you, rickster appreciate it. >>> coming up on the other side of the break, gm's chairman and ceo mary barrages. so much to discuss "squawk bo rur wh ry barra right after this what if you could have the perspective to see more? at morgan stanley, a global collective of thought leaders offers investors a broader view. ♪♪ we see companies protecting the bottom line by putting people first. we see a bright future, still hungry for the ingenuity of those ready for the next challenge. today, we are translating decades of experience into strategies for the road ahead. we are morgan stanley. the pursuit is on. ithe pursuit of outperformance at pgim. with deep expertise to outthink across multiple asset classes, actively managing investments in the world's public and private markets. outscale, with the resources to serve 1,500 clients in 52 countries. and outlast, with long-term conviction that looks beyond today's volatility. join the pursuit of outperformance at pgim. the investment management business of prudential. >>> welcome back to "squawk box," everybody. we're watching the futures this morn

alix: but good luck, mary barra, stockpiling cobalt. i know you need it for your cars.david: i actually asked her about other shortages maybe in other supply chains as she ramps up dramatically, and she said a lot of the emphasis is on r&d to use less cobalt, to use writ less -- to use less of those rare-earth. i think she admits right now there's not enough production to support the ev's they are projecting. alix: i wonder what they will use instead. thank you very much, bloomberg's david westin. coming up, we will take a look at how the virus crisis in india is affecting western union's business. we will talk to this -- we will talk to the cfo right after earnings. this is bloomberg. ♪ ritika: this is "bloomberg markets." i'm ritika gupta come alive in the principal room -- ritika gupta, live in the principal room. this is bloomberg. alix: live from new york, i'm alix steel, with guy johnson in london. this is "bloomberg markets." western union had a rare miss on earnings in the first quarter. abigail doolittle is looking more. abigail: on this chart, we see what inve

gm ceo mary barra joined "squawk box" to talk about trying to meet customer demand take a listen. >>veraging all of our creativity and ingenuity to understand what chips are we going to have access to and maximize those when you look at how strong demand is in the united states, i think opportunities, we're going to build every vehicle we can. whether we can make up every single vehicle will depend on, you know, the whole chip supply. >> you've got the u.s. commerce department this morning pressing taiwan semiconductor to prioritize the needs of u.s. automakers during this period. tsmc announcing new fabs, a lot of companies announcing that boom/bust cycles here. it could be an issue >> i'm looking at, jon and carl, china's chip making progress they have so much ground to make up here, but the export ban under the trump administration really had the effect of creating this unprecedented drive by the chinese government and their chip makers and as we've seen with evs, ground can be made up when the chinese government supports it and puts the money behind certain industries >> yeah. i

we'll be speaking with mary barra, you do not want to miss this tomorrow morning on "squawk box. they report earnings at 7:30, we speak with mary barra at 8:00 so much we plan to discuss, but most importantly the guidance for the second quarter that will get the most attention. broadly speaking, we're talking about some profound changes. "wall street journal" is reporting this whole episode is making a lot of automakers rethink that just in time inventories. plus last week i spoke with the former ceo, and he said they only have to blame themselves. >> if you want to ask why the auto industry is limited, tell the automotive companies, ceo by ceo, look in the mirror with one exception, toyota. have some inventory in the stores, and you'll make it through. it's that simple run the company better don't have the government for h help. >> it's easy to say that you went back and said to any executive a year ago, how come you're spending so much money stockpiling these chips? isn't there a better way of -- bankly their feet would be held to the fire. and it's hard to look back and say yo

mary barra was on yesterday, and i would love to see if the hummer really has it.the kind of weird look of the cybertruck. the riviere and -- the rivian is quite cool in suv form. i'm not sure that i want one. want a dodge ram power wagon. alix: i would drive it. i have my drivers license now, so score. matt: congratulations. [laughter] guy: i mean -- alix: i mean, i've had it for five years, but still. matt miller, things a lot. apparently, vaccine makers are under pressure because of this ip issue. you had angela merkel coming out and saying she disagrees with the u.s. in terms of waiving those coronavirus vaccine patents. we are going to break that down. biofarma stocks are now off the lows of the session. we will talk about that more. this is bloomberg. ♪ ♪ ♪ look, if your wireless carrier was a guy you'd leave him tomorrow. not very flexible. not great at saving. you deserve better... xfinity mobile. now they have unlimited for just $30 a month... $30. and they're number one in customer satisfaction. his number... delete it. i'm deleting it. so, break free fro

david: tms ceo mary barra tells us how she is scrambling to get chips into car she wants.

i listened to mary barra. she said we are managing it.ix partners, north america is where the hit will be the lightest. alix: it is interesting because she's like, we are working on it. a couple of ideas. gm cars are sitting around, waiting for new chips to come through. we have a really interesting article on the bloomberg that talked about chip foundries and how much money you have to make. you have to make something like $3 billion or something a year in order for it to pay for itself, and it is only really valid for five years because the technology moves forward. in that perspective, it is not going to be easy to build these foundries going forward, so this will be a longer-term issue for these companies. guy: i think it is also, again, this is where the segway happens -- the segue happens. it is not just chips. you and i have been talking all day about what is going on with steel prices and iron ore prices, and what is happening with the precious metals as well, which are so critical to much of this transition. all of these headwind

ceo mary barra rah said while they sold fewer vehicles, the ones they did were higher margin pickups in south america and europe fueled a 14% rise in sales even as the jeep maker slashed production by 11% in the first quarter and expects the sail in the second -- the same in the second quarter. and see this price of berkshire hathaway's class a shares? $425,918. it's not so much the price, it's how many digits you' right there. if berkshire hathaway goes just a bit higher, it's going to run into the market's version of y2k. according to "the wall street journal," because berkshire's billionaire ceo warren buffett refuses to split the tock, the class share price has so many -- class a share price has so many digits in it that the nasdaq temporarily suspended broadcasting prices for berkshire hathaway because the biggest number its computers can handle is $429,496. is so we're at 425,940. the exchange is trying to get a fix later this month. we'll see if the shares stay below that. but at the moment, they are trading at a record high. >>> the manufacturing industry, buffetts has a lot

i look at the mary barra thing, and to go back to a hugely homogenized press statement.g to get some color on that. jonathan: i think we want detail on how ford has done, what ford got damaged by, and how gm has helped to avoid it. lisa: net sales and revenue actually missed expectations. net sales and revenue at $32.47 billion for the estimate of 32.77 billion dollars, i am trying to square that with earnings-per-share. what was the reason for their actually operating either more lean lee or making more profit per vehicle -- more leanly or making more profit per vehicle? jonathan: first quarter earnings were a blowout. the stock is up by 3.5%. i think we are all in the same page here. a lot of questions for the leader of general motors about an hour from now, when we catch up with the chairman and ceo. what is gm doing that ford hasn't been able to do? it keeps coming back to execution. that is what we have all been grappling with in this market. it was almost a simple trade. you pick the sector, you pick the factor, you pick the style. now it is within those sectors wh

it has been reinvigorated with mary barra, she is chairman and chief executive of general motors.is david westin. david: it is a good day for you and good day for will durant. looking at the numbers, one of the things i look at is the top line and the profitability. you did so much better than anybody expected. you almost put shame to analysts. my question is how did you do that? how did you get so much more money and profit out of a relatively flat revenue? mary: is a number of issues. strong demand for our full-size trucks and suvs. the chevrolet silverado, the gmc sierra, the escalate, the tahoe, there is exceptionally strong demand for those products. that is what is driving high average transaction prices because the demand is so high. we have able to be disciplined on incentives. gm financial has done an excellent job of taking advantage of higher used car prices and a strong market. we are also seeing recovery and return to strong sales in china. across the board, they contributed to the strong numbers. david: you surprised some people by say not only would we stick with ou

your head when you beat earnings by a dollar and you don't raise the full-year guidance i think mary barra is sandbagging this i can't blame her because the chip shortage is still in play we don't know when that is going to end, so she is playing it conservatively the market says that's fine, because whenever the chip shortage is over, as i said, high volumes, high prices, high margins. it is going to be clear sailing when the chip shortage is over. >> okay. let me ask you this just for housekeeping and just so i have a reference in my head for my next question to cramer. how long have you owned gm >> actually a while now. i think it is three years. >> okay. so you got into it, remember the level you basically got into it at >> low 30s. >> okay. so you have done incredibly well in gm and recommending it on this program cramer, why do you like ford over gm, presuming you must if you own ford and not gm? and i know how much you like farley because you talk about him all the time. >> right now, farley is giving the word that the japanese plant that caused so much destruction, it is going to b

mary barra said yesterday, i think the first time i had heard her say this, that she did not think thatrt of the business that we would see, true autonomous on the streets until the end of the decade, which was a much -- a very different kind of expectation and some of the conversations we've had, clearly elon musk has had and others do you have a new sort of time horizon for this and if so, what's happened >> you know, andrew, it's -- i think everyone who's made predictions about autonomous has proven to be wrong we don't know which one of them are right or wrong our focus now is we've partnered with aurora innovation and we all know that this problem is much harder than any of us anticipated and we think the approach of aurora, which is to build autonomous for trucking and highway applications where you don't have all of the unpredictability that you see in a city, it's just an easier problem to solve and obviously we have uber freight and we can build a relationship there aurora innovation. bridging that into autonomou driving into more urban driving and the kinds of rides that you s

it's so unusual to me, mary barra loves cars, and loving vehicle, farley loves it, i almost feel like that we're kind of starting to hear about farley versus musk in a very serious way. now, when he was on "mad money," he talked about that, you know but i think the cyber truck in austin, i'm not kidding, the cyber truck in austin will get a real money, real run for the money from car car. >> austin being tesla. >> he hasn't bought a house there yet. >> focused on cars musk has many different things >> musk has a lot of different interests. >> did you hear the super duty diesel and then talking torque food i mean i think the previous guy, who was a very good cabinet maker, i don't think he knew what torque was. >> former ceo. >> came from steelcase >> the guy new cabinets better than anybody in america. >> cabinets with wheels. >> flying cars on the tape today. >> and i think it is wonderful to tell the story to hear a guy telling the president to floor it isn't it great to hear a guy from detroit actually into it. it's so exciting. >> of course, the big question is whether or not the

stronger than expected q 1 profits phil lebeau will hit it for us he has more from his interview with mary barra quarter earnings estimates earning 225 a share. the street was expecting them to earn just over $1 a share. thanks to strong sales not only for pickups and suvs, but great margins up 13.6% gm hasn't seen margins like that for a long time. it is the guidance people are focused on not only did they reaffirm the make between 10 and $11 million. they are guiding towards the high end, close to 11 lds, if not above that q 2 will be the worst of the chip impact. not saying how much production will be lost production will improve into the third quarter and the fourth quarter. mayor 'barra says they are going to be working hard to make up the lost production from the first half of this year. >> we are going to make up as much as we can i can't say that we will make all of it up, especially when you look at how strong demand is right now, especially in the united states. you know, that's a huge opportunity. so we are going to build every vehicle we can whether we can make up every single vehicl

is if they get the chips, it is an absolute home run for these companies especially, you know, mary barraeally needs them. i cannot believe how -- you know, carl, the semiconductor business, the software business, the communications business, so much business is being done right now, and i think that it's, we focus too much on the chip shortage because they're going to solve it. the japanese fire, that took out the big chip factory there, that's going away. no one wants to see gina raimondo, the secretary of commerce, go in and say, you give us our chips. our huddled masses learning to make cars. you don't want that. >> no, but you continue to be concerned about taiwan very concerned and china, getting back to china, it takes up a big part of your brain, that concern about china. >> i woke up this morning and i said what happens if china just calls taiwan semi and says - >> i know. >> you are our brethren, we don't like how the asians are being treated in america, why don't you side with us >> i don't know how much of your brain these days is occupied with spacs, probably very little, jim

to zero in detroit and going into 2022 you do not want to miss the first on cnbc interview with mary barrartly after the results come out. lots to talk with mary about not only the chip shortage but this transition into evs guys, it was maybe six months ago people said, boy, gm is set up we've got the transition to evs and we'll have red hot demand for trucks and suvs. things should be good. chip shortage has thrown a wrench into that plan. now the question is can they meet the demand that is out there because supply is constrained now. >> good job, phil. can i ask you a question, do you feel that you need to stay up saturday nights and watch "saturday night live"? i think that's part of your beat, don't you think? with elon musk being on it that's almost like homework for you. >> sure. >> no, i don't know if i would call it homework i will watch it. who won't watch it the question is, does it turn out to be entertaining or does it turn out to be a train wreck? there are plenty of people who will sit there saying, he's not an entertainer like at the same time you say in advance this is goi

host: joining us this morning is congressman dan kildee, democrat of michigan, mary barra -- member ofhe ways and means committee, also chief deputy whip. republican and democratic leaders met with the president yesterday at the white house to talk about infrastructure. i want to get your thoughts on that, going forward how that is going to happen. first, listen to the minority leader, kevin mccarthy, republican of california come out of that meeting yesterday. [video clip] i think there is an opportunity to work together on infrastructure. we are not interested if there is anything about tax increases and dealing with infrastructure, that we start with the concept of what is the definition. and that we are able to make reforms so that you can build the roads, not decades away. that you modernize the law from the 1970's so that roads get built and faster. what i really want to work on is making sure turning this economy around, getting people back to work, back to school, back to health come and back to normal. i believe in the vaccine. i want people back in school. the other thing, to