>> last year. >> last year was at. >> least last year was. >> last year was. >> it goes with the election year. i didn't. >> figure it out until recently. >> right. that it. >> tees up with election years too, right. >> sorry. >> good morning everybody. 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 joe. >> kernan and. andrew ross sorkin. we are. >> all here. >> we're ready to go. >> us equity futures maybe not so much. >> you're looking at a little. >> bit of a pullback this morning. >> dow futures. >> off by about 32 points 31 points right now. s&p futures down by 20. the nasdaq off by about 111. this comes after down days for both the s&p 500 and the nasdaq. in fact three day. losing streaks for the s&p 500 and the nasdaq. the dow was up just slightly yesterday. we're going to continue. >> to keep an eye on that. >> it eked out a gain of. >> just about. >> 33 points in yesterday's session. the s&p.

>> was down by half of a percent. the nasdaq. >> was the biggest hit yesterday. it was down by 1.2%. it was pulled down by a 3% decline in shares of nvidia, which. >> is set to. >> report after tomorrow's. >> closing bell. we're going to be watching that very closely because obviously whatever nvidia says has. >> massive implications, not just for the. >> chip sector, but also the, the, the, the amazing seven or whatever we're calling. >> them. >> these mega, mega. >> seven. >> mega mega seven. >> separately. >> reuters is reporting that chinese companies are ramping up orders for nvidia's. h 20 ai chip, which is. specifically made for china because of those us export controls. that surge in orders could help alleviate concerns. >> that deep. >> seac might cause a slide in ai chip demand. i think china makes up about 11% of the revenue for their their sales overall. what they've been looking at a small part of their sales, but still important. >> you've also. >> been watching. >> treasury yields. >> which came down even more yesterday. >> the ten. >> year all the way down in the

4.3 range. it's a 4.34 right now. the two year is all the way down at 412. so we've been watching continued. >> pressure on those yields. >> there have been some concerns around growth and we'll be hearing more about gdp, what the growth is. but we're looking at growth concerns. >> and that has. >> caused a bit of a flight to safety in treasury yields or in treasury prices. and that has brought down the yields. bitcoin prices right now. >> 87 ou. >> down another 6.7% 87,009. >> 71 just below. >> it had. >> been holding. >> yeah it. >> was at 90. >> it's been. >> holding 95. >> for a while. >> and it could have been used as a currency for like a month. >> because it's. >> now for. >> a month. >> yeah. >> now instead of. >> instead of buying. >> a pizza. >> and then. >> a couple years. >> later, a house. >> not having $1 million. >> right now. >> you could have bought. >> a big mac. >> a. >> couple of weeks ago. now you get. >> a small fries, basically. >> but so it's not. >> a comment on inflationary prices?

>> no, it's a comment that it. >> is. >> now headed. >> the other way. and we've. >> heard what. >> katie stockton says. >> you know. >> 70 would be nothing. that would be just normal. so it's got. >> but as long as the fed they want the fed. >> to put. >> the. >> the pedal to. >> the metal again. >> that's really. >> what, what. >> and now with. >> with you mean. >> traders and owners. >> traders. >> as soon. >> as we. >> got this, it hasn't done very well. >> as soon as we. >> got that. >> first cpi. >> number. >> the one. >> that. >> was the third straight one. >> all right. >> let's talk. >> about home depot shares. the company coming. >> in with. >> earnings on an adjusted basis of $3.13. that is better than had been expected. we're going to be keeping. >> an eye. >> on this. also revenue numbers coming in better than expected to $39.7 billion versus the 39.2. >> billion. >> the street had been anticipating. >> and comps. >> are also much better than had been expected. this is going to be a big story, especially after what we had heard from walmart earlier. >> on $14. >> comps. >> up 0.8% versus the down 1.5%

estimate. now the comp what you're seeing right now down 3.8%. my guess would be this is because of the guidance they are giving for the full year. they are talking about total sales being up about 2.8%, comps being up 1%. diluted earnings per share or adjusted diluted earnings per share. they're now saying down about 2% from the 1524 that they reported in the full in the fiscal year 24. it takes a little bit of time to work through the numbers on this, because the. adjusted earnings per share that they came in with for fiscal 24 was much better than had been anticipated, 1524 versus the range that people had been looking at for the spread. so you got to do the math on that. down 2% would compare to the consensus estimates, which is around 1461 to 1622. so a pretty wide spread. and it's going to be better than the low end of those, but well below the high end of that estimate too, for the consensus estimates that are coming in on this 2.5%.

>> yeah. >> not that much. >> but i will say. >> let's continue to look through these numbers. i spoke with the cfo, richard mcphail, and they talked about a lot. >> of things. >> they don't see the overall landscape improving on the housing front. they don't think that rates are going to come down. that's not their best guesstimate for things, but they do think that they are better operationally, that they're performing better at about the best that they've ever seen with some of these things. he said that they have made some serious improvements when it comes to delivery, experience, speed and reliability. they say. things like appliances and. power tools. as a result, they've been taking market share in those areas. they also say the online business comped up 9%, that that's the biggest comps they've seen in a year. they also say for the pro customers, they're looking at things like drywall and concrete where they've made a lot of improvements to these are areas they've made investment. and so they say that they have seen a lot of gains in those areas. the pro business is a big deal for home depot and much bigger there than it is for lowe's. they do say they're seeing continued pressure, though when it comes to big renovations, and that's because

of the slowness you've seen in the housing market. when you have a turnover in housing, that's when you see some of those bigger renovations and as a result, they're seeing pressure still on things like flooring and kitchens. however, the cfo, richard mcphail, said that when you're triangulating all of this, they're trying to figure out how things go. and again, they're not expecting improvement in the housing market because they're not expecting rates to drop from where we are here. it's just how the interest rates affect everything that you're seeing. questions about the consumer, though they do say the customers have been coming more engaged. the momentum they saw in the third quarter bled into the fourth quarter. and they do see it bleeding into the current quarter as well. so they expect things that they're going to be well prepared for. things like spring. they're running the business, as i say, as well as ever inventory and stock staffing delivering the he says they're getting better every day on these issues. my guess is that they are giving some pretty conservative guidance here, as they have in the past. they wouldn't say that, but i would just say talking to them, looking through the numbers, that's what they seem to be saying. the stock right now is

down by less than 1%. so you're talking about a drop of about 9/10 of a percent. for total sales. they said up about 2.8% for 2025 comps up about 1%, gross margin up 30, around 33.4%. operating margin around 13%. all of those things are going to matter. and they say they did see big gains in the fourth quarter. 15 of 19 grew. geographical regions saw gains, more than half of their product lines saw gains. and they do think the consumer is reengaging on some of the smaller things. >> so it's still. >> a daunting place. >> it is. >> is their sunday. >> and you looked around. >> and no, i was yeah. >> i asked three different people. i was looking for a rubbermaid. >> trashcan to. >> pick up. >> the poop outside. >> the dog's poop. >> and thank you for. >> yeah, yeah. and i was. >> at i was out. >> at aisle. >> 70 and they told. >> me. >> it was like aisle nine. >> i'm like, what kind of place. >> is, you know. >> i'm like. >> and then i'm. >> like, i want. to like a golf

cart. >> to get down to where, you know, where i finally. >> found it. it's a daunting. and there are. >> i. >> see people. >> it looked like one guy. >> was. >> showing another guy a home depot, like a circuit board or something. i looked at it. it's like the stuff that goes. >> on there for professionals. >> yeah. >> it's a it's a big part of their business. >> i succeeded. >> successfully and i. >> was proud. >> i was. >> a little. >> bit proud, but. >> it's not my thing. i don't think you're you're. >> more of a lowe's. >> you know, the softer colors. >> and stuff. >> and. right. >> and easier. >> like i just. >> said, my guy. >> you're my guy. >> it is it. >> is a very. >> very daunting. >> i don't know. >> what they said. >> they're seeing more customers who are coming back in for the do it. >> yourself average people. >> yeah. like do it yourself type. >> that's not a. >> diy does not or whatever it is. it's not diy, right? >> dwi maybe. meantime elon musk's deadline passed overnight for federal workers to email a list of their five accomplishments from last week. that was a directive that had

been met with a lot of confusion after many department heads told workers not to respond to it, and the office of personnel management contradicted musk's. excuse me, musk's threat, telling a government hr officers that responses to the email were voluntary. but last night in a post on x, musk doubled down on those who don't answer the emails, saying subject to the discretion of the president, comma, they will be given another chance. failure to respond a second time. >> will result. >> in termination. musk also posted, quote, the email request was utterly trivial, as the standard for passing the test was to type some words and press send it. so many. >> failed. >> even that inane test urged on in some cases by their managers. yesterday at the white house, president trump called elon musk's. email a pretty ingenious idea. >> what he's doing is saying, are you actually working? and then if you don't answer, like you're sort of semi fired or you're fired because a lot of people are not answering because they don't even exist, they're

trying to find that's how badly various parts of our government were run by, and especially by this last group. >> sources tell nbc news that responses to. musk's email are expected to be fed into an ai system to determine whether those jobs are necessary. >> man. >> i watched. >> yesterday when. >> trump was talking about. >> with macron there. >> he's like. >> it seems simple. >> if they're. >> supposedly there. >> are people. >> that aren't even alive anymore. >> that sure. >> we'd like to. >> eliminate those people 100%. my question is how all. >> you. >> got to do is answer. >> the problem becomes, if you're kash patel. >> you don't like. >> this either. you have a problem with this? no, it's just. >> complicated because the government's so complicated. kash patel. who's the. >> fbi. >> director. >> the department of. >> defense, homeland. >> security. >> they've all said. >> don't respond. >> to. >> these things. >> only because. and trump did you see trump. he addressed that. as well right afterwards. >> it's just a little confusing. >> you're getting mixed messages from different places. >> well, anything. >> happening. >> trump said. >> defense department or fbi,

anything that could be. >> sensitive or. >> sensitive information. that's not. >> the ones that we're. talking about. but i mean. >> just a i mean, just. >> a. >> i'm here. >> you don't they don't they're not even looking for. you to the people. >> that this this that's. >> what the. >> first email said. that's the issue. >> that's the issue. what's why. >> is. >> that such an issue. >> no, i don't. >> think it's a big deal to send him five. >> but the. >> government i'm. >> all for. >> i'm all for saying. >> say that. but then you say apply to the email. >> it always ends. >> with a but. >> no. okay, answer. >> this then. >> i am for rooting out and trying to figure. >> out. >> that there are people. >> who. >> are not on the payroll. >> or who. >> are on the payroll. >> not not working at all. >> or don't exist. >> but and so if the. >> answer is. >> send out an email. >> and everybody please reply to it. so we know whether there's another human being on. >> the. >> other end of it. right. >> great. okay. >> but that's not what that's not what the original. >> instruction was. >> the original. instruction was. >> tell us what you did last week and whatever it was. and if you and the question. >> is so do you have a problem.

>> with with. >> listing your accomplishments? >> no. >> the issue is that if. >> in fact, you're. working for the fbi or you're working. for some other group or whatever it is, and you're not supposed to do that, and you have managers telling you not to do it, then you have a problem. it's very hard to then. >> determine what. >> to do cases. >> it's in some cases it's like kash patel telling you not to do it. in other cases, it's the union telling you not to do it. there's a lot of mixed messages that are coming in from different places. opm. >> that's all. >> i would like to figure out. if there are people. >> who are on the payroll who are not working. >> my guess is. >> not alive. >> in doubt. >> and if you have questions about it, my guess is you would send it anyway. >> it's just. >> there are certain. >> parts of. >> the. >> political spectrum. >> that don't want to do. they want. >> to do. >> absolutely nothing. >> to the. >> federal government, and they sing songs and it, you know, it's like constitutional crisis and it's the end of democracy. we hear that everywhere. >> i mean. there the. amount everybody's bald because everybody's. >> hair's already gone from from being on fire. jamie dimon's got hair, though the ceo said the us government is. inefficient and

in need of work. in an interview with leslie picker, he. >> was. >> asked whether he supported efforts by elon musk. d.o.j. he declined to give what he. called a binary response, but his comments were, i guess we're interpreting them as. overall supportive of the effort. >> here's what i support. okay, the government and most of all, everybody would know the government is inefficient, not very competent, and it needs a lot of work. and so you and i is not just waste and fraud, it's outcomes. why are we spending the money in these things? are we getting what we deserve? you know, what should we change. so i think doing that needs to be done. >> you can see. >> more. >> of diamond's comments right now@cnbc.com. >> all right. >> when we come back, we're going to take a closer look at the markets as. >> we. await key. >> inflation data and another round of earnings. you can see right now the dow futures have improved. that happened after the home depot report. although i don't know where home depot is right now. it was still down about 1% the last we looked. but

we have seen improvement in the dow just in the last ten minutes or so. s&p futures are off by 13. the nasdaq, which was down by over 100 points, is now indicated off by about 90. there's home depot. it's down by about 1.8%. so we'll see where this shakes out. plus we're going to be talking to two governors today later this hour georgia governor brian kemp. in the 8:00 hour we have florida governor ron desantis. squawk box will be right back. >> at baird. we have investor relationships in 35 countries and market expertise in over 40 industry verticals, all to help make the most important make the most important investment connections of all when emergency strikes, first responders rely on the latest technology. that's why t-mobile created t-priority built for the 5g era. only t-priority dynamically dedicates more capacity for first responders.

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>> i sink down. >> to the ground.

>> all right. >> let's take a look at the futures this morning. we have seen some improvement just in the last 15 minutes. dow futures are still down now by about 50 points. s&p futures off by 13 after both the s&p and the nasdaq were down for three sessions in a row. nasdaq is indicated off by about 83 this morning. joining us right now for more on the markets is nancy kurt. she is global chief investment officer at altman global. and nancy thanks a lot for coming in today. delighted to. >> be here. lots to talk about. >> right there is. >> why don't we start first of all with the consumer. just because we just heard from home depot, we heard from walmart last week. there are some concerns about whether the consumer is hanging in there or not. i mean, i think if you look through it to, to some extent, these companies are saying they're operating well, they are seeing some strength from the consumer, but they're not necessarily looking for a whole lot of improvement from the economy this year. okay. so i think you need to. >> look at what really is. >> behind the. >> gdp. >> in the united. >> states, which. >> is 88%. >> of. consumers have homes.

stock market cash. >> and accounts. >> that's what. >> drives consumption. the first estimate of gdp consumption. >> was 4.2%. so i think you're talking. >> about lower. >> end consumers. and there are. >> some difficulties. >> there clearly. >> but let's. >> step back. >> what really. >> drives consumption in united. >> states is the 88%. >> of consumers. >> that i would call are. medium to high end. >> and we're not. >> worried about that. there's a huge amount of wealth effect. enormous amount of wealth sitting in home. >> equity. >> low leverage. >> the lowest in. >> over two decades. so no, we think consumption. >> remains pretty. solid in the. united states. in the. drivers of consumption. >> which, as. >> i said. >> to mid to upper end consumers. >> so where. >> where do you think we stand overall, there have been questions about inflation. there have been questions about what the fed does next. what do you think? >> i think. >> in terms of the. >> fed look. >> we have. >> a. >> pc number on friday. >> it's probably. >> going to come out all right. >> it's expected just on base effects. >> to. >> be. around 2.6%. >> so i. >> think. >> it'll be all right. right.

>> the fed. >> is in. >> a wait. >> and see mode. >> they're going to. >> wait and see. >> what happens to all these things happening. >> with trump. >> so don't expect. >> interest rate cuts. >> to. >> be. >> very helpful here. at least not in the first half. maybe the second half, maybe one maybe. >> two cuts. >> but look. >> we're stepping. >> back and. >> we're saying. >> where's the growth going. >> to come from. >> we talked about consumption. we think. >> investment spending will surprise. >> on the. >> upside the eye of gdp. i mean. >> you've. >> got a lot going. >> on there. >> inventory to. sales ratios are low. >> companies need to. >> replenish production. and then. >> you've got. >> some really really. >> powerful demands. >> like digital. >> infrastructure power. >> tax cuts deregulation. >> put all. >> that together. >> so look. >> earnings drive markets. >> and we think. >> earnings are already in the fourth. >> quarter earnings season. we think earnings for 2025 will be pretty good. >> so got to step back from the. >> you know the. >> noise from the signal. >> the other big earnings report we get this week is in nvidia. that's coming after the bell tomorrow. you are underweight the mag seven. why is that. >> look the mag seven. >> have turned. >> into cash machines. >> profit machines into.

>> very very. >> heavy capex. >> and we don't know if all this capex. >> expenditure. >> when how it's. >> going to. >> result in return. >> you heard. >> satya nadella earlier last week talk about the fact. >> hey. >> compute power is. >> going down. >> what we know is prices. >> are going down. >> maybe i'll lease. >> some data centers. >> maybe i. won't build so many. >> so our. >> view is you. >> got to. focus on the spending. >> beneficiaries, not. >> on the spenders. >> so let's talk about power. energy infrastructure. or how about the other 493 shares that will take advantage of chennai as. >> it. >> begins to go into the enterprise. and that's not priced in. so yes. >> we're underweight the mag seven. and also that removes. >> a bit of. >> risk from the portfolio. >> right. >> that's what drove markets over the last two years. >> so we kind of. >> like that from. >> the position. you're not underweight stocks. you're just underweight those you like the other 493 right. >> and we like midcap as well. >> we think it benefits from america first attractive. >> valuation etc. >> you know and i'll share. with you. >> a bit. >> of.

>> a bifurcation. >> mag seven trade at 36 times earnings. rest of the market at 16. >> if we get about. >> you know. >> 15 plus. earnings growth, that doesn't. >> sound too. >> bad right. so again. >> markets move. >> higher with earnings growth typically. >> what what leads to that transition. we've been it feels like we've been waiting for godot waiting for the leadership to kind of shift over. >> i. >> think it. >> started to this. >> year right. you know we've. >> had a bit of. >> a. >> wobble last week. >> markets have been. >> a bit softer in tone, but if you. >> look. >> at overall the. >> characteristics of the. >> market this year, it's not been led by technology. >> and the. >> mag seven. it's been led by the other sectors industrials, financials etc. so you know materials and look at what's happening in the rest of the world. they've also been pretty strong as well. we see. >> a narrative. >> shift happening there. >> so we think. >> it's beginning. >> to happen. >> with volatility. >> i will say frank holland was pointing out some some drops that we've seen in stocks in the last hour. and he was just saying walmart down 10%, goldman sachs down by 7%. palantir now down 25% over the last week.

when you see moves like that and those aren't palantir is a different story. it's been up pretty phenomenally. but when you see a walmart or goldman sachs have a drop like that, it does make you think, well, what's going on around the edges? one of. >> our messages to clients is sort of fasten your. >> seatbelt, right. >> this is going to. >> be a year of a lot of volatility. but as i said, you've got to separate. >> the, you know, the. signal from. >> the noise. we are longer term investors. >> we're not trying to trade things short term. what's the big themes that we. >> think about broadening. >> the market. >> participation, some participation from. >> the other international markets. >> which have been largely ignored. but also we don't just buy stocks for clients. we have diversified portfolios. >> we've got. >> things like private credit infrastructure. gold done pretty well. so there's other ways. >> that you can sort. >> of protect the portfolio to provide more resilience, really for a wealth investor. >> nancy, thanks a lot. good to see you. >> thank you. >> coming up a lot more on squawk. >> this morning. struggling online. >> education company chegg is now suing google.

>> the central issue. >> artificial intelligence. we're going to explain what's going on here. it is fascinating. and then later this hour, we're going to talk to the creators of the netflix limited. series zero day. >> if you want to talk. about sort of an end of the world. scenario that i think a lot. >> of business. >> leaders are trying to. >> figure out. >> we've got to watch this drama because it could be real. squ (marci) what is going on? (luke) people love how the new homes-dot-com helps them get quick answers about any property by connecting them to the actual listing agent. (agent) oh! so, i'm done? (luke) oh, no, no, no! we're still not sure everyone knows that we're the only site that always connects you to the listing agent rather than selling off your contact info. so, we're gonna keep you up there a little while longer. (agent) okay, ya! i'm getting great exposure. (marci) speaking of exposure, could we get him a hat? (luke) ooo, what about a beret? (vo) homes-dot-com. we've done your home work.

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>> when you finally decide to take care of you, there's instacart. >> we pull the curtain behind the money managers to show you how you can be a better investor yourself. >> it's like he's drawn open the curtain on the secrets. >> of wall street. >> it's just. >> a great. >> guide to have. >> go to cnbc.com. join jim. >> no welcome back to squawk box. online education company chegg suing alphabet and subsidiary google over its ai generated search engine blurbs. now chegg is accusing google of co-opting publishers content to

keep users on its own site through the. >> ai overviews. >> that pop up when users search for information. chegg saying the practice. >> will eventually. >> lead to a hollowed out information ecosystem of little use and unworthy of trust. now, chegg's market cap of $150 million, it was worth billions during the pandemic. investors can trace the decline to the announcement of chatgpt in late 2022. chegg stock down more than 95% since then. chegg saying yesterday it's conducting a business review, considering alternatives like selling the company or taking it private. so there's. >> one issue on. >> one end, which is just what's going to happen in the age of chatgpt two. you know, the academic. >> book, right? >> that universe. >> that was what it seemed like. it was just it got killed along with everything else. >> but there's this other issue. >> what happened. >> to cliffsnotes? >> but there's. >> this other. >> issue which i. >> think. >> is. >> real. >> which is. >> if you. >> can literally take a. >> snapshot of. >> a book. >> and publish that, it makes it very difficult. and so much of

this stuff is being ripped off anyway. i mean, it's shocking how much stuff is. >> i wouldn't say chatgpt is helping people write. they're helping students write their papers, which may have been the bigger problem with some of this stuff, too. >> sure, but. >> but if the. >> actual content is taken, i mean, somebody sent me a thing the other day that actually showed that too big to fail. somebody actually now does a. >> like a cliff. >> notes version of that. so people. >> are taking the content repurposing. >> now, that's always been the case that some form of repurposing has been considered allowed, which i think. is fine. if you're a researcher, you should be able to go write a paper based on somebody else's book. like that's normal. >> but the. >> question is whether i should be able to just generate it, you know. >> ad hoc and take it as its own. and look, this is a question i'm still shocked by what satya nadella said about a year and a half ago or. yeah, i think it was about a year and a half ago. i think it was 60 minutes when he said, we're going to have to he said this to somebody and i forget who it was. oh, it was lester holt. he

said, we're going to have to change the rules of engagement for ai, which is them acknowledging that current copyright law doesn't work with their business model. yeah. >> all right. coming up, we're going to take you live to washington. >> for the. >> latest on the budget battle. >> in the house in this case of representative. that's next. as we head to break, here's a look at yesterday's s&p 500 winners and losers. >> for the. >> executive. edge is sponsored by at&t business. next level by at&t business. next level moments need the next it all started with a small business idea. it's a pillow with a speaker in it! that's right craig. pulling in the perfect team to get the job done. i'm just here for the internets. at&t, it's super-fast! you locked us out?! and when thrown a curveball... arrggghh! ahhhh! [crashing sounds] we had everything we needed. is the internet out?

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>> for thoughtful living thuma. >> welcome back to squawk box. >> uncertainty in washington over the house. budget bill. emily wilkins joins us now with more. good morning emily. >> good morning joe. >> well yeah. trump's agenda. >> is scheduled to. >> face a. >> major hurdle. >> today in. >> congress. >> where speaker. >> mike johnson is. >> whipping support for how. >> much that one big, beautiful. >> bill is going to. require in spending. and cuts. >> now, under the. >> current proposal. >> in. >> the house. lawmakers are going to need to find. >> $1.5 trillion. >> in cuts. and while exactly.

what the cuts. >> are going to be will be determined later, most lawmakers expect. >> that medicaid. >> is going to be. >> on the chopping block. >> and that has created heartburn for. >> some republicans. >> roughly a dozen are undecided on how they. >> will. vote for. >> the vote scheduled for this evening. >> a group. >> of seven republicans wrote a letter to johnson saying. that slashing. >> medicaid could. >> have serious consequences in rural and hispanic areas where hospitals are already understaffed. in addition, they also asked johnson to reserve pell grants for low income college students, another program that could be shrunk. lawmakers said in a. letter that, quote, while we fully support efforts to rein in wasteful. spending and deliver on president trump's agenda, it is imperative that we do not slash programs that support american communities across our nation. >> johnson is. >> also getting pushback from fiscal hawks like congressman thomas massie, who want to see more cuts, meaning that johnson at this point has more negotiating to do before any

measure is going to be able to pass. he put out a prayer request yesterday and guys will see if those prayers get answered this evening. >> we're going. >> to have. >> a lot. >> of conversations today. we've got some great guests coming on about about these things, emily. but thank you for bringing us the sausage making. we're going to be doing a lot of that. maybe it will really get made this time. what do you think going to get made this time? will it be good? will it be delicious or too spicy? >> i mean. >> i. mean this. >> that. >> we the how. >> the house is in full sausage. >> making mode. i mean, this is like a full, full on. >> production here. >> you can only. lose one vote. and that is very, very. >> difficult for johnson. >> you know. >> why they. >> say that? >> i mean, you know what goes into sausage? and you know what? you're putting the stuff into. yeah. >> the sinclair. >> the jungle. >> is. >> there's nothing. >> yeah, it's. >> it's disgusting like intestine or something. and then you're. >> putting. >> you know, snout and, and just all kinds of tales, a lot of other disgusting things to.

>> it's not. >> it's not always. >> a pretty process. >> no, but it's good. >> it is good. >> you're watching. >> it. >> not us. >> see you later. >> coming up in just a. >> moment, georgia. >> governor brian kemp is going to join us next. we're going to talk about his push to bring business to his home state, his appointment to president. >> trump's council. >> of governors, and so much more. we're coming right back. >> the most challenging engineering project in the history of the human race is our nation. golf has never been closer to the heart of this country. straight down exists thanks to american manufacturing and the movement to celebrate all things american made. we love this game and we love this love this game and we love this country. join us on this journey the global personal mobility market is projected to hit 40 billion by 2030. damon is built for this moment.

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washington. although he's a governor, including the doge, cuts, courting, private business and investment, and more. join us now. georgia governor brian kemp. he's chairman of the republican governors association, was recently named to president trump's bipartisan council of governors. and governor kemp, it's good to see you this morning. >> morning, joe. it it is. >> there's a. >> wide range of opinions about what's happening with doge in washington and elon musk and president president trump. some people think even states should be conducting their own doge experiment on employees. where do you come down? i assume that that might be something you're thinking about. >> well. i'd say this one thing everybody can agree on is there's. >> a lot. >> going on, and that's certainly the case at the state level. and the thing is, joe, when you talk. >> especially to. >> republican governors, you know, we've been doing doge. >> for a long.

>> time, making government efficient. balancing our budgets, you. >> know. >> deregulating, making sure that we're efficient. >> and responding. >> that's one of the reasons that we're the number one state in the country for business, because we have great speed to the market, working with our. local governments and cutting out bureaucracy and. >> red tape. >> and i know you're going to have governor desantis on later. i saw. him talking yesterday about his doge. and he basically said, this is like a doge 2.0. that is a continuation of what they've been doing. and so i think you're seeing at the federal level now, them taking on things that a lot of states have done, especially coming out of covid. >> so you. >> you this, this type. >> of thing is already behind you, governor. or are you going to announce something similar? >> well, listen, government bureaucracy is never behind us. i mean, we have bills going through the georgia general assembly right now that are doing these same type things. but i'll give you an example. coming out of covid, when we were open for business and

people were trying to. >> you know, finish. >> construction projects, one thing people realize that the state government is open, but a local government is not. you can't get your permit, you know, how do you assure people that you're building that project in the right way? and so we allowed private engineers to emergency orders to do that. well, we have now codified that into the law. so you can choose either option. you can get the local governments to okay your permits and steps through the construction project. or you can get, you know, engineers to do that. so it gives companies an option. so that's that's a way of making government more efficient that we've already done in the state of georgia. but bureaucracy runs deep. so there is more to do. and i'm certainly supportive of those efforts at the state level going forward. >> do you. >> have the cdc. >> based in your state in atlanta? so there's going to be some layoffs there, maybe a thousand layoffs. how do we make sure that it doesn't go too far?

cut to the bone if you will. is that something to worry about? >> well, i think that's certainly something that, you know, the executive branch and president trump and his team are going to have to work through as they do all this. i mean, look, i don't i don't think, at least from my perspective, i think most americans agree that the federal bureaucracy needs a rightsizing, the amount of money that's been spent, the amount of people that have been added to government, you know, making sure that people that are working for the federal government are managed and held accountable and are showing up for work every day. i mean, i've heard stories about some people that never went into the office, the whole biden administration. so making sure that those people are there, that they're working every day, that they're giving the american taxpayer a good day's work, i think is certainly something that makes sense to me. rightsizing the federal government makes sense to me. look, cuts are hard, but also we know we cannot continue to spend like we are. we cannot continue

to have the debts and deficits like we are, and we can't continue to have the interest rates like we are. i saw your reporting on home depot earlier. i mean, you know, they had it looked like great earnings to me, but they realized they're in a tough environment with interest rates being so high. so i think, you know, president trump ran on fixing those issues, rightsizing and taking bureaucracy out of the federal government. and as you all were just talking, you know, it's a little ugly sometimes making the sausage. but at the end of the day, it tastes good. so, you know, my perspective is give them a little leeway. even elon musk himself has said, you know, we're going to make mistakes. when we do that. we're going to own them and fix them, and then we'll move on. but i can tell you, joe, i was in a meeting yesterday talking about energy with with some people at high levels of government in the speed that they're moving to get bureaucracy out of the way so that we can build the transmission and energy grid and reduce the permitting that's required on these projects. that

is going to be good for our country when we're competing with other countries like china and so on. and it's also going to be good for keeping people working in our country, putting people back to work, investing in infrastructure in our country, you know, not some other country. and those kind of things are really exciting to me. so i know, governor, you have some things that are controversial out there. just know that there's also, you know, speed of the market on a lot of things working every day. it's good. it's going to be good for the states, but more importantly, it's going to be good for the american people. hey, governor. >> amen to. >> to a lot of the. >> things you were saying, one question i have. >> for you, though. is this sort of. >> big question. >> about whether. americans should be receiving checks in the context. >> of either. being described as a refund check or a dividend check as a function of doge, or. >> given, i. >> think. your concerns. >> about the. >> debt and deficit and frankly. >> mine. that that money.

>> should be used to. >> pay down the debt so that we're not leveraging ourselves further by giving out money we don't have. >> well, i mean, look, that's the balance that the congress is going to have to decide which way they want to go. in the past, people have wanted to give out more money than we're taking in. you know, we don't do that in the states. we balance our budget every year. we're working this year right now to do our third billion dollar tax rebate, which is going to give every georgia family around $500 to pay taxes last year. and i think that's one of the things that the federal government and the policymakers have to be careful of is cost in the country. and that's something that i think president trump won the campaign on. so i understand putting money back in people's pockets to help them deal with that. so, you know, i'll let them try to figure out what's the right balance there. i think also extending the tax cuts is very important. so i think they can figure out ways to do that. i know at the state level we're doing that while also balancing

the budget. and then we're also working on lowering our corporate and personal tax rates again this year as well. >> so governor. >> tim scott wants you to run for senate next year. do you remember georgia was the center of the universe a couple of years ago for the balance of the senate? who that would that be against warnock? would you run against warnock? and in your view, i mean, a lot of people would think that that's setting things straight after georgia suddenly had two, two democrats. >> well, we always like to think georgia is the center of the universe when it comes. yeah, i hear. >> you on that. i kind of. >> agree with that. germany. we're focused on tax cuts and tort reform. our legislative session ends. you're not answering me. well, i've told people i'm going to make a decision about what to do next. but one of the things is we promised the people of our state, and president trump promised the american people

what we would do if we got elected. and so that's what they're doing right now. i know they realize they have a short window, because the democrats are really just trying to run the clock out on this four year term. but it's very important to me that we deliver on the promises that we made in the campaign. we have about two months to go to be able to do that in the state, and then we can worry about politics. >> all right. governor? yeah, you're right. we do. have like florida georgia line. we do have governor desantis coming on a little bit later. but good. good to see you this morning. thank you. >> coming up. >> right after the break, the content creators behind. >> political thriller. >> zero day. it starts robert. it stars robert de niro. and they're going to be joining us right after this quick break right after this quick break about a cyber attack and what it at pgim, finding opportunity in fixed income today, helps secure tomorrow. our time-tested fixed income suite, backed by over 145 years of risk experience, helps investors meet their goals. pgim investments.

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visit indeed.com/hire has that look and feel. >> of wood. >> it's the closest. >> thing to it in the world. >> of composites. >> you just. >> really need to look. >> at it. >> they've nailed the colors on this. there's a great range of color in there. the grain pattern, the chrome look to it is fantastic. >> it doesn't have that like weird. plasticky look. it just. looks like it's supposed to be there. it looks like what you want it to look like. it looks like your investment. like your investment. >> made sense. we are taught you don't talk about your problems

with nobody because you could get in trouble, and i've been through a lot. anxiety, depression, sexual assault. when i decided to get help, my life changed. and the mental health box, that was one of the big tools. accepting help means that we are allowing somebody to bless our life. it's freeing. we got stronger together. love, your mind. >> smart. >> i got. >> it, got it. boss otter, you got this. >> you're here. standing up for the little guy. >> the working man. >> well, they're. >> all working men and women buried right beneath. >> our feet. >> right here.

>> you don't. >> trust the government? >> i get that. >> it hasn't always come through for everybody. >> but this isn't about the government. >> or the 1% or whatever the hell you. >> want to call them. >> it's about somebody out there that hates. >> us that stands. against everything that. >> we stand for. >> everything that. >> makes us. >> who. >> we are. >> and they found a way to hurt us. it's that simple. and right now, these people need to get back to work and get those people out. and you need to let them. >> you want to stand. >> by. >> and offer your support and your prayers. that's great, but please just. >> do it from behind the barricade. >> all right. >> enough. >> that was a moment. >> from the. >> new netflix limited series zero day. it stars robert de niro. and joining us right now with the co-creators of the show, writers and executive producers, it's a political thriller. eric newman is here, the showrunner behind some of netflix's biggest hits, michael schmidt, also the new york times investigative reporter, and noah oppenheim, former president of nbc news and writer of so many

other great films. this is now number one globally on the. >> netflix platform. >> so congratulations. >> thank you, thank you. okay, so the reason we. wanted to have you in here is, you know, if you watch. >> this show. >> there's like a realistic potential. >> thing maybe happening. >> well that's what i worry about. >> and i think if you're a business leader slash. >> person trying to. >> figure out what. >> you're supposed to. >> do. >> it creates. >> a lot. >> of complex issues. what did you do? where did this idea come. >> from, and how. >> realistic do. >> you actually. >> think it is? >> well, hopefully it's pretty realistic. you know, obviously mike and i are journalists, and as you mentioned, eric's created some of netflix's biggest hits, like narcos, which is obviously grounded in the real world. yeah, i mean, we wanted to take a look at what we think is the biggest challenge facing the country and the world, which is this fractured media landscape and our really challenged relationship with the truth. and when a crisis unfolds against that backdrop where nobody can kind of agree on what's real and what's not, how does the country

navigate its way through that crisis? and, you know, obviously, we talked to a lot of our sources and friends and the world of politics, business, national security, technology. and, you know, we tried to ground the thing in the real world as much as possible. >> in terms of. >> the cyber piece of it, though. >> how much do we worry about that? >> i mean. >> i'm shocked it. >> hasn't happened. >> on. >> a bigger. >> scale. >> you know, already. i mean, it happens every once. >> in a while. you read. >> about something, but at some. point it stands to reason that given how connected everything is and how. reliant we are on technology at some point, you know, one of these vulnerabilities is going to be exploited and it's going to. >> make. >> a huge difference. >> i love into the world movies, but this is like a little too close to truth. this is so anxiety producing. is that what you guys were going for? this is. >> like. >> a horror flick that really has me creeped out. >> when i. >> went to washington like 12 years ago. the thing. >> that. >> everyone started saying and has. >> said since then is that. >> we are going to have like a cyber pearl harbor. >> we're. >> going to have a cyber nine over 11. i went to the

department of homeland. security and i said, what would this. >> look like? >> and they. >> got out this. >> thing. that looked like from the 1950s and it had like different light bulbs and like, well, if this happens, this light bulb will go off. >> this show. >> shows you what this could actually look like. >> it brings it to life. >> and if this is truly the. threat that experts say it is, it's a. >> way of saying. >> hey. >> america. >> this is. what this could be. this is how. >> devastating it could could happen. and that's something that lawmakers. and no one else. >> can do, but. >> you can. >> do in the space. that we are. in in this show. >> okay. do you think. >> there's. >> any way. >> i want to talk about de niro and the whole. >> sort of entertainment. >> aspect of it, but i am also just very curious. have you had any feedback from politicians or other people who are saying, we got to actually do. >> something about this? >> that wouldn't come to me. that would probably come. >> yeah. i mean, we've heard from, you know, there's been a lot of commentary about how the show seems to mirror developments in the real world. you know, there's a character in the show who's a tech billionaire, who's tangling with the government, seems to feel

familiar to people for some reason. and so, you know, hearing a lot about that and, you know, and again, we worked with a lot of cyber when. >> you were. >> working on the film. >> ellen a while ago. >> ellen, the crazy thing, when we started on this four plus years ago. right. >> so ellen was not in politics. >> at. >> that point. >> no. biden's cognitive issues. >> were not. >> issues at the time. i mean, any number. >> so they. >> told us. >> so they told us. >> as far as we knew. but no, there were so many things that. >> happened since, you know, while we were making the show that we would look at each other on set and go like, is this like, this is really getting close. so it was yeah, that the tech, you know, the elon musk. >> the none. >> of that had happened. >> and so we just chose to. >> vilify this. >> you know. character from you know silicon valley type. >> who you wouldn't want making. >> decisions about. >> really anything and who yet is making these, you know. huge moves behind the scenes. >> i haven't watched it. >> yet, but. >> what causes the zombies to actually. >> is it. >> what causes the.

>> original reanimation, a virus or something? or is. >> that it? >> you didn't you didn't you didn't. >> do that. >> that's not an episode 7 or 8. >> or something. >> no, no. >> no zombies. >> all right, so a different end of the world. >> there's zombies, there's. >> flesh eating. >> i want. to know about de niro, though. i want to. >> know how. >> you got him to do this. >> it's all. >> eric. >> you know, it's funny. >> he hasn't done a. >> tv show. no, no, he. noah and i had. had our first conversation in 2021. >> now where we were talking. >> about the truth and how we had sort of, you know. >> as a. >> civilization sort of. retreated into these alternate realities. and, you know, bob, obviously is a, you know, is not. >> shy about his. >> his, you know, political. >> point of view. >> but i sat down with him at dinner in la. and i, you know, told him this thing we were working on. and he instantly. >> got it. >> and he thought, well, it's a compelling story, certainly. and it deals with, you know, this relationship we have with the truth. and also, you know, like all disaster stories, it's

really about how we react to it. the real disaster. >> is here. i want to i want. >> to ask. >> you the big truth. >> question, which is. >> i think at least i feel very conflicted. >> about it. >> there's part of me that. feels like i want to know everything. i want to know everything. i want everyone. >> to put out whatever. >> they want to say. right. there's like a free speech thing. i get that. >> and then there's. >> this other side. >> which. >> is that. >> in a free. >> speech world. >> where people can make up. >> whatever they want. >> and that stuff. >> can travel. >> and that stuff can. >> travel oftentimes. >> further than the correction can. >> yes. >> what the right answer. >> is, i. >> think what we're trying to say is that it is it is not in vogue to have a factual based view of the. >> world and to try and see the world. >> for what it is. people want to see the world and take. >> whatever they can from it to back. >> up. >> their, their. >> preconceived beliefs. and what we're trying to say is that. that for us as a society to be successful, i think we the more that. >> we can. >> look at things for what they are. >> and not how do we do that? >> well, i mean, you're describing both the supply and demand problem, right? there's

too much supply of facts and supply. >> facts and the public wants. >> the public seems to want the. >> demand side of it. that's the demand side. how do you convince people that they should, you know, shop in multiple sources and build their worldview based on many different perspectives, as opposed to only the ones that feel satisfying. >> for someone who isn't in this world the way that you guys are. you know, i've i've done politically themed things. narcos obviously had some political, you know, american primeval, there's, you know, some sort of political component to it. but i was sort of surprised by the intensity of the kind of, you know, how everything immediately becomes politicized and is either ours or theirs. >> and. >> you know, there was a kind of a meta experience making the show, you know, where. where at some point, you know, during while we were filming this scene at the barricades where bob has this kind of, you know, impassioned speech that was

picked up as. bob engaging with counterprotesters as if it was real. so it's been this very strange experience where and hopefully, you know what comes out of it. our hope is at least that you know. that underneath it all, even when the mechanism by which we determine whether you know what's true and not true, the character does the right thing at the end of the show, you know. >> but like. >> fundamentally, we're trying to say is like. >> the reaction. >> the country's reaction to nine over 11 was one thing. the country reacted in a uniformed. way that was extraordinary. if 3000 people were to die in a catastrophic attack today, how would the country respond to that? >> you really think we would respond differently? because i look back at every like pearl harbor. it always unifies the country and pulls them together. and in hindsight, it looks like it pulls us together for the. >> i hate to make it political, but. january 6th is a great example where the country did not. >> that was like september 11th. >> well. >> i don't know if it was exactly. like september. >> 11th. >> but it. >> was in any way, shape or

form. it was like. >> here we are. and that's no, that's. >> so i think the answer. thousand to zero. >> the answer is clear. >> the answer. >> is clear. >> we did have. >> a i think. >> you're right. i think today. >> it would be. >> completely polarized. >> people said it. >> was worse than september 11th. and those people are fading into oblivion. thank god. >> i don't know about that. >> well. >> gentlemen, congratulations. >> thank you. >> thank you. >> thanks for. >> having us. >> appreciate it. thank you. >> thank you so much. >> eric. >> michael and noah. >> the show. >> zero day, it's out on netflix now. >> i will say october 7th. i guess you look at that. and that was very polarizing example. and that surprises me. yeah. >> terrifying. >> yeah. >> like the initial response was sort of terrifying. yeah. >> and to this day it's still terrifying. >> yes. >> yeah. >> yeah okay. >> folks it is. >> thank you. thank you very much. it is. >> just past. >> 7 a.m. >> on the east coast. you're watching squawk. >> box on cnbc. >> i'm andrew ross sorkin along with joe kernen and becky quick. let's tell you about some of the big headlines. this morning. home depot posting better than expected earnings and revenue

for the first time in two years. home depot saw positive same store sales in the quarter, rising 0.8% versus expectations of 1.7%. that was a contraction, but the stock is trading lower on weaker guidance. we're going to talk a lot more about that with analyst brian nagel in just a little bit. meantime, shares of hims and hers health are. >> sharply moving lower. >> earnings and revenue beating estimates but gross margins of 77% falling short of 78.4% that analysts had expected the stock. tumbling 26% last friday, this after the fda announced that the shortage of semaglutide injection products has now been resolved. hims and hers said on the conference call that as a result of that decision, it will likely not be able to offer semaglutide on its platform this after the first quarter. ceo saying that he suspects a lot of those patients will try to secure a branded option instead. and new york city, collecting.

$48.6 million in revenue. >> for the first month. >> of its congestion pricing program, the mta said. after expenses, net operating revenue. was $37.5 million. the trump administration, as you know. >> has moved. >> to revoke authorization for that plan, but it remains in effect pending a lawsuit by the mta. >> president trump says. >> the tariffs. >> on imports from canada and mexico will go forward when a month long delay expires. that's set to expire next week. the president, making those comments at a white house press conference. it's unclear if they represent a negotiating tactic, as it always is unclear. trump imposed tariffs on mexico and canada on february 1st, only to pause them two days later and to promise negotiations after the countries respective presidents pledged to enhance their border policing efforts. and citadel securities is looking to become a liquidity provider for cryptocurrencies. that's according to a bloomberg report that says ken griffin's firm is

betting that president trump's embrace of the industry will result in a boom for the asset class. the report says citadel aims to get added to the roster of market makers on various exchanges, including coinbase, binance and crypto.com. it would then set up market making teams outside the us as it waits to see how the new regulations are rolled out. >> fabrics outlet store joann is going to be shuttering all of its approximately 800 locations after failing to find a buyer who would keep its stores open, the company plans to begin going out of business sales as a stipulation of the group that one its assets at auction, and restaurant chain denny's says that it will temporarily add surcharges to meals that contain eggs. the company says the size of the charge will vary across its 1500 locations. earlier this month, waffle house added a surcharge of $0.50 a share to or $0.50 per egg to customers orders. egg prices have surged

as a result of the bird flu outbreak and the culling of millions of hens to prevent the disease from spreading. on friday, the department of agriculture said that there was little chance of improvement in the year in the near term for those egg supplies. when we come back, we'll talk about today's top stories, including some widely held chip stocks that are on the move and another decline in shares of palantir. squawk box will be right back. >> interactive brokers pays up to 3.83% on instantly available cash in your brokerage account. how much interest can your bank or broker pay? interactive brokers conservative and prudent risk management uniquely positions us to pay up to 3.83% on uninvested instantly. >> available. >> cash in your. brokerage account. the best informed investors choose interactive brokers.

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hour ago. now it's down by about 28 points. let's get over to frank holland and take a look at what's been moving in the pre-market this morning. hey, frank. >> hey. good morning to you, becky. we're gonna start with us. chip stocks under quite a bit of pressure this morning on new reports. the trump administration is planning to toughen export controls on chips in an effort to stop china from developing its own ai and developing its chip industry. take a look. you can see nvidia shares down just over a half a percent. it was down more than 1% earlier today. micron, amd, intel, all this group under quite a bit of pressure. so reports say that the administration is pressuring key allies like japan and the netherlands to stop maintaining equipment in china. as part of that effort, we want to move on to palantir, that stock falling more than 25% over the last week, a big momentum shift for the best performing stock in the s&p 500 last year. you can see right now shares are down more than 1%. yesterday, palantir dropped double digits, posting its worst day since may. a major factor in the slot reports. the trump administration is looking to dramatically cut defense spending. yesterday at the new york economic club, alex karp, ceo. he defended the doj's cost cutting efforts. just a little

context. in last fiscal year, palantir made about $1.2 billion from the us government. right now, shares down more than 1% and moving on to an earnings mover that's zoom. shares are lower after earnings. you can see they're down just about 3.5% after the video conference. company beat on revenue and eps guidance also came in line. it was kind of roughly in line with expectations. however, enterprise customers fell double digits year over year. zoom says it will lean into ai going forward, with its ai companion expected to be ready for monetization coming up in april. again, shares of zoom communications right now down about 3.5%. becky, back over to you okay. >> thanks, frank. we'll see you in just a little bit. >> coming up, australia's largest pension fund currently has about $400 billion of investments in this country. in the united states now looking to more than double that number, we're going to speak to the ceo of australian super after the break about investing in america. that's what squawk box comes right back.

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>> so i swivel my hips and. >> i go. >> down to the ground. >> the australian embassy hosting a super summit in washington to showcase the country's investment investments in the us economy. joining us now, paul schroeder, chief executive at australiansuper, australia's largest pension fund. and thank you, paul. we appreciate it. >> good. appreciate you. as a. >> as an american, we appreciate the interest. what makes it so attractive and is it more attractive now? i mean, the united states, i think

historically the economy has outperformed most of the rest of the world and the stock market maybe at different times as well. is there a reason to double it now? yeah. >> it's a win win situation actually. >> the. american economy, it would have been the worst bet you could have made against the american economy in the last century. and we expect exactly the same in the future. but this is a win win because we can invest alongside great american companies. >> invest in, in. >> in the share market here. and then. australians win as well. >> so it's the perfect situation. >> for us. this is a. >> great diverse economy. it's got an entrepreneurial. >> ism about it. >> it's got a. >> drive about it. >> it's got a. >> hope about it. that's really quite divergent from the rest of the world. it's on a winning course. >> i mean, you look at silicon valley, you i guess you look at not to disparage australia. i'm not making any comments here, but the system of government in the united states, the

constitutional republic, deregulation, all of those things. yes, i guess anything new? anything. because, i mean, is this related to the change in administration? on january 20th? >> well. >> well, all of. >> the indications. >> we've had from the new administration are really encouraging about co-investing and investing for american jobs, investing for profits in america, but also the incredible relationship between the us and australia over all of the decades. so all of the signs from the new administration are encouraging. but we have to look through that. >> we have. >> to think 20 years, 30 years, because. >> the australian. >> super system, which is pension, the way you guys think about it. >> we've got to think about. >> people's retirement. that's that's the main job. >> so getting good. >> exposure to equities, thinking about us treasuries. thinking about private credit across the whole spectrum. these are. >> all things that. >> will build people's balances in their in their retirement.

and you know, who wouldn't want to be part of a golden age right. but australia. >> has different maybe concerns than the united states in certain ways, maybe more commodity based in some ways more. it's important that i think it's important that china succeed in certain ways for australia. >> there are definitely. >> differences between. >> the economies. >> if you look at if you look at our stock. >> exchange. >> if you look at australia. >> generally, we're really good at banking, mining. swimming and super. >> and so. >> this is a much more. diversified economy. you know tech tech. adjacency healthcare. this is a frankly this is a much larger but also a much more sophisticated economy and society really. so it's a great place for us to invest. but we have very shared values. we think about things in a very similar way, driven, competitive, but also, you know, thinking about the future. so, you know, there's quite a lot of, you know, sad places around, around the world. but everyone i bump into.

>> here, it's. >> full of energy and hope. and that's really good because investing is always about the future. you can't look back. you've always got to look forward. well, how do you view. >> the energy future? how quickly can can there be a transformation globally? for example, did you invest in a lot of fossil fuel companies or or interested in more interested in renewables? well. >> getting the balance. >> is the right thing. right? so what we've got to think about is there is going to be a transition. there's no doubt about that. the world is transitioning, but you have to do that in a way where power is available and affordable and secure. so we've just got to have really credible plans to make sure that as we move from one thing to another, that that doesn't make energy more expensive for everyday americans and everyday australians. we've got to make sure that it's secure. and so of course, we invest in fossil fuels. of course we support the existing energy, but it's as part of a

transition to a more renewable future. okay. >> appreciate it. thank you very much, paul. >> thanks for. >> the chance. thank you. thank you for coming on. and thank you for the confidence. and it. >> can be a win win. >> okay. very good. thank you. >> when we. >> come back we're going to get a check on what's moving markets this morning. the futures this morning are basically flat for both the dow and the s&p. dow's off by about two points s&p down by less than two points. nasdaq looks like it's indicated off by just over 35 points. a little later this morning florida governor ron desantis will join us to talk all things doge, government spending and much more. squawk box will be right back. >> this is the emirates premium economy seat. economy. perhaps

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at odyssey trust, we're more than just a transfer agent. we're on a mission to deliver peace of mind by making things simple, fast and easy. we're proud to be the trusted partner of over 1000 clients in canada and the united states. tools securely linked to your brokerage accounts. become a smarter investor with the power of cnbc pro, go to cnbc.com now. >> welcome back to squawk box. despite the recent market volatility our next guest says she has. >> two bullish. >> themes for equities. jill carey hall is head of small and mid-cap strategy, senior u.s. equity strategist at bank of america global research. good morning to you. you have some. bullish ideas in an. >> environment where i. >> think there's a lot of uncertainty out there. >> yeah. >> i mean, i. >> think for. >> for the us equity market right now obviously multiples

are and valuations are very expensive. but i think, you know, one one reason that that could justify higher multiples and be bullish for equities. broadly is if we are in a more sustained productivity. >> cycle within. >> the us. and if we look at economic measures of labor. productivity or even, you know, an equity measure, if we look at real revenue per worker within the s&p 500, that's finally been increasing after this long period. >> of stagnation. >> so that could impact. >> you know, a. >> number of sectors, particularly financials. and you know that. >> that ties. >> into deregulation, which we think is the other bullish theme. and that's a theme. >> that. >> we don't think is really priced in right now. a lot of the sectors that have the most to gain from deregulation, like financials, are trading at, you know, multiples that don't. >> really reflect. >> this versus sectors like tech. >> that. >> have been. >> here's the. >> here's the question. >> i. >> would i. >> would weigh. >> and this goes to. >> the financial sector for example. >> so you would. think that the capital markets right now should

be going gangbusters in this sort of regulatory environment. you'd see all sorts of interesting investments going on. you'd see ipos coming to this place. you would see mergers and acquisitions happening, and yet not a not a everybody says they have some kind of grand pipeline. i don't know if that's even true anymore. and part of that is. >> a function, i. >> think. of two major gating factors to this whole economy breaking out. >> one is what's going. >> to happen with tariffs one way or the other. and two, what's. going to happen with taxes. now so the question is are you you know, and maybe we get to the other side of that at the end of 25 maybe. >> right. >> but there's also an argument to be made. that we will be in some kind of tariff debate battle for the next four years. >> right. and i. >> think that's that's. >> one reason that maybe, you know, you will see a bigger pickup in the. second half. i think that for m&a ipos. >> we have. >> seen a bit of a pickup already. so there is the view that that can continue. if, you

know we do see maybe less than than feared on. >> some of. >> the tariffs. >> january was a terrible month for mergers and acquisitions. >> but in general. >> shockingly we've seen a pickup since last year. and you. >> know. >> it has been some. >> smaller acquisitions. >> it's been more concentrated in some sectors like health care. >> but you know, when. >> you look at other sectors and in terms of health care and, you know, financials where you do typically see a pickup in m&a under republican administrations, you know, we do expect as we move through this year that there is potential for a pickup as long as the macro conditions remain supportive. >> are there specific. >> banks you'd buy? >> well i think you know financials overall obviously the some of the big banks have have the most to gain from deregulations. they've seen a lot of, you know, legal compliance costs that were added. when we look at just pages of federal regulation, how much they've increased, the financial sector has seen so much more than other sectors. so from a from a margins and efficiency perspective, the sector has a lot to gain. and, you know, obviously not good for us if we're replaced with

robots. but eventually, you know, this could be good for margins. so you know overall that that sector ranks well in our work across large and mid-caps. but but i do think for small caps overall you know that is a sector. there's a lot of optimism on deregulation. the tough part is as you've said, you know, this is a size segment that has underperformed because of the uncertainty recently around, you know, tariffs, political uncertainty and didn't necessarily see, you know, outperformance. last time we saw deregulation because of, you know, tariff trade war and the manufacturing recession. so small caps are an area that they they could benefit, but they're still struggling fundamentally. they're still struggling to get out of the earnings recession that they're in right now. >> jill. thank you. a little bit of positive news. we'll see whether that turns out to be the case. thank you. appreciate it. >> all right. coming up we're going to talk to congressman frank pallone on the push from house democrats to block the gop budget bill. and take a quick look at the shares of unilever, the company moving to replace ceo heinz schumacher after less than two years on the job. the

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>> coming up, new jersey congressman frank pallone is going to join us for the latest on washington's budget battle. and as we head to a break. take a look. >> at the. >> biggest pre-market winners. >> and losers. >> in the nasdaq squawk box. returning after this.

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done. >> i can see why you're expanding. >> its. nuts online to. >> what's the secret? >> we know. >> humans like new. >> toys. >> so always. >> staying one. >> step ahead. >> and with ai, we can look at so much. >> more than. >> sales data by our behaviors. social engagement. >> see that? >> predictive analytics. >> how long. >> have you been. >> doing this? >> as long. >> as we've been with. >> people who know, know b.d.o. >> overtime is about 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. >> house minority leader hakeem jeffries is calling for full attendance of all democratic members for today's critical vote on the republican budget plan. the blueprint would implement $2 trillion in spending cuts over ten years.

for more on this, we want to bring in congressman frank pallone, a democrat of new jersey. he's the ranking member of the energy and commerce committee. and congressman, thank you for being here today. let's talk about what's on the line here. for republicans, this is a pivotal moment, very important for the beginning of one big, beautiful bill. they have looked at this and thought the odds of getting this passed are best. if they do this in one bill so that you can basically an up or down vote for republicans. are you with the president or you are are you against him? what does this mean for democrats? >> well, i. >> think the. >> problem is. >> that the republican. leadership is lying to the. >> rank and file republicans. >> in other words, they know that. these medicaid cuts will really take away health. care from so many people and close hospitals and close nursing homes. and, you know, they're being told by the republican leader. >> and the. >> speaker, oh, don't. >> worry. >> you know. just vote for this today. and so we. >> really. >> have to. >> point out the devastation.

that this is going to mean for the health care system. >> you know, something like. >> a third of all americans are on medicaid. >> 60% of. >> nursing home care is paid. >> for through medicaid. >> you know. >> the hospitals. >> many of them, particularly. >> in rural. >> areas, will. >> simply have to close because they won't get. >> the funding through medicaid. >> that finances so much. >> of their income at the hospital. >> so your. >> your plan, i guess the democratic plan is to go after republicans in vulnerable seats and try and push them into voting no on this, because that's the only game plan you guys, you guys have. you don't have. >> enough control. >> yourself that. >> right. >> but we. >> only need. >> maybe 2 or 3 republicans. >> today, depending upon the attendance to vote. no. >> and that. >> would kill this. and again, i just from talking to so many of them, they know that this is going to be devastating. you know, for their constituents

because so many people rely on medicaid the. >> disabled. >> most disabled programs are paid for through medicaid. and prices are going to go up, too, because a lot of this pays for uncompensated care at hospitals. and if they're not getting the funding for the uncompensated care for people that don't have insurance or will lose their medicaid. >> then they're going to have to raise. >> prices and. >> find. >> another way to pay. >> for hospital care. nursing home care. you know, it's going to have an impact on prices as well. >> i hear your concerns. i guess i would go to the point of asking what you would do to try and get spending under control. i mean, there were $7 trillion that was spent last year in 2024. of that, 60% went to mandatory programs like social security, medicare, medicaid, veterans benefits, unemployment insurance, and snap. 13% went to defense. 13% went to interest payments because interest rates were higher and only 14% was

discretionary. that's only a little less than $1 trillion, according to axios numbers on this. how would you go about cutting spending? >> well. >> first of all, this. >> is. >> all being done. >> these medicaid. >> cuts are being proposed. >> in order to pay for the republican tax plan, which basically, you know, just helps the very. wealthy and large corporate interests. >> the tax plan actually. helps all americans. and i know that democrats were in favor of keeping most of those tax cuts around, too. if you look at the problem, it's a spending and a taxes problem. but if you go to the problem on this, you're going to have to cut spending. how would you start with that? >> i don't. >> think that you necessarily need to cut spending, right. >> and first of all, i guess i disagree with you. fundamentally, i don't think that the average person benefits from this tax cut. the other thing, you. >> would. >> get rid of the tax cuts altogether and just say, forget it. we'll go back to where we were ten years. they would expire and most americans would

pay more taxes. >> they would expire. sure, that would be much preferable. >> to making all these cuts. >> in medicaid and. >> devastating our health care system. because the bottom line is that. >> the average. >> person doesn't benefit from this tax plan that the republicans put in a few years ago. yeah, we'd be better off. >> if. >> it expired. but of. >> course, if the. corporate with us, frankly, congressman, you don't think the corporate tax cut was beneficial. what do you think the corporate tax rate would be? what would it go back to 30 something. what do you think that's good i mean. >> what i'd like to see. >> what i would. >> like to see is. >> a middle. >> class tax cut. i'd like to see. well they. got tax. >> cuts. >> to well they. >> get almost nothing. i mean the bottom line is that if you look at this tax plan that was put in place, most of the money goes to the large corporate interests and, you know, billionaires and millionaires. sure. if you want to come back and look at a. >> tax cut plan that actually benefits the middle class, that's fine. but the. >> republicans aren't talking to. us about any of.

>> this so that. >> the corporate. >> tax rate. >> you're okay. you think that's i don't know, it's just most people don't think we should go back to the old corporate tax rate. it was beneficial to make us more competitive. >> with it. >> the old corporate tax rate is. >> fine with you. >> absolutely. think about. >> the fact. >> that what this did to places like my state of new jersey, where you were able. >> to deduct. >> the full extent of your local. state and local taxes. but they can't. >> hurt that help that hurt wealthier new jersey folks more than. >> it did. no, it doesn't. >> in a state like new. >> jersey, the. >> average by default, if you have a cap on it. >> it hurts. >> new jersey. >> yes, but by default. >> property. >> tax in new jersey. >> has over 11,000. >> going to hurt the people who are making much more. and who would have who were writing off much more beforehand. it's you're right, it does hurt average new jerseyans too. but it hurts the wealthier more. >> well, look, the.

>> bottom line is the republicans are doing nothing to try to provide any kind of tax cut or help. for the average american. it's all about corporate interests, large corporate interests, billionaires. that's what this is all about. and you're going to do that on the backs of, you know, people that have medicaid, which is, you know, not only the largest health care insurer in the country, but also the leanest. i mean, there's no one who, you know, republicans can say that medicaid, you know, needs to be more lean. but it is the leanest of all the programs. you mentioned, medicare, you mentioned veterans, medicaid, you know, is the leanest. i mean, there's you know, the anyone will tell you if you look at an analysis of it, that they, you know, they have the least amount of, you know, waste or fraud or whatever you want to call it, and you're going to go after this program that helps seniors and the disabled and so many people who are low income. i mean, it's just it's a

terrible thing. and i'm telling you what the consequence of it in terms of hospital closures, prices going up, community health centers closing, nursing homes, not providing the level of services. we've just got to stop this. and that's what i'm trying to do. >> all right, congressman, thank you. we'll see what happens later today. we appreciate your time. >> thank you so much. >> really. >> thank you. >> all right. coming up a wind, solar oil and coal production levels all near records. so what does that mean for the energy transition push? s&p global vice chairman daniel yergin is going to join us next with the big picture on keeping up with energy demand globally. squawk energy demand globally. squawk 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. (♪♪)

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on energy production and demand, dan yergin, s&p global vice chair. his new article in foreign affairs magazine is titled the troubled energy transition how to find a pragmatic path forward. yeah, we're not going to hit a lot of our goals, dan. so we did you know, we, as we just said, records for wind and solar. but but in terms of cost and if it was without subsidies and just in terms of the entire pie, what what have we accomplished over the past 30 years? we're still at almost what's the percentage, you tell me, 82% fossil fuel versus 83 or something. >> yeah. i mean, we're basically the same. >> around 80%. >> a. >> little over 80% of fossil fuels. so wind and solar, joe, as you said, have. >> grown a lot. >> the costs have. come down. but nevertheless, this. notion that you're going to have an energy transition. that was going to unfold, that by 2030,

50% of the new cars sold in the united states will be electric cars. >> it's not going to happen. 10% of new. cars are electric. and there. >> are. >> a lot of reasons. >> for that. >> and one. >> of the reasons is the. >> return of. >> energy security. another is the growth of electricity demand for data centers. >> and another is. just the scale of changing. >> what today is. >> $115 trillion. >> world economy. you don't change it. overnight and overnight would be 25 years. >> and we don't want to slow the global economy. we don't want energy to be the rate limiting factor in global growth. we want to continue to feed the beast. we want gdp to rise everywhere in the united states and everywhere else. so i'm just wondering, in 2040 or 2050, how is this amount of energy which the world uses? what is going to

supply that to the world in 2050? >> i think a. >> substantial part of it. >> will continue to be oil and gas. coal will still be in the mix. we'll see growth in in wind and solar. but it's all going to. be energy addition. it's going to be one on. >> top. >> of the. >> other rather than a. separate one. and it. really key thing is that people in this discussion have not. >> paid enough attention to. >> the 6 billion people. >> who live. >> in. >> the. >> developing world. >> to give you one example, 3. >> billion. >> people today each use. less electricity than. one average american refrigerator. so their energy. >> demand as they grow. joe, you're pointing to grow. >> as they grow, they're going to use more energy. and a. >> lot of that is going to be conventional energy. >> the malthusian peak oil theory. it, you know, and then shale came along and horizontal fracking and everything else. when would it actually when would peak oil actually hit? have we hit it now? we're supposed to hit it 15 years ago

and we didn't. but do you think we've hit it now? dan or do we not hit it for you know, does technology allow us to continue to find more? >> well. >> i think. >> that you point. >> to the shale revolution that wasn't in the cards 15 years ago. technology has expanded it. and of course, the united states is today by. >> far. >> the world's. >> largest oil producer. and technology will kind of continue to expand it. >> there's a debate about. >> when do you reach peak demand. but even if you reach peak demand, you're. >> going. >> to still be using. quite a lot of oil for a long time. so it really. >> the point of our. >> piece was really that energy transition needs to be rethought. and just saying more ambition doesn't reflect the reality that you need a. >> diversified mix. >> of energy and a conventional energy. >> is going to. >> be part. >> of it. >> you can. >> manage the emissions of it. i mean, we see natural gas. >> demand continuing to grow into the 2040s. and it's just reality. i think they're in covid demand went down, prices.

went down. >> so people thought, oh, this. >> is all. >> going. >> to happen fast. but we've had a couple. >> of years of. >> experience now. and as you pointed out, wind and solar are growing. but so. >> so is oil. >> so is coal actually. >> hey dan, just in terms of demand, we there's been this theory out there. we've talked about it. a lot of people have the idea that we're going to need so much more energy to meet the demand from the ai data centers that are going up all over the place. does that demand get punctuated by better technology improvements that we've seen? what if deep seek is right? if they're able to more efficiently find ways to build these ai models, does that demand go away? and who's building out all that demand? who wants to pay for it at risk of potentially becoming obsolete for the new energy production that you're building out to meet that demand, that may or may not show up? >> well, i. >> think that. >> is. >> a big, big question. i, i think there's still the

expectation. >> that you're. >> going to need a. >> lot more electricity. >> our estimate is that. 10% of. >> u.s. electricity. >> by 2030. >> could be for data centers. i saw the us department of energy had 12% by 2028. obviously, there will be an incentive. >> to be more efficient. >> and more efficient chips, but i think the expectation is that we have an electric power system. that has been, has not, is not set up to grow, and it needs to grow. and you see these warnings about the resilience in the system. and that means and that's another reason going back to what joe was talking about. why we're going to use more. natural gas for electric generation. >> the turbines. >> for new electric generation are sold out for the next 3 or 4 years, because we can see that that need is going to be there and it's going to be a very extensive need. and it's a big change because for 25 years, you didn't have much growth in electricity demand in the united states. now we're looking at some real growth coming down the road. >> it's just that nobody wants to pay for it. on the

expectation that it's definitely going to be there, that demand. i mean, the guys who are paying for the data centers don't want to pay for it. the energy companies don't want to pay for it. i mean, you're going to have to come up with another government program to pay for all of this because nobody else wants to be left hanging on the line if that demand doesn't, in fact, materialize. >> i think the data centers are the ones. >> who will, one way or the other, will pay a substantial part, because for them, it's a relatively small. >> part of their overall cost, but absolutely. vital because. >> they need. >> reliable 24. >> hour electricity. >> dan yergin, we appreciate your time this morning. we've got yeah, there's it is a we'd like the world we live in, but it it takes energy and we've got to replace what we use. it's just a, it's a daunting. and we and all the lesser developed countries, we can't ask them, oh you guys aren't allowed to have any of what we've had for hundreds of years. anyway. thank you. >> thank you. >> all right. when we come back, goldman sachs president of.

global affairs jared cohen will join us with a warning for the ai economy. we have that next. ai - [female narrator] around. squawk the world, 5 billion people lack access to safe surgery. children are suffering from treatable causes.. ..living with conditions many have never seen. for more than 40 years, mercy ships has deployed floating hospitals with volunteer doctors who give their time to provide the free surgeries these children desperately need. - i feel like my reason for being here is driven bylove . i think it is the love that changes the patients first. - [female narrator] join us by calling or going to mercyships.org now. $19 a month will give children and families the hope and healing they never thought possible. and turn lives of pain... into futures full of potential. it's a mission powered... by love . made possible... byyou . call the number on your screen.

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economy subject to a massive vulnerability. and that is the ocean, writing that the subsea cables that channel the two elements foundational of the ai economy data and power face ever increasing dangers. joining us right now to talk about it, jared cohn is the president of global affairs at goldman sachs. co-head of goldman sachs global institute. he's also a former ceo of google's jigsaw. good morning to you. good morning. >> this one. >> actually surprised me because i hadn't spent a lot of time thinking about cables under the ocean. >> and. >> the ocean being a problem for ai. so explain it. >> i'm surprised. >> you don't. >> spend your time thinking about undersea cables, andrew. look, for. >> all the. >> talk about ai, infrastructure. and global trade. >> 80% of trade moves. across the. ocean and 95% of data. flows underneath the. >> ocean. >> across 750,000 miles of undersea cables. so to put that in perspective, that's enough to go around the earth 30 different times. >> so that's. >> instant messaging. that is $10 trillion of daily financial transactions, offshore power, and of course, national secrets. you have 150 different cable

breaks already every single year. but the geopolitical tensions and state sponsored, as well as non-state sponsored breaking of. cables is going to increase the scale and ferocity and frequency of these attacks. >> so who is breaking the cables. >> do we think? >> well, i'll give. >> you a couple of examples. so this past november, a chinese vessel dragged one of its anchors 100 miles in the baltic sea, severing a cable between sweden and lithuania that also connected finland and germany. >> and you believe they did this on purpose or by accident? >> i mean, it would be quite a coincidence to drag an anchor 100 miles. and then just a month later, a russian vessel as part of the sort of russian ghost fleet. right. did a similar action that severed a cable that connected finland from finland, from estonia. and it actually had to get seized by by finnish authorities. >> this all seems to be to benefit elon musk in the end, right? >> wouldn't you just want to go. >> to the skies? >> so it's so the question of can satellite. can satellite

technology kind of offer an alternative? it's a logical place to jump. the technology is not there yet. the latency, you know, would still be an issue. so yes, we may end up there, but for the time being, we're still going to rely on a technology that was first laid in the ocean in the 1850s. >> you lay new cable. when that happened, you don't go to you can't fix the cable. >> no. >> no, you can fix the cable. >> how far down is it? >> well, and so it can go down as far as five as five miles. >> so what happens if divers go down there? how does this work? >> so you have. so it's actually very interesting the multilateral architecture for fixing these cables was set before this heightened tech competition between the us and china. and you. >> pull both. >> sides up and fix it. >> so the ocean the ocean is divided up into different zones. so if a us owned cable breaks in a china zone, then it's a chinese maintenance ship that deals with the repairs of the cables. right. and so, you know, the whole architecture. >> that worries me because. >> then aren't the chinese. putting some bug on the. >> on the. >> cable when. >> they're down there? >> and we've had instances where, you know, chinese repair vessels have been seen secretly

hiding off the coast of taiwan or off the coast of philippines. >> so in terms of from an investment. >> perspective. >> is there any play, if you will, for either an individual or for a business in this sort of infrastructure situation? >> so the so right now you have three companies. you have subcom which is a us company, and nec which is japanese company, and alcatel, which is a french company that have 87% of the market share. then hmn tech, which is a chinese company that that, you know, that that divested from, from huawei has sort of a distant fourth. but what's interesting is you're you're seeing a growing trend where hyperscalers are joining with telco telecom companies to form these consortiums that are owning and operating and investing in these undersea cables. so google is an example, is either a part or full owner of 33 different undersea cables. >> so you could be investing, but is there a lot of money to

be made on the cables themselves? >> look, it's you know, it's a piece of the overall ai ecosystem. i would be surprised if venture capitalists are going to going to rush to pump money into undersea cables. i think there's a lot of investment. first of all, they're very capital intensive. it costs between 40 to $60,000 per kilometer. and the geopolitics mean that you also have to kind of circumvent, you know, places like the south china sea and go to the java sea. and so it's the barriers of entry are pretty high. so from an investment perspective, it's really kind of the incumbents that are playing in this space. >> the diameter is not big. >> at all. an undersea cable is made up of, you know, wires that are as thin as a. >> garden hose. i thought it would be. and yeah, that's amazing. so that's that's amazing. >> so my other. >> question, though. >> relates to whoever is winning in the llm world, the large language models. does that matter? i mean, i think i mean, we've been having debates about deep sea versus open. >> ai. >> versus i assume people will

just. >> port whatever the actual. >> tech is, and it. >> will live as close. >> to you as humanly. possible or. no. >> well, look, i mean, part of what we're seeing is the, the technological trends that are that are separating inference from training. they're unlocking new geographies, certain things that you can do far away. certain things that still have to be be closed. i think right now we're still in this kind of perception game where it feels like every day there's sort of a new big announcement and it can be a big infrastructure announcement, it can be a new model, and everyone has to react, whether it's the markets or competitors, to their perception of what was launched faster than they can actually understand it. >> okay, so let's just go back. we were just having this conversation with dan yergin about deep sea. and if you actually do find a more efficient and effective way of doing this, maybe it uses less energy that changes the energy outline. we we've been thinking for a while that energy was going to be the limiting factor on some of these things or chips. what is the limiting factor when you look at all these? >> look we are seeing cascading bottlenecks. so first we thought

the bottleneck was semiconductors. then we thought the bottleneck was data. then we thought the bottleneck was was was power. if you look in the us, we've talked about this on the show before. i think the bottleneck is a lack of power and land and a lack of differentiated data centers that can carry ai workloads. >> by the way. your thesis around data. >> centers, which. >> obviously has been like the hot investment in real estate, land and whatever for the last 2 or 3 years. overbuilt mistake. >> well, microsoft canceling some of. >> these, right? i mean, i think there's a big question about that now. >> well, so if you think so, if you look at, if you look at if you look at what microsoft, if you look at microsoft's announcement and look, you know, let's let's take satya at his word on this. there's a lot of debate about whether or not there's a concern with regards to overbuild and whether there's going to be a pullback. i think what microsoft is doing is, you know, they're sending a very clear signal that they're investing heavily in in ai infrastructure, but they want it tied to clear, predictable sources of revenue, which is why they're focused on infrastructure and service of inference. >> right. but that means is it the dumb money that's going to follow the data center stuff at

this point? is microsoft the smart money? are they overly cautious? >> look, i think it's too i think it's too early to know because, you know, right now nobody can afford to sit on the sidelines, right? if you have the capital to deploy, you're seeing you're seeing everyone deploy it. i think going back to deep sea, there's sort of an interesting question. i mean, i think in some respects the greatest success of deep sea was triggering the reaction to deep sea. it was certainly an r&d milestone. right. so the use of reinforcement learning, you know, as part of the prompt, obviously, you know, it reflects an efficiency renaissance that's happening in china due to the export controls. what they did at the network level was. >> i. don't know if they stole a lot of this stuff and borrowed borrowed. >> but look at look at the reaction to the react, the global reaction to it. the market's reaction to it was as if this was a major inflection point in the ai journey. it was not an ai inflection. it was a geopolitical inflection point because it showed that the export controls are not foolproof. and it also showed that you shouldn't count china

out. and yes, they're limited on, you know, compute, but they still have incredibly talented human capital. and their ability to catch up is not to be underestimated. so in that sense, it's an inflection point. but in terms of the competition between models, i don't think it represents a major inflection point. >> jared, it's. >> great to see you, sir. >> good to see you all. >> thanks for educating us. >> your maintenance guy. it's working. you want to be the telecommunication telecommunications tower guy at 1000ft. go up there and fix that. or you want to go down and fix the undersea cable. >> or the guy who has. >> to go up and fix the satellite in space. >> satellite in space? i'd almost rather i can't go up the 1000 foot. >> i have a technical. >> how far down can you go in? do men or women fix the undersea cables or. >> do them? >> yeah. i mean, they're not they're not sitting there at the at the at the surface. well. >> how far down. >> they can go down as far as five miles. i mean, it's all right. >> so i just have one. can i ask. >> one question? not the human,

not the human beings. i'm saying the cables themselves. >> go down. >> i know we're out. >> of time. on the latency. >> i don't want. >> to do it because. >> this goes to the this. goes to whether starlink. >> or maybe kuiper or any of these other satellite guys are going to win this game. do you ever think from a physics perspective that you can get the latency. to even something remotely competitive with wire, maybe. >> i mean, it's look, it's hard to count if you look at the sheer amount of money being put in this and, you know, the human capital being deployed against each of these challenges. i think the answer to kind of any of these questions is in our lifetime. yes, it's a question of when. and i think also latency doesn't matter as much for, you know, certain workloads as it does for other workloads. and so you'll see where there's a greater tolerance for latency. i think you'll see faster movement in some of this technology. >> jared cohn thank you. nice to see you. >> thank you. >> it is just after 8 a.m. on the east coast. and you're watching squawk box right here on cnbc. i'm becky quick along with joe kernan and andrew ross

sorkin among our top stories this morning. elon musk's spacex is looking to deploy starlink satellite internet terminals to help speed the upgrade of the faa's it networks. bloomberg reports that the move raises further questions about conflicts of interest for musk's business empire, and the future of a $2 billion contract that the faa awarded to verizon in 2023. sources say. musk approved the shipment of starlink terminals to the faa last week, and one has already been installed that an air traffic control center lab, a technology lab in atlantic city, new jersey, for testing the white house reportedly making waves in big tech. reports say the trump administration is looking to sketch out tougher versions of u.s. export controls on china. this would expand the biden administration's efforts to limit beijing's access to new, cutting edge, ai enabling technologies. and we're watching bitcoin this morning. it's been falling. it's below $90,000 for the first time since november of last year. etf outflows and

us-china trade tensions being partially blamed for that move. bitcoin right now at $89,200. that's off about 5.4%. home depot out with earnings this morning beating on both the bottom and the top lines for the first time in two years. home depot actually saw positive same store sales in a quarter. saw those comp store sales up 0.8%. expectations had been for a drop of 1.7%. for more on this right now, we want to bring in brian nagle. he is oppenheimer senior equity research analyst. and brian, there's a lot to go through here. first of all though, let's just start with the earnings per share for the quarter. the company reported i'd go with the adjusted number of $3.13 versus the estimate. that's anywhere from 3.2 to 3 or 1 to 3 or 4, depending on which service you're looking at. how would you look at these numbers? were they better than expected, and what should we match them up against? for an apples to apples comparison? >> good morning becky. so i

agree with you. i think the. 313 is the right eps number that takes out some one time items and that beat the consensus. the consensus forecast was around $3. because you had a nice, you know, a solid if you will, earnings beat. and like. >> you mentioned in your opening. >> you know a key positive here. again there's lots to talk about with home depot. but looking at the first key positive. >> is sales. >> did top expectations. >> like you said this is. >> the first time we've seen a positive comp at home depot in a long while. so in and of itself that is a positive. now i very much you tell me what you want to talk about, but i very much question the sustainability because i think whether the whether the really erratic weather we had across the, across the united states over the past several weeks, a few months probably helped. but nonetheless, we did see a positive comp. >> okay, so let's run through some of those positive comps. the company will tell you, the cfo told me that they were up in 15 out of 19 geographical regions. they had more than half of their product lines show

growth. they saw customers coming back and sales exceeding their expectations. they were encouraged by the improved results. they saw greater engagement in home improvement. the downside is they're still not seeing the big renovations that they had seen before. they think that is tied to home sales. but you bring up that point about the hurricanes and other weather they saw during the season. the cfo told me that hurricane helene and milton definitely created some demand that was there. they say that that was incremental. they they think that it was about 0.6% of the comps, you know, of that comps improvement, and you're still talking about comps up 0.8% versus the drop of 1.7% that had been estimated. so i think they think it was more than just weather that was coming back through. does that change your perspective on anything. >> that's positive? that's positive. what i would say we're going. >> to have a. >> conference call here, you know, at 9:00 eastern. so we'll get more color on this. this is going to be a big topic of conversation. but look. >> the way i would. >> with the summary you just

gave there. so look weather helped. but there was probably something else. and i think what we're seeing is again looking across retail, i follow a number of retail type companies. >> the holiday was. good and home. >> depot this is true for lowe's, which we'll get to has reconfigured its business model. it's more of a. holiday play at this point. you know they do a better job of merchandizing for the holidays. so i think we saw some of that. >> demand where my. >> concern, one of the key reasons i'm not recommending home depot now, despite how much, frankly, they love this company, is, i think it's extraordinarily well run company. but my concern is housing. and you mentioned that, too. we have this stagnant u.s. housing market, and i don't see that stagnating until we get interest rates significantly lower. and i think that will be a significant headwind for home depot sales for a while. >> yeah. and i'll tell you what the company would agree with you on that. the cfo says that they're not expecting rates to go down this year, and that is they're not expecting the housing market to improve and seeing more turnover than we've seen to this point. they do say, though, that they think the running the business as well as

they ever have. he said that inventories and stock, their staffing is improving. their delivery is all getting better every week. also says that some of the investments they've made in things like delivery, experience, speed and reliability they think is paying off. they think that for appliances and power tools, it's paying off there and think that they're stealing market share there. also with drywall and concrete and things for the pro customer. so i just want to throw out everything i've heard and have you analyze and think through what that means for you. >> yeah. so look, i. >> you know. >> i think this is what we see happening. you know. us retail has become an extraordinarily strong business, right? the strong gets stronger through tough times. and that's exactly what's happening with home field. and i give them a lot of credit for that. they're dealing with that unfavorable macro environment. they've been dealing with this for a while. but like they said like you repeat it, they're getting stronger as this is happening. so when these when these headwinds shifted tailwinds which will inevitably will happen, it's just going to take time. home depot is going to emerge an even stronger company,

better capable of capturing market share. my concern is this is going to take a while. now, if you look at the guidance, you know, again, they're telegraphing a positive comp here in 25, which again, is encouraging. but that needs some more explanation. but they're actually. telegraphing more dampened profitability of lower operating margins. so you know i don't know if that's just the comps not enough to leverage the expenses. if there's some incremental investment, that's something to consider here. >> okay. and their adjusted diluted earnings per share, they expect to be down about 2% from the 1524 that they were looking at. that they earned that again was better than expectations for this year. how does that match up with your expectations for next year? >> well, let me say versus. >> street expectations, that's you know, i want to say this hasn't been reported, but they're essentially guiding below the street okay. so that would be a negative. now we've got to consider home depot is a smart company. they attempt to

guide numbers where they can beat them. it's obviously very early in 25. but if you look at the numbers right now, you know that initial earnings guidance for 25 is below consensus street forecasts. >> yeah, it's my sense that they tend to be conservative too. they wouldn't say that. but i think you and i probably look at things the same way. we'll see what happens. brian, thank you for talking this through with us. right now it looks like that stock's up by about $0.83. it's fluctuated quite a bit through the morning. but there are some important lines to go through. you've got the conference call at 9:00 and we'll see what happens there. thank you. >> thank you. >> all right. coming up we spoke to the governor of georgia. we're going to keep going south. let's be nice weather right now. governor ron desantis, it was cold. governor ron desantis is going to join us. tell us why he let that happen on becky's vacation. also to talk doge, immigration and much more. plus, the happiest place on earth.

universal. wait a minute. what? no, no. it's disneyland. we'll get more expensive. we're going to talk to rich greenfield. i still do it. still pushing nbc for him? still do it. >> i was at universal. you were. >> ready to. we still love them for a while. for details on disney's dynamic pricing plan, stay tuned. you're watching squawk box. this is cnbc. >> 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. >> today, franklin.

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accepting help means that we are allowing somebody to bless our life. it's freeing. we got stronger together. love, your mind. banking system and some of the expected deregulation that the industry could see under president trump. leslie picker asked dimond about the regulatory posture in dc and whether or not the government is going far enough. >> we have become a highly bureaucratic, litigious, overregulated society. and it's bad. if you don't believe me, go to europe. i'm not saying we shouldn't have regulations. we should protect the financial system. we should protect the food system, the water system. but what the american public should know, this is bureaucracy completely run amok. >> he went on to say that it's

time to take a step back from regulation and look at how to make the system safer, rather than overregulating. meantime, florida governor ron desantis forming a doge task force aimed at to sunset 70 state boards and commissions cut 900 positions and require reviews and audits of florida universities. the governor saying florida was doge before doge was cool. governor desantis joins. >> us this morning. >> governor, thank you for joining us. we've had lots of debate about doge. >> i'm just curious. before we even get into what. >> you're doing. >> in florida. >> what your take. >> is right. >> now on what we're seeing out. >> of. >> washington and. >> even what we're seeing. >> in terms. >> of the debate about how to approach it. i think there's a whole group of. >> people. >> on one side saying that, you know, we need to. find these cuts. >> and then. >> there's a whole other group of people. >> who are saying. >> that. the cuts are good, but they don't. >> like the way it's being. >> gone about. >> well, the. >> government's spending too much money. i think everybody. >> acknowledges that. so from a

fiscal. >> perspective, what doge. >> is doing is they put this issue on the front burner. they've highlighted a lot of things that. should not be done. >> now. >> i do think congress is. >> going to. >> have to ratify that. >> i don't think you can. >> just do it all through executive action. but then you have the other issue of the constitutional. >> imbalance that's been. >> created in this. >> country by congress. passing these omnibus. spending bills. they pass continuing resolutions. >> that puts. >> the government on autopilot. so these. bureaucrats are never held accountable. congress doesn't wield the power of the purse. and so that's why you see. >> some of the. >> bad behavior that you've. >> seen in usaid. >> and some of these other things. so i think both from a fiscal perspective, it's good. but i also. think congress needs to recover the power. >> of the purse. >> the bureaucracy. needs to answer to. >> the president under. >> article two. and that will go a long way to get in our constitutional. system back in whack. >> what do you think. about the. >> prospect of. >> sending checks to americans, either. >> in the. >> context of. thinking of them as dividends or refund checks,

as opposed to taking. >> that. >> money and hopefully paying down the debt? >> well. >> if they're. >> able to reduce. >> spending enough that they're generating an. >> annual surplus, well, of course i would. >> do some of that. to retire. >> debt and. >> some. of that rebate. to taxpayers. >> but let's just be clear, they're a long. >> way from. >> getting to that point. i don't. >> think you want to print additional money to. be able to. >> do that. >> and one. >> of the things i. >> think we. >> see in washington. >> that's. >> different than, say, a state like. >> florida. >> like in florida right. >> now. our budget. >> year over year. >> we cut. >> $3.8 billion. >> overall, like we're. >> spending 3.8 billion less. >> what they say in washington is, oh, we're going to. >> cut a. >> trillion and a half dollars. that's over a ten year budget. >> window where they. anticipate spending. >> increases over ten years. so they're. >> still. >> spending more. >> but just not as much as was forecasted. they count. >> that as a cut. >> that's not a cut. >> so i think there. >> is an imbalance.

>> between the momentum. behind what elon is doing. >> a lot of excitement. >> certainly, you know, my. >> supporters are. >> excited someone. >> is finally getting in the federal government and doing this. >> with doge. and then kind of the way the swamp operates in the congress, where i don't see them. >> being nearly. >> as aggressive. >> governor, what's your relationship like. >> right. >> now with the president? i ask because, as you know, the president has endorsed byron donalds to be the governor in 2026. >> just your we've. >> got a great relationship. >> i mean. >> we're working. >> very. >> closely together. >> you know, i'm able. >> to i'm able. >> to. >> play you know we play golf relatively frequently i think. >> compared to others. and you know i've been a big supporter of what he's doing. >> look, people. >> can endorse whatever. >> you know i raise probably. >> more money than him for. 24 cycle. >> than. >> any elected official. >> millions and millions of dollars. obviously supported. >> him strongly. but, you know, he supported a marijuana. >> corporate amendment. >> in florida. >> on our.

>> ballot that i oppose. we fought. we defeated it. that's fine. i still supported him. it is what it is. >> we have done. >> more in florida to support. >> his agenda than certainly. >> what congress has done. >> so far. i called a. >> special session. >> of the florida legislature. we now have. >> full spectrum. >> support from. >> state and local government for his. >> immigration enforcement efforts. >> tom homan was was was speaking. >> this week and he. >> said everyone. >> needs to do. >> what florida is doing. >> and then as part. >> of our d.o.j. >> in the state. >> of florida. >> we're actually trying. >> to return. federal dollars. >> that we haven't. >> spent back. >> to them. >> the biden infrastructure. >> package had a lot. >> of strings attached. >> they wanted. >> us to do woke. >> stuff. >> so we rejected that. >> i think it was about $330 million. >> we tried to send it back to biden. >> they didn't have a mechanism. >> to accept the $330 million. >> so i. >> think now with doge there, we're going to. >> be able to send some money back. >> so i think we're working. >> very closely on the policy. >> i also think. talking about 26. >> it's so early.

>> he's been. >> president for like a month. now is the time republicans have been waiting for. all eyes in the republican universe are on the trump administration. that's been bold. but then will congress work to ratify this? will they actually. cut spending? will they do these things? >> you only get opportunities like. >> this once. >> a. >> decade or. >> every couple decades. >> so that's really i think, the. >> focus. florida has. >> done more than any state. >> to support the agenda. and we'll. >> keep doing that. >> governor, i probably should ask when your other governors that just north of you, brian kemp, about some of the stories that i've seen written when some of these congressmen are going back to their home districts, and this gentleman went back to one outside atlanta, and i think it was a, i don't know, an r plus ten county or something, but supposedly they're getting an earful is what i'm hearing about. and i would say that watching you in florida, there have been times where how all

occasions that looked like it was against you and you, you just plowed ahead, damn the torpedoes. and i think it paid off for you. is that the advice you'd give the president right now? i mean, there are midterms coming up. i saw a harvard study that most americans are favoring things, but you've seen the opposing sides and the democrats go after this administration for, you know, ending democracy in the constitution in one fell swoop. do you think you can go too far, or would you tell the administration to just damn the torpedoes, go for it. >> be bold. >> the reality is. >> is there's. >> always going to be static. there's always going to be opposition. i think some of those people at that town hall probably weren't even from that district. i know during his first term i was a us congressman for a couple years. there were manufactured people that would come and scream. >> at you, which is fine. i mean. >> it's a free country. so yes, move forward. and with the things that we did in florida, i

mean, the covid stuff, i mean, i had the world against me. there we stood, our ground. kids were better off from being in school. businesses flourished. obviously, we've had a massive migration of both people, businesses. >> and wealth. then you also. >> look at things. >> i mean, you. >> know, we had. >> tussles on this program about disney. we stood up for what we thought was right. >> in terms of the kids. >> we did remove some of their special. privileges to put them on. >> an even playing field. >> with. universal and seaworld and the other parks. and the. reality is now they're. >> investing $18 billion. >> into florida. people were trying to say they were going to move space mountain to columbus. >> ohio or something. >> we knew that wasn't going to happen. so do what you think is right, hold your ground. and the thing is, is if you're doing what you told your voters. >> you would do, even people. >> that disagree, they do respect that that you're following through. so president trump's following through on what he promised the voters. he said he was going. >> to have elon. >> musk do this with government efficiency. everybody knew this was coming down the pike. and i think that there's more support

out there than opposition. >> so i ask you. >> one other thing. and a lot of trump supporters, i'm told, you know, there are times when it's difficult to maybe explain or or justify every single thing that that president trump does. and there's times when sometimes the supporters might feel uncomfortable. and this is out of your lane completely. but yesterday i presumably to make a deal to end the war with between russia and ukraine. we voted with russia and china and north korea to not call ukraine or to not call russia responsible for the war. i mean, when you saw that, do you think getting a deal or do you understand the rationale behind that decision? because a lot of conservatives and republicans just are like, wow, i it's hard to defend that

for some people. >> well, i think the. >> proof will be in the pudding, joe. donald trump said he was going to end this war. i think if you look at it, whether you're somebody that that's very supportive of ukraine or not as much, you know, there doesn't appear to be a great pathway for a total ukraine victory. this has been going on. there's been a lot of deaths, hundreds of billions of dollars. and so the president wants to end it in a way that's going to lead to a sustainable peace. so if he ends. >> up. >> getting there, then i think all the negotiating. tactics leading. >> up to. >> that, i don't think people are going to look back and have much problem. >> so the proof. >> will ultimately be in the pudding. >> but i do think it's part. >> of a larger strategy to be able to put this. >> issue to bed. >> we do not want to have a war raging in europe infinitum, particularly if it costs american taxpayers. he ran on ending. >> this. >> and he's using the leverage that he has available to him to do it. i was we were at the white house on saturday night and we were i was next to marco rubio. and they're you know, they're working very hard on

this. so we'll see what happens. but i do think you got to look at it in the context of the art of the deal and trying to land this. >> do you. >> do you prefer. >> what do. >> you. >> do you prefer. >> the, the east coast or do you like the gulf of america coast for, for. no. i'm kidding. go ahead, go ahead. >> governor, i. >> was going to you know, we've got they're both good. >> they are both good. both coasts of florida are great. governor, i will ask you, though, is there a risk that he looks like neville chamberlain by appeasing and saying, we're not going to call you the aggressor for doing. >> this or. >> worse, like. >> well. >> but here's the thing. i mean, you know, we've seen donald trump. the guy takes. forceful action. he believes in strength. i mean, this is the guy that that snuffed out the leading iranian terrorist. he snuffed out al-zawahiri, al-zarqawi. he's been very strong. a lot of our enemies when he came into office, especially on the heels of biden, you know, they took a step back. we had a tussle with colombia that ended very

quickly. so i don't think so. just because i've seen him act in so many different ways and he's somebody that isn't hesitant to use american power to advance american interests. but i do think he wants things to be focused on america's interests. i think focusing on europe, not pulling their weight with nato has been something he's talked about a long time. >> there's a lot of truth to that. europe does. >> need to do more for their collective defense. so i don't i don't really see the risk that he's a strong president. >> some things finally do seem to, you know, years later it's like, oh my god, the craziest stuff. he's, you know, in the past that sometimes he said it's like, holy, holy crap. it's like that was probably mostly true at the time. it's amazing that it happens. you got to admit it, governor. sorry, andrew. >> i just want. >> to thank the governor. >> yeah. no, look, i mean, i think he's been right about a lot of stuff. that's just the reality. >> but. >> governor, i want to thank. you for joining us. >> as always. >> look forward to seeing you again soon. >> thanks.

>> thanks. >> up next. >> how ev owners. >> are feeling about the state of industry and whether or. >> not they're thinking. >> of switching back to gas models. and later, is disney planning to move to an airline style dynamic pricing plan at its theme parks? analyst rich greenfield is out with a note on that topic, and what he expects it will mean for shareholders. he will join us in just a bit. he will join us in just a bit. squawk box will be right back. cidp is no walk in the park. that's true. but i take vyvgart hytrulo. same! it's the first major innovation in cidp treatment in over 30 years. vyvgart hytrulo has been proven to significantly reduce the risk of symptoms getting worse. and my cidp can be treated with once-weekly injections that take about 30 to 90 seconds. do not use vyvgart hytrulo if you have a serious allergy to any of its ingredients. serious allergic reactions, like trouble breathing and decrease in blood pressure leading to fainting, and allergic reactions such as rashes, swelling under the skin, shortness of breath, and hives have been reported. the most common side effects are respiratory

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before the opening bell with specific strategies for members only. >> by joining the club, it gave me access to that knowledge from jim that gave me more confidence. >> in my. >> investing decisions. >> it's very helpful. >> it's information. >> that you have. is privileged information. there is no other source of information that you can get as much as you can get from him. >> get invested. join the club. >> get invested. join the club today. go to cnbc.com. join jim. >> from the wall street journal reporting that nippon steel will discuss its planned acquisition of u.s. steel with u.s. government officials. earlier this month, president trump said that he supported what he described as an emerging agreement that would allow nippon steel to invest in, but not fully own, u.s. steel. former president biden blocked the takeover bid in january,

citing the threat it posed to national security. first, president trump was opposed to it on the campaign trail, but we will see if some sort of new arrangement can be agreed upon. you can see right now shares of u.s. steel up by about 4/10 of a percent. >> and a new study is showing that ev owners have no plans to unplug and go back to gas models. phil lebeau, both of them, apparently. phil lebeau joins us now with more. hey, phil. no, i know there's believe. >> this is a study. that consumer reports does on a pretty regular basis actually. do they do it every year. and they've done it for six straight years. and they have found that ev satisfaction. >> or the satisfaction. >> that ev. >> owners have. >> in their. >> vehicles actually. >> increased in. 2025 this report. compared to 2024. >> so there. >> was an improvement here. >> it's not the highest. >> it's ever been, but it was. >> an improvement. >> look at this 94%. plan to buy another ev when it comes time for their next vehicle.

>> and just 12%. >> would consider going back to buying an internal combustion engine vehicle. >> this is not a surprise. >> for people in the ev industry. we have heard this from elon musk all the way down for a. long time. once you plug in. >> you're done. >> going to the gas station. >> you have no. >> desire to go back. >> to pumping. gas on a fairly. >> regular basis. >> evs right now, just 9%. >> of the market. >> still well behind internal combustion engine vehicles, which are. >> four out of. >> every five vehicles sold in the us last year. in terms of this report, the hyundai ioniq. >> six topped the ev survey. >> in terms of the. >> most appealing. >> or most satisfying, if. >> you. >> will. >> mass market evs. >> as for the premium ev market, the. results come down like this. >> bmw. >> which doesn't get a lot of attention and probably should get more attention for. >> the strength of its ev portfolio. >> number one and. >> number two. >> then you have the r1s and the tesla model three. quickly take a look at shares of tesla. their ev share is down to 49% in the

united states. they still dominate the market, but they are no longer where they once were. when it was 55, 60, 65% of the market, simply because you have more evs for sale. and as a result, their market share has fallen off and it's now under 50%. >> in the us. >> i'm surprised whose second. >> hyundai, hyundai and then general motors hyundai is, i think at about. >> 10 or 11%. and then you've. >> got general motors. >> and hyundai is hyundai. hyundai is not kia, is it? hyundai is not. no. hyundai. >> kia. >> they all go under the. >> same corporate ownership. >> yes they do. >> and okay. >> so maybe that when it comes see a lot of those kia. so it's. hyundai see a lot. >> yeah i see a lot of those. >> kia evs. and i will say that what is what is lucid. they they are striking looking when they come towards you are they not. how's the stats. what else you. >> bring. >> up lucid joe i bring you news. lucid will have. its earnings or its results for the fourth quarter. >> after the bell today okay.

all right. >> see how i did that? i didn't know that, but thanks. thanks, phil. >> yeah. there you go. >> yeah. all right. see you later. >> coming up. >> next from lightning lanes to park hopper passes, is disney's theme parks planning to change its pricing structure? analyst rich greenfield thinks that is the case. and he's going to tell us why after this. and then budget committee chair jodey arrington is going to join us to talk budget resolution, getting republicans on board and all of it. squawk box. >> comes back. >> after this. >> when you're the official vehicles. >> of winter, you can embrace everything the cold has to offer. leave fresh tracks with the safe and secure jeep grand cherokee. melt limitations with. >> our most capable. >> jeep wrangler ever. or battle the. >> elements. >> and. >> win in the jeep gladiator. >> hurry into the. >> jeep presidents. >> day sales event. >> before these incredible offers slip away. >> during the jeep president's day sales event, get 10%. below msrp for. >> an average of $5,700 under. >> msrp on these.

>> 2024 jeep wrangler models. >> see your. >> local jeep. >> brand dealer today. >> i'm allison. >> lundberg. >> strategist at americaneagle.com. wagner came to us with a goal to make their website user experience seamless and simplify access. >> to product information. >> for customers. we build enterprise websites like this all the time. >> through a. >> fully integrated digital transformation. wagner techcom is now a fast, mobile optimized. website with an engaging user experience for complete website and digital solutions. go to americaneagle.com. >> zip this for. >> mary didn't just. >> have an earnings call. i wonder if their take rate finally improved. >> i have a question about a stock. just swipe down and ask alpha i for investors only at public.com. >> and with ai we can look at so. >> much more than sales data. >> see that. predictive analytics. >> how long have you been doing this? >> as long. >> as we've been. >> with.

>> people who know know b.d.o thursday, investors and fast money fans join melissa lee and the team of traders live and on air for an all access fusion of trades, trends and tips.

>> so i swivel my head and. >> i sink. down to. >> the ground. >> all right, welcome back, everybody. media watcher rich greenfield is expecting a new pricing model for disney parks. joining us right now with his call is rich greenfield lightshed partners partner and co-founder. rich, tell us about this. what do you think the new pricing is going to be and why? >> well, first. >> of all, becky. >> up in. >> paris. >> they actually. >> rolled out. >> a real. >> big change. >> and they've. >> used paris, disneyland paris. >> they've used this sort of as a testing ground for. >> pricing. >> like even the new fastpass system in the us started over in paris, and what they've been doing in paris is a true dynamic model. >> so sort of think like the airline. >> where there is no. >> actual price of a ticket.

>> to get in the park. >> you log on, you click. >> buy a ticket, and for the next 60. >> minutes your. price is locked. whether you're buying it for. >> tomorrow or six months. >> out, you come back. >> in an hour. that price. >> could be different. >> it's all based on supply. >> and demand. >> it gives disney, obviously a. >> lot of. >> flexibility in terms of how they price. and for the consumer, you. don't see the price increases the same way. you know, disney's on this annual cycle where we all talk about, oh, the price of the x is going up by blank. >> this would. >> allow you a lot more. >> flexibility to play with pricing. now in the. >> us we've gotten a little bit. >> more information. it doesn't sound like they're. >> going to do sort of a, you know, constant change of price all day long. it might be once or twice. >> a day or a few times a day. the price for. >> the rest of the year will. >> reset. >> but it does. >> sound like they're standardizing their systems in the us over the course of the next few months, and they're thinking about. doing this sometime this year. i don't know exactly the exact timing, but it does. >> sound like. >> disney is prepping their back

end. systems so. >> that they. can move to. >> this more. of a dynamic system than they've ever had before at the us parks. >> look, i can think of some reasons that dynamic pricing would be good, maybe on a really busy week, like in april when everybody's on spring break, you have more expensive tickets so that you limit the number of people who are in the parks. but my guess is they're not looking at this because they're trying to make it better for the guests who are in the park. my guess is they're trying to figure out how much money they can wring out of you, and maybe they've hit a limit on how high you can run. i mean, all of these things, like the park tickets have gone up again and again and again and again. the lines in the parks have gotten longer and longer. and that stupid new pass system they have stinks. i mean, it feels like. >> i'm going to. >> stop you. >> yeah, i'm going to stop you. this is a disney vacation club member who's been there a bunch of times. >> no. >> and i will. >> say, i think the genie system actually was bad. i think one. >> of the big things they've done over.

>> you know, i understand genie has gone, though, like that whole system is gone. there is now a new fastpass system that was modeled on france. >> and what. >> i think is interesting is there was a lot of cheating on the disability passes. so you had a tremendous amount of people sort of abusing the disability system. >> cut down on the cheating, fix the problem. they did so. but by the way, it shouldn't be impossible to get one of those if you actually have a child with disabilities or if you have somebody who's going through with those things, you know, fix your systems, don't have crappy systems. >> i think they've done a. >> lot over the course of. >> the last. >> six months to. sort of clean up the abuse of those. >> lightning lanes. >> it is now a much better process. my sister was actually just down there last week and was talking about. how good and. how easy getting through, and that was a pretty. busy holiday week, that it was. >> a far. >> better experience than it's been in the past. so i do think they're making progress. >> maybe they're back in there in six months because i've gotten so frustrated with them. i don't go back. >> but becky, back. >> to your overall proposition. i think they're doing this because they see. >> the opportunity.

>> just like you've seen. i mean, live nation has been doing more in terms of trying to leverage dynamic pricing to benefit. look, this is clearly a desire for the consumer, for experiences. we are in the heart of the experience economy. we are seeing it. people want to go to disney. there is no doubt that they are looking at that and seeing how for both tickets and hotels, how can they optimize pricing. and i think moving to you know, they remember not it wasn't that many years ago. i mean, two. decades ago, the price of a disney ticket was the same the. entire year. it didn't matter what day you went on. >> right now, they actually have different prices every day of the year. >> now we're talking about moving to that price. will change. >> every day or multiple times. >> a day. >> my streaming update, the wonderful business of streaming blockbuster business in the wall street journal. it's a headline. turns out that that bundle that walt disney has with warner brothers discovery that disney plus, hulu and max three months later, not everyone was gone.

that's that's what it says here, that they've had success keeping users. you know what that translates to? 80% are still there three months later. you know what your beloved netflix is 72%. this is a huge win. that only 20% cut the cord, whatever you want to call it. in the first three months. this business stinks. >> joe. >> yes. >> there is. >> i guess the. >> bottom line is, joe, you can't. >> take the. >> bundling out of the bundlers. this is. >> what. >> media companies know. they know how to bundle things together to 80%. >> that's a big win. i mean, it might have been my gpa, but 80% is a big win. >> look, it. >> ties into exactly why we think david zaslav and the team at wb should actually rebrand max, go back to hbo, because i think when you're selling a package with disney and hulu max doesn't mean anything. i think disney plus hbo really resonates

with the consumer, and i think even when they're marketing it, they talk more about hbo. >> white lotus. >> is hbo. >> last of us. so you're. >> saying this is really you're you're taking the opposite. you're saying 80% is really good. three months later, you're saying that that's as good as it's going to get. >> look. >> these companies meaning all of the. legacy mental care, whether we're talking disney, paramount, wb, they all do not have enough content like you can't name a show on. >> disney plus. >> in months. you can't name many shows like white lotus is out now, but name the last show you were watching on hbo. they don't. >> have enough content. >> the only. >> way you can. >> sort of play this game is. >> to bundle. >> together. >> because they literally. >> are not spending enough. >> on programing. >> but rich, that's the question. >> you're saying they're not. >> spending enough on the. >> programing and that's. >> why they're not getting the quality. is that the issue? >> no. that's why they don't have the engagement. people do not. i mean, think about how much time the average household is spending two to 2.5. >> hours. >> a day, 2.5. >> hours a day on netflix.

>> looking for something. >> they are spending a. >> small no joe. >> go watch black dogs. go watch, go watch night agencies. >> and americans. >> no, i didn't like night. american primeval was mind blowing. did you see it yet? be a man. did you? oh, jesus. okay. >> you're watching. >> you're watching. people are not lotus. >> people are. >> not spending. >> enough time. and so if you don't spend enough time, not only can you not sell ads when you for all the ad subscribers, but it leads to higher churn. if people are not using something, the price value. >> just. >> isn't there. and so they have very high churn. i mean, disney plus has 5% plus churn a month like. >> this is. >> a real problem because they don't have enough engagement. disney recognizes that. wbd recognizes that they've. >> all got. >> to figure out what is their long term plan, because. this is not a great business. they've cut the losses, but they have not turned streaming into a great business. >> so what. >> happened with with disney was a chapek that messed up the

parks or and is iger trying to put it back or you don't. >> know what messed. >> up i mean has pricing gone up a lot i mean the parks are. >> you know i think if. >> you were to look at why. >> but if you were to look at. >> why. >> investors own disney, the number one reason is theme parks and cruises. i mean, they do not own it. for people are not optimistic. >> about. >> the future of espn or espn direct to consumer or even the cable networks. that is not, you know, even the movie business has struggled lately. i mean, look at what just happened with captain america. i mean, the reviews are terrible. you know, mufasa was not great. like, there is no doubt that people. >> own this. >> for the parks. that is the number one reason. and so anything that helps drive parks profitability, like a change in pricing that gives them more flexibility, i think will be. received positively by investors. >> rich thank you. it's always great to see you come back when you have something else you want to talk about. >> thank you. >> all right. only lost 20% in

three months. i mean it's a headline. it made the front of the journal. they only lost 20% in three months. >> up next. >> the problem is. >> with netflix. is saying, you know, netflix is 72% in three months. >> realize that. >> that's then what? then a new hit show comes in. >> you're you reengage because you can do it on a month to month basis. >> yeah. >> up next, budget committee chair jodey arrington joins us ahead of a possible high stakes vote on president on the president's budget bill. check on the futures. right now. you can see the dow still up, but the nasdaq is turned south just a little bit. we'll come right back. >> most power players on. >> wall street rated. >> 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.

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>> i just. >> keep going back to seed because it actually works. >> now. i walk around. >> and smiling every day because i don't get. bloated anymore. >> how do you see wealth, money in the bank? precious commodities? find financial clarity with cnbc's trusted resources. keep your future in focus. cnbc live. ambitiously. >> the cnbc changemakers returns. >> 50 women innovating. >> and driving change across industries. find out who has made this year's list. meet the new icons. the cnbc changemakers list revealed. available now at cnbc.com changemakers. >> the house is set to vote later today on the president trump endorsed budget resolution, which could add at least $2.8 trillion to the deficit through 2034. now, while democrats plan to protest ahead of the vote, republicans can

only afford to lose one vote if all members are present. joining us now, house budget committee chair jodey arrington. i didn't write the intro, but if you were wondering how much you were going to add to the deficit. yeah, we decided that was the most important thing to tell you in our intro. just just to get it out there for you as i do that. >> joe. >> i didn't write that. i know, but i know the individual who did. but yeah. go ahead. >> let me refute it. if we grow this economy. >> and stop. >> the. >> reckless, unnecessary spending, return to the pro growth, pro work pro energy policies that we. had established in the first unified republican leadership alongside president trump. we know we're going to grow by at least that 2.5% growth rate. that's lower, by the way, than the average annual growth rate of president trump's first four years, and lower than the annual. >> average growth rate. >> of president biden's administration. so if you get the two and a half to 2.6

trillion from growth from pro-growth policies, and you rein in the unnecessary, reckless, fraudulent spending on the entitlement side to the tune of $2 trillion, you will offset. so you will have a deficit neutral proposition, and you'll actually reduce the debt to gdp, which is the best measure of the fiscal. >> health. >> of our country. and you'll put us in a better position altogether for the future. >> you got no room for error, congressman. and what are the prospects right now? i've seen massie say some things i saw. congresswoman, i don't even try to say it, but are you going to. what is it, malia? takis. what are the chances? what are the chances with, you know, everyone's got to be there, but are you. do you know how to

whip? are you a whipper? you know how to whip votes. do you got. do you have it? >> yeah. well, the. best way to whip joe is to get a good product. and we've got this fiscal framework i think does a little bit for every group. those fiscal hawks like myself, who are concerned about the mandatory spending that's driving us off the fiscal cliff. we have $2 trillion in a goal to reduce the spending there, which would be 5 or 6 times as high as the last highest reduction in spending in the 75% of the budget that we're dealing with. and then for those folks who want to lock in the tax cuts, want to see pro energy policies, want to roll back the trillions of dollars in the barrage of regulations we witnessed and experienced over the last four years? there's something in this framework for them. and then you need to assure the moderates, the my colleagues from the swing districts that that what we're doing to bend the curve on mandatory spending doesn't have anything to do with benefits

other than strengthening the program and preserving those benefits for the most vulnerable americans, but preventing illegal immigrants from accessing the social safety nets, preventing people who are ineligible. for example. joe, if we just return to reviewing the eligibility rules of medicaid not once but twice a year, which it was under trump, and then it was revoked and established as a one time annual review. you save $160 billion, but more importantly, you make the program more sustainable for future vulnerable americans who need it. and also, by the way, we spend $9,000 per illegal immigrant, according to numbers usa, for taxpayer services that would otherwise go to u.s. citizens, that 9000 per illegal immigrant is more than we spend for the most vulnerable american on medicaid, and altogether more than we spend for our retired military for their retirement

benefits. so there's a lot of cleanup to do. there's a lot of waste. and i think 150 to $200 billion is just the beginning of what needs to happen if we're going to save the country from a sovereign debt crisis. >> congressman, are there people on your committee or in the house that are working in close coordination with elon musk and doge? can we hear conflicting things on what doge can do, what it can't do? congress, you know, appropriates funds that are supposed to be spent and, you know, to which no man can cut asunder if it's already been designated. and we can't do this. can are you working in tandem to do legislation that allows doge to even do more, where you're not going to be challenged by the courts? every or activist judges, every step of the way? >> yeah. so i think elon musk is doing a fantastic job and tremendous service to taxpayers

by highlighting the some of the most absurd and wasteful spending that's occurring, no doubt, throughout the four corners of the of the people's government. but but we can lock in reforms, joe, that will save tens of billions of dollars in the long run. like i mentioned on that twice annual review of the eligibility for medicaid. if you require a social security number, for example, for the parents who are receiving a child tax credit benefit, you will save over $20 billion over the budget window. and the list of reforms to rooting out waste and fraud is endless. which is why i'm confident that we can chip away at what the gao says is about a $3 trillion in improper payments among entitlements throughout the government. yes. >> if that's. >> the case, and we. >> want to. >> chip away. >> at all of this. >> the big. >> question now on the table.

>> and i've. >> asked this of a couple of other. >> people this morning, is. whether the government. should be sending out checks in the context of. refunds or dividend checks, rather than pay down the debt, if, in fact. >> we're able to. >> save some of this money because whatever money we be sending out, we'd be relieving ourselves. >> well, as you know, growth is a big part of restoring our nation's fiscal health. and i think by letting the tax cuts expire and having a $400 billion tax hike where the average taxpayer would pay a 22% tax hike, and you'd have small businesses who receive the benefit of the 199, a 20% deduction would be paying at the 43% top tax rate. that's no good for the economy. you have to do both. you have to grow the economy and you have to bend the curve on spending. >> should you be. sending out. >> a should. >> you be sending out a check to americans from doge? that's the question. >> oh, what? well, listen, i think a lot of the things that are being exposed by doge will

have to be done in the annual have to be done in the annual appropriations (♪♪) (♪♪) what took you so long? i'm sorry, there was a long line at the thai place. you get the sauce i like? of course! you're the man! i wish. the future isn't scary. not investing in it is. nasdaq-100 innovators. one etf. before investing, carefully read and consider fund investment objectives, risks, charges, expenses and more in prospectus at invesco.com when i started walton goggins goggle glasses, i had no idea what i was doing. but godaddy airo does. using ai to build a logo, website and social content. so i can let the world know, if your goggles ain't goggins, they don't belong on your noggins! >> please hold. now that's

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by four. the nasdaq down by ten. and new this morning cisco and nvidia announcing an ai data center partnership aimed at making it easier for companies to adopt ai systems. in the proposed collaboration, cisco will build systems combining nvidia spectrum silicon with cisco software. cisco up 2% in the premarket. nvidia shares up slightly. that does it for us today. make sure you join us tomorrow. right now it's time for squawk on the street. >> good tuesday 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. >> futures relatively steady as the market weighs earnings from home depot. and we inch our way to nvidia tomorrow. oil is barely hanging on to 70. and the ten year yield near a two month low now at 4.3. a roadmap begins with these china chip controls. >> the trump. >> white house. >> reportedly looking. >> to expand the biden era semiconductor restrictions. >> plus d.o.j. >> pushback federal workers. suing over e