. to me, the most important thing is to build value on top of open a.i. we have a great training staff. we have done mid training and other languages. >> you think about the scaling laws, how much of all this is simply about processing power? if you can purchase enough chips from nvidia that you can create a largely wood model, look at what elon musk is done in the last 12 months. it is remarkable. he built a house in entire stack. how much is it about the processing power in the algorithm? >> computing is intelligence. on top of computing, you need

the over the breakthrough. to some degree, if you look at why the scaling models are working, it is because we are getting good at using the algorithm changes, and data and data usage. and we are looking at computer efficiency. when we say, scaling laws, it is not just on computing, it is faster than computer growth. if the computers on 10 x, the capability is 100 ex. it is softer. >> one of the big questions, that i have heard from chinese a.i. executives. they say their a.i. programs are 98% of what the large language models in the u.s. can do. they claim they are doing it with chips that are 5 to 10 years old. we had one from anthropic, thing i don't think it is true. they got a lot of the nvidia

chips before things got in place. they may have gotten other chips from around the bend. what is happening? >> i am going by the papers they are publishing. it is impressive to see the new model. it is super impressive, in terms of how they have effectively done with an open source model, and this. it is supercomputing and efficient. we should take the data seriously. it also speaks to what will happen now, which is the model layer self will get commoditized. what is important, we will see the infrastructure here, and world-class applications on top. that's where the enterprise value is created. >> a regulatory question for you, you have a new administration and he went and met with president trump.

nina was against a lot of the transactions that you are looking at investigating. do you see a loss of this ahead of you? >> to me, whether it is linked in, or the partnership with active a.i., or activision, it is all done because we felt we could be better owners, and we could do things on the technology front, and on both sides, shareholders would benefit. we are open to anything that fit that criteria. fundamentally, we have to have the grant permission. we have to have a vision that we can be a better owner. for what did you say to the president? >> it was a great conversation with a.i. and energy, and the need for the united states to build out more energy structure and support. we talked about cyber. we had a broad range of topics. >> what you make of the number

of technology ceos that have gone to mar-a-lago, or were at the inauguration, light upon the president, in better seats than son some of his cabinet members? for having a government that wants to talk to business leaders is always welcome. at the end of the day, we are better off. i'm not saying it needs to only be about business , at the same time, having an open dialogue on what we think, and having a progrowth agenda is a healthy thing. for what should the american public think of it? some people look at optimistically, the way you approached it, and others say, they are going to kiss the ring, there is an oligarchy. it's to i hope it is not an oligarchy. i am a citizen of the united states. i hope we elect people to be

the government of the country. that is the way it should be. everybody's vote counts the same. for where talk about a.i. and energy consumption, for many years, we talked about energy and climate. many companies are made pledges. i think you will try to beat the pledges, we think you can. other companies cannot. what you make of what is happened? >> one of the new growth formulas in any country will be what i describe as tokens for the dollar. that is the way to think about energy and intelligence. in that context, we have contracted something like 36 gigawatts around the world of energy, we will goals going in to 2030, with a combination of what we source on the grid and behind the meter, we feel good. >> what about the existential question about labor, and life

with a.i.? once that he thought, so many jobs could effectively go away, very soon. we are getting close to that. marc benioff said he stopped hiring software engineers, because so much of the software is being written by a.i.? what do you foresee? >> there will be productivity increases. a.i. does help reduce the drudgery in our work. talking of software, and, my first believe in this technology came when i saw copilots, what it did. the joy of programming was something that was brought back, because of a.i. helping you with the task at hand. i think what it does is reduce the flow and raises the ceiling. that means the expertise level inside of the organization goes up. productivity goes up. that means, take software development, does the world

need 1 billion software developers? you look at every i.t. organization and you see the number of apps that the need to re-factor and rewrite. i think 1 billion software developers is a good thing for the world. >> so, no job losses? to i think there will be new yelling and changes in jobs. at linkedin, we have changed what used to be front end to full stack builders. the role itself, the complete scope and scale has changed. the reimagining of the labor force at the scope and scale will change. >> satya nadella, thank you for staying out here in the cold. i want to thank you for coming on and discussing this deal. i will send it back to you in new york. when we come back, the uber, ceo will join us to talk

about president trump. we will ask him about that, and more, and the congressman from california will join us. we talked to him about what he sees happening with the new administration. "squawk box" will be right ckba. ♪♪ ♪♪ ♪♪ ♪♪ ♪♪ at state street, we know everyone's trying to get somewhere. ♪♪ take the next step toward your future, by investing in the s&p 500 with spy. getting there starts here.

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888314 3835. >> welcome back to squawk box, everybody. we've been watching the futures this morning. dow futures right now indicated up by close to 150 points. we've gotten welcome back to "squawk box" we have been watching the futures. dow futures are indicated by 150 points. we have strong results from many dow components. the nasdaq is up by close to 200. let's of the companies that have reported results. first, consumer products, procter & gamble came in with better than expected profit and revenue for its latest quarter. the result of his from phone sales and family care products. we spoke with the eeo, nvidia, how he has seen demand up sharply in the united states and europe. you can see that a stock that is indicated up by 3.5%.

the problems they saw in china seem to be resolving. sales were down, but not as bad as previous quarter. johnson & johnson beat estimates on the top and bottom lines as well. the earnings were at $2.40. that was above estimates. the company was helped by improved sales of cancer drugs and devices. the strong dollar will be an issue. that is a headwind for the rest of 2025. we saw a rapid appreciation in the dollar. that stock is off by 1.5%. shares of bounced back off the earlier session lows. the provider of energy technologies on revenue missed the consensus forecast. it is unclear how that compares to the estimates of 229, what is included and what is not. you can see g shares are up by three cents. there are the netflix shares. that is a stock that is soaring.

the fourth-quarter beat estimates on every metric. revenue was up by 16%. earnings more than doubled on a per share basis to $4.27. that was better than the street was expecting. the company had 18.9 million subscribers. that is 10 million more than expected. the only display was the first quarter revenue guidance i came below with history was expecting. the stock is up by 14% this morning. it was trading just above $1000. as a result of its confidence, they are raising confidence crisis by one dollar to $2.50 for each plan. back to you. president trump's recent executive order compose challenges to electric vehicle mandates, potentially impacting uber. that's one topic we will talk about with dara

khosrowshahi, the uber ceo. you are in from washington. you are one of the few ceos that made it to to they are both important events. for before we get to electric vehicles, you did throw a big party. you are at the inauguration. uber $1 million to the inauguration. you personally gave $1 million? >> yes. >> you have not done that before. uber did that with biden. i am curious your personal decision to do that. i noted, tony est, your great legal officer and brother-in-law of the vice president of the lost the election. what was that like? >> from our standpoint and my standpoint, we want the administration to succeed. when this administration succeeds, the country does well. business does well. we have a very broad envelope as far as consumers and drivers.

we want to ensure support as it relates to the administration. we want to engage on things that drivers care about, as far as the cost of living, and access to transportation. it is the beginning of dialogue. >> what you think of the larger conversation the people are having about the role of ceos being engaged and involved in the administration? >> i think having a voice, as it relates to the future of the country, and the economy, is a positive. when the economy does well, the country does well. we are an economy that is the envy of the world. i think a big part of that are the ceos and leaders that are making everyday decisions, and having a strong relationship, and open communication with administration is very helpful.

>> what happens when the president does things that you don't like? thinking about the electric vehicle mandates, given where you are and where he is? >> those are his decisions. we work with every administration. there are certain decisions that any administration will make that we agree with, as on that we don't agree with. the fact with electric vehicles, they are a great product. we see these in our fleet, growing. our drivers are moving over to electric vehicles, about five times faster than the general public. the passengers love them. the economy is working. if you build a great product, the marketplace will take care of it. electric vehicles will continue to be a higher percentage. for if this gets revealed, mean that tax credit, what does that do to the ambitious that you have set? >> i think the electric vehicle

penetration could slow down. we will see. we will continue to lean in. drivers that are driving electric vehicles on our platform make more money. we are working with industry to get discounts to make electric vehicles more affordable. we will keep doing what we are doing. anybody that faces the business on government subsidies is not doing the right thing. they do help. the fundamentals for us continue to be there. we will run our business as we have before. >> are you campaigning to continue? to know. i don't think we need that kind of assistance? >> very talking to elon musk? in a way, he likely does not want them, because he thinks he is in a great position. for we are in a different position. we don't need subsidies for electric vehicles to succeed at uber. they are good product. for thomas vehicles?

it seems like this is the year of autonomy for uber. you made an announcement at ces, in terms of a partnership with nvidia. how quickly does this happen? what you say to the drivers? eventually, maybe not too far away, they will start to compete with humans. for the technology development, as it relates to autonomous is happening at an incredible pace. we have a relationship with nvidia, and other companies. we have the business of technology that will hit primetime. it will make for safer streets. for what is the timeline? for i think that technology will be ready for prime time between now and 2 years from now. it is moving very quickly. especially with some of the newer generation companies. the commercialization of electric vehicles will take

much longer. the cost of them, the sensors, it is a bit too high right now. we do think that our partnering with the av developers will speed up the commercialization. we can bring them a lot more business, much faster. we have fleet operations in cities in which we operate. you will see this live in austin and atlanta this year. for if i said i was a potential uber driver. i'm going to purchase myself a suburban and try to advertise that suburban for the next 10 years, and driving for uber, is that a good idea? >> i don't think you will feel anything as a relates to the next 5 years. san francisco, business continues to grow. the overall envelope of the business is growing faster. i think we will operate in a hyper network. a combination, of dominantly human drivers. we will have some av systems

coming in. between now and 10 years from now, humans were plenty of work. >> final question, this is a conversation we have all the time, congestion pricing in new york city. you are a new yorker again. what you think? is it working? >> i do take an uber around. you pay an additional dollar 50. >> it is only $.75 in a taxi. for it is reducing traffic over the bridges and tunnels. it has n had a significant impact in terms of traffic in the city. it is too early to tell. things are moving over too quickly. we have the holiday period with unusual traffic patterns. it remains to be seen. we supported congestion pricing. our cars, the drivers have a huge amount of utility with any

order. to some extent, congestion pricing is pricing out the low utilization vehicles. we think that is a good market. >> you will know if it is working before anyone else. >> that right, but right now, it is too soon to tell. for becky, back to you. when we come back, california congressman will join us on the bill with senator rand paul to repeal the ban on tik tok. we will hear from british finance misr, inte rachel reeves, and the coca-cola ceo, james quincy. we will be right back. energy. cars that drive to the future. even pizza deliveries. >> together we. >> can. >> go beyond where. we've ever

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scan the code now and ask about the bosley guarantee. >> it is 8 a.m. on the east coast and you're watching squawk box right here on coast, and you're watching "squawk box" right here on cnbc. i'm becky quick along with andrew ross sorkin who's at the world economic forum in davos, switzerland. joe is off sick today. among the top stories health

care johnson and johnson reporting expectations above and came in above what the street was expecting. that stock right now down about 1.6%. president trump says his team is looking at imposing a 10% tariff on china starting as early as february 1st. trump tied the move to his claim china is sending the drug fentanyl to canada and mexico. and speaking of the president, he announced a joint venture with open a.i., oracle, and softbank to invest billions in the united states -- in the united states a.i. project that's dubbed star gate. most companies have committed $100 billion which reportedly includes projects already announced ined the biden administration. they say they'll spend up to $5 billion over the next four years. taking a look at markets this morning we are in the green. dow futures indicated up almost 150 points as we've seen dow components report.

s&p 500 looks like it would open up by about 30 points here and the nasdaq is now indicated up about 200 points. we're now keeping an eye on treasury yields and looks like those yields are a little lower this morning. and then you have bitcoin prices, which have risen pretty steadily. they're up to 145,170 this morning. andrew? >> here in davos meeting with business leaders and pitching them in the u.k. joining us right now. good morning to you. >> good morning. >> i have so many questions around tariffs and all the conversations happening around davos. i'm curious. you come here, you're meeting with lots of u.s. companies, frankly, to try to bring them to the u.k. where does that stand in. >> so my government is just six months old. we were elected in july last year, and we had a clear mandate in that election victory to grow the economy. to grow the economy to make

working people in britain better off. and to get that economic growth, we need more investment into the u.k. and so my message to u.s. investors and global investors, too, is britain is open for business. we want your investment. we're looking to reopen some of those chain links and investment links to bring more good jobs to britain. >> can you're meeting with folks like goldman sachs, morgan stanley, and others. i'm curious what the u.s. is going to do is whether there's going to be retaliation. what you think of that. >> first of all, i don't want to speculate on what may or may not happen, but i do understand that president trump is concerned about countries that are running large and persistent services on trade balance. that's not a problem here in the

u.k. we the u.k. increased trade with president trump the last time he was in office, and there's absolutely no reason why our two great nations with such a strong and special relationship can't increase those flows of trade once again. >> i'm curious talking about two countries that may not have that special relationship, the u.s. and china. you were just in china with the vice premier. and the vice premier when he was here talking about a trade war has no winners. what was your conversation with china like? >> with went to beijing and shanghai to get a better deal for u.k. financial services firms that operate in china like hsbc and standard chartered. and i was able during that economic financial dialogue secure closures of big u.k. banks and asset managers that do business in china for the u.k.'s national interest. that's what i'll always do as chancellor is represent the interests of my country on the global stage whether that is

improving the ability of british businesses to export to china, improving our trade links with the european union, or indeed strengthening the ties that we have with the united states, our single biggest trading partner. >> let me ask you about this. i'm sure you saw this. elon musk has been attacking your government on x. he posted just last week he said america should liberate the people of britain from their tyrannical government. what do you make of the influence of elon musk, and what is the reaction to that in the u.k.? >> elon musk is entitled to his opinion, but he's not one of the people that votes in the u.k. general election. we had an election just over six months ago. we received a huge majority, a huge mandate for the change we're bringing, that change to bring the economy and make people better off, the changes to improve our schools and health system, and that's what british people voted for, and that is what our prime minister keir starmer, and me as the finance minister are getting on

delivering. >> let's talk about the finances of the country and thinking about the interest rate environment, you're probably not going to be willing to totally go there, but there has been a global bond sell-off, and i would argue that the u.k. has been hit as a function of that. >> well, just before we'd begun this interview there was an update on what's happening in global markets, and the u.k. is not immune to what happens in global markets. but, you know, i'm not going to provide a running commentary, but what i would say, though, is that in the budget that i setout in october, i put out the fiscal rules of this government will operate within, and those fiscal rules are to pay for day to day spending through tax receipts and to get our debt down as a share of our gdp. those fiscal rules are the bedrock of economic and fiscal stability and nonnegotiable, and we will continue to meet them. >> chancellor, i want to thank you. >> thank you very much. >> becky, i'm going to send it back to you. >> okay, andrew, thank you. when we come back, silicon

valley representative ro khanna will join us on the ongoing tiktok saga in washington. he's introducing legislation to try and overturn the ban. we will talk to him about that and much more. he's also got silicon valley in his district, and we'll talk to him about what we've seen with some of these tech leaders heading to washington. we'll also hear from the ceo of goldman sachs live in davos, david solomon. stay tuned. you're watching "squawk box," and this is cnbc. uncertainty and disruption how will your investments stay resilient. we've been navigating change for 125 years always looking forward anticipating risks and trusted to manage over

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>> the community. >> the chef is in. >> for a. >> deal i think the deal i think is this, and i've met with owners of tiktok, the big owners. it's worthless if it doesn't get a permit. it's not like, oh, you can take the u.s. the whole thing is worthless.

it's worth like a trillion dollars. so what i'm thinking about saying to swbd is buy it and give half to the united states of america and we'll have half and we'll give a permit. >> that was president trump yesterday speaking about tiktok. that service briefly went dark in the united states over the weekend before being restored. president trump now says that he would be open to elon musk buying the app if musk wanted. of course he signaled over his shoulder and said maybe you'd like it, too, larry -- larry elson standing next to him from oracle. joining us now is ro khanna. in fact on monday the congressman cointroduced the repeal of the tiktok app ban. let's talk about this. this act you introduced was along with rand paul, the senator from kentucky. it is bipartisan, it is

bicameral, and it would overturn a law that congress voted for overwhelmingly last year. what's changed, and do you think you actually have the support to get this passed in. >> well, millions of americans spoke out when tiktok was going dark saying this is our livelihoods. i talked to a mom of four kids who was broke and relies on the app to make $60,000 a year. i talked to people who use it to pay rent, and there was outrage. and i think this has captured the attention of many members of congress and senators. and by the way, many of them used tiktok to campaign in just the last election. so i think the attitude is changing. >> congressman, the lobbying that was coming from the millions of people who used tiktok started well before the original law was passed by congress overwhelmingly. in fact, there were times when congress' switchboard was getting shutdown by the numbers of people who were calling in.

at that point congress voted for it, and those who were supporting it said they thought it was a spying device that can or could or would be used against the american public, and they thought it was a security risk. has that changed? >> well, the volume has gone 10-1. i mean i voted against the original ban as did senator rand paul. the amount of people talking then were a small group coming to the capitol. we got 1.3 million people to sign a petition to stop this in 48 hours, so the intensity is far more. you also have the hypocrisy of many of the same members of congress and many who voted for the ban telling their campaign staffs to maximize their followers in this past election. look, there are legitimate security risks. the question is can you mitigate them and prevent them without banning the app? and i will work with president trump and michael walz, who i know well as national security advisor on a solution. i would love to see 50%

ownership by the u.s. there's already 60% u.s. investors, and we can make sure that it's a crime to have any algorithmic interference from a foreign adversary. but let's work on a constructive solution, and frankly i give the administration credit for being open to work on that. >> the question has always been whether the algorithm could be controlled by china. you just said you wouldn't go along with that, but that been something the chinese government has not been willing to bend on or acknowledge. so you're in favor of repealing the ban. is that with the understanding they would give up the algorithm if the united states would own 50%? or you just don't want to mess with this at this point? >> well, i would want to have some safeguard. i think the ban was overbroad, but we would need at least a law saying that the u.s. executives of tiktok will be held liable civilly and criminally if there's any evidence that they're colluding with the

chinese communist party to tinker with the algorithms, and you can pass that law. now, if those executives then face a choice where the chinese communist party tells them to change something, then they would be in violation of the u.s. law, and they'd have to face the consequences. but my problem with the ban was it was overbroad. there was no evidence actually that this was happening in any systematic way. it was a hypothetical, and why not try to resolve it like we're hopefully going to do in the next 75 days? >> i think andrew has a question from davos. andrew? >> congressman, i'm so glad to hear you say this, because i've been making this argument for a very long time is we haven't actually seen real evidence. does that mean that the american public and the supreme court has been lied to? >> look, andrew, we have a history in this country of national security of times of overreach. we had it with fdr, with the japanese interment camp, with

communism and mccarthyism. my view this was a collective march of understandable fear with the chinese communist party, but we just passed a ban without thinking of the ramifications of 170 million americans, and there were narrower ways to do this. >> congressman, the reason i mention this is we had people -- come on our air, your colleagues and peers and say not just that this was a prospective threat in the future -- that was always on the table -- but this was product was being misused, that effectively the government was controlling this company, was asking this company to do things and surveil people and do things they were not supposed to be doing. and it sounds like you were saying given you had private access to a lot of these meetings, that that part may not have been true. >> without going into obviously any sensitive briefings, i am of the belief that there has not been any -- the public evidence or any reason to believe that

there's been systematic algorithmic interference by the chinese government. and by the way, people are actually on the app. we're not just listening to a few -- d.c. folks would see that. i mean spend a day on tiktok. it may not be the best thing to do, but at least spend an hour or two and make these decisions. the hypocrisy, again, i want to point out because everyone was using it to campaign. i do think this is going to be now resolved, and in my view we've jumped the gun. >> congressman, i do want to point out tiktok has admitted to using its app to spy on journalists in an effort to try and track down their sources. maybe you think that was an isolated incident. but, again, you have status and clearance we don't. you don't think there's any risk here? >> look, if they did that and admitted that, there should be penalties for that. none of the social media apps, of course, have had clean hands. there's been allegations of

foreign interference on other apps. there's certainly been allegations of data breaches. data brokers are selling american data to the chinese. so if we want to have a strong data privacy app -- a law, let's do that. if we want have a strong law making it illegally for any interference from adversaries and algorithms, let's do that. but banning the app went too far and i don't think the evidence justified that certainly in the public record. >> do you have problems with china continuing to own the algorithm? >> i would like to make sure that the u.s. control of the algorithm is in the hands of u.s. executives so that if there's something that happens china can't say, you know what we should, we don't like this rokhanna guy, he's always criticizing us on a trillion dollar trade deficit, let's manipulate the algorithm so none of his posts talking about the trade deficit come up. and if there's any evidence that

that is taking place, then find and sue the tiktok executives or even hold them criminally liable. and people say, well, if they do that, we can't enforce it. then you can start to talk about a ban after you've had evidentiary hearings and proven some of this case. but right now you're going on mostly hypotheticals and a few isolated cases. >> congressman, let's talk about your district. you are in the heart of silicon valley, and so many of the technology leaders from your district and nearby your district have made their way to washington recently. the inauguration was filled with tech leaders. you've made some comments recently that you say you know tech moguls, you talk with them regularly and you think they're forming a dangerous oligarchy. you want to talk a little bit about that? >> i don't think i used those words. when i was at the rotunda i felt like i was back in my district. now, i would say silicon valley

has become the ultimate swing state, and my party needs to be for innovation, for technology, but we need to be for innovation and technology not just for the chosen few, but that's going to harness the potential of every plaern in different places. what i have said is there's a dangerous alliance of wealth and power, that too many people are putting in too much money into malltics, but we have to call out both sides. kamala harris had more billionaires supporting herthen drauchl. let's overturn citizens united, let's get billionaires out of politics in terms of overall elections, but that's a broader issue. >> but you're excited about innovation and technology and ways to unleash that. >> absolutely. i think our party has to get back to be the party of the future, party of innovation. look, president trump was talking about manifest destiny, you know, a 19th century idea. and we're not going to go conquer lands and just drilling for oil is not going to make us

the nation that leads in the 21st century. my party should say we're going to lead innovation, we're going to lead in new technology, but we're going to dein a way not all the wealth is just coming to my district, $12 trillion. we're going to help people in the working and middle class prosper with this technology. that, i think, has to be the democratic contrast to president trump, and we've got to win over them, win back some of these people in technology, many of whom were democrats. it's now, unfortunately, like i said, a swing state. but i think we can win many back. >> your point, congressman, is that your party alienated a lot of them. >> some of them we did. look, i think some of the -- the fundamentals of celebrating innovation, celebrating entrepreneurship and technology should be central to the democratic party. now we can say that there are too many people who have been left out of the globalization and technology revolution. that's just a fact. we can say income inequality is gone. we've gaup in america from 53rd

to 128. we have to figure out whether you're talking about galesburg, illinois, how we're going to bring innovation to lift up economic growth. our message should be we're the party of growth and innovation, but we want it for everyone not just the five or six people sitting on stage behind president trump. but that doesn't mean you reject innovation or you deny that some of these are innovative companies. >> congressman ro khanna, want to thank you for your time this morning. hope to see you again soon. >> appreciate it. thank you. >> andrew? >> thanks, becky. coming up next goldman sachs' ceo david solomon is going to join us here in davos at the world economic forum. stay tuned. "squawk box" coming right back. the agents applaud. your travel itineraries are so well written, they're on the best seller list. and you have access to lounges that don't officially exist. that's why you rent with national, where you can skip the counter and choose any vehicle on the emerald aisle.

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thoughtful living therma. >> welcome back welcome back to "squawk box" right here on cnbc. the futures have been in the green all morning. we've actually picked up steam across the board. dow futures now indicated up by about 160 points, and nasdaq indicated up by over 210 points. we've got the s&p futures up by about 35. this builds on gains we saw yesterday. yesterday the dow was up by about 530 points. andrew? >> becky, thank you. we're going to get to our next

guest. we're talking capital markets, so much more. joining us here in davos, switswerland, david solomon, the chairman and ceo of goldman sachs. >> thank you for having me. and becky, we miss you, becky. >> we miss becky. we miss joe. we're all trying to get the pulse of what's happening here. i know you've been here since monday. i was saying before you came on you've been part of inaugural weekend. i know you weren't at the inauguration. you did the we call it the double dip. you went to both. what do you make of the reaction what's happening in the u.s. and how that's going to impact the economy? >> sure. well, first of all, the u.s. economy is in pretty good shape, andrew, as we head into this new administration. but i think the thing i'm encouraged about as i talk to clients and i'm finding clients are really encouraged about, it seems like -- and this is true in the u.s. and true of the administration, but i'm also hearing it in imy meetings here

and talking to clients, et cetera. people are focused on growth. if we can run a more growth oriented agenda, if we can do some things that free up especially private sector investment, that is a good path for us. and i think people are optimistic, and it's not going to be a smooth, perfect path but people are optimistic we're going to run a more growth agenda, we're going to free up some investment, we're going to unlock the private sector a bit more, and it's going to be constructive. that is the best path for us. >> do you think it's already built into the equities market? because we are at historic highs on a relative pe basis when you disaster to think about a new term of a new president. >> i think it's hard to dispute the fact that equity multiples are high, and you've asked me these kind of questions before when i've been on with you, and i've always said i've a very bad predictor of equity markets up and down. i think equity markets exhibit a sense of oughtmism at the moment, but they also exhibit a

sense of optimism around growth and technology and in particular this a.i. way. of course it's not going to be a straight line, but some of the technology we're seeing, the opportunities for that technology to improve productivity very, very meaningfully i think are really extraordinary, and i think that optimism is in the market, too. yes, there's a little bit of a change in policy that's creating optimism, and that's put us more in a risk on mode for assets. that's affecting equity multiples, but i also think we're seeing real changes in technology that are advancing us in economic ways that i think have the potential to become positive. >> how do you quantify this sort of new regulatory landscape in terms of what that can do to multiples and things like that? if all of a sudden there's going to be a wave of transactions, and i know you've talked about that aspect or a wave of ipos? >> so, look, i think one of the things that you have to recognize, the market runs ahead. the market looks forward, and so we are coming off of a very, very tough regulatory

environment across all industries. one of the things that was interesting to me last spring was an event with a very broad group of ceos, and when asked b what's the number one thing affecting the strategic execution of your business, 67% said regulatory kind of program. so the change in that is something that i think can be quite constructive but it's going to take time. people or policy, you have to get people in place and it's going to take time. how do you quantify it, i think it's hard to quantify it, but it can have a real impact on growth, half a percentage of growth, if we can just unlock a little and have a little bit more m and a activity, little bit more opening up the capital markets. >> we were talking about the prospect for exits but also all of a sudden strategic buyers that might be actually able to buy some of these assets that are owned by private equity that have been sort of traded by

private equity firms the last decade but with no real exit out. are you already hearing about deals like that? >> there's no question that the private quity venture community has been on the side lines for the past couple of years, and i would say from what we see inside the organization, the activity levels, kind of a line-up of things people want to bring to market should allow us to see a meaningful increase in 2025. i talked a lot, andrew, about the fact equity volumes and ipo volumes in particular run well below ten-year averages. my expectation in 2025 we'll get back to ten-year averages. >> tariffs, we were talking to jeremy dimon and they created a war room to look at all the executive orders trump was putting out, to assess what they mean, tariffs being one of them. how do you even advise a multinational business today about the tariff issue?

>> so it's complex, and it depends where they sit and where they are. and i think one of the things that we all have to recognize is that this is going to be fluid. and so i think for a lot of ceos that we're talking to today, they've been thinking about these things for a number of years. this is not new, you know, on the agenda of policy discussion. the question is how quickly and where, and, you know, i think it's uncertain. i know there's a lot of talk. >> you're an investment banker and negotiator. trump is a negotiator. >> absolutely. >> you usually have a good sense of just how these negotiations go. what do you think this turns into really? >> i think it turns into a rebalancing of certain trade agreements over time. and i think that rebalancing can be constructive for u.s. growth, if it's handled right. and the question is how far, how quickly, how thoughtfully, and there's no question. look, he said it rightly and others in the administration said it lightly some of this is negotiated tactics for other things other than trade and some

of it's trade balance. i think that's appropriate. i think used appropriately it can be constructive. i think the dollar is super important in the context of kind of the strength of the u.s. and u.s. preeminence. and i think this is something going to unfold not just in the next couple of weeks. this is going to unfold over the course of the year, and we have to watch it closely. >> becky's got a question for you. >> hey, david, yesterday we had peter navarro on and had a long conversation about these tariffs, and i think a lot of business leaders look at this and think this is the art of the negotiation to a certain extent. but if you talk to peter navarro or talk to stan druken miller who we spoke to earlier in the week, they are counting on some revenue potentially coming out of this, and those revenues are going to be pay fors to not only extend the 2017 tax cuts but perhaps enhance and offer other things. president trump made a number of promises on the campaign trail about no taxes for tips, any number of other areas that they

would like to pair back the taxes americans are paying, but you've got to pay for it some way. we've been watching the higher yields in the credit marks and treasuries, and i just wonder how much of you think is the higher yields we're watching sticking inflation, how much is it concerns about our debt and deficits and where all this revenue is going to come from, what you're anticipating this year from credit markets and from the buyers of those treasuries? >> becky, look, i think you're asking the right question. the answer is the move in treasuries over the course of the last few weeks is a combination of all these things, but i do think it's something to watch very, very carefully, and i do think the key message in all this is growth. you can talk about pay fors, but at the end of the day the way we get out of the situation we're in with respect to the debt, the growth of the debt has got to be driven through growth. and so you've got to get the balance right on this, and it's a complicated cocktail -- for

lack of a better term -- of range of policy initiatives. everyone wants the answer right now, i understand that. but whether it's immigration policy, whether it's tax policy, whether it's trade policy, whether it's energy policy, all of these are evolving and developing, and they'll all have an impact on the balance of where rates go, et cetera. you know, on rates with a longer term view, becky, and just say it's hard for me -- i'm in the camp that some are in that it's hard given the level of our treasury stat to see longer rates going lower, you know, in the near term. i think the pressure is going to be upward as we move through the end of the decade. >> and is that problematic, or is this a situation where if we have enough deregulation that's put in place, if we have enough cutting of bureaucracy, if we have enough embracing of innovation, that that off sets those potential higher treasuries? >> it can -- yeah, it can absolutely offset that. you can have a very constructive

environment. look, for most of my business career, the ten-year treasury was not, you know, 470. the ten-year treasury was meaningfully higher. you can certainly have a constructive economy and growth with higher treasuries. it's all a balance of where inflation is, where growth is, and, you know, these are things that are uncertain at the moment and things that we have others are watching very carefully. >> we've been talking with a number of your peers about crypto under trump and just how it may change what you -- you laugh, but, you know, for a long time we talked about it, it was nothing for a bank like goldman sachs necessarily to do about it. but i wonder in an environment where trump is now talking about a strategic bitcoin reserve, whether your sort of thought process around how to deal with crypto is going to fundamentally change. >> well, first, you know, and andrew, we've had this conversation a number of times. the underlying technology is something we've spent a lot of time on. it's something that we're utilizing and testing to create

less friction in the financial system. super important. you know, at the moment from a regulatory perspective we can't own, we can't principal. >> right. >> we can't be involved in bitcoin. >> you may be able to soon. >> if the world changed, you and i could have a discussion about it. >> but you want it to change. is that something your lobbyists in washington would be advocating for? >> i don't have a lot to say about, you know, a speculation as to a significant change like that. at the end of the day i'm a big believer in the u.s. dollar. i think the u.s. dollar is super important. bitcoin is a speculative asset, an interesting speculative asset. >> let me ask you about this, though. in an america-first world and we were talking about this to brian armstrong about this the other day -- is bit cona threat to the u.s. dollar? >> i do not think bitcoin is a threat to the u.s. dollar. i think there are others -- i don't see bitcoin as a threat to the u.s. dollar. >> let me ask you a different question because there's some

news in "the wall street journal" today about dei, and a topic we talked about in davos and historically we did but may not anymore, a number of shareholder activists targeting now goldman sachs and jp morgan over the issue of dei. obviously a whole number of companies have abandoned their dei programs. what do you think? >> i know there are a number of people putting in proposals in to financial institutions. to be honest i haven't looked at the specific proposals and details, so i can't really comment on the specific proposals. more broadly we've always looked at these issues, andrew, through the eyes of our clients. we're advising our clients think about these things. they think about decarbonization, climate transition, their businesses, how they find talent, the dwurlsty of diversity of the talent they find all over the world. we think about these issues through the lens of how do we

help our clients navigate these things, and we continue to stay focused on talking to our clients and doing the things we've always done. >> in a world where rob ae star buck is calling up these companies on a friday and ii imagine you're advising these companies how to thing about some of these things, what are you telling them? >> well, i think the construct is companies have to do what's right for them to successfully run their business, operate, compete in the markets they operate in. i think one of the things in the context is the legal is changing a little bit especially when you get into different states and jurisdictions. i think that's something we continue to evaluate and other companies continue to evaluate. >> finally, we had a segment before you got on talking about tiktok. obviously goldman has been trying to do business with china for a very, very long time. i'm curious what you make as tiktok as a national security piece, i don't know whether you're negotiating or helping to advise on a potential

transaction. >> i don't have anything specific. i don't have anything specific to say on tiktok. on china broadly as you highlight, we continue have a business there for a long time. though most of our business there at this time is on advising our clients on big multinational events in china. i do think it's very, very important for the united states and china to get their bilateral relationship back to a better place, and i'm hopeful that the president, you know, in his approach and his dialogue will be able to drive us to a place where that bilateral relationship as improved, but at the moment i would say there are a number of issues that have to be worked through. tiktok is one small one in the overall scope of the bilateral relationship that has to be worked. >> david solomon, thank you for coming in. >> as always good to see you. >> becky, back to you. thanks, andrew. when we come back another big interview live from davos. we'll hear from coca-cola ceo

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chairman and ceo james quincey. becky is back in new york but she may remember this. many years ago you brought us our own bottles that said andrew, becky, and joe on them and i was thinking about that because of course there's images of you ever where in just the last week going down to mar-a-lago bringing the president a bottle. have you always had bottles for the president? >> we have been doing inauguration bottles for like five inaugurations. >> but they never got attention like that. >> no. no, they didn't. but this time we did a diet coke one which was slightly different. before they'd always been coca-cola ones, but this time we dit diet coke because of course the president is a one of the great diet coke consumers. >> how many diet cokes a day do you think -- did you discuss? >> he actually likes coke and we go back and forth and he obviously drinks more diet cokes than cokes, but he's a consumer. he loves the product.

he loves the brand, and we thank him for the business. >> when you go to a meeting like that and we've seen a lot of business executives now go to visit with president trump, what do you talk about? what do you ask him? >> we send the bottle with a nice letter. actually the president had written a response back on the letter that said thanks very much, and his team said why don't you come down and give it to him personally? it was more to present the bottle. we talked about a lot of things across the scope, how the world is going, golf. it was a bit of everything, but it was a nice opportunity to president of the united states his own bottle. >> when you told him about the economy, and maybe you can tell our audience, how do you see it now? i mean, you do have your pulse on the global economy in terms of what the economy looks like. >> i think the economy is in good shape going into 2025. i think the u.s. is particularly strong. there are other bits that are a little softer, maybe europe.

but in broad terms the economy globally is in okay shape. the u.s. is clearly in better shape going into 2025, and i think that's what's going to take us forward. >> in terms of inflation and pricing, pricing power, what does that look like? >> in the u.s. it's clear it's moderating down to much more normal levels. i know there's a lot of worry it'll be hard to squeeze the last 1% out. think how far we've come just to get down to 3. so we've seen inflation in the u.s. moderating ubstantially and see ourselves on a track and that's also true globally. inflation globally whether it's developed economies with europe, or some of the more inflationary economies, we see inflation coming down. and that's a more normalized state of affairs and cici that playing out in 2025. >> like so many other food companies you have been accused by the elizabeth warrens of the world of shrinkflation.

what do you make of that argument the bottles are smaller, the portions of are less given the price? >> i think shrinkflation applies as a term when you only sell one pack, but that's not how we do business. not only do we sell different products but coca-cola is available in lots of different sizes. the regular size of a coke, for example, has not changed in decades. our strategy is provide a range of choice of different pack sizes and prices so there is no real shrinkflation. in the sense you can buy a 6 ounce coke or a 3 liter coke around the world, but all the pack sizes are out there, and our the intent is provide the right amount of liquid at the right price what you want. >> talk about liquid, you've been adding alcohol to some of the liquid recently. i'm curious how that's going. >> it's a super initial start. we've got some joint ventures. bu cardy and jack and daniels,

really the premixed cocktails. and they're kind of experimental. we're looking at a couple of places around the world saying is this something going to be an attraction? we need to believe it can become a significant segment in the alcohol industry or relative to beer, let's say, and then we can get a significant share. it's easy to make. the question is is it easy to market itself? >> in terms of the early testing, what are the results? >> some things have worked really well like the jack daniels and coke has worked really well. some of the other stuff hasn't worked so well. it's really in an innovation state and we're not expecting everything to work, and we need to prove to ourselves it's worth investing in, not just a hobby that can be something big. early stages are good and we'll see how we go into 2025. >> what are the opportunities in the market at this point? >> i mean, there's lots of different pieces of development. it's not a singular thing. >> obviously. >> we're very excited about the broad potential in india. we've been investing heavily in

india. we've seen strong growth in india the last five years. we see continued growth in southeast asia, in africa, and of course latin america which is a big piece of the cog wheel. in developing terms the markets are good, led i think principally first in line by india. of course there are places that have been adjusted for very high inflation and also geopolitical problems over the last few years and obviously in negative territory. but generally i think the developing economy is gathering steam. >> becky's got a question for you back in times square. >> i do. and, james, it's good to see you. wanted to talk to you about an issue we've spoken about a couple of dow components today -- executives from dow components. both proctor and gamble and johnson and johnson on with us today after reporting earnings, and both of them talked about the weakness in china. it was a big issue for j & j, one they've been dealing with.

proctor and gamble saw weakness. what do you see there? what's the economy telling you? what are sales like? >> look, china has been okay in the 2024. we haven't announced the results for the fourth quarter yet, but china in 2024 through the third quarter was just okay. clearly there's some economic adjustments happening in china. they've got a kind of real estate deflation not unlike the other states around the world and you'll remember the savings and loan issue in the u.s. they've got a macro issue taking off some of the growth, but the growth is still there. our business has improved. we've made some decisions to rebase the business early in '24, but we think the consumer is in good shape. and the key selling point in china for us is the chinese new year, which is right now, and we're looking forward to having a good chinese new year. >> i'm curious what you think the impact of tariffs or the prospect of tariffs are on

coca-cola insofar as coca-cola is one of these companies that represents america and this is one of the great american plans. and here we have this moment where they could be some tectonic shifts in terms of how some foreign countries think about the u.s. >> coca-cola is a very interesting business and not just a global brand. what i mean by that everyone sees it as a massive global brand but it's also an intensely local business and often consumers seeatize a local brand. all the cokes made in country "x" or sold in country "x" are made in country "x." >> i'm not arguing you're going to be impacted by tariffs per se. >> the geopolitical fallout. >> the sentiment of that. >> i think if we've done our job properly it's local jobs. they see the salesperson and the manufacturing side and the distribution, and that's part of the the incredible power of the coca-cola brand is that it can be seen as both a global and

american brand all at the same time. if we look back at the history of geopolitical disruptions, it's been an incredibly resilient business. so we feel we have the ability to be resilient if things get complicated. >> you are one of the biggest spenders when it comes to advertising in the world. i'm curious what's going on right now in terms of how you're thinking about online spend, facebook, instagram. are you advertising on tiktok, for example? >> we do have -- >> will it have an impact if tiktok goes away in the united states? >> it won't have a huge impact on us because we advertise in lots of different channels. of course we're looking at which channels give us effectiveness based on who we want to talk to on which brand, which occasion. and also the prices vary on different channels. so we have lots of options. that's good. it's a broad market. one player drops out for

whatever reason -- >> any great surprise on efficacy? meaning for those cmos out there listening to these conversations, anything you learned in the last six months you go that worked in ways we didn't expect? that's pretty good? >> i'll tell you what's working is generative a.i. i know that's a topic that's already been beaten to death this year, but the generative a.i., there was a huge debate whether our christmas ad was more or less effective because it was made all with generative a.i. the data says it was more effective. >> and do you expect most of the ads in the future to be produced more by generative a.i.? >> not this year, maybe not even next year because doing video through generative a.i. is not simple. it's a lot of compute and you have to get a good price from the a.i. guys because it's not free, but i think it's the direction. >> how much are you using a.i. in logistics and the like? >> a.i. in the kind of calculation sense, it's been in

for a long time. there's been a.i.s in the supply chain for a long time. the current is really generative a.i. whether it's around text or image and actually putting it together and getting voice or sound and motion, video, that's what can really change markets. >> i want to thank you, james, for coming in. it's great to see you as always. i can usually drink lots of diet coke on the set, but today it's coffee. "squawk box" coming right back from davos, switzerland in just a moment. we've been navigating change for 125 years, always looking forward, anticipating risks and trusted to manage over $1 trillion in assets worldwide. solving for the needs of investors today and tomorrow.

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we've got another huge lineup of got another huge line-up of guests on "squawk box." tomorrow we're going to be hearing from the ceo of honeywell. black rock's laurey fink joining us and so many more, becky. what a week it has been and it's not over yet. >> it is not. i think we'll be right back here tomorrow to do it again. in the meantime we should catch up-to-date on some of the earnings open this morning. proctor and gamble reporting earnings and revenue above expectations. it was driven by growing demand for household staples and that stock up now a quarter percent. and travelers beating you can

see that stock now up by more than 5.6%, so a big beat there. and united airline shares rising after the company forecast first quarter earnings that came in above the street expectations. that stock also up by about 5.75%. don't miss the interview with scott kirby coming right here eastern on cnbc. the dow futures are now up by 170 points. andrew, yesterday that was up by about 530-some points. s&p futures are up by about 33 this morning. yesterday it closed higher, and that index is less than 1% from its all-time high. nasdaq is really strong this morning. it's indicated up by about 220 points. treasury yields that we've been watching have been a little lower, relatively speaking. the ten-year treasury is at 456, the two-year at 426.

and identical prices which have come down in recent days this morning up to 75.96. tomorrow, andrew, a big line-up of guests and a lot of common themes to kind of run through with some of these interviews. seeing how people are reacting to the incoming trump administration and the changes they're making >> good wednesday morning. >> welcome to squawk. >> on the street. i'm carl quinta good wednesday morning. welcome just walk on the street. push from the white house. goals have their sights set on fresh record highs. s&p less than 1% away. stronger rulings from netflix, united in proctor. r tailwind along with his a.i. infrastructure push from the white house it will go up near 10% premarket. road map begins with stocks looking to build o