>> good morning. >> everybody, and. >> welcome to. >> squawk box right here. >> on cnbc. >> we're live from the nasdaq market site in. >> times square. >> i'm becky quick along with andrew ross sorkin joe. >> is out today. >> he'll be back soon. >> let's take a look at what's been happening with. >> the us equity futures. >> at this hour. >> right now we are looking at. >> some pretty. >> decent advances for the. >> last trading day of january. >> dow futures indicated. >> up by. >> close to 150 points. >> s&p futures are up by 24. the nasdaq is up by about 160. in fact, if you want to take a look at the major. >> indexes so far for that. >> month of january, first. >> month of the year. >> the dow is up by 5.5%. >> the s&p. >> is up by 3.2%. then you've got the nasdaq. up by about 1.9%. so if. >> we hold on to this. >> as the first month of january goes, so goes the year.

>> we'll see if. >> that axiom is true. but it has been a strong month for the. markets across the board. treasury markets right now. >> if. >> you take a look at treasury yields, we have. >> picked. >> up just in terms of where those yields stand over the course of the last week. the ten year is at 453. that's up from where we were last friday at this time in the two years at 420. >> also bitcoin prices this. >> morning it looks like bitcoin is off by about 1%, but it's still well above 100,000 at 104,000 312,000. >> let's get. >> back to the latest on 1312. >> let's get to the. >> latest on this mid-air collision of the american airlines jet that we spoke so much about yesterday with that army helicopter. killing 67 people. >> reports saying the. >> helicopter may have deviated from its approved. >> flight path. >> before the collision. investigators looking into whether the helicopter pilots had identified. >> a different plane when they acknowledged having visual separation from the. flight in. radio communications. >> with air traffic control. and speaking of air traffic. >> control, a. >> preliminary report from the faa saying that staffing was not

normal that night. >> the controller handling. >> the helicopter traffic happened to also be handling the airliner traffic. that's something. >> that does not normally. >> happen at that hour. they would. >> typically be. >> handled by two different people because they. >> operate on two different channels. but it's. >> something we talked about. and i know we were. >> speculating to some degree yesterday about, but the idea that. >> these pilots. >> on the. helicopter may have been wearing night. >> vision goggles. >> and may have been thinking when. >> they said that they. >> saw the. >> plane, that they were looking. at the plane that was landing, not the plane that was coming from behind them. meantime. >> president trump. >> confirmed last night that. >> he will. >> carry out. >> his. >> threat to impose 25%. >> tariffs on imports from mexico and canada. that could. >> begin tomorrow. february 1st. >> megan costello joins us. >> with. >> the latest. >> good morning. >> morning, andrew. so yes, there had been some expectation after trump first threatened these tariffs last week that they could be avoided as long as canada and mexico took action to tighten their borders and to

stem the flow of fentanyl. but trump was much firmer last night at the white house on this, saying that he will be taking action now not only because of immigration and fentanyl, but also because of the trade deficit. >> they'll be. >> putting the. >> tariff of 25% on canada and. >> separately. >> 25% on mexico. and we will really have. >> to do that because. >> we have very big deficits with those countries. those tariffs may or may not rise with time. >> now trump was also asked about oil specifically, and he said that he would consider carving it out. but we do not yet have clarity on that point. and he also seemed to downplay the impact of the tariffs, saying that the us has all the oil and all the lumber that it needs, highlighting two commodities there that we import heavily, especially from canada. and this is the clearest language yet, guys, that we've seen from the president on this. but i'll say that we do have at least a day until they would take effect. so still some time left there to wait and see whether negotiations with the

two countries might be successful and if anything might change. guys. >> what do we think could change. >> if he can get enough from the two countries that he decides he's gotten something. >> from. >> them in the. >> next. >> 24 hours. >> likely in the next 24 hours. so just before trump made these comments in the oval yesterday, i had gotten a readout from someone working with the administration who said that on canada, he seemed to be getting there. on mexico, he was still looking for more on cartels specifically. it's the kind of thing if they are tightening their borders, they're saying they're putting money towards it. they're saying they're stopping the flow of drugs. it's not going to happen immediately. but what one person described it to me as is whether the president might be satisfied by tomorrow with progress and not perfection, at least enough to kick the can down the road a little bit. >> okay, megan. thank you. >> we will. >> be keeping our. >> eyes on this story. it's probably the biggest. thank you. >> in corporate news. >> shares of apple are higher this morning. after the. company

reported earnings of. >> $2.40 a share. >> it beat estimates. >> by a nickel. revenue was. slightly above expectations. >> that stock right now is up. >> by about 3.25%. iphone sales came in. >> at just over. >> $69 billion. >> it missed expectations. >> of $71 billion. that was thanks in. >> part to. >> a decline in china sales. there were down by more than. >> 11%, but services revenue was stronger than expected. >> and apple said that it expects. services revenue to grow in what they are calling the low double digits in the current quarter. >> overall, apple. >> expects current quarter. >> revenue growth in. >> the low. >> to mid single digits. tim cook on that earnings call was making a lot of different comments about things, in part saying that they're watching the tariff situation very closely, also saying that he really likes what they're seeing with the deep, deep, secret open source ai model overall is a good thing if it's going to lead to efficiencies. and those are just a few of the comments that he was making on the call. >> meantime. >> amazon ramping. >> up ad spending.

>> this is interesting on elon musk's x, formerly known as twitter, and a major shift for them after it pulled its ads from the platform more. than a year ago, according to the wall street journal. that report saying the company's ceo, andy jassy, directly involved in the decision. many companies pulling ads from x in late 2023 over concerns about antisemitic content that sparked this infamous comment from elon musk at the. dealbook summit in november of 23. >> if somebody's going to try to. >> blackmail me with. >> advertising. >> blackmailing with. >> money. >> go yourself. >> but go yourself. >> is that clear? i hope. >> it is. >> hey, bob, here in the audience. >> that, of course, a. >> reference to bob iger, who. >> had been at the conference in an interview with me earlier in the day. >> the journal reporting that apple. has had discussions in recent weeks. >> about testing ads. >> on the. >> x platform. >> as well, after.

>> it also had pulled. >> its ad dollars from the x platform in. late 23. >> so not only. is potentially elon. >> musk's new role. >> with the president and all of >> good for tesla in that regard, it. could be good for x now. >> could could very well be. yeah. it's a halo effect for sure. >> for an advertising perspective. >> the biggest thing for. >> for twitter. >> has always been is the mousetrap. >> and i think actually linda. >> yaccarino has made the mousetrap better. but there was always the question of was. >> is that as effective. >> as instagram. >> or. >> facebook or any of the other social media platforms just actually using it? >> they've actually. >> pushed into financial. services just recently. just visa. yeah. just that they've just gone into in the last couple of weeks. and we'll see how that plays out too, because that's been a long time goal of elon musk's all right. in the meantime, shares of deckers outdoors are tumbling despite quarterly results that beat on almost every metric. >> earnings and. >> revenue beat the street's expectations. the company raised its full year guidance above what the street was looking. >> for. >> but you can.

>> see that stock right now down by about 15%. the company makes. popular footwear brands. hoka and. >> uggs. >> which both posted strong revenue growth in the quarter. deckers cfo said the current quarter faces tough comps, but demand remains strong. today's sell off comes after a 73% run up on the stock over the last 12 months. but again, as you can see, it's off 15% today and we will continue to look into that. we're also watching shares of visa. the company's earnings. >> and revenue. >> beat the street's expectations. payments volume in the holiday quarter grew by 9%. if you're looking. >> year over year. >> cross-border volumes increased 16% and processed transactions rose by 11%. in a statement, the ceo said that those results reflected healthy spending during the holiday season and that stock is up by 1.75%. >> we got a lot. >> more coming. up on squawk box. we're going to talk about the potential risks for the bond market this following. >> this week's. >> comments from fed chair jay powell and then later women's soccer. >> expanding with a. >> new franchise in denver.

>> and lydia hobson's. >> ariel is investing in that team. she's going to join us exclusively in the 8:00 hour. we got so. >> much going on this morning. >> we're coming. >> right back. >> after this. >> contribute to a health savings account to pay for medical expenses with tax. free money. if you're enrolled in a high. deductible health plan, you can put up to $4,150 for yourself or 8300 for your family into an hsa by. april 15th, and your contribution. will be tax deductible. for cnbc, i'm sharon epperson. >> in a world of 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 $1 trillion in assets worldwide. solving for the. >> needs of investors today and

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that we. >> get to use every day. >> take a look at treasury yields right now. we're looking at the ten year note at about 4.533. the two year at 4.2. our next guest says the biggest risk to the bond market right now is a re-acceleration of inflation and. >> wages. >> that could then lead to rate hikes being considered. kelsey barrow is here, fixed income portfolio manager at j.p. >> morgan asset management. >> we've been trying. >> to. >> decipher what mr. powell may or. >> may not do. >> and we you know, becky was just mentioning in the last segment and. >> i think this may be the first. time we've had. >> this because he sort of. >> said he. >> wouldn't do this. he seems. >> to be considering the prospect of tariffs and. >> other. >> things even. >> before they happen. right. we've sort of gone. >> back and forth of, you. >> know. >> when are you when if you're the fed, are you supposed to consider things that haven't happened yet? >> how does. that play. >> into all of this. >> for you? >> so i think the fed is in a decent position because they were able to cut rates 100 basis

points last year. they were able to reduce. >> the amount. >> of policy restrictiveness in. >> the economy. >> kind of take the edge off, keep things moving, keep the labor market strong. and now they're they're. >> really, i. >> think, very comfortable. staying on hold for an extended period of time so they can get. >> more information, whether it be. >> on tariffs, whether. >> it. >> be just. >> on the. >> standard flow. >> of economic data. >> so you have the inflation data this morning we're getting the pce inflation report as well as the ecb wage data. so i. think right now what they're trying to do is stay on hold. and in this case boring is kind of beautiful for the fed. >> so you. >> you have. >> a view though. >> i mean let's let's take it step by step. >> we're also. >> have so many different fiscal issues that are going to happen. >> later this year in terms of what the bond market. >> may. >> or may not. do to washington. how does jay. powell sort of navigate that?

>> so i think for jay powell, it all comes back to. >> their dual. >> mandate of. >> maximum employment. >> and price level stability. the labor market has been strong. there were downside risks to the labor market. those have primarily abated. so it really all comes down to inflation. inflation making further progress. >> now i think. >> the. fed their. baseline when they they enter each meeting this year they're really considering two options. one is to hold just stay pat. policy is fairly well calibrated. the other option is to cut rates. if one inflation progress proceeds or they start to see labor market weakness. the inflation part is very. challenging for them because they have the domestic inflation. the more demand oriented cyclical inflation that they care a lot about. and then on the other hand, they have tariffs, what they generally view as a one

time price shock that has an. offsetting impact of weaker demand. >> where do you think we really are on inflation at this point. >> well right now core pce on a year over year basis is at 2.8%. what i like to look at though, is the three and the six month run rate. those are actually around 2.2 to 2.3%. so actually really not that far away from the fed's from the fed's goal. we're not in a below 2% inflation world. that's where we were pre-covid. we are comfortably in a 2 to 3% inflation world is really where i see it. and the thing that gives me comfort that we're not yet seeing a re-acceleration in inflation is the wage picture. so if there was anything that i'd be looking at to, to determine that actually things are tightening back up, the fed needs to reconsider hikes. it's if we start to see wage data really start to turn the other way. right now, we've shifted from an environment where the

labor or the worker had a lot of power in 2022 and 20 2020. in terms of bargaining power, that's gone away. we need to see where that that moves. >> over the next base. >> case for you. >> where is the ten year. >> and the two. >> year a year from now? >> i think it's probably around these levels, because i do think we are. kind of in an extended, extended pause. and i think what what we. >> for a. >> year, okay. >> you think that because the fed doesn't change its its stance. >> on anything or. >> you think that because you also don't see pressure from. >> bond market from treasury buyers. >> so i think that the buyers are going to remain. but at the same time, you are going to have the fed that remains on hold. and ultimately the fed is going to be one of the primary drivers of yields. so i think that what what we have right now is an environment that's not too hot or not too cold. but for investors, this is actually

quite a good environment. we call this a carry environment, an environment where with yields relatively stable, what you can expect in terms of your returns from your bond portfolio will be fairly, fairly equal to the starting yield in which you invest. so if you're investing in a bond portfolio right now, around 5 to 6% on core, 7 to 9% on high yield, if yields stay around here, your returns are going to be similar to those yield levels. and those are returns that we think are actually quite attractive in this general environment. >> thank you for coming in this morning. it's great to see you. thanks for the perspective. >> all right. >> let's tell you about chevron. >> that company just reporting results. >> chevron coming in with. >> earnings on an adjusted. >> basis of. >> $2.06 a share. that's $0.05 below what the street was expecting. as its refining business posted its first loss. >> in four years. >> revenue at. >> 52.23 billion was above the street's estimates. chevron said that it increased production by

7% worldwide and 19% in the u.s. to record levels. just looking at this, the reason for the miss on the earnings per share level. looks like they have $1.1 billion in impairment charges. now, some of that is because of severance charges they took for restructuring. >> also. >> there's some accounting issues in here where they had to revalue their hydrocarbon inventories at the end of the year. so some of that accounts for what you see with the earnings per share miss on some of these things to chevron returned to record $27. billion of cash to shareholders during the year. it's boosting its dividend by 5%. if you look through some of the other things they're talking about. they do say that they are going to lower capex spending in 2025, looking for about 14 to $16 billion for a range of organic spending, lower affiliates spend in 2026, and they're targeting 2 to $3 billion in structural cost reduction by the end of 2026. that stock right now off by

about $0.50. chevron ceo mike wirth will join us at 635 this morning. that's a first on cnbc interview. plus, later this hour we'll bring you results from exxonmobil and an exclusive interview with exxon ceo darren woods when we come back. the fda has approved a non-addictive pain drug as an alternative to opioids. it's the first time that's happened in a really long time. we've got the details. >> right after this break. >> what if you could put aside your doubts and look to retirement with excitement? at brighthouse financial, we specialize in annuities and life insurance that help protect what you've earned and ensure it lasts. brighthouse financial build for what's ahead. >> at capital group. we believe in the potential energy of fixed income, fueled by.

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called journal of ex. am i saying that right. journal ex. >> i don't. >> know journal. >> maybe it's the first. approval for a. >> new type of painkiller in decades. and it comes. without the risk of addiction. supposedly it works by blocking pain signals. >> at their origin. >> by contrast, opioid painkillers act directly on the brain to block pain, but trigger the brain's reward centers in a way that can feed addiction. now, this new drug was approved to treat moderate to severe acute pain. it's priced at $15.50 per 50 milligram pill. that's stock. this morning is up by about eight and a third percent. >> the ceo. >> of. vertex is going to be on squawk on the street today at 9:40 a.m. eastern time. in a first on cnbc interview. >> coming up. exxonmobil is set to report. we're going to bring you those numbers. we also. >> have interviews this. >> morning with the ceos. >> of both exxon and. >> chevron to get a full. >> view of the energy complex. if you're trying to understand. what is going on. >> and where this is all headed. >> you do not want to. >> miss. >> any of it.

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and. >> ask about the bosley guarantee. >> good morning. welcome back to squawk. >> box right here on cnbc. we're at the nasdaq market site. and yes, we are live here in. >> times square. take a look at. >> the futures. >> though on. >> this friday morning. >> we've got some. >> green on the screen. after what has been a turbulent week i think is probably the. >> best way to describe it. >> the dow. >> up about 160. >> points right now. >> the nasdaq up about 175 points. >> the s&p. 500 expected to open higher as well, about 27 points if. >> we stay. >> where we are. >> yeah turbulent week. but the. indexes are all right at all time. highs within spitting distance for all three of the major averages. we're watching shares. >> of intel. >> this morning to earnings of $0.13 a share. beat estimates by a penny. revenue declined.

>> for a third straight quarter. >> it was down 7% from a year earlier. but it did beat what the street was expecting. >> you had quarter. >> current quarter guidance that came in below expectations. the company said. >> that the search. >> for a new ceo is progressing, but they had nothing new to report on that front. the stock this morning looks like it's up by about 1.8%. but remember, for the one year it's down by more than 50% a decline of 52%. >> meantime, samsung electronics. >> reported a. >> sharp drop in operating profit overnight. we got to tell you about what's happening here because it's trying to ramp up its. >> r&d spending. >> that seems to be what happened there. it's also warning now of a slowdown in its. chip business. >> despite those. >> warnings, though. >> samsung noting that its. >> annual revenue reached its second highest level on record, shares. >> falling more than 2%. >> though on the. >> back of that. >> news, south korean markets resumed trading. we should. >> mention after a four day break. >> and south. korean chipmaker sk hynix. >> falling by nearly 10%. >> as well. let's talk starbucks right now because the starbucks

coffee. >> company, you know. >> i don't know if you've seen those ads. >> they now. >> don't say they're starbucks anymore. they say we're the starbucks. >> coffee company and its union have agreed to bring. >> in an outside mediator for contract negotiations in an effort to try to revive those talks. >> the union and the company. >> have been negotiating a template for a collective bargaining. agreement to try to cover more than the 500 cafes that have voted so far to. unionize since 2021. talks broke. >> down at. >> the end of last year over pay, and led to. >> a five. >> day pre-christmas strike. we're going to be talking to former starbucks chair mellody hobson. in the 8:00 hour. she's got a very cool new venture after leaving the board of starbucks, which. >> she had been. >> on for so very long with howard schultz and. >> the like. >> all right. exxonmobil is just reporting earnings. >> just looking. >> through this now. company came in with earnings of $1.72 a share that beat expectations. >> of $1.56. >> cash flow from operating activities $12.2 billion for the

quarter. >> free cash. >> flow coming in at $8 billion. exxon also saying that. >> it achieved. >> record production in both the permian and guyana, and record sales volumes of high. value products. when you're looking at their barrels of energy equivalent, just saw that number fly by me and i don't know where it went. it. well, i'll come. >> back to. >> it and try and find it again. they are talking about their 2024 free cash flow of $34.4 billion. the fourth quarter, they had $8 billion in free cash flow. and they point out that they distributed $36 billion to shareholders in 2024. the company also say, says that it has achieved $12.1 billion in cost savings since 2019. that's been a big push for darren woods trying to do that. exxonmobil saying that they're confident that they will deliver on plans that they laid out to generate significantly more earnings and cash not only to 2030, as they've said, but also well

beyond that, that stock right now up by about 1.6%. and darren woods, who's the chairman and ceo of exxonmobil, will be joining us in the 8:00 hour this morning. that's an exclusive interview right here on cnbc. up next, a first on cnbc interview with chevron ceo mike wirth. that stock checking it out after it. reported earnings this morning. it looks like it's down by about 2%. it's down slightly right now. as we head to a break, let's take a look at some of the major currencies. squawk box will be right back. >> currency check is sponsored by interactive brokers. the best informed investors choose interactive brokers. for the fourth. consecutive year. >> interactive brokers is one of the fastest growing prime. brokers and is now number five

in preqin's ranking of top prime brokers. interactive brokers serves. both organizations and individual investors to get better results. get a better platform. the best informed investors. >> choose. interactive brokers. >> most power. >> players on. >> wall street rate nvidia a strong buy today. >> yet why, then, are so many. legendary investors quietly ignoring. >> that. >> advice and instead selling the. >> stock hand. >> over fist? every billionaire on your screen has recently. >> sold nvidia. >> some have. offloaded millions of shares. and mark my words, this is bigger than nvidia. hedge funds are quietly selling. all of their tech stocks at the fastest rate we've seen since 2016. it begs the question what. do they know. >> that. >> you don't? my name is mark chaikin. i help. >> build three. >> indices for the nasdaq during. >> my. 50 years on wall street.

>> that means i know how to recognize these signals from the tech market and exactly. >> what they mean. >> for you and your money. i explain everything in my new market. >> briefing, including. >> the truth of what's going. >> on with nvidia. >> today and the specific stock i recommend you buy. instead, i'll give you its name and ticker when you visit the website below. nvidia has been the most talked about stock in the market. >> and for good reason. >> it's led the. >> ai revolution. that has taken the us stock market by storm. >> since they announced their ai. >> powered computer. >> chip in 2023. nvidia's stock has been on a history making tear, officially surpassing microsoft to become the world's most valuable. company today. however. >> many investors. >> are worried the tide is changing. nvidia's day in the sun. >> may soon be. >> coming to a dramatic end. and as a result, i predict a different, under-the-radar stock. >> is. >> primed for big potential gains. >> from this moment on.

>> to get its name. and ticker 100% free, simply. >> visit the. >> website below. >> frank holland worldwide exchange weekdays at 5 a.m. eastern. cnbc. earnings season on cnbc takes you inside the numbers. what are the. >> earnings trajectory. >> tell. >> you though right now? >> smart analysis crucial strategies. >> great to get your first reaction to this print we got from nvidia. >> and when the ceos have a big announcement they come here first. >> what's your take on not just the quarter but how things look. >> from here helping you make the right moves. >> this has been a key number. the street was watching. >> a wild hour of earnings. >> earnings season special coverage all this month on cnbc.

>> all right welcome. >> back everybody. a bit of a. >> mixed quarter for chevron. profit falling a little short of. >> what the street was expecting. >> but the revenue did beat expectations. joining us right now is chevron ceo mike wirth. and mike thanks for being with us this morning. i think the first thing i should probably ask you about, adjusted earnings per share came in at $2.06 a share. street was looking for $2.11. what happened there? >> well. >> it was a. good quarter, becky. there were some. accounting effects. >> related to. >> inventory that i think are difficult for analysts to anticipate that that come. >> in typically. >> at. >> the end of. >> the year. but if you step. >> back. >> it's a record year for us. we had an all time high. global production up 7% year on year, up almost 20% in the us. record distributions to shareholders. $27 billion in cash. >> return through. >> dividends and share buybacks. which is about $15 a share and nearly twice. the nearest peer in our industry. and the good. >> news is. we're. >> poised to continue to lead the industry and. cash flow

growth. >> with another $10 billion in free cash flow. >> growth over just the next two. >> years at a pretty modest oil price of $70. and that's growth in the us. it's growth internationally. capital discipline, cost reductions. so we've got a very strong. performance in 24 and momentum. >> heading. >> into 2025. >> for that capex spending in 2025, you're looking to spend around 14.5 to $15.5 billion. i think that's the first time since the pandemic that you have cut spending. what are your plans for next year or this year, and how are you kind of thinking around those issues? >> well, in a capital intensive industry, capital discipline always matters. we're looking for. >> capital efficiency. we expect to grow. >> production at another 6 to. >> 8% in. >> 2025 versus our record in 2024, but we can actually do that at slightly less capital spending. >> so we're always looking for ways. >> to become more efficient. which creates value for shareholders. and.

>> we can deliver. >> strong. >> strong production. >> growth even as we remain. >> disciplined and take. >> spending down just a little bit. >> mike. >> i know. >> that you all expanded production in kazakhstan. that's been a bright point for what chevron has been doing. certainly something you can crow about, but i think there are. some some big headwinds that are kind of hanging out there and things that people would like to see answers to, and i'm sure you would too. one of them has to be the deal with hess. that was $53 billion deal that you first proposed in october of 2023. it's been a long time that that's been hung up in arbitration with exxonmobil because of what they claim is, is their right of first refusal when it comes to guyana. what can you tell us about where that stands? when do you think we'll have answers to this? >> yeah. we remain confident that hess. >> will prevail. >> in the arbitration on that transaction and the arbitration over that. >> joint operating agreement. >> last year, the. >> ftc approved. >> the transaction, shareholders. >> approved the.

>> transaction, and the arbitration is set for. may of this year. and the arbitration. >> panel has indicated that. >> within three. >> months they'll. >> render their their decision. >> and so. >> it has. taken longer. >> than. >> than we would have liked. but we've got a line. >> of. >> sight to resolution later this year. >> what do you do in the meantime? do you act accordingly? does it allow you to kind of prepare. >> for it, or. >> how are you handling all of that ahead of it while you wait? >> well. >> you. >> do the normal integration. >> planning that. >> is part. >> of. >> you know. preparing to. combine two companies. >> we've had. >> the time to go. >> very deep in that. >> which should. result in a very. smooth integration. >> of. >> everything from assets and operations. to information technology, systems. >> people. >> business processes, etc. and so we've used the time well. >> to prepare for, for that. an. >> of course. >> hess is using. >> the time to prepare. for the arbitration. and so we'd like. >> to see things move a. >> little bit quicker than they

have. >> but we're putting the time to good use. >> and of course. >> in the meantime you stay focused on the things you can. >> control and all the rest of your business, which, as i just indicated, we closed out a very good year and have great momentum going into 2025. >> yeah, you certainly have the. >> things that you. >> can control. you guys. >> are definitely. >> firing on all cylinders on those issues. another issue you can't control is one that secretary of state marco rubio brought up in his confirmation hearings. he pointed to just this idea that the united states could revoke waivers for oil companies that are doing business in venezuela. waivers to the sanctions that are there. i think you're the only u.s. company that operates there. have you spoken with the administration at all about this, and what would it mean if they did revoke that waiver? >> yeah. >> we are. >> the only u.s. company with. operations in venezuela. we've been there for most of the last 100 years. >> through changes. >> in governments in venezuela, changes in governments in the us. and over the last two

administrations, the they've. >> both. >> chosen to impose sanctions. on venezuela's energy sector. we work closely with both the first trump administration and. >> the biden administration. >> to be sure that they understand. >> the. >> impact of those on on our company, on us shareholders. and on the us energy system. and. >> then we stay in compliance. >> with, with all the regulations that come through the treasury department on these things. and so. we'll do that again. we have been in engagement already with the incoming administration, and it's an ongoing issue that, you know, we've been working at with both both presidential administrations for many years. >> mike. >> this week, the federal reserve basically dropped the language where they said that the unemployment rate has stabilized at a low level i pere got a pretty good feel for labor costs, for what it costs just

for equipment and other issues out there. what are you seeing? >> yeah, inflation. >> certainly has. >> moderated from. >> what we saw a couple of years ago. it can vary in different parts of our business onshore in the us. we certainly have seen relief in the offshore and deep water. there's more pressure. there are. fewer service. providers and the equipment is more specialized. there's been more activity out in the in the deep water. >> and so. >> there's probably a little bit more pressure on on that part of our business. but broadly speaking, you know, we're certainly seeing some, some relief from what we saw in 2022, 2023. >> and mike, the other huge news that i know you've spoken about this week already is the deal that you've announced with ge, renova and this partnership with engine number one to. >> power us. >> data centers. that's a really big deal. i know you guys are looking at sites around the

country. i noticed that you said with some of the sites you were scouting were in the midwest, the interior west, in the south, but it left out the northeast and the west coast. just because you all moved your headquarters from california to texas, because of some of the real issues that you were dealing with, with regulatory issues and government issues in california, is it kind of much tougher to do business in those other areas in the northeast and the western coast of the united states? are you steering clear of that for a reason? >> well. >> we've got a set of criteria. >> that we're. >> using to evaluate potential locations, and that. includes infrastructure and access to natural gas. it includes the permitting environment and the. regulatory environment. >> it includes. the ability to look for ways. >> to decarbonize over time. this power generation, which could include carbon capture and storage, and so access to the pore space in the earth to potentially store co2 in the

future matters. and then, of course, we're talking to customers. and the hyperscalers and people building these data centers have preferences and priorities as well. and so we're customer driven. and all of those things lead us to a set of potential locations that we're evaluating right now. and they tend to be in those three geographies. >> that. >> you mentioned. >> yeah. what what do you think about what you've heard from the trump administration so far? have you spoken with them, sat down with them, talked to them about issues that are important to you? >> we have with every incoming administration, we try to sit down and understand their priorities and then share our views on what's good for the us economy, what's good for u.s. energy security, and for us consumers. certainly, the incoming administration has made energy abundance a priority, and leveraging america's tremendous energy resources is important. particularly as we look at the issue of ai leadership and the

power. for this growth in data centers that we see. so we've been engaged in those discussions. it's nice to see a more balanced conversation, which is something that we've been calling for quite some time. and we'll. >> continue to. >> work with, with both sides of the aisle and the administration to try to advance policy. that's good for the country. >> hey, mike, i'm. >> curious. >> given your your interest in in powering infrastructure and chips and data centers and the like, what. >> your reaction. >> was to. >> this. whole sort. >> of collective. gasp with the emergence. >> of deep. >> sea and potentially what it really means. >> in terms. >> of how much energy does need to be consumed, how much money is going to go towards, you. >> know. >> new chips and the like and what you think it does in terms of changing or not, the. trajectory of just the massive investment in this space. >> yeah, i think what it really demonstrated, andrew, is how competitive. urgent and global

this race in artificial intelligence really is. new players are coming on the scene on a regular basis. technology is advancing on a regular basis, certainly in our views and forecasts. we would expect these models to become more efficient over time. and that does create more utility in the models, which means they can be used for more than just answering simple queries. they can be used for much more sophisticated applications. we can see them integrated into manufacturing and other parts of the economy, and we would fully expect that the those trends continue. the country right now really does have a fairly finely balanced electricity supply system, and we saw stronger growth last year than we have in the years prior. certainly every forecast you see suggests that that that's going up even more, and we see robust demand for electricity going forward. and we think we can

play a role in meeting that. >> but was there any moment in the past week and we were talking to john gray yesterday, who obviously owns a whole number of data centers in terms of just the kind of work that you may or may not have done. i don't know, after after the emergence. >> of deep seek to. >> say, okay. >> is it possible. >> that there's going to be a greater focus now on not. just developing better technology, but more efficient technology in terms of what the software requires on training and everything else? >> i think there absolutely will be a focus on more efficient technology. i think we're going to need that. if we saw the same loads for training these models and for inference and everything else that the earliest models have have used. and we saw the explosion in demand for ai that that many are forecasting. i think that would have created an enormous surge for, for energy demand for gpus. et cetera. and so, like anything else in our economy, as something comes on the scene early on, you start at

one state, but almost always you find efficiencies that come into it which are good for all the users. and but they also expand the use cases. and so i think that's exactly what we're likely to see here. >> hey. >> mike, i want to thank you very much for being with. >> us this morning. >> i know it's a busy. >> morning for you and. >> we appreciate your time. >> okay. good to see you, becky. good to see you. >> thank you. >> hey, thanks so much. when we come. >> back, walgreens. >> is suspending its dividend that it's been paying out for the last 92 years. we'll bring you the details in later. women's soccer expanding with a new franchise in denver. mellody hobson, ariel investments of ariel investments taking an ownership stake in that team. and she's going to join us exclusively in the 8:00 hour, along with co-investor jason wright, former president of the nfl's washington commanders. nfl's washington commanders. we're coming right back. at morgan stanley, old school hard work

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>> welcome back to squawk! walgreen shares. they are sharply lower. the company suspending the quarterly. dividend that it's now paid for the past 92 years. i mean, that's incredible. in a bid to try to conserve cash. executives citing a need to strengthen the balance sheet by reducing debt and improving cash flow. free cash flow, i should say, including today's decline. take a look. walgreens has now lost more than half of its value over the last 12 months. >> and coming up, apple shares rising thanks in part to strong performance and guidance for its services sector. we'll get reaction from tech investor dan niles. that's right after this.

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>> we teach you the right way to develop your own investment strategy. >> the more disciplined. >> and. >> not making irrational decisions. >> we stick. >> to the strategy and continue to invest and stay long term. >> go to cnbc.com/join jim. >> apple reporting an increase. >> in. >> overall revenue for the quarter. iphone sales though falling short of expectations. but here's the thing services. the business continues to outperform. apple shares you can take a look right now up $245 a share. close to 246. dan niles. niles investment management founder and portfolio manager, is with us this morning. what say you about. >> apple. >> a company that you know was counted out on the ai front? then people gave it credit. then people said maybe it's not working and now maybe it's working again. what's what's really happening here? >> well, i. >> think. >> if you look at it. >> andrew, and. >> think about. >> it from. >> a longer time period, this is

a company. that has. >> grown revenues. 5% over. >> three years. >> so you have to. think about that. >> and. >> go, how well are they really doing. they grew revenues 3% last. >> year and that wouldn't be a problem, except the fact. >> that you've got a. >> stock that's. >> trading at. >> 31 times. >> versus the. s&p at. >> 22 times. >> and every. >> year people are. >> counting on an upgrade cycle. >> and the problem is. >> they've got. >> competition issues. >> and they're. >> losing market share in china. >> which is a big problem. the ai rollout. >> has been slow. >> and what. >> they're offering people aren't really all that. >> excited about. >> and that's. >> why you've. >> got these really. slow growing top line. and the. >> question is. >> can. >> they. >> get out of that? >> and to some degree deep seek. >> which came out. >> which means. >> that, hey. >> you know what. >> costs are dropping a lot on the hardware side. maybe that ends. >> up. >> helping apple. >> where they can. >> free ride on some innovations that others. >> have done. >> like chatgpt. in the us or deep seek.

>> in china. >> but for. >> right now. >> that's the situation. >> you're. >> in a low growth. >> stock with a. high multiple. >> there's a lot. >> of other. >> names you could go to. >> that. >> are growing faster. >> you can. >> pick. >> google meta. >> for example. >> microsoft even. >> where we're growing. >> much faster. >> but. >> they have. >> a lower multiple. >> we keep asking the deep sea question to just about anybody who's involved in this side of the world. you live in this world. is there a larger implication for an apple in terms of capex, if you believe that they did it more efficiently, or maybe you believe they stole it, or maybe you think it's a combination of all of the above? >> well. >> i think. >> you have to. >> remember, i was on cnbc. last friday before. >> this whole thing. >> broke. >> and i put out a post. >> saying, look, deep. >> sea is going to help. >> hardware costs go down dramatically. >> and it will help. >> the ai agent. >> sitting on. top of it. >> and obviously what apple's. >> counting on is apple. >> intelligence, which is an ai. agent helping to drive. upgrades

hopefully later this year. i honestly think it will be more. >> like next. >> year, because it's going to take a while for this. technology to go through. the ecosystem in the us. so is it going. >> to help apple? >> absolutely. but remember, they. >> weren't. >> spending much money on this anyway, which is why they were so far behind in the first place. where it's going to have more impact is the other magnificent seven companies that have already been investing aggressively in ai, where. >> they. >> might be able to spend less by the time you get to the end of this year, as they work through some of those innovations into their own models. >> so then that's a big question. should we look at what happened with deep sea and say, okay, you too can create a great model, an open source model that that's free effectively without nearly the same kind of chip configuration and capex spending? or do you say, by the way, like, i think a lot of the folks inside openai and others might say, yeah, you can do that if you just rip us off and steal

everything we're doing. sure, you can do that, but that won't really work long term. >> well, you got to remember, openai is building off of the work that google did on transformers and large language models, and this is open source. so everybody is building on everyone else. and by the way, all of the innovations, remember deep sea is open source. so all the innovations they have there facebook, you're going to see it in the llama models, which by the way before deep sea came out was the best open source model out there. and so you're going to see this permeate. and if you think back to the. internet as an example, in the early stages of that, it was all the hardware companies that did great. so you think of names like cisco or sienna etc. and then what happens is the hardware layer gets commoditized. cisco and sienna are nowhere near where they were in 2000. and where does the value accrete to it? accretes to the guys that are providing services to you and me. like we all use amazon, right? and they benefited from all that lower broadband costs,

dark fiber costs during that period of time. and so what you think you're seeing is you're going to move from hardware being the big area where you're spending money to you're going to move to the platforms. and ultimately, i think you will have ai agents on our smartphones or our pcs that people really want to use. and then hopefully apple's not growing 5% over three years at that point. and so that's, i think, the way you need to think about this going forward. this isn't a bad thing for ai. it's just where's the revenue growth going to move to. and i think it's going to move from hardware to more of the software level. and those sitting closest to the consumer. >> dan, i want to thank you for joining us this morning, walking us through where things stand. and i'm sure we'll talk a lot more very, very soon. it is just past. thank you. it is just past 7 a.m. right now on the east coast. you're watching squawk box on cnbc. i'm andrew ross sorkin along with becky quick. joe is out. but we'll be back

very, very soon. and among today's top stories, crews are resuming their search this morning following wednesday's deadly mid-air collision involving an american airlines jet and that u.s. army black hawk helicopter. this morning, investigators recovered the black box recorders from the downed jet, which may hold some key clues to sketching out what happened before the mid-air collision. in corporate news, costco raising pay for most of its hourly workers to more than $30, according to a memo sent to employees this week. the pay hike coming after costco union members voted earlier this month in favor of a nationwide strike as they entered a final round of talks before the contract expires today. and now the union, representing more than 18,000 workers at the big box retailer, may be able to rejoice with some of that news. meantime, amazon raising the price of its music unlimited streaming service prime members will pay $11 a month or $109 a year for an individual plan. that's up from $10 and $99 now.

non-prime listeners will see their monthly rate go up to $12 a month. and by the way, becky talking about amazon, since we're talking about deep seek earlier, andy jassy taking to x last night saying that deep seek r one is now available on aws, which was, i thought, a fascinating move given that people say it's a chinese thing and people are going to steal your thing and all of these things, and here he is putting it on amazon service. it is open source. so you get to see the code. and i imagine, or i hope at least that they've looked through all of it and clearly must feel comfortable to do it. so if you want to use deep seek, you can do it on a server. living in the united states owned by amazon. >> that's really interesting and just how this is all going to play out. the questions that are raised around it, especially when we still don't know what's going to happen with tiktok. right? i mean, these are interesting times. let's take a

look at the. future this morning. the futures are looking up. dow futures up by about 153 points. you've got the s&p futures up by 26. the nasdaq up by 177. let's get over to dom chu. he's got a look at this morning's pre market movers and dom. it's been a week. the markets are in the green for the course of the week. and for the first month of the year. >> sure. and let's hope it stays that way as opposed to how we started the week, given what we saw with deep seek and nvidia and everything else. so let's start because we do have some earnings stories to kind of get to. we'll start with exxonmobil, which is trading just about maybe between gains and losses fractionally. so as the oil and gas giant reports its profits and earnings, profits actually beat expectations. record production in certain areas like the permian here in the us, also guyana. but concerns on president trump's energy policies may be causing some a little bit of maybe clarity an issue for the stock there. so exxonmobil shares going between just marginal gains and losses for more on those results. by

the way we're going to catch ceo darren woods coming up right here on squawk box in the 8 a.m. hour in an exclusive interview. so we're all going to be looking forward to that. meanwhile let's get a check on nvidia. tough week like we pointed out for the chip giant moving lower this morning and down 13% so far this week. leading the week's big tech sell off as that deep seek market meltdown raises concerns and questions on u.s. ai dominance and also pricing power. nvidia is set to report earnings next week. investors are watching closely to see if the chip making giant can brush off some of those bigger hardware concerns on ai given deep sea. so those shares off one and a third percent and then a check on ups up fractionally this morning, but down over 13% this week. new this morning analysts at baird are downgrading the package delivery giant to a neutral from outperform, saying that ups cutting amazon volumes by 50% or more may be a bigger challenge for the firm down the line. so ups trying to find some stability. now for that and other top stories and analyst calls of the day. just head over

to cnbc.com. slash pro subscribers get more access to detail and analysis behind all those big stories and calls. becky. also i'll send things back over to you guys. >> okay dom. thank you. we'll see you a little bit later in the show. >> coming up getting canada trade right. president trump could levy tariffs as soon as this weekend on canada. but does he have some trade deficit numbers wrong. steve liesman is going to be bringing us that story right after the break. we'll see the professor. it's going to be at the table here with us. and then later, president trump's senior trade adviser, peter navarro. he's going to be our guest as we dig in to the tariff debate. with 24 hours potentially to go, depending on what president trump does next. we're coming right back after this.

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living. thuma. >> welcome back to squawk box. this morning. president trump could levy tariffs on canada as soon as tomorrow, claiming the us has a 200 to $250 billion trade deficit with the country. the trouble is, the president may have the numbers wrong, and perhaps the economics too. and for that, steve liesman joins us to try to explain what is really happening. >> and what. >> the real numbers are. >> president trump, as soon. >> as this weekend, andrew. >> could levy. >> 25% tariffs. >> on canada and mexico. >> last week, he said the us. >> has been treated. >> unfairly by canada, saying it had a trade. >> deficit of. >> 200 to $250. >> billion with the us. >> but according to the. >> us trade data, the us canada trade. deficit is actually $41 billion or multiples lower, a modest. u.s. trade surplus from 20 1620. you can see that they're turning it into a deficit. >> because the us. >> had better economic. >> performance than. >> canada, but also. >> because of the. >> increased importation. >> of cheaper canadian oil. >> a white. >> house official telling. >> cnbc yesterday. the

president. >> was talking more. >> broadly. >> including greater. >> u.s. spending. >> on defense in the imbalance. president didn't mention that at the time, the official said. we spend all this money for norad, the north american air. defense system. but the $41 billion trade deficit, it. >> is a rounding. >> error on a $922. >> billion. >> trade relationship. >> that is, in. >> fact, the world's biggest partnership. >> canada is the largest buyer of us exports, just as the us does. though canada has. >> some. >> barriers and. >> limits on us goods, but. importing cheaper. canadian oil is a big reason for the surplus that canada has. it averages about 15 to $25 a. >> barrel. >> less than us west texas intermediate. that's because it's dirtier, but also because canada is somewhat. >> captured in. >> having to sell it to the united states. canadian economist jim stanford. writing a in a long piece about this most canadian exports to the us are inputs used by american businesses in their own production. tariffs would thus increase costs for u.s. producers, reducing their competitiveness. stanford

estimates the us might be saving as much as $20 billion annually from importing cheap canadian oil. guess what? the us refines that oil and sends it back to canada as refined products where it makes money. most economists think a trade deficit is often a poor measure of the fairness of a trade relationship. they note the us trade deficit had almost only falls when the us is in recession, and it expands when good. when america is in good times, they look abroad to fulfill their spending needs, often to canada. when they are the 51st state already. what's the point? >> oh, you're just insulting canadians. no. >> i mean, they were ready to. it's like stuff goes this way, that way, this way, that way. we've created this very intricate web of trade relationship with canada right now. >> you know, the last. >> time we had peter navarro on, he talked a little bit about the fentanyl issue. it has not been a huge issue from the canadian border side of things. it has been a much bigger problem from the mexico border.

>> well, that's what they're saying. but becky, economically you can't evaluate a tariff that's based upon fentanyl, right? it has, you know, in terms of looking at the cost benefit, it's not something. >> i'm just saying. it's a it's a negotiating, negotiating, negotiating tactic. i think that's one of those things. >> that's something that is political. it's beyond the economic way of analyzing things. but from a from a standpoint, what the trouble is that if you end up putting this tariff on, of course, the president, there thinking he might exempt oil, but the canadians might put the put it on oil because that's the place. because that's how they would put the us. you could end up raising. the other issue, of course, is that us refineries are kind of geared up now to deal with this dirty canadian oil. it's not so easily replaced, but it is 10 to $25 a barrel cheaper. and our surplus or deficit with canada will oscillate, most especially with the different differential in the price of oil. >> this is.

>> an interesting idea. we have darren woods on later today to. >> and did. >> you see. >> did you see. >> by the way who refines that. you said us refineries are up for that. do you know which companies are the. >> ones i don't know which ones are the refineries? i used to in my old days as the energy reporter. but did you see the op ed in the journal today that phil graham and larry summers got together on? i did, yeah. well, there it is. graham saw a letter on tariffs. basically they note that we have not had a hollowing out of our manufacturing sector. that was one of the most interesting things to me. we have maintained our manufacturing output. we've reduced our manufacturing employment. >> and dollar. oh yeah. in dollars in dollars we've maintained. >> in real dollars. also, the other thing that's interesting is that to most, most studies i have seen say the real enemy of the manufacturing worker is not in china or mexico, though that remains a challenge. it's automation. and something like 80% of us manufacturing jobs have lost more to automation. and of course, there are people like elon musk who point out

that we don't have enough robots in this country. if you compare the robots per capita between the us and japan, anyway, i think i'm not interested in gotcha with the president on the numbers. i'm interested in the economics of this, and i'm not sure that a tariff on canadian imports is something that's going to solve the problems we have. we have this amazing back and forth, and we've established it in part because of the treaty that was the north american free trade agreement, and then the one renegotiated by president trump. and you guys talk to businesses all the time. and, look, they want fewer rules and they want fewer taxes and stuff like that. but most of all, what they want is some stability. and they want to know what the rules are going to be so they can gear up their operations for it. >> well, we may find out more in the next 24 hours about what those rules look like. steve liesman, thank you for bringing us hopefully the right numbers and i'm. pretty sure they're right. another reference to the 51st state. yeah, of the united

states, not puerto rico, but we'll discuss coming up next. >> for washington. >> dc, robert f kennedy facing some very tough questions about vaccines, food, overall health policy in some heated hearings that have been taking place over the past two days, we're going to hear from former fda commissioner under president trump, doctor scott gottlieb, about what he thought of the whole situation. here are the futures right now. take a look at where we are 164 points higher on the dow s&p 500 up about 28 points. nasdaq up about 181 points. we got a lot more coming up on squawk box from times square after this. >> time now for today's aflac trivia question in hockey, what's the difference between a hat trick and a natural hat trick? the answer when squawk trick? the answer when squawk ♪ (action music) ♪ woah! i can't do it! agh! cut! this gap! it's just too big. bring on the double! aflac! after my hospital stay, aflac helped

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>> robert f kennedy jr. >> facing two. >> days of contentious confirmation hearings on capitol hill as he seeks to become president, trump's health and human services secretary. >> president trump. >> has asked me because i'm in a unique position. >> to end. >> that end. >> and that is. >> what i'm doing. >> and if we don't solve that problem. >> senator, all. >> of the other disputes. >> we have about. >> who's paying. and whether it's insurance. >> companies. >> whether it's providers, whether it's. >> hmos, whether. >> it's patients. >> or families, all of those are moving. deck chairs around on. >> the titanic. >> our ship. >> is sinking. >> joining us now is doctor scott gottlieb. he is former fda commissioner and a cnbc contributor. and doctor gottlieb, what was your reaction to what you heard in these confirmation hearings so far? >> well, look, i don't think. >> we learned. >> a lot. of things that are.

>> new. >> that we didn't already. >> know about his candidacy for this position. from the standpoint of those who've harbored concerns, i think. >> that there. >> are some. really clear risks. >> that could flow. >> from his views on particularly vaccines and public health issues. >> more generally. >> he wouldn't commit to saying. that there are any safe vaccines. >> that children should get. >> he just said he would look at the science. >> suggesting that the science around vaccines like polio and mmr isn't settled. he was given multiple opportunities to say that vaccines. >> don't cause. >> autism, and. >> he punted every time. >> he didn't want to answer that. >> question and didn't. want to assert that there is any vaccine. >> in the mmr. >> vaccine in particular that doesn't cause autism. >> i think the other thing that became clear from these hearings, both before the senate. >> health committee as well as the senate. >> finance committee. >> he testified. >> before both committees. >> is that he doesn't. >> have a really deep understanding of the programs that he's going to administer. he confused medicare and medicaid. >> he didn't know. >> what dual eligibles are, which are people who are duly eligible for both medicare and medicaid. >> he didn't. >> know how those programs operated from the standpoint of how they dispersed money between

the federal government and the states. he also confused medicare part a, part b, part c, and part d. at one point, he was asked what medicare part a does, and he says it pays for physicians. that's not true. it pays for hospitals. he didn't seem to know what medicare part d was. these are just fundamental questions about the structure of the programs that he's going to be charged with administering that that he should know. so beyond just his his hesitancy around asserting that vaccines are safe and that there's any vaccine that children should go out and get, he didn't know the fundamentals of the programs that he's going to be administering, you know. and a final point was that when he was asked multiple times about the safety of childhood immunizations, he said that if the science is sufficient to demonstrate that they're safe and effective, he would recommend them, which more than suggests that he doesn't believe that there's sufficient science right now to recommend that any child get a childhood immunization. i think you can easily infer that from what he said. >> you know. >> i spoke to some people, industry insiders, who are

trying to look at the bright side of things. if there if there's a way that they can kind of feel more comfortable about things. one of them is the idea of make america wealthy again. maybe that's a good thing to get behind. the other would be that there's a huge lack of trust in american institutions, including at the fda. and maybe if you have someone in there who shines light on some of these things and shows people what's actually happening, maybe they would feel better and trust the agency more. what do you make of those two arguments, doctor gottlieb? >> well, look, i think the idea of trying to promote more healthful foods and more healthful diets is exceedingly sound. we tried to do some of these things in the first trump administration. i moved regulation to require calorie counts on menu labels. for example, i moved regulations that would require reductions in salt and food. i will say that i face pretty intense opposition when i moved those provisions not from democrats, largely from republicans, although the administration, president trump, supported me because i think that aligns with his broader

views about public health and trying to promote healthful diet. so i don't think that this is a new phenomenon. you know, i really question whether or not kennedy is going to have the ability to actually implement the things that he talks about at an aspirational level, when he shows such a profound lack of knowledge of these agencies. i've never seen him articulate any substance behind his policy views. when he's asked how he would go about implementing more healthful diets, he says that you need to fire the fda's nutrition staff because they're all corrupt. that's the last thing you want to do. those those folks at fda have worked with them. they're fully aligned with these kinds of ethos. if they were given, if the restraints were lifted from them, they would certainly pursue these kinds of goals. the challenge has been that the statute and the existing regulations, but largely the statute, makes it very hard for fda to do this. for example, it's very hard for fda to ban a substance that's in food that's, quote, generally regarded as safe, which is a term of art under fda parlance. the burden is on the fda to prove that that ingredient is unsafe. and they

also have to do an economic analysis to show that it's not going to cause undue harm on the industry. look at food die number three. the fda finally moved to ban that in the closing days of the biden administration. that's not going to be implemented until 2028. and look how long that took. they have to give the industry a glide path to get that out of food, because if they didn't, the economic impact analysis would never have gotten through the office of management and budget at the white house. so it shows how hard these things are do are to do. i'm not saying they're not worth doing. they are. but it's probably going to require a statutory change. and i haven't heard mr. kennedy articulate anything in terms of actual policy, architecture, how he would achieve these goals. >> we. >> have had some republican senators who have not said how they will vote on this. what's your gut? do you think he passes nomination? >> well. >> look, i think you have to favor any candidate because i think the senate, the senate republicans want to give deference to the president. and i think that that's a pretty strong ethos among republicans right now. but i think that this

nomination is shakier today than it was before he went into these hearings. he raised concerns along a number of domains, not just the vaccines. i think people went into these hearings with concerns about his views on vaccines, but his lack of knowledge of these programs, i think concerned people. that's what i've been hearing. also, his answers on the agricultural issues i think are going to concern agricultural state senators. he doesn't seem to back away from the notion that we need to change agricultural practices in this country, ban certain commonly used pesticides, as well as certainly commonly used genetically modified seeds. his response to questions about that is we need to give the agricultural industry a glide path to move away from these. i don't think the agricultural industry thinks that they need a glide path to move away from these practices. and so the question is going to be, does the ag community trust the president, which i believe they do, and trust the usda secretary more so they look past kennedy's comments. but i would say 60 over 40 right now in terms of his odds of being confirmed, which i think is actually what the betting odds are. so.

>> doctor. >> if in fact he is confirmed, tell us about the power you had in this role to actually change things. and what kind of governors, if you think there were on you to do things? >> look from fda, i had more direct authority to intervene on the kinds of things that kennedy wants to do. he's going to have to work through the fda commissioner. and there's a good fda commissioner that's been nominated for this position, marty macri. i have a lot of confidence in him to do the right thing. so i think, you know, the net result is he can come on a lot of a lot of pressure to try to implement the kennedy's views on products like vaccines and other kinds of public health issues. but kennedy does have will, if he's confirmed to this position, have some real direct authority. he could disband the advisory committee on immunization practices that cdc convenes to make recommendations on what immunizations should be included in the childhood immunization schedule for, for example, he could tie reporting requirements

to the vaccine for children's, would make it hard for states to take that money. i think he could take down the front facing pages on the cdc website that say, for example, vaccines don't cause autism. he could release a lot of information. bottom line information change. some of the conclusions that the agencies have drawn in ways that could open up the industries to litigation, the vaccine industry litigation. i think you could see potentially companies getting out of this space. i think he could pursue what we call a sue and settle strategy, where he invites friendly plaintiffs to sue the agencies and then settles on favorable terms. his, you know, trial lawyer community that he's fully ensconced in. in fact, he has. and according to the new york times, he's owed contingency fees on litigation involving gardasil, the vaccine for hpv, the vaccine that prevents cervical cancer and hasn't given up those fees that he's owed on that litigation, which is a very peculiar arrangement. i've never seen something like that before. >> hey, doctor gottlieb, people

are raising issues on x right now because i apparently did not introduce you as a pfizer board member, which i feel like we do every time you're on. you're a pfizer board member. what would it mean for pfizer, especially from the vaccine perspective, if rfk jr is confirmed? >> yeah. >> i don't think pfizer would be as directly impacted beyond other pharmaceutical companies. i mean, i do think that there would be impact across the entire industry, but specifically with pfizer's vaccine portfolio, the pneumococcal vaccine, which they produce, which is given to a pediatric community, doesn't seem to have been in the crosshairs of any of this. speculation that kennedy has raised. he could raise concerns around the covid vaccine. i think that has largely stabilized as a business in terms of utilization rates. i think it could potentially pull the approval for the pediatric vaccine, where he has expressed the most concern. it's relatively small market. unfortunately, i think more patients, more children should be getting that vaccine, but

they don't. so the economic impact, i think would be very limited in that regard. and pfizer doesn't make the other childhood immunizations measles, mumps, rubella, pertussis, dtap, polio. it's largely sanofi and merck in this country. so pfizer wouldn't be impacted from that standpoint. >> okay. doctor gottlieb, i want to thank. you for joining us today. it's good to see you. >> thanks a lot. >> okay. we got a lot more coming up on squawk box. former united airlines chairman and ceo oscar munoz is going to join us with his thoughts on the cause of the aircraft collision that killed 67 people near reagan national airport, and whether any changes need to be made from a policy perspective, either at the faa or in other parts of the country. squawk box coming right back after this. >> in a world of uncertainty and disruption, how will your investments stay resilient? >> we've been navigating change for 125.

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today@hims.com. >> all right welcome back everybody. chevron reporting earnings of $2.06 a share on an adjusted basis this morning. that's $0.05 below what the street was expecting. there were

some weak margins that we kind of knew were coming. but that did lead to its refining business posting its first loss in four years. revenue $52.23 billion was above the street's expectations. that stock right now off by about 2%. chevron ceo mike wirth joined us earlier in the show. >> there are some accounting effects related to inventory that i think are difficult for analysts to anticipate that that come in typically at the end of the year. but if you step back, it's a record year for us. we had an all time high. global production up 7% year on year, up almost 20% in the us. record distributions to shareholders $27 billion in cash return through dividends and share buybacks, which is about $15 a share and nearly twice the nearest peer in our industry. and the good news is, we're poised to continue to lead the industry and cash flow growth with another $10 billion in free cash flow. >> in the meantime. exxon reporting earnings of $1. 72 a

share that beat the estimates of $1.56. cash flow from operating activities was $12.2 billion during the quarter, and they had free cash flow coming in at $8 billion. in the next hour, the chairman and ceo of exxonmobil, darren woods, will join us on his company's latest results. when we come back, former united ceo oscar munoz on growing concerns about crowded airspace. he will join us right after this he will join us right after this break. squawk box will carl: believe me, when it comes to investing, you'll love carl's way. take a left here please. driver: but there's a... carl's way is the best way. client: is it? at schwab, how i choose to invest is up to me. driver: exactly! i can invest and trade on my own... client: yes, and let them manage some investments for me too. let's move on, shall we? no can do. client: i'll get out here. where are you going?? schwab. schwab! schwab. a modern approach to wealth management.

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>> interactive brokers. >> over time without understanding what just happened in the markets that day and preparing for tomorrow. i'm looking to talk to all investors, sophisticated investors, beginning investors. i'm always learning. >> closing bell overtime for eastern cnbc. >> country with abc. welcome back to squawk box. recovery efforts continuing as workers search to the frigid potomac river following the deadliest commercial air disaster in the us since 2001, it's renewing a lot of longtime concerns over congested us airspace. joining us right now is oscar munoz. he's a former united airlines chairman and ceo. he's now a cnbc contributor. i want to thank you for coming in this morning to help us understand what is going on. we have heard about near misses and all sorts of congestion. there's obviously huge commercial demand for more flights, especially in places like reagan, national, laguardia and others. how much of a concern should that be? it's been a continued concern. >> with regards to airspace.

>> and congested airspace. >> we've spoken. >> on the set about modernizing air traffic control systems in this country. >> so that's. >> clearly a need. but at this point in time. this investigation from the ntsb is going to be. >> really crucial. >> to determining. >> exactly what the. >> cause was. i think one of the things that we always face when we have these issues is that everyone begins to presume or assume or make make sort of remarks about these things. and until we know, we don't know so clearly, it is one of the safest modes of transportation, as we all know. and air traffic control systems is probably one infrastructure. and as well as the continued education and pipeline for. but do you think technology unto itself can solve this? and the reason i ask is, you know, there's a there's physics involved in this. and, you know, if you have planes that are landing, you know, every physically, every two minutes with very little space between them by default, that leaves less and less room for error. even if you have great technology that's supposed to tell you that, you know, radar, you can see this. >> do we have great technology? i feel like we've been talking

for 15 years. >> we do. >> not have great technology. >> we are probably. >> a laggard in. >> the worldwide. >> planet of air traffic control systems. and we've had that discussion plenty of time. >> i want to say literally 15 years at least. i can remember having these conversations. >> it's been that it's been that process. >> and we've. >> been we've begun several initiatives to try and build out a system, but it's going to take multiple years, multiple administrations. so the budgeting process in congress affects it. so there's lots of issues as to why i want to work. but to your question of can technology fix anything? no, but it can certainly make. >> it a lot. >> better, right? on the human aspect. >> that's required. >> of us, i mean, i know we're going to speculate here, but i think a lot of people i don't know if you've listened to some of the recordings and other things that people are trying to piece together. i did yesterday. i talked to a whole number of pilots, by the way, often talk about reagan being actually a difficult airport to land at, meaning it's not easy. there is a sense that this helicopter is here. there are these two planes, one that's landing, one here. there's the sense that potentially when the when the faa folks told the helicopter. do you see the plane that they were looking at the plane that

was actually landing, not the plane that was coming the other direction? what do you think really happened here? do you have any sense? i think in out of respect to. >> the people. >> affected, the families that are grieving right now, speculation. just creates this alarming nature. we do not know. your points are incredibly well taken. it's going. >> to be. >> a. >> lot of folks with that opinion. let me ask you a different question. do you think that helicopters, military helicopters should be allowed to train near that airport at at nighttime. >> airspace is. >> congested already? any reduction in that would be helpful. whether military should train or not at night in that kind of congested airspace. is somebody's. somebody else's opinion? no. but what's your opinion? you you know, this business i fly airplanes and airlines with humans. >> i would. >> rather have a clean path to a runway. do you think that's a bad idea? the military should not be doing that. it doesn't. >> appear to be. >> a. >> good idea, certainly in this instance. but again, the investigation would determine what the cause is. and then we'll have a very different dialog. >> at that time. >> do you think that. >> this is. >> going to change fundamentally

how we look at some of these issues? do you think it will spur some changes to the overall system? >> i pray to god that we have prudent. >> and informed dialog after the investigation, and the right and proper investment gets made in the right areas. what is your reaction to president trump's declaration that this accident was a function of an aggressive die policy, either within the faa or within the military? yeah, again, out of respect for the families involved, conversations like that. >> just, you know, you. >> have to know that this is the safest mode of transportation. as we know, millions. >> of. >> people work in this. there is not a single air traffic controller, pilot, flight attendant, anybody in this chain of command within airline safety that isn't trained in safety, trained, tested. >> and you have to prove yourself to be you just don't walk into the set. and start a conversation. it's important. >> for the flying public to understand that there are not unqualified people managing the

safety of our airspace. that's a period. but let me ask you about that, because that's that's the fundamental issue. and this is the disconnect, which is the president is standing at the presidential podium telling the american public that dei efforts have undermined the safety and the kind of people, the talent in these jobs. and yet, at the same time, he is telling the american public that flights are very safe and you should jump on the airplanes. and so it's very hard. i mean, i'm trying to be polite about it. it doesn't make a lot of sense. no, i say prudent and informed dialog is going to serve the nation in a much better place and lead to a after the investigation. >> the right. >> decisions with the right investment to continue to make this as safe as possible. and again, i. >> hope. >> that we get to that point. how much investment is needed inside the faa in terms of one of the things we did here clearly was there are not enough personnel in these towers. >> no. >> it's certainly there's money, but there's a. >> process and a. >> procedure, just like the aviation industry has done with with pilots. remember, we had a

shortage of pilots just a few years ago. all of a sudden that's changed to some degree, at least for the big ones. >> you create. >> a pipeline. >> you go deeper. >> into the into universities. and i think the government has begun to do that. so there is investment of money, but there's more important investment of time, procedure, process and understanding that that need for us is going to continue for a long period of time, the need for air traffic controllers. so it is both money and. philosophical and financial. okay. oscar munoz, thank you. great to see you this morning. appreciate it. thank you, thank you. >> when we come back, tapping into the utility sector to power your portfolio. we've got a. >> new and unique. >> look at the stocks in that space next. >> and then white. >> house senior trade and manufacturing adviser peter navarro will join us to talk tariffs. and the deadline looming this weekend for canada and mexico. squawk box will be right back. >> here you go. >> is there. >> any way to get a better price. >> on this? >> have you checked single care? whenever my. >> customers ask how to get a. >> better. >> price on their meds. >> i tell them about single care.

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viewers to the cnbc cube. now this is where we're going to go to give you, our viewers and listeners, a new and interesting way to visualize and analyze market data. think of it like a dashboard where we can interact with the nuts and bolts of the market and trading activity on a daily basis. now, so far in 2025, the utility sector has been a laggard, ranking eighth of the 11 s&p 500 sectors. one of the major themes for investors regarding utilities is the amount of power generation that they do through renewable sources. now, s&p global market intelligence helped us run some of the numbers as far as companies within utilities that are concerned in terms of how they generate their power. green and renewable. otherwise, exelon ranks number one in terms of renewable power generation. you follow it up with eversource and also by pg and e, nextera, aos and alliant energy. those particular names, as you're seeing right here on the bottom,

are among the biggest renewable power generators. there's been a big push in the last several months to reactivate american nuclear plans. right. the ura global x uranium etf right now, as you can see there, ticker ura, up about just about 1,112% so far. since that kind of move that we've seen in september. that big run that we've had, it's been a tough though time since october 21st. it's fallen 17% from those highs. public service enterprise constellation energy also pg and e ranked highest on terms of the nuclear consumption on a percentage basis overall. so those three kind of stocks and companies are in focus. coal is still a big part of the american energy picture as well. in the last year based on stock performance, names like alliance resource partners been the clear favorite. first energy, center point and ppl are some of the utilities most reliant on coal, according to s&p global market intelligence. so as we talk

about utilities, andrew becky, it's kind of interesting to look at how they generate their power. but this is something that we're going to look at a little bit more throughout the course of the day right here in our cnbc cube. i'll send things back over to you andrew. >> tom, that is really cool. do a spin around. i got to check this out, see things so. >> you can kind of move around here and we can interact with this. you know, becky, i don't know if you. andrew, how many of our viewers out there were star trek the next generation fans? but i've been telling people it kind of feels like you're in the holodeck, right from. >> yeah. >> i was. >> actually thinking the matrix. it looks like you're in the matrix. do one of these. dom do like the. oh, there it spins. do one of the things where you're dodging bullets in the matrix. >> i could do something, you know, something like this. >> yeah. >> there you go. >> i could, but you know the other thing i've heard, becky, it kind of feels like the fortress of solitude for superman, right? and we know that that reboot is coming up. is coming up. james gunn's directing this new reboot of superman. so welcome to our data cube and our fortress of solitude here at cnbc. >> christopher reeves in the

ice. >> exactly. >> don, i want to thank you. >> you got. >> it, guys. enjoy your. >> virtual world behind you. >> yes. i'm going to move around a little bit here. >> coming up after this. peter navarro, back in the real world on the looming tariff deadline. we'll talk about it with him just after this. >> sector is sponsored by sector spider etfs. >> are you. >> having a hard time. >> growing your sales? >> is it tough. >> getting new customers? try info free. com hot sales leads. you'll get unlimited sales leads, mailing lists, business. >> profiles. >> person search, email marketing and free crm. >> i got for new customers the first month. that's incredible.

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code or go to cnbc.com. slash disruptors to apply before february 10th. >> white house press secretary caroline leavitt says president trump is still planning to issue tariffs on canada and mexico tomorrow. in fact, the president himself said this just last night from the white house. president trump issuing a february 1st deadline for the 25% tariffs on imports. if both countries do not halt the flow of illegal immigrants and fentanyl. joining us right now with the latest is peter navarro. he is president trump's senior trade and manufacturing advisor. he's helping craft the president's tariff options on this front. and peter, it seems like we've come an awfully long way just in a week and a half since we last talked. where do things stand right now? do you expect to see these full 25% tariffs enacted starting tomorrow? >> i have.

>> no breaking. >> news for. >> you on that, becky. not my lane. >> last time. >> we talked, they. >> talked about the importance of talking. >> about why tariffs. so i. >> can't tell you when i. >> can talk a little. >> bit about why i. >> do have a. little breaking. >> news though. >> that data cube. you had in the. >> last segment. >> i think jim. >> cramer is going to jump. >> out of that and squawk on the street. >> just saying. >> surprise box. >> as for. >> the. >> real world, andrew kind of teased that. >> was back in the real world. >> apropos of the discussion. >> we're having. >> i want to talk a little bit. >> about one. >> of the big. >> reasons we think. >> about tariffs, and. >> that's the fentanyl. >> we got the. >> super bowl coming up. and eerily, the. >> amount of people that. >> fit in. >> the superdome. are almost. >> exactly equal. >> to the. >> number of people. >> dying every year here. >> in. >> america from fentanyl. >> and that comes. from china. and mexico. >> so these. >> are why.

>> why we. have these kind. of discussions. >> and we're. >> facing a. >> set of national emergencies. one, of course, is the. people dying. >> with respect. to illegal immigration, six degrees. >> of separation. >> i suspect just about. every american knows somebody who knows. somebody who's had somebody. >> robbed, raped. >> killed by an illegal alien. so we've got that going. and the numbers, becky, of. >> illegal aliens that came in. during the biden. >> administration are staggering. >> think about this. >> connecticut. just. >> up. >> the road from you, right, about population about three. >> 3 million. that's about how many people came in every. >> year during biden. same as the population of. arkansas or nevada or mississippi. >> or utah. >> i mean, think. >> but. >> this is what we talked about a week and a half ago. and at. >> that point. >> we were talking about how this is a negotiation, but we're here. the deadline's tomorrow. has there been progress made on

any of those cases? and by the way, you just mentioned fentanyl is really a problem from china and secondarily mexico. why is canada wrapped in on this? >> canada has. >> is a. >> big. >> part of the. >> illegal immigration problem. >> they have very. >> very lax. visa programs, which i was. >> surprised to. learn because i go way. >> back when, when i. >> used to. >> fly into canada to. give speeches, it. was like it. >> was not pleasant. >> but a lot of. >> the terrorists. >> that. >> have come. >> in have. >> come. >> from canada. i mean, there's we have the fentanyl crisis. we have the border crisis. we also have something. >> that. concerns the president. >> deeply, which is. the trillion dollar trade deficit. >> that we have every single year. >> that's that's as. >> warren buffett. >> said, that's property. >> and the. >> wealth of america. >> going offshore. >> and canada, mexico and china. >> actually account for almost. >> 50% of that. so the boss wants to do something about that. so we have the fentanyl

drug crisis. we got the border invasion crisis. we've got the trade deficit issue. and this. whole other thing coming at us like a freight train. and we did talk about it last week. but it's worth refreshing is the tax hike that's going to happen. almost half $1 trillion a. >> year. >> tax hike. if congress can't come to terms with a new. tax bill. and the president trump has a great. >> new tax. >> cut, the largest in history, and tariffs. >> can easily pay for that. >> president trump wants to move from the world of income taxes. and countless ira irs agents to a world where tariffs, like in the age of mckinley, will pay for a lot of government that we need to pay for and lower our taxes. and that's through the internal revenue service. so what's going on before us? and the markets should be comforted

by all this, because taken as a whole, we're going to have. lower inflation and faster growth, and we're going to have a more secure and prosperous america, which is good for the world because we. yeah. go ahead. >> i just want to talk through some of these points, because the president has a very broad agenda. he has a lot of things he wants to get accomplished. some of those things actually come in conflict with each other from time to time. and i think a lot of people watch to try and figure out which is going to take precedence, how you find and put these policies together. obviously, he wants to stop the fentanyl problem. obviously, he's looking at illegal immigration very closely, but the market seems to be trading in some ways, like some of this stuff may not happen tomorrow. those 25% tariffs on mexico and canada. and let me just walk you through some of the wall street proclamations on this. you've got barclays saying if the tariffs are put in against canada, mexico and china, it's going to be a 2.8% drag on the s&p 500 profits. citigroup is

saying a narrow tariff scenario is likely to result in a 50 basis point compression on the s&p 500 gross margins. you've got other places that are looking at homebuilders potentially having lower housing starts down the road. he wants to get more housing. he wants to get more affordable housing. automakers like ford and tesla are expected to take a big hit if these tariffs are imposed on canada and mexico, because those two countries account for about one fifth of the value of u.s. vehicle consumption and production, according to goldman sachs. you've got all kinds of issues about inflation being concerned, and i can cite barclays, goldman capital economics, all of these different places that are talking about inflation going up anywhere from 35 to 40 basis points to 0.9% on these issues. that's where i understand there's a. lot of. what the president and the administration wants to do. >> but but let me. say this. every one of those organizations, groups and studies said the same damn thing about the trump tariffs back in

2018, 2019. the sky was going to fall. when we put them on china. the sky was going to fall when we put on steel and aluminum and the sky didn't fall. in fact, the sky got real blue and bright and it was morning again. in america, we're going to have a golden age in america. i don't believe those studies. i've seen too many wall street studies designed to spin things around and make it go the way they want to go, not the way president trump and this country needs to go. so let's see what happens. the boss loves to say that. and when i come on, i love to talk about always the whys of the tariffs. and i think if people understand the last thing i'll say, becky, this is really important. the presidential memorandum day one america first trade policy. everyone on wall street should read that carefully because that provides the roadmap. you ask me when, when, when it's all in there and who the players are, whether it's the great howard lutnick at

commerce or the great scott benson at treasury, or whether it's kevin hassett or jamison greer, these folks are going to be in charge of the data cube, as it were, at the white house. we've got to get one of those things. i love that thing, but that's how things are going to unfold, becky. and it's going to be a beautiful thing, a golden age. >> hey. >> hey, peter, can you just react to what's happening with tiktok? and let me ask you in this context, clearly there was a bipartisan law that was passed. supreme court upheld that law. the president has now said that he wants a negotiation to try to sell the business to some, to a company in the united states. and yet we have this unusual circumstance where apple and google, based on the law. and by the way, based on comments from people like tom cotton and others, say you cannot put this thing on an android phone or an apple phone, and they're abiding by that in terms of hosting it themselves. and yet you have your boss, president trump, saying actually, to some degree, maybe

either disregard the law or i don't know what you how you want to describe it. and you have companies like oracle and akamai that are saying, okay, we're going to go along with the president's version of this versus congress, the senate and the supreme court's version of this. what do you make of that? >> yeah, i don't i don't want to disappoint you, andrew. i never like to disappoint you. not my lane. i'm not involved in that a whit. but i'd like to tell you just a really quick story, because you said i was back in the real world when i was in prison for defending the constitution. i remember one time i'm sitting at lunch with the guys, and they're talking about how much cheaper all the drugs were now on the street, and how hard it was for the dealers to make money. and i go, why? and they because the border was wide open. that's that's the real world, okay. that's the real world. and that was really kind of interesting. the other thing i'll tell you is cnbc was actually the thing that was

always on at 6:00 in the morning at, at at the prison. so figure out why that is. >> so is it a form of torture? >> yeah. i don't know. >> what that. >> means for our demo. >> peter. >> yes. i don't know. >> what. >> that means for our demo. >> i'm just saying there was there was a lot of white collar dudes in there, and they were sitting there watching. >> like, when they play the same. >> not the other network. okay? just so pat yourself on the back, okay? but well, i think he's feeling better already. peter, very quickly, there's an article in the wall street journal today that says several of president trump's aides are trying to figure an off ramp so that you don't go to this universal tariff starting tomorrow. also brings up the idea that there are some concerns that if they are enacted, they would be struck down by a judge. is that what's happening in the white house right now? >> so you've got you've got the best trade team ever assembled.

howard lutnick, scott besson, kevin hassett, jamison greer. okay. there's not an inch of difference between any of them. and whatever you read in the press from anonymous sources is not coming from any of us. and we this game they play where lower level bureaucrats get quoted as senior level officials, anonymous sources by the fake news. i'm just i'm sick of it. the boss is sick of it. that's not going to happen in this administration. if that keeps happening, then something's going to happen in terms of better control of the press flows. but no, we are united. and which is not to say there aren't interesting discussions, but that's fake news. becky, when you see anonymous sources in the paper, it's fake news. >> peter navarro, i want to thank you for joining us today,

and hope you will tell us as soon as you have some breaking news on this front. >> when i when, when things happen, i'd be happy to happen with them. okay. but i hope what i provided you today was the context for the decisions that are going to be made. i think that's my value added here. >> okay. peter navarro. thanks, peter. >> you take care. >> you too. also a programing note for you. don't miss the digital premiere of cnbc's trade war stockpiling that airs tomorrow on cnbc.com. we're going to dive into the world of trade and speak with companies using strategies to mitigate the impact of tariffs. >> meantime, amazon now saying that deep sea market shaking i model is now available through its cloud. in a post last night on x, amazon ceo andy jassy telling followers to, quote, have at it with deep seek's latest r1 model follows microsoft's announcement earlier in the week that it was making the model available to buy on its azure cloud platform and

github tools for developers. microsoft also said customers would soon be able to run the r1 model on some microsoft pcs. of course, the twist here all this comes as microsoft and openai reportedly looking into whether a group linked to deep sea their saying improperly obtained data from openai, which of course microsoft has backed with billions of dollars. so lots of lots of moving pieces here. and of course, perhaps the biggest, you know, this is an open, open source model. we were talking about sort of the danger or not, of downloading the app and using it and this and that. given that it's a chinese at least created in china. but now literally that model, because it's open source and i think people can see through it living on amazon and on microsoft services. so as andy jassy said, have at it. i've been having added it's fascinating. meantime, apple reporting fiscal first quarter results, the company beating expectations on the top and bottom lines, but posted an 11% drop in china revenue. steve

kovach joins us right now with more on that. good morning to you, steve. >> hey good morning andrew. yeah that top line bottom line beat that sent shares down initially. after hours we saw iphone sales down 8/10 of a percent. china sales down as you mentioned down 11%. but the stock went up during that earnings call on some modest guidance guiding towards low single digit revenue growth. also mentioning the strong dollar is impacting things. again some foreign exchange headwinds. but that was just enough to send the shares up. what we're seeing this morning. and then i also caught up with tim cook on some of these results. and we really discussed the big theme going into here is artificial intelligence, the apple intelligence system driving sales of the iphone. here's what he told me. quote, during the december quarter, we saw that in markets where we had rolled out apple intelligence, that the year over year performance in the iphone 16 family was stronger than those markets where we had not rolled out apple intelligence. so the implication here, guys, that wherever apple intelligence is,

iphone sales soar a little bit of a lift. and also kind of implying here, once it gets spread out to more and more countries, maybe we'll see a lift in the iphone business. but china, that is a whole different animal here. he did. when i asked him about what went on in that business, down 11%, partially blamed that there's no apple intelligence there. the government, of course, has to approve any apple intelligence system that goes on in that country. also said there's going to be a stimulus for electronics. that's the government stimulus in china that we've been talking about. it went into effect this year. not really sure why that would impact sales last year, but it seems maybe they think some people are waiting for the stimulus to kick into effect. and then some inventory issues at channel partners. that means wireless carriers and other third party stores. they just didn't have enough inventory that made up the bulk of the downturn that apple saw in china. and then i also asked the other big question looming over apple tariffs and whether the trump administration tariffs. to our last point, peter navarro

gets what he just told you guys, whether or not if these blanket tariffs do happen if apple can dodge it. he didn't really take the bait on that one said they're monitoring the situation. i asked him if trump gave him any indication that apple would be exempt from tariffs. again. also didn't say anything there, but i would not be surprised if we heard something from apple pretty soon about how it's investing in the us economy, perhaps as a way to get some tariff relief. and we got a new stat here, guys, at 2.35 billion active apple devices, that is a huge number, up from 2.2 billion last time they disclosed it. and then like i said, foreign exchange becoming a big issue again for apple as the dollar continues to strengthen this march quarter, they're expecting a 2.5% hit to revenue because of these foreign exchange headwinds. guys. >> a question for you because we were talking about deep tech earlier, the idea that amazon is now offering it, that microsoft is now offering it. and given

just the view that something like a deep seek is helpful ultimately to an apple, given that they haven't had the same kind of capex spending prior, do you have a view that they would ultimately use and build upon open source models to build out their own models, or do you think they would ultimately have to turn those into proprietary models? clearly, they have a relationship now with open ai, but long term, how do you think this changes that that dynamic? >> we asked the deep sea question. there are a couple of things going on here. so jim cramer and i, we talked to tim cook every earnings report. and deep tech was one of the first things we brought up. because the thing i think deep sea could play into andrew more than in forming their own apple intelligence models, which, by the way, they're making in a much cheaper fashion than what we're seeing from the other hyperscalers. they're renting space from google servers, for example, using google chips, not necessarily those super expensive nvidia chips. on top of that, as they're working through the regulatory process in china. andrew, they have to get a chinese partner to take

over that chatgpt portion of the apple intelligence system that's built into siri chatgpt is not allowed in china, so they need to go to a deep seat. they need to go to baidu or alibaba in order to do it. and we asked him, are you considering deep seek? are you looking at deep seek as a potential partner here? he wouldn't take the bait on that one. so maybe they're looking at it. but he did it. really talk too much about this deep seek moment and how it would impact apple. >> andrew okay. steve kovach on the west coast this morning. thanks for waking up early. >> thanks. not the data cube. >> haha. >> the borg collective when we come back, breaking. >> pce inflation data that's coming at 830 eastern time. but next, exxonmobil's chairman and ceo darren woods joins us on the company's brand new fourth quarter results. squawk box will be right back.

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>> all right, welcome back everybody. exxonmobil. topping profit estimates for the fourth quarter. the company saying that it achieved record production in the permian basin and guyana. and joining us right now in an exclusive interview is exxonmobil's chairman and ceo, darren woods. darren, thank you for being with us this morning. we were looking at the stock earlier and just kind of keeping track of it. i think it's around flat right now, although i haven't seen it in the last couple of minutes. on an adjusted basis, you came in with earnings that were $1.67 versus the 156. the street was expected. and you warned just earlier this month, okay. it looks like it's up by about 6/10 of a percent right now. you warned earlier this month that you were going to see lower oil refining profits and weaknesses across all businesses, but you came in with better than the street was expecting on this. so what happened? i would say in the last in the numbers that you put together, what's happening now in the beginning of this

quarter? >> yeah. good morning becky, it's good to see you again. i think the information that we put out at the beginning of the quarter is generally focused on what the markets are doing. one of the things that we've observed over the years is the analysts have a really hard time understanding the market effects on the industry and the business. and so what we put out in the 8-k is the impact of prices and margins on the industry as a whole. our actual performance is rests and sits above that market movement. so as crude prices come down, we'd expect the industry revenues to go down and to profits to go down. and then everything that goes above that is the hard work the organization is putting in. and so we tend to separate out what the market's doing versus what the company's doing. and if you look at the beat in the fourth quarter, it's a function of what the company's done in terms of growing its volume and improving the high value product mix of the things we're making in our product solutions business. i think if you look, step back and look more broadly at the year $34 billion in earnings, $55 billion in cash

flow from operations, it's our third best in a decade, really reflects the really hard work that our organization has been putting into making this business better. very pleased with that effort, very proud of our folks. also very pleased that the street is recognizing the transformation that we brought about in the company in terms of driving shareholder returns, where we again lead all of our competition. and i think the final point to make is the foundation that we've laid in this corporation and the plans that we took the analyst community through in december through 2030. we have a very strong foundation of investment opportunities. our intent is to grow earnings by an additional $20 billion by 2030, grow cash flow by an additional $30 billion on a constant price and margin basis. so i think the business is in very good position. the fourth quarter results show that, as do the full year results. >> darren, that that discipline you talk about has been rewarded by the street. it's certainly what shareholders would like to see. it may not necessarily meet

up with what the current administration, with what president trump has said he would like to see, which is expansion of production. are you going to put a lot more capex to work doing that, and can you do it more efficiently? >> so i think actually what the company's been doing is very much in line with what, you know, president trump's objective, which is to drive energy security for the nation. if you look at what we're doing in the permian, our us business, we're doubling the production through 2030. we're growing our production in the permian faster than any other company. and if you look more globally, we're growing our business. in fact, this year we had the highest liquids or crude production that the company's had in the last 40 years. and we're investing in new products. we're investing in lower emission solutions for the economy. and so if you look at the money that we're spending next year, we expect to or this year, 2025 versus 2024, our capital spending will be up. and

so i think if you look at what we're trying to do, you know, this business you invest today for growth into the future. you invest cash today for cash tomorrow. that's a really important focus, i think in a depletion business, when you start cutting capex, you basically start compromising the future growth of the business. we're not going to do that. we've got a very, very good portfolio. in fact, i would say an industry leading portfolio of investment opportunities. and we're we're executing those with a lot of efficiency and drive. >> i will go back to cutting capex. your comments on that, only because we spoke earlier with mike wirth from chevron. they are cutting their capex for the first time, i think, since the pandemic this next year. you don't want to do that because you think it's short sighted. >> you know, we're in a depletion business where every day you produce a barrel that's a barrel less you have into the future. you've got to constantly be filling the pipeline with advantaged, attractive investments, you know, the industry as a whole. and i think

the street investors tend to talk about capital discipline in respect to reducing absolute investments. we think that is a really bad idea. capital discipline is making sure that every dollar you spend, you spend effectively, you invest it in advantaged projects that deliver high returns. and if you look at our portfolio, that's exactly what we're doing. so measuring discipline on an absolute capex level, we think is a fool's game. what you ought to be focused on is, are you spending your money in the right places to grow business? our business is growing across our portfolio, not only in our established businesses, not only in the oil and gas business that we're in today, but in our new businesses where we are growing our carbon capture and storage business. we're looking at our lithium business. we've got plans for low carbon hydrogen. we're also introducing brand new products where we're taking gasoline molecules and turning those into a resin, a resin that we can use to replace steel, rebar and other materials used throughout construction. huge

market opportunity there. we're actually taking the bottom of the barrel carbon intense feedstock, manipulating the structure of those carbon molecules and growing a business for battery anodes, which will increase the battery durations by 3,030%. longer lives, longer voyages. so we're looking at a broad portfolio of how we use our capabilities to make products that are advantaged versus the alternatives today and meet society's needs, whether it's in the energy sector or whether it's in the materials sector or whether it's in the lower emissions sector. >> let me ask you about the situation with chevron, that that you guys are in mediation right now waiting to see what happens on the guyana purchase that that hess is your partner in right now. you all have said that you think exxon should get the right of first refusal on this. chevron has said they think that this should be a clear path for their purchase to go through with it. how long do you see that playing out? what

do you think? where do you think things stand right now? >> so we are in arbitration. we were in that project. we wrote the joint operating agreement at the time with shell. shell exited hess, joined us and signed on to that operating agreement, which gives us the right of first refusal for any transaction. we're basically pursuing that right through arbitration. the panel meets in may, and then we should have a decision by september. >> would you buy it if you if you were cleared the way to be able to have the right of first refusal on it? >> you know, when we look at acquisitions across our portfolio, we're always looking for opportunities where we can add unique value, where if you look at the combination of the entities, one plus one has to equal three. and so i think it will be a function of where things move to in the future. >> okay. and very quickly world oil demand. how do you anticipate it shaping up for 2025? >> well, we continue to see demand grow. if you look at 2024, we were at record levels

of demand. we expect 2025 to demand to continue to grow. and so both for oil and natural gas, in addition to our petroleum products and our chemical products, continue to see record levels of demand and expect that to be the case in 2025 as well. >> okay. darren woods, exxonmobil, thank you for your time today, darren. >> thank you becky. >> okay. a lot more coming up on squawk box breaking inflation data. plus the national women's soccer league expanding to denver. we're going to speak with ariel investments co-ceo mellody hobson. ariel is part of the new team's ownership group. the new team's ownership group. stay (traffic noises) (♪♪) the road to opportunity. is often the road overlooked. (♪♪) at enterprise mobility, we guide companies to unique solutions, from our team of mobility experts. because we believe the more ways

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it's been a pivotal week for the luxury sector robert frank joins us at the table this morning with the details. what is going on. >> good morning andrew. big turnaround in the luxury stocks hsbc calling in fact the end of the luxury recession and the start of the upgrade cycle. it said weakness in china is being more than offset by the us. shares of burberry and richemont and others up this month, lvmh gaining back a little bit of ground yesterday after that big drop on tuesday. lvmh executives telling me they have seen a big burst in spending by the american wealthy right after the election, especially in jewelry. >> there was a clear winner and i think it brings clarity and probably a greater consumer confidence, which we need to you need that feel good factor to succeed in the luxury world. >> one concern, of course, is tariffs on european luxury goods. lvmh saying more americans are traveling and shopping in europe. so if tariffs make prices high, americans may simply buy more in europe. >> we have the opportunity to

cater to clients that are basically across the world and travel across the world as well. so if they buy a piece in the us or they buy a piece in europe, it's the same for us. >> it was interesting. a lot of talk about tiffany right now, which they bought in 22, 2021, and they had a record year at the tiffany landmark store, and they more than doubled the average sale price at tiffany. so the jewelry side and we saw it at cartier with richemont been very strong. >> but how much of it has also been a shift in in what they're selling for? >> tiffany. absolutely. they went up market. but if you look at the bulgari, you look at the rest of the group watches. there's just been this burst of demand by the american wealthy. not surprising what we've seen with stock markets and just the general optimism. but everyone thought luxury was going to go through this multiyear recession, and it was certainly bad last year. now everyone's saying it's over. >> how much of that is a crypto function of crypto? because honestly, the crypto bros, if you will have been the watch buyers. >> they're important and they're back. and when i talked to the watch buyer, we look at

pre-owned, especially pre-owned watches, rolex, patek, all that stuff. they're back and the crypto people are in that market. >> okay robert frank thank you. >> thank you guys. >> all right rick santelli is standing by at the cme in chicago. he's got some breaking inflation data that we've been waiting for rick. ahead of that we are looking at the futures up dow up by about 135. the s&p up by 26. take it away. >> yeah. and the ten year note yields are down double digits down ten basis points on the week. and here we go. let's start out with the employment cost index. this is the fourth quarter number very important. expecting up a number close to 1%. and that's where it arrives. up 9/10 of a percent. that would equal where we were in the second quarter of 24 to find a higher one. of course you would go back to the first quarter when it was 1.2. so it isn't bad in between. of course, we had 0.8 our last look. so hovering now if we look at personal income these are important numbers. december last of 2024 comes in exactly as expected up

4/10. if you look at the spending side stronger up 7/10. that's a couple tenths better than we were looking for. it equals where we were in september. it ends up being the basically tied for the highest number of the year. to find a higher number. you're going way, way back becky, to january of 23. now if we look at real spending adjusted for inflation, it's also better than expected up 4/10. we're looking for up 3/10. last look was up 3/10. up 4/10 would be the best. going back to. ba ba ba ba september of last year. now here we're getting into the nitty gritty. the pce pricing components. we have two month over months two year over year on the pricing month over month up 3/10 exactly as expected. but but but 2/10 hotter than the rear view mirror. that is not a good number. and it basically we have

been at lower levels. we're at zero one tenths. so these numbers are a little warmer than expected. we started out the year at up 4/10. now this is the second highest level on a month over month basis. if we go year over year 2.6 also higher than the rear view mirror which was 2.4. to find a higher number, you're going back to april when it was 2.7. we're equally may, but now this is the one two. this is the third consecutive month that we have made no progress in three months. here's what we've done 2.1, 2.3, 2.4. and now of course we have 2.6. if we go back to month over month these are core numbers up 2/10 as expected. once again one tenth hotter than our last. look at up one tenth and maybe the most important number of all in my opinion, the pricing index year over year core 2.8 was our last look 2.8 as expected. and

if we look at sep it was 2.6 6th october, 2.7 9th november 2.81. and here we are once again, and i'm not sure how they rounded it. 2.8 we could say it's equal, but we're really not making any progress here. you can see that interest rates have trickled up a little bit. in my opinion. the reason rates aren't going up. more on this data, becky, is because i think investors have gotten used to the notion that we are at a standstill with respect to large progress on the inflation front. we make little tweaks here and there, but for the most part, steady as she goes. not anywhere near on the year over year 2%. and i'm starting to see some very, very late revisions coming across the wire on personal spending. our last look moves up to 6/10, which of course leads into today's up 7/10. and on real spending adjusted for inflation up 4/10 look like an improvement. but last month's up 3/10 now moves up to up 5/10. no matter how you slice it the

numbers on income and spending don't paint the picture of an economy that's going anywhere south. it looks pretty solid. pre-opening equities. they're holding up with green across the board. and as i said right now we're at 453 on a ten year, which just put us down nine basis points on the week instead of down ten up one on the session. back to you. >> all right rick thank you. masterfully done as always. steve liesman is here. he's been digging through these numbers looking for even more context on this stuff. it's a lot to ask. >> yeah. so we had a little bit of improvement. if my calculations are correct, which is did i, did i cut and paste into my spreadsheet correctly on the three month annualized core? that was good. that went down to six. call it to 2.2. that was good. i think the fed's going to like that six month annualized core also fell. but rick is 100% right that the year over year is

unchanged at 2.8. and that's really what the fed is looking at. that's what they've decided that that's their thing. right. that last mile is the hardest. and i'm going to actually get to some fed comments about that in just a second. the other thing is that the if i'm not mistaken, i don't have how this folds into the broader data, but this super core thing, which i hate that term because it implies something larger, it's something smaller, it's ex housing and. and food. it i have that at zero one, if i'm not mistaken. i'm just trying to find it. yeah. and that's a good number. that's a very good number. price index x food energy and housing plus zero one compared to zero one in november. that's something that fed chair powell has looked very carefully at saying look i know housing is if i get rid of all these other things. that was the thing that bothered him. that looks to be doing a little bit better. okay. and then of course, as rick also pointed out, the numbers are pretty good. we don't have a flagging

economy. we've got a decent economy. it's running two three. that data yesterday was a little messed up with some of the trade stuff. there's a little front running going on perhaps i want to get very quickly guys do you have that available to me which is the comments by michelle bowman, the fed governor who is speaking. right. as we as we talk right now. and she's saying that she is on board with inflation. let me let me just find them right here in my in my notes. >> bowman was the one who originally voted not to cut rates the last. >> yeah, she she's been a hawk there. and she says she prefers future policy adjustments to be gradual. she wants to see further progress in lowering inflation before continuing to adjust the funds rate. and it's important for the fed to have a better sense of fiscal policy and what's going to happen with the administration. but she does expect it to moderate. she sees upside risk, concern that a pent up demand following the election could cause inflationary

pressures. i have an interview coming up in about less than an hour and a half with austan goolsbee. great. and we'll get to ask him some of these things about that. he's really not going to want to answer fiscal policy tariffs, which are coming. what is your sense from from from navarro. >> navarro. >> are we getting tariffs or not? >> i don't know, i got the sense that he doesn't want to front run his boss. fair enough. and cut into that. >> not good for job security. >> does the does the fed want to front run those policies i guess. and how do they think about that. >> no. the fed wants to wait and see. the fed does not want to front run them. powell does not want to play politics at all. he wants to get out of the way of this freight train to the extent that he can. but you cannot say we're going to put 25% tariffs on our two biggest trading partners, which will raise the price level and say the fed, which has a modest inflation problem, should keep cutting. yeah, it should be a full stop. and that's really where the fed

is at right now. look, the price level was the reason why president trump was elected. if he was elected because of the inflation rate. >> you would think that would be front and center, not just inflation, but also the concerns coming out of wall street. on what it means for profits for the s&p 500. because right now we are priced to perfection when it comes to some of these things. if you cut into the profit margins, that would have an impact. >> i was fascinated you were reading him those reports about profits. we haven't talked a lot about that. but one thing i think is fascinating here is this idea that if we don't if we put these tariffs on, you're going to have an increase in the price level. and navarro i think was wrong, was comparing now to 2018. >> i'm just going to say that if you go back 10%, well it was also 10% at that point. so you were talking about much more modest impacts. and i've i've spoken with people like dan and others who say, yeah, at that point, chinese manufacturers were willing to pick it up. >> and by the way, they were also really careful not to include items that were in the

consumer price index for tariffs. that's not going to happen this year. your avocados are going up. >> we'll see. we'll see what happens tomorrow. it's here. >> luckily there's no college football i'll be missing. i'll be covering tariffs instead. >> steve thank you and have a fun weekend. >> fabulous. >> when we come back, mellody hobson and jason wright from ariel investments will both join us for a special interview. ariel is part of the ownership group that just announced national women's soccer league expansion team in denver. stay tuned. we've got much more squawk box on our way right after this. >> in a world of seismic change, will your business shape the future or be shaped by it? how will we capture the imagination of tomorrow's consumers? overcome operational constraints to focus on future growth, and harness technology and ai to power entire industries? with

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and ask about the bosley guarantee. >> coming up, an interview you do not want to miss this morning, melissa mellody hobson and jason white maryland investments their investment in a new women's soccer franchise is in focus. we're coming right is in focus. we're coming right back after ehh... hmm. oh, that's very, uh... - right? - mmm... this store doesn't have agentforce, so an ai agent didn't tip off the stylist as to what i might actually wear. - yes. - oh. that's a commitment. [glass knocked] hey bud! whaddaya think? you know, people can see you out here. ha ha ha ha, yeah, yeah, right, right, ha ha. love you, too. agentforce helps retailers prevent fashion fails.

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helps investors meet their goals. pgim investments. shaping tomorrow today. environmental responsibility. america's most just companies revealed who's in the top spot monday. squawk box 6:00 eastern. >> cnbc welcome back to squawk box, the national women's soccer league expanding to denver, becoming the 16th team to join the league. it's going to start competing in 2026 and the addition also setting a new record for an expansion fee in women's sports at $110 million. joining us right now is an exclusive interview with ariel investments co-ceo and president nellie hopson. also, jason wright, former president of the washington commanders and now managing partner of project level. it's a newly launched subsidiary of ariel investments, focused on women's sports that invested in the denver franchise. good morning to both of you. melody, i'll start with

you in terms of just help us sort of take us back and explain how this all happened, how jason was brought in, how you decided that this was sort of the next investment horizon for you. well. >> this started about a year ago and actually much, much longer than that. we've had personal investments in sports for a long time, john rodgers and myself. john is one of the original investors in the chicago sky in 2005. i've been investing in sports for the last few years with the broncos and the white sox, and saw an opportunity when we looked at the valuations and said, there's something here. so we started talking about women's sports. after a friend came to me, a friend came and said, she said, you should look at this. we should look at it together. ultimately, it didn't work out with us and she wanted to do it on her own. and then i saw jason speak at a conference, and i made a beeline for him on the stage, and i said, i need to spend time with you. i knew he was going to be leaving the

commanders, and i thought, this is the person. he's got the perfect kind of operational background to help in this endeavor that we had been working on for quite a while at ariel and jason. classic ariel investing its value, meaning, growth. >> jason, how focused were you prior to meeting mellody on women's sports? was that something you had said to yourself, okay, i mean, i know you were at the commanders. were you saying to yourself, okay, i got to get into women's sports. >> i've got a personal history with it. that goes back to the late 90s. my family were original season ticket holders in the wnba with the sparks. my dad religiously took us to games. so i grew up watching sports heroes like lisa leslie and penny toler and alison feaster and tamika dixon and zhang, and that made us an anomaly in the late 90s. now that is actually more the norm. you know, we estimate that 60% of nwsl fans are men. and i got a great visual the other day looking at one of the love

volleyball league's inaugural games in salt lake city, where there's a line of young men waiting for these great female athletes to come out and do post game autographs. the appeal of women's sports is to everybody, and it certainly was to me, and that's why i've been interested. >> where are we in the in the journey or in the, the curve here? i know, you know, you guys are value investors. so hopefully you're getting in early at the same time we talk about now women's sports with great frequency in a way that, you know, clearly we didn't before with some folks saying that actually prices have gotten in some cases even beyond themselves. and there's going to be a period of time where some of these prices, you're going to really have to grow into. >> they are growing into right now in real time. we're watching this generational shift that is occurring. every stat is up, every single one. viewership, fandom, attendance, sponsorship, media rights, social media engagement. literally, when you look across the board, i think of women's sports as being the

small caps, not in talent, but in valuation of sports. because think about it, the most valuable women's team, angel city, is worth $250 million, the most valuable men's sports team in the united states. the dallas cowboys, is worth 10 billion. that is a big valuation gap. and we're not saying that women's sports today is worth 10 billion, but we do think they're going to grow into much richer valuations than what we're seeing right now. and importantly, women will get their rightful place in the pantheon of sports, which we think is a part of the story as well. >> and, jason, in terms of which sports, obviously, we're talking about here, soccer, basketball, you're talking about the wnba. i think you referenced volleyball, you know, where do you see the greatest oortunity is there places where you say, this is definitely going to work. and there are places where you say, maybe this isn't going to work? >> that's right. the profile of this can range from venture all the way to something that feels

more like credit because of the maturity of the different assets, but certainly interested in the teams and the mature leagues that we just talked about. and we expect those valuations to grow. any of us would take the growth of angel city, you know, bought for $2 million four years ago and sold for 250 million. we'd all take those returns. and we do think they're going to grow, as melody said. but it's not just the teams and those mature leagues. it's the emerging leagues in sports like volleyball, lacrosse, softball, flag football and it's also college sports. and the new capital needs that have emerged in college sports. it's youth sports programs. and importantly, i think for us in our thesis is the surrounding ancillary businesses that support those teams and leagues, everything from professional services to tech support to the real estate and development plays that surround sports venues. >> right. and melody, two other related items of sorts. a want to congratulate you on a remarkable run at starbucks, which is an extraordinary an extraordinary thing. and you're

on the board of jp morgan. i'm curious what you make. this is sort of a broader policy, philosophical question of what's going on in the country right now, which is, i think, arguably you are one of, if not the most powerful black women in all of finance. and there is a remarkable pushback or backlash against dei, something you and i have talked about on this broadcast for years now from both the trump administration itself. you're seeing a rollback in corporate america. i asked jamie dimon about it last week in davos. what do you make about what's going on here? >> well, i will tell you that i think we have two things going on. i think there's talk and i think the action is disconnected from the talk. i'm very disappointed by what we are hearing broadly in terms of our government, in terms of the pushback on diversity, equity and inclusion. i've said this for many years. you know, you and i have had lots of conversations about this. talent

and genius do not discriminate. they show up in equal proportions by gender, by race, by socioeconomic condition. as long as your brain was given food and develops you can, you will see a bell curve of talent and genius around the world in every corner of society. and yet in many parts of our society, we see a homogeneous group of people represented, which suggests there are some barriers to entry. math has no opinion. i say that all the time. the math is telling us something. the math does not line up to the bell curve. i do believe companies understand if they want to reach consumers of all walks of life, of all races, sexual orientations. et cetera. that they need people inside of their company that can speak to those preferences and those orientations. and i think companies understand that and will not walk away from good

business. and so there's talk. and then i think that talk may be disconnected from the actions and the actions that i do not believe that smart executives will take, because i think they want to grow their businesses. and they i think they want the best people around the table and those those best people, as i'm suggesting, that talent and genius is equally represented. >> okay, tell me if i'm saying this right. and maybe you're going to say i'm mistranslating this. are you effectively saying that a lot of these companies that have publicly rolled back these programs aren't actually rolling back these programs? >> i'm not in those rooms, so i can't say what they are doing. i can tell you what i think when we talk to our portfolio companies at ariel, what they tell us, and i will tell you, the rooms that i am in, there is a commitment to making sure that we have representation throughout the company so that we can be our very, very best. and jamie, i know he said that to you in davos. >> you know, one of the things

that i know that you worked on, even with the jp morgan, and it's an interesting issue is, you know, banks who said let's let's try to expand the pie in certain markets by actually making a concerted effort to invest in those diverse markets. what's so interesting is you now have pushback from, in some cases, activist investors and others saying, you know, there's not either a business case for that and or it's motivated by the wrong ideas. >> this is just not correct. i mean, i don't know, it's so uninformed in terms of the point of view because ultimately, a economically strong america is good for everyone. and you want that economic strength to be at all levels of our society. these are not handouts. it's business. and i think it's very important to understand that this is not jp morgan dot org or.org. we are corporations and we understand our fiduciary responsibility to serve our shareholders and all

of our stakeholders. and so i think it's very important not to somehow get caught up in some semantics that are really disconnected from the business case. that is quite clear, right? everyone wants more customers. >> jason, what do you think? you know, a lot of corporate america cited and took on even this concept of the rooney rule, which is something that that, you know, was in the nfl and headed, i think, in the culture of the nfl over the last couple of decades now. >> well, you know, for me, my experience both running the commanders and every organization i've been a part of, we've we've done diversity, but not for performative reasons. it's not about checking a box. we never have percentages that were never actually explicit goals to hit. it was about making sure that when we were sourcing talent to grow a business, and at the commanders, we had to do a real turnaround of the business there. when you're sourcing talent to grow a business with a mandate from the board, you got to be able to reach all your customers. you need the right levels of

insight, and you need the right decision making processes along the way. and what i found in my first time as an operator in the last four and a half years was that when we had multiple perspectives in the room, not just race and gender either? economic background, international background, language, we had a tougher decision making process. there was more debate. there was more conflict, there was more heat. but that heat also produced light and illumination and insight. and we got to better answers. and, you know, we led the nfl in revenue growth on a on a percentage basis for the last three years and turning around that franchise. and it's now established in a strong place and handed off to this new ownership group. and so i, i just believe in it from a performance of the business standpoint. i don't actually care about the narrative or, or or even the feel good side of it. right. >> i'm going to go a step further on this one. so when jason became the president of the commanders, he was the first black president in 105 years of the nfl. now, i think he's a great talent, and i am super

excited to be able to work with him. but i would guess in those 105 years, there were other qualified black people that could have done the job. for whatever reason. it didn't happen. >> but thank you, jason. got to thank you. we're going to hit a hard break in just a second. thank you so much. we'll be back after this in just a moment. >> welcome to reinvented with accenture. today i'm here with margherita della valle, ceo of vodafone. you were employee 25 in vodafone italy. today. you're the ceo of vodafone. what is your strategy and vision for the future? >> we are changing our culture to really focus on our customers. we need to acknowledge that change is hard, but if people understand it's but if people understand it's for the right reason, then you help us retire. it's a simple ask of our elected leaders. but the tax treatment we rely on to grow our 401(k)s, iras, and other retirement plans could be on the chopping block in congress.

any policymaker who makes it harder to save for retirement is standing against the financial well-being of 120 million americans. it's time to prioritize our retirement savings. learn more at help us retire dot org. help us retire is sponsored by the investment company institute, representing asset managers serving individual investors. templeton. we've been a firm in motion for over 75 years, always innovating. today we're a leader in public and private markets, digital assets and custom tax management, empowering advisors with solutions to build the portfolios of the future. today. franklin templeton, your trusted partner for what's ahead.ntellit

donkey. you mean a smart? >> find an advisor at smart asset.com. >> all right, folks, that does it for us today. make sure you join us right back here next week. have a great weekend. squawk on the street begins right now. >> good friday morning. welcome to squawk on the street i'm. >> carl quintanilla with jim cramer david faber at post nine of the new york stock exchange. stocks look to close out the month of january with a gain maybe to all time highs, while also bracing for the possibility of tariffs. this weekend. pce was broadly in line with that 12 month headline does rise to 2.8. our roadmap begins with apple's bounce today. shares are rallying after a positive sales outlook, signaling an iphone recovery. >> plus trump's tariff deadline. >> the president has confirmed he will impose 25% tariffs on imports fm