offer for a limited time at cnbc.com. slash pro flash terms and restrictions apply. >> for me. squawk box is breakfast with the most interesting. people in the world. >> it's a. >> privilege to get to talk to. >> them every day. >> it's more. entertaining than any other. >> morning show. >> but you might get some useful information. >> squawk box weekday mornings, 6 a.m. eastern. cnbc. >> breaking news. china retaliates within minutes against us tariffs that went into effect just after midnight eastern time. those tariffs targeting u.s. natural gas, coal, crude and more. the country also setting its sights on google. stock futures under pressure as a result of a wild, wild day of trading yesterday. and while the north american tariffs that may be on pause, at least for now, industry groups are still sounding the alarm over a rapidly changing and uncertain business climate. good

morning and welcome to worldwide exchange. thank you so much for being here with us. i am frank holland. let's get right to our top story in china, retaliating against the u.s. just minutes after the 10% tariff on all chinese goods coming into the u.s. went into effect. beijing targeting everything from u.s. tech companies and crude oil imports to rare earth metals, also setting its sights on google. our eunice yoon joins us now with the very latest live from beijing. eunice. >> thanks, frank. >> well. >> china is definitely. >> raising the stakes. >> today, it. announced a raft. >> of countermeasures. >> to. president trump's. tariffs 10 to. >> 15% tariffs on. energy imports, farm gear. >> and trucks. >> export curbs on. tungsten and other rare metals. an antitrust probe. >> into google. >> and blacklisting. >> pvh, the owner of. >> calvin klein and. >> tommy hilfiger. >> as. well as genetics company illumina. now, the. impact of each measure. >> is going. >> to vary. for example, china has been increasing its imports of us lng.

>> in the. >> past couple of years. >> but then. >> google, the search engine is blocked. >> here, and it only. >> has about 1%. of global sales even. >> but even so, though. >> frank, the point. >> here is that a lot of. people believe that china. >> is looking to gain. >> leverage with the u.s. and. potentially lead to a broader an economic deal. >> and some type of grand bargain. >> well, eunice, i think that really is the. question right now. we saw with canada and mexico. there was a negotiation with the president. they received a 30 day pause on those tariffs. do we have any sense if those kind of discussions are taking place between president trump and president xi? >> well, president. >> trump had. >> indicated that he might. >> have a. >> conversation with president xi in the next couple of days. but unlike with china and with mexico, the. chinese government. >> and president. >> xi jinping. do not. >> want to paint themselves as weak compared to. >> the west. as seen as caving. >> in to pressure from the west, and especially with president trump. so because of that, most

likely. >> if we do. >> see some sort of grand bargain, it would be with president. xi appearing. >> at. >> least to the chinese. >> public, as the one in. >> control. >> the one. >> who's going to make a bid to president trump. >> and for. president trump to then come to president xi. >> all right. a lot more to develop in this story, by the way. right now we're looking at two of the stocks you mentioned, pvh corp, the parent company of calvin klein, down about 4%. alumina down more than 4% i believe it was just 5% a second ago. our eunice yoon live from beijing. eunice, thank you very much. all right. turning back to the markets, the tariff, tug of war and the latest news from china. really? it's keeping investors on their toes. following a very wild session yesterday that saw the dow swing more than 600 points from the lows to the highs. take a look at futures. you can see down. >> across the board. the s&p. >> down just about 14 points. looks like the dow would open about 130 points lower. the nasdaq down about 41 points as well. with that let's bring in jeff kleintop, chief global investment strategist at charles schwab. jeff, good morning. good to see you. >> good to me. >> i mean, jeff, what a day for

a strategist. so let me ask you, as you're talking to investors, what's the strategy here? how do you play the markets with the president instituting tariffs and then reaching a deal to. >> pause them. >> and now china retaliating the potential for even more tariffs in europe. i mean, how do you navigate this environment. >> it's a lot of volatility. >> but i think the market without. >> the tariffs. >> really aren't. >> about economic policy. they're for other issues. >> and that. >> means they have a lot more bark than bite. and if so stocks can stabilize. obviously since entering office trump has announced tariffs on china and then took them off before they began. now the same thing with mexico and canada. what we'll see here i think is the. >> tariffs come quickly. >> and big tariffs in. >> administration. >> but then pulled back. >> just as quickly. >> i think there. >> are places that investors can look to find haven from some of this noise. let's bring. the msci eafe. index of developed international. stocks might offer a relative safe haven. it doesn't include any of these first round combatants. >> in the trump. >> 2.0 trade war, though. mexico. no. canada, no china or

the us. and it's already been outperforming this year. it's now up 3.3% versus the s&p is 2% year to date. >> jeff i want to play a sound bite from the president yesterday just talking about his tariff plans. i want to get your reaction. and again, i want to ask you, when we know the president feels this way about tariffs going forward, are there certain sectors and other things that you may not want to invest in? we're going to take a listen first. >> what i have discussed. is we'll have some good meetings with china. we have meetings. planned and we'll see what happens. but that was just an opening salvo. if we can't make a deal with china, then the tariffs will be very, very substantial. >> just terminology there jeff. opening salvo. it's like a, you know, kind of a military term sounding like we are definitely in a trade war. so if we potentially are at least the president is eyeing one. what sectors do you feel like may be defensive. what other sectors do you feel like may have too much volatility. you just want to stay away from. >> well you know. >> one sector that may be a little.

>> bit shielded. >> is financial leaders this year. and they're not directly affected by tariffs. they just don't do. goods exports. >> so that's. >> another place investors could could choose to maybe dodge some of the headline driven volatility. you may want to look to europe. the most valuable lesson that europe's policymakers have learned. >> in the past. >> 24 hours is the white house is open. >> to negotiations. >> on tariffs. >> one of the things. >> trump has said that. >> he's waiting. >> to unveil his. >> tariffs. >> and that. >> could be because he wants germany, the uk. the biggest economy. we're not going to know who the leader is there for the end of this month. and that that it's just that refused to specify the timeline for when he might announce tariffs against the eu. that points to a desire, again to negotiate effectively rather than put those big tariffs just in place. >> all right. >> jeff kleintop from charles schwab. >> jeff, always good to see you. thank you very much. >> thanks for having me. >> we have a lot more to come here on worldwide exchange, including the mag seven member that one market watcher says is a buy ahead of earnings this week. but first, much more on that terrifying the two critical industries that are caught in

the crossfire. plus the stocks surging higher on what it describes as untamed ai demand. and then later, with the global trade war and 30 day tariff pause could mean for transports. we have a cnbc exclusive with the ceo of sia coming up right the ceo of sia coming up right after this break. stay at morgan stanley, old school hard work meets bold new thinking. to help you see untapped possibilities and relentlessly work with you to make them real. the number. >> one best run college. >> in. >> america by. >> the princeton review. employers value hpa's real world preparation. students love. unprecedented access to global leaders on high points, inspiring campus, and parents appreciate hpa's god, family, and. >> country values. >> choose to be extraordinary at

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eli lilly. see if you qualify. >> at koco-tv. >> welcome back to worldwide exchange. time now for your big money movers. we're going to start off with shares of palantir taking off this morning, up more than 18% after its latest full year sales

outlook. it just blew past estimates thanks to what ceo alex karp described as, quote, untamed organic growth and demand for its artificial intelligence software. the stock hitting an all time high, and with this latest move, it's up more than 500% over the past year, or almost 500% over the past year. but huge upside move there. again, shares of palantir up over 18%. we're also watching shares of swiss banking giant ubs. its latest quarterly results. they fell short of analysts estimates. the bank, though it says it's launching a $1 billion share buyback program this year. shares of ubs, they're down more than 5.5%. also watching a pair of chip makers moving higher. us listed nxp is up despite issuing a disappointing forecast for first quarter revenue because of sluggish demand for industrial and automotive chips. shares of nxp up just about 2% and germany's infineon popping overseas, raising its full year outlook as it tries to bounce back from a fairly rough 2020. for those shares up over 10%. all right turning to the transport space and other earnings movers. shares of sia moving higher this morning after earnings were the less than truckload carrier beat on the

top and bottom lines, despite what it called a tepid environment due to macro uncertainty. sia has also said its exposure to tariffs was relatively limited, with business tied to canada and mexico making up only about 2% of total revenue. customers for sia include walmart, starbucks, home depot and honeywell. joining us in a cnbc exclusive to discuss this quarter and the outlook for ltl trucking is fritz holsgrove, ceo and president of sia. fritz, good to see you. good morning. good morning, fritz. thanks for having me. it's always good to see you, fritz. got to start off with this question. tariffs. how does it potentially impact your business. you don't have a lot of exposure to cross-border shipments and things like that. but does it change your planning. does it change just your outlook for the year? not really. >> i mean, essentially. >> the way we think about. >> the tariffs, it's. >> really about what it's going to. >> do to potentially do to the broader economy. i mean, i think on the one hand, you could make the argument that, you know, we're going to see more domestic manufacturing or nearshoring reshoring, however you want to

describe that. and that's probably good in total for the ltl business over time. and if it's good for ltl, it's really good for sia. i think that if we continue kind of in this uncertain sort of path, i think we've got in our business, we've got to focus on the things that we can control and in the environment that we're in right now. so we'll see how it develops over time. but i think it's really for us, it's really more about what the impact will be on the broader sort of macro situation. >> so fritz, we hit on some of your customers walmart, starbucks, home depot. i do have to ask you, what about china trade? what are your customers telling you about? just their, their needs and different issues that may potentially pop up when it comes to these tariffs in china, and also the retaliatory tariffs from china that were announced just after midnight. >> listen, i think all those potentially have an impact on our customer base. i mean, we've got a pretty sizable business along the coast, west coast, east coast that is impacted by, you know, port activity. i

certainly the ongoing tariff battle, shots fired back and forth certainly has an impact on their longer term planning and their near term planning. we've got in our business, what we've got to do is we've stay close to them, continue to support their with their needs are as their supply chains change. we have the ability to adapt to their supply chain as it may maybe more domestically sourced or sourced from other markets, but certainly any of this is creates a fair amount of uncertainty in the market. our role in that is to really try to facilitate and assist customers in adjusting as they need to, to meet this uncertainty. >> all right. as we look look ahead, i should say you mentioned anything that's good for manufacturing is going to be good for your business. when you're looking at the fed and some of the decisions there. as we go ahead throughout the year, how important are fed rate cuts

to your business, to your customers and the idea of the us actually getting out of this great recession? it's been in for the last two years. >> well, listen, i think that we've got some domestic certainty around what policies would be. we could see what spending would be. i think that gives the fed some leeway to consider rates. and i think that's probably good for the macro economy. good for us. but i think right now, i mean, really, i don't know that it necessarily where the fed is. i don't know that that necessarily slows or impacts investment. i think it's more about perhaps the uncertainty of what the rules of engagement would be going forward. so i think that, you know, as our customers consider that and our industry considers that, i think that those sorts of sort of macro uncertainty creates a little bit of a challenge. but as i mentioned earlier, i mean, i think our role in this is we're it won't impact necessarily where we make investments or what we're doing to execute our plan. it's more about keeping our business focused on what the

customer needs. so as the customer adjusts, we adjust. and, you know, we're very closely aligned to what customer needs and where their investments are going. >> you know, fritz fedex announced it's going to spin off its ltl business, the biggest in the country. it's a rival of yours. we also heard knight-swift on its last earnings call, saying it's actually looking at its earnings call before the last one, i should say looking at possible m&a here in the in the us and the ltl space, possibly on the east coast when we're looking at ltl. i mean, what's the outlook. do you see competition increasing. do you see your pricing power increasing? what's the longer term outlook specifically for 2025? >> yeah, you know, i think for broadly in the business it's a competitive business. you know we've got you mentioned some very formidable competitive competitors there for sure. the underlying economics of this business are highly inflationary. and where your business is positioned, where the real estate investments are, how your proximity to customers, all those things matter. and we feel like with the network that we've built and we added 21

facilities last year and we've actually added 69. if you go back to 2017, we've had an eye on focusing and expanding our network to become a national network that's very closely aligned to what our customers need. and as a result of that investment, you know, we will be compensated for that service and the reach and network that we provide. and certainly we compete with the two names you mentioned as well as others. and we differentiate because we feel like our focus on the customer and our team's focused on the customer matters, and customers are willing to pay for that. that's value to their supply chain, and that's long term value to a customer. is long term value to our shareholder. >> all right jeff, great to see you as always. shares up about 2.5% following earnings. thank you again. >> thank you. have a good day. >> all right. still on deck here on worldwide exchange. call it a white house wild card. we look at president trump's plan to borrow from kuwait, qatar and saudi arabia's investment playbook. that story coming up

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cargurus, we get it. as the number one most visited car shopping site. >> we make sure your big deal. >> is the best deal. >> this watermark. >> event speaks to the strength of. >> our team, our commitment to. >> the aerospace industry. >> and the. >> dedication. >> of our leadership team. >> welcome back to worldwide exchange. call it another unexpected policy twist from the white house. the president late yesterday signing an executive order outlining a plan for the creation of a government run sovereign wealth fund to serve as a, quote, economic development tool and one that could perhaps be used to buy tiktok with treasury secretary bessent leading that effort. besson, speaking from the oval office yesterday. >> we're going to. >> stand this thing up. >> within the next.

>> 12 months. we're going to. monetize the. asset side of the us balance sheet for the american people. >> all right. joining me now is chris campbell, former assistant treasury secretary during trump's first administration. he's also the ceo and founder at in-camera solutions. chris good morning. good to see you. >> it's great to see you again. >> all right. so chris, i know you're not in this current administration, but i just want to get your take on how this could all work. so generally sovereign wealth funds. they're usually run with surpluses often due to commodities like oil. in fact norway the biggest one, it's often called the oil fund. it's from oil surplus money that they invest the us. however, we have a deficit and it seems to be growing. how would that work here in the us? >> so funding is the current the federal reserve. we have a central bank as well. that's that is independent. obviously this is not going to be independent or it's going to be run likely by the treasury department. but you know, it certainly gives the opportunity, i think, for the united states to. >> be able. >> to start seeing gains both in

the private and public public markets, which we see none of now allowing, allowing for perhaps us to be able to dig out of that deficit. the federal, because the dollar is the reserve currency. we can we have a lot more flexibility in what we and how and how we approach something like a sovereign wealth fund. but i would say that the important to your viewers, i think we're a long way from here to there. this may require congress's approval, which is going to require 60 votes in the senate, which would obviously require bipartisan support. so i think that there's a lot of conversations that still have to take place in order for us to get to a place where we stand something up. but over the next 90 days, the president's asked that secretary to be able to outline what it would look like, how it would run, how he would execute on something like this. so certainly a mammoth undertaking that would put the us on at par with a lot of other oecd countries. >> all right. in your mind, what would be the upside here? the president mentioned using the sovereign wealth fund to buy something like tiktok. that would be a kind of out of the

ordinary investment for most of these sovereign wealth funds. they generally invest in, you know, equities and private markets and things like that, as opposed to a media company. what's the big upside for especially for the taxpayer, if we do have the sovereign wealth fund in your mind? >> well, look, i mean, again, as i said before, you know, the us right now is locked out of investing in private and public market markets, except for we have a couple of things that are like the opec and the international development corporation and others that really. do some of this work for the united states. but if you do it on a much grander scale, the taxpayer actually should be able to realize the gains of market market upsides both in the public and private markets, as you said, equities that we don't we don't see now. and so this you know, this perhaps could offset some tax policy or some some tariff issues or other things that we would otherwise gain revenue for the us government. you know, again, many, many other countries have something like this. >> so again, i know you're not in the room where these discussions are happening, but potentially and you mentioned some other ways that the

government has funds and investment invests in things. another great example is eqt that invested in palantir stock that's been surging recently and surging this morning. what would be the difference between something like that? eqt, often called the cia's venture capital arm and this sovereign wealth fund. what would be the difference from those other investment vehicles in this one? >> i think it would be a much grander scale. i think you'd see. >> the dollars. >> be a lot larger, and having and i think probably the mandate would be quite large. i think you'd see investment across the world with the us leading leading efforts on on that. so i think that, you know, it could be quite significant in the dollar size and in the and the way that we exert our hard and soft power around the world, which. >> is, again, we're. >> lacking in this right now, which is it's a vacuum that's filled by the middle east and on our european allies and many others that that do a lot of this work. and the us is just absent from those conversations. >> all right, chris campbell, appreciate your time and your insight. as you mentioned, we have a ways to go. we're going to see this unfold in the coming

weeks and months. thank you again. coming up, salesforce leaning into its ai future and reportedly thinning its ranks to do so. we have the full story when worldwide exchange returns. stay with us. >> nothing stands still. not technology, not the market, and not franklin templeton. >> we've been. >> a. >> firm in motion. >> for over 75 years, always innovating. >> today, we are a leader in public and private. >> markets. >> digital assets. >> and custom. >> tax management. >> empowering advisors. >> with solutions. >> to build. >> the portfolios of the. future >> the portfolios of the. future today. is a bitcoin etf the same as owning bitcoin directly? while bitcoin etfs might offer a familiar face, they lack the true ownership and flexibility of directly investing in bitcoin. with itrustcapital you can buy and sell real bitcoin 24/ 7 with the tax advantages of an ira. real bitcoin means no middleman, no restricted stock market hours. choose the path of direct bitcoin investment

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to rose co-insurance for your free insurance check. >> tariffs are very powerful, both economically and in getting everything else you want. tariffs for us. nobody can compete with us because we're the pot of gold. but if we don't

keep winning and keep doing well, we won't be the pot of gold. and then tariffs won't be so good for us. >> that was president trump yesterday making the case for his tariffs and rapidly developing trade wars with allies and adversaries alike. this morning china announcing new retaliation against the us. welcome back to worldwide exchange i'm frank holland. coming up this half an hour. we have the very latest on the actions that beijing is taking. plus we talk to the heads of two groups caught directly in this global tit for tat. but first, we begin with a look at the markets after a really wild day where tariffs on china, canada and mexico led to a sell off at the open and then the major indexes, they recovered some of those losses after a deal to pause tariffs for 30 days with mexico. then later in the day a 30 day pause with canada. we're showing you some of the moves on the dow yesterday right here. a really roller coaster day. but this morning we're taking a look at stock futures. they're just back under pressure as china issues its own tariffs at the us that began on february the 10th. take a look at futures right now again red across the board. the

s&p down fractionally about eight points. the dow looks like it would open up just about a third a quarter of a percent lower 94 points lower right now. nasdaq also down fractionally right now. we want to take a look at the nasdaq premarket laggards. taking a look at the stocks right now pulling the index down. microstrategy right here at the top of the list. down about 2%. keurig doctor pepper down more than 1%. csx, the transport company t-mobile and globalfoundries rounding out the bottom five. on the other side of the coin, when you look at the nasdaq 100 leaders right there at the top of the list, you see it. palantir up over 18% coming off earnings. ceo alex karp talking about untamed ai demand pushing that stock higher. stock up almost 400 and all 480 almost 500% over the last year or so. rounding out the top five here at pdt up over 2%. app loving nxp semiconductor and arm holdings again rounding out that top five. when we're looking at the nasdaq 100, we're also seeing some moves in the etfs focused on china, canada and mexico. take a look here. we hit yesterday that we saw them under some pressure and making some moves, at least when it comes to canada and mexico this morning. completely up both of them up just about one almost a

quarter percent. the chinese etf also up three quarters of 1%. basically again in the green across the board. we talked to our market guest later in the show about these moves and those etfs. we also want to talk about the dollar hitting a multi year high. right now you see the dollar actually pulling back a bit pulling back about a half a percent. since the president took office on inauguration day, pulling back just about three quarters of 1%. but again, very strong upside moves to the dollar in recent months. and we want to take a look at oil and natural gas. looking at those markets this morning we're seeing those pull back a bit. we saw them surge yesterday. so wti that's the us benchmark pulling back about 2%. brant crude the international pulling back about one and a third percent. this is interesting. natural gas pulling back about 4%. yesterday we saw it surge double digits higher. and last but not least quick check on bitcoin. we saw it fall back below 100,000. still below 100,000 right now trading at about 98,008. almost 75 a coin pulling back about 2.75% right now. all right. that is your setup. now we want to turn back to this morning's breaking news.

china taking action against the u.s. after president trump's 10% of tariffs went into effect just after midnight last night, eastern time. our own mega casella has the very latest on that story. megan. good morning. >> frank. >> good morning. and that's right china. responding very quickly here and very significantly to those tariffs overnight with. >> a number of measures. >> of its own. >> that includes a 15%. >> tariff on. >> u.s. coal. >> and lng and. >> a 10% tariff. >> on crude oil. >> agricultural machinery. >> and some large engine cars. but then there were some. >> non-tariff restrictions. >> as well. those include export controls. >> on some. >> critical minerals. >> and an antitrust investigation into google. they also placed two u.s. companies. biotech company. illumina and calvin. >> klein parent. >> company pvh. >> onto what's called an unreliable entities list. >> now, we do. expect chinese officials to. >> speak today with president trump. >> so. >> we'll have to see. >> in that. >> call whether the two sides might be able to make any. >> progress towards a deal that could.

>> lead to a pause. >> in this. tariff fight. >> but trump. >> also told reporters yesterday that 10% tariffs on china are. >> simply his opening. >> salvo, and. >> that tariff rates could increase. >> so there's. >> also, of course, a. >> chance here for this to. escalate further. >> especially because. >> it's not clear what exactly. >> trump will be looking for from china here beyond some. sort of. action to cut down on the flow. >> of fentanyl. >> now, this. >> comes. >> after, of course, canada and mexico. >> were able to see their tariff tariffs. >> delayed yesterday. >> by at least. >> a. >> month after. >> leaders of both. >> of those countries. agreed to send additional resources. >> to their respective borders and. >> shore up security negotiations there will continue with. >> both countries. >> throughout the. >> tariff pause, so at. >> least 30 days. >> more on. >> that end. now, trump's concerns and frictions with china. >> do run far deeper than. >> those that he has with canada. >> or mexico. >> and china. i will say is also. >> clearly not. backing down here. we're seeing beijing appearing much more willing to push back. >> on these tariffs right now. >> than we were seeing. >> a few. >> years ago. and that's even. >> in spite of a weaker. economy

over there. >> right. >> now, which. >> could make it harder. >> to reach any sort of deal. >> anytime soon. frank. >> yeah, certainly a lot of questions about how this all plays out. our megan cassella, great reporting as always. good to see you, megan. well, china's move today to retaliate against the u.s. imposing higher tariffs on imports is only adding to the uncertainty for american businesses that operate globally, even as president trump strikes a deal to pause tariffs on canada and mexico for 30 days. let's talk more about this now with chris swonger, ceo of the distilled spirits council, and matt priest, president and ceo of the footwear distribution and retailers of america. gentlemen, thanks for joining us this morning. chris, if you don't mind, i'm going to start with you. let's focus on what we know right now that the tariffs on china and the fact that china has retaliated. tell me about how it impacts your business. i know china is a big beer market, actually the biggest beer drinking market in the world when it comes to spirits. what are you seeing there? >> well. >> unfortunately, china is not a big market. for us distilled spirits. >> and that's due to due to tariffs. it's only a $15 billion market believe it or not for american whiskey. so that hasn't

been so much of a focus. but obviously we've been closely monitoring and concerned about. >> the developments in canada. >> mexico and certainly had. >> a. >> sigh of relief with yesterday's 30 day reprieve. >> matt, coming over to you. different story for your business and the people in your industry group. a lot of production obviously happens in china, whether it's footwear or apparel. these 10% tariffs and also the retaliatory tariffs. how do they impact the companies in your industry group. >> yeah. >> hey, frank. >> first and foremost, it just creates a. >> ton. >> of uncertainty in our supply chains. and so we already pay upwards of $3 billion, $4 billion a year in tariffs. and we brought in about $10 billion in footwear from china last year alone. so you add this additional 10% on top of that, you're looking at an additional billion dollars for our american companies that are importing this products for american consumers. so at a time when the president is mandate is strictly focused on reducing costs for

consumers across the board, this is an interesting step to accomplish that goal. and we're trying to figure out what's going to happen next and how our companies can best cost their goods in the weeks and months to come. >> now, when you say cost their goods, are you talking about whether they pass along those tariffs to consumers or they absorb them? what exactly do you mean? >> that's exactly right. so the question. >> comes. >> down to what is the retailer willing to take on? meaning? what's the consumer willing to spend? how much discretionary income is out there? and if you think about these actions, particularly on china, china sends us a ton of goods across the board. and so if we're adding an additional 10% cost on that, that's going to drive up prices on a variety of different goods, and that's going to take away discretionary income from american consumers. and so the question comes down to who's left holding the bag? can the consumer take those prices on, or does it make our american companies less competitive, drive up costs and then tamp down on job creation here in the

states? >> chris, coming back over to you. when we talk about tariffs, whether it's china, canada, mexico or potentially over in europe, what is your chief concern? are you concerned about substitution or sentiment? i mean, if you drink, you know, tennessee whiskey, you drink tennessee whiskey. if you drink kentucky bourbon, you drink kentucky bourbon. do you think people won't buy those things because of the price, or will they just find alternatives? >> well, what's unique. about our. >> industry is. you've hit it on the head. >> where distinct products. >> right? >> so we're not. >> we're not widgets, not like for like. and this is where our. >> industry would. >> argue we shouldn't even be involved. in these tariff trade wars, because you. >> can. >> only make american whiskey in the united states and canadian whiskey in canada and so forth. right? >> so very. >> very different. look, our industry has thrived when there's. >> been fair. >> trade, zero for zero tariffs altogether. give you an example. in 1997, the us. >> and. the eu. >> agreed to zero for zero

tariffs for. >> distilled spirits. >> and our industry has since thrived by a 450% increase, benefiting consumers. first and foremost, getting. to enjoy a lot of range of different kinds of products. but at the same time, great growth for american whiskey and european spirits. >> as well. >> all right, chris, i'm going to stick with you for a second. we actually heard from diageo, one of the largest spirits companies in the world, saying they can't give their medium term guidance. they believe they're going to take a multi-million dollar hit when it comes to its overall profit. when you're talking to the companies in your group, what's changing right now as they try to adjust to this? are they changing their plans for capex, potentially, or are they changing their plans for hiring expansion? what's the biggest change that you're hearing from the ceos and other companies in your group? >> well. >> it's not mentioned. >> i mean, we're. navigating a lot of uncertainty and contingency plans have to be in place. i mean, we've got potential trade and tariff risks

between the us and the eu. obviously, mexico and canada. all, all, all four markets are thriving markets. so but we also have to recognize and you know and appreciate the president is trying to reduce the trade deficit. of course. certainly the fentanyl crisis is a significant one for the united states and communities all around the country. so, you know, we're going to buckle up as an industry and be consumer led and just make sure we work with the governments to find common ground. >> so, matt, similar question when it comes to the companies in your group, what's the plan? i mean, what do they do? is it about diversifying supply chains? is it about making different decisions? is it about simply just increasing prices? what are the next steps, at least in this early stage of this trade war? >> yeah, that's a great question, frank. so for us, a lot of our companies will begin hedging their bets, meaning they may seek a higher increase in prices to the consumer above and

beyond the 10% not knowing where this plane will land from a percentage perspective. but when you look at our industry from when it comes to diversification, in 2009, 2010, we had 87% of our volume came out of china for footwear to the us marketplace, that number is now 58%. so there's been many market forces driving us to diversify, but it's not easy to pick up a shoe factory and move it. it takes capital, investment, labor investment, material supply chain movement and consolidation and all those things don't happen overnight. so we've been moving since 2010 to diversify the supply chain. but it's inevitable. most of the shoes that come out of china are those that are sold to working families, to union families in the midwest. those shoes are going to go up in price. and so it seems to us that we want to work with the president to ensure we're tamping down on inflation and trying to keep prices competitive. for consumer. that's going to see price increases across the board if these actions continue.

>> you know, matt, we're almost out of time. but i do want to ask very quickly, at least right now. is there a push to move production to the us. is that actually possible? >> you know, there's some niche opportunities to produce here in the us. some brands already do it, but they do not do it because their tariffs in place. we've been playing we've been paying tariffs since 1930 and the jobs have long migrated and diversified away from the us. it's seen as a maturation process in our economy. right. even the chinese want to get out of footwear production ultimately. and so for us it's there's some opportunities here and there, but it will not meet the insatiable appetite of 2.5 billion pairs of shoes that we import in every single year to meet consumer demand here in the states. >> matt price, chris swonger, great to see you both. thank you for your time and for your insight. >> thank you. >> coming up here on worldwide exchange, an exclusive interview with the ceo of tempest. i can see the stock up about 7% in the premarket adding to its recent surge. we're going to look at the opportunities that the ceo sees between ai and health care and the high profile investors

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it was such upkeep. >> i wanted a sustainable option and that made. >> timbertech the obvious. >> choice for me. i want others to know when. >> they. >> come over. >> it's the. >> first. thing i tell them when they go, oh, i love your deck. what kind of wood is that? and then i go, it's not wood. i love the indoor outdoor living. >> the ducks. >> have made it even better. i wake up every. morning and i look at it and i like it. i'm so happy with it. >> welcome back to worldwide exchange. we're watching shares of salesforce. bloomberg is reporting the company is cutting 1000 jobs while simultaneously hiring workers to sell new ai products. it's unclear where those cuts will be focused. this comes, however, after ceo marc benioff discussed his company's shifting landscape in davos last month. speaking with our own andrew ross sorkin, this. >> is the first year in the history of salesforce. after 25. >> years, i. >> will not. >> hire any. >> net new software engineers. >> not one, new not one. >> and the reason why is it's

not because. >> i'm not. >> going to write a huge amount of new products. it's because. >> our software. engineers are incredibly productive. >> they are by 30 to. >> 50% more. >> productive than. >> they were. >> 18 months ago. >> so this technology. >> the agent technology, again, is making. >> our engineers. >> more productive, our. support engineers more productive, our. salespeople more productive. >> our. >> marketers more productive. >> that is the. >> promise, the opportunity. >> to redefine. >> our companies. >> news alert now on scaling ai. axios is reporting its founder and ceo, alexander wang, will be in washington today and tomorrow to meet with lawmakers and trump administration officials. the report says that wang will discuss china's ai threat to the united states. we're going to stick with the ai trade shares of tempest ai. they've surged more than 60% since preannouncing earnings earlier this month and launching its olivia app. it's an ai personal health concierge designed to centralize patient data and speed the diagnosis process. tempest is a precision medicine company with two primary lines of business genomics the study of genetic materials to create

personalized treatments for cancer and for other illnesses, and data and services. where ai is used to analyze medical data. customers include biopharma companies like astrazeneca, pfizer, and also large health care providers like cedars-sinai and northwestern medicine. joining us now in a cnbc exclusive to discuss ai in health care is eric lefkofsky, founder and ceo of tempest ai. eric, good morning. good to see you again. we actually spoke a while ago, did an interview with you as a cnbc disruptor. >> good morning. >> let's start off stocks up big right now. in the premarket. it closed up big yesterday about 7% on news that you acquired ambry a genetic testing company. what will this acquisition allow you to do. >> i mean ambry is. >> a fantastic. >> addition to our platform. >> they're the leader. >> in. >> hereditary screening or looking at inherited risk for patients that might have cancer. and they they allow us to round out our, our platform. we're already in that space. for those that don't know, we're focused on this category called ai enabled diagnostics. or how do you make tests intelligent. and

contextualize them for the patient for whom they were ordered? and we cover a wide range in oncology alone. we start with risk. as somebody at risk of having cancer. we do therapy selection. and then we also do monitoring and looking for early detection of disease when somebody might recur. so ambry was a key supplier of our, and we're super thrilled to have them as part of the company. and it just really rounds out our overall offering. >> all right. so ambry was a key supplier of yours. we just mentioned some of your big customers in the biotech space. pfizer is one of them reporting earnings later today when we're talking about ai in the health care space. how are we what are we seeing? what's the impact of ai in the health care space overall, specifically tied to your business? of course. >> well, i mean, i think look, everyone is obviously very focused on generative ai and in particular the benefit of large language models. and there's no area where i think it's more impactful than healthcare diagnostics really sit at the center of health care. i mean,

almost every major decision that a doctor makes is made after ordering some kind of laboratory test result. and so if you can make diagnostics intelligent, you can really route patients to the optimal therapy. and that's what we're focused on. and generative ai in particular allows us to use all these new tools to essentially structure or make sense of all this disparate information and use that information, whether it's physician progress notes or pathology reports or molecular data or cat scans or mris or whatever. how do you kind of put all that data together and then use it to make sure that patients are always on the optimal therapeutic path, and that that the promise of that is enormous in terms of both helping patients live, live better, live longer lives, but also reducing the incredible waste in our us healthcare system. >> so, eric, important to note, you are you're a serial entrepreneur. you've started a number of notable businesses and founded them at the same time. you're talking about acquiring businesses while you're still an unprofitable company that just went public. last year, we talked about some of your customers considerably larger than you. are you considering or

looking towards any type of m&a or to be acquired by somebody you recently had another company you founded get acquired and take get taken private last year just a couple of years ago, actually. excuse me. >> yeah. i mean, look, i'm fortunate that i've started a bunch of businesses. i think four have gone public, which is which is great. one obviously got sold, but tempest is at a scale now. we the guidance we provided for this year was 1.23 billion. and that we intend to be both cash flow positive and adjusted ebitda positive. so we've we've turned the corner. i mean, we're nine years old with the acquisition of ambry. we're approaching 4000 people. so it's just really we're in a really fortunate place that we've got a business that's growing quickly, that is now going to be making money. so we're now completely sustainable and that's just where you want to be. so in terms of looking to sell or whatever, we're really more focused on our core vision at hand. the opportunity is just so big to as a leader and somebody

bringing actually bringing ai to healthcare, it's just too big. >> so eric, i have to ask you, you have a number of really big name investors. cathie wood is one, owns a large number of your shares through a number of ark funds. and also nancy pelosi, nancy pelosi disclosing her ownership of your stock also led a catalyst for some of the surge there. why are so many big name investors? why are they so interested in your company? why do you think? >> yeah, we look, we've been fortunate from early on to have incredible investors, whether it's baillie gifford or tyro or google, and certainly arcus. and cathie is fantastic to have as an investor. i think the most recent noise around, around nancy was more related to stargate. we were also fortunate to have softbank as an investor. we've got a great relationship with softbank and masa. and so i think when stargate came together, people started looking at who might be the beneficiaries of those kind of investments. when you talk about 500 billion coming into the space, you know, people i think looked at it and said, well, there's not that many companies

that are actually bringing ai to healthcare, and maybe tempus will be a beneficiary. and i think that probably drove some of that. >> all right, eric lefkofsky, great to see you. thank you very much. tempus shares up just about 7% in the premarket. thank you. and remember, before going public tempus, i was one of our disruptor 50 companies. and cnbc is now accepting nominations for the 13th annual list of private venture backed innovators. to learn more, scan the qr code on your screen or go to cnbc.com/disruptors. all right. coming up here on worldwide exchange, the mag seven member on deck with earnings out are that our next guest has on their shopping list. the numbers that he says will be critical to watch. that's coming up next. watch. that's coming up next. we'll be (grandpa) i'm the richest guy in the world. (man 1) i have time to give. (man 2) i have people i can count on. (grandma) and a million stories to share. (vo) the key to being rich is knowing what counts. recently helped a couple buy their dream home even before

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sales outlook. it just blew past any analyst estimates. shares up almost 19% right now. ceo alex karp citing, quote, untamed organic growth and demand for its artificial intelligence software. max7 results may resume after the bell with alphabet. the earnings come after china announced it's launching a probe into google after alleged antitrust violations. amd. another stocks to watch when it reports after the close as well. with that, let's bring in robert shen, % blackstone wealth management. robert, good morning. it is good to see you. >> morning, frank. >> great to be. >> with you. so, robert, how do you see today shaping up? a lot of a lot of, you know, wild day roller coaster ride in the markets yesterday. what's your word of the day? >> word of the day is patience. investors have to be patient. >> and right. >> now this is where volatility. >> meets opportunity. >> so if an investor has some dry powder some cash on the sidelines and not don't chase you know the volatility of the market. but let the volatility provide the opportunity. you can actually do quite well in a market like this. >> all right. so with all this volatility how are you looking at the market. are there certain

sectors you see as perhaps a safe haven. others that you're just going to stay away from because of all the uncertainty when it comes to tariffs and what could happen going forward. >> you kind of want to insulate your portfolio. some of the sectors that help us do that, financials, financials have actually outperformed year to date as well as we saw last week what. utilities can do as well. so financials utilities and even healthcare we could do quite well throughout the year. insulating your portfolio from some of the, you know, headlines that we're seeing on a daily basis. >> all right. so we want to get to your pick as well. what's your pick for us today and why. >> well, sticking with our thesis amazon. has continued to be one of the best moving forward of the mag seven. we still like the mag seven, but amazon is really going to take the baton this year, and there's several reasons for that. we see continued operating margin expansion. last quarter was up 11%, and that bottomed out from 2% at. >> the end. >> of 2022. and they're also leaning in to faster growing, higher margin segments like aws and advertising. and then we factor in and layer on another

segment, which is the ai business. and that could grow potentially three times faster than what we would see in just the aws side of itself. so we expect 20% earnings growth from amazon over the next five years for that reason. >> so robert, let me ask you, you mentioned financials. you see that as a way to insulate your portfolio. what about amazon. i mean about half of their business is that retail business. are you concerned about their exposure to tariffs and the potential impact. >> everyone's going to have? every company out there is going to have exposure to tariffs. we're going to have to wait and see how this plays out. but there's always going to be a give and a get. there's always going to be those high performing companies, those global leaders that will be able to take it in stride and use it as a competitive advantage once we know how all this shakes out. so again, amazon is still positioned quite nicely even to take on some of the headlines and the turbulence that we're seeing in the market. >> so overall, it sounds like you're still fairly confident when it comes to tech. your pick for us today it is amazon rubber shine. really great to see you. thank you very much. your word of the day patience as well i

think a lot of people could use a little patience after what we saw yesterday. thank you. one more quick check on the futures right now in the red across the board as we've been showing all morning long. but just down fractionally. the dow actually off of its lows of earlier this morning. the s&p and the nasdaq both down fractionally right now. that's going to do it for worldwide exchange i hope you have a great morning and a much calmer day in the markets. squawk box starts right now. >> good morning. >> china strikes back beijing announcing that they're going to be looking through at their own set of tariffs to retaliate. also an investigation. >> against google after president trump's. 10% tariff on china kicked in overnight. >> meantime, tariffs on mexico and canada were paused for 30 days after both countries pledged to take steps towards preventing fentanyl trafficking. we will talk about what comes next, and shares of palantir are soaring after earnings and guidance both beat estimates. that stock is up more than 480%

over the last 12 months. it is tuesday, february 4th, 2025. and squawk box begins right now. 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 mike santoli and steve liesman joe. >> and andrew are. >> both out today. >> guys it's good to see both of you. >> thank you. good to be here. >> with you. >> let's take a look at what's. >> been happening with. >> the u.s. equity futures at this hour. >> you're going to see. >> there are red arrows. indicating to the open, at least. >> at this point, with. >> the dow indicated. >> off by about 85 points. >> s&p futures. >> off by seven. the nasdaq down by eight. this comes after declines across the. >> board for all of. t