of pimco. >> tom: two years after the b.p. gulf of mexico oil spill, and the first criminal charges in the case were filed today. federal prosecutors in louisiana charged an engineer for the oil giant with two counts of obstruction of justice. they believe the engineer, after being told his electronic files would be collected as evidence, deleted over 200 text messages from his supervisor. the engineer faces up to 20 years in prison if convicted. >> susie: walmart today, responding to a new york "times" article alleging widespread bribery of foreign officials in mexico. the company says the allegations stem from six years ago, and that it has taken steps to investigate potential wrongdoing, saying it has a "rigorous process in place to quickly and aggressively manage issues like this when they arise." walmart also says it has created a new watchdog position to assure its global compliance with the federal corrupt practices act. tom: federal regulators today, going after the egan jones credit rating firm. the securities and exc

mohammed, ceo and co-chief investment officer pimco. thanks so much for being here. >> thank you, xwlar. >> we just got the gdp on friday. up 2.2% on an annualized basis. slightly disappointing. dispinkt. were you surprised by it? what does it tell us about the economy right here? >> i think it tells us a couple of things. first, it tells us we are nowhere near escape velocity. we were hoping consensus was 4 parking lot 5%. it came below that. it's simply not fast enough for a robust roer, but it's also told us that the composition is worried. you see what the engine was, it was personal consumption, and personal consumption went up not on the basis of income, but on the basis of savings less. the savings rate went down from 4.5% to 3. pefrz. bottom line, it's not fast enough, and the engine that's driving us is not as sustainable engine. we need more business investment. that's absolutely. >> of course, we need that business investment, and, yet, we're looking at a pretty strong earnings season so far. right? what are your expectations

mohammad el aryan, ceo of pimco. thank you so much for being here. what do you think about that? we got the gdp friday, up 2.2% on an annualized basis, slightly disappointing. were you surprised by it? what does it tell us about the economy right here? >> i think it tells us a couple things. first, it tells us we are nowhere near escape velocity. so we. hoping consensus was 2.5%, it came below that. it's simply not fast enough for a robust recovery. but it's also told us that the comp cyst sister has worsened. if you see what the engine was, maria, it was personal consumption. personal consumption went up not on the basis of income, but on the basis of savings less. the savings rate went down from 5.5 to 3.9. bottom line, it's not fast enough. and the engine that's driving us is not a sustainable engine. we need more business investment. that's absolutely key. >> and of course, we need that business investment, and yet we're looking at a pretty strong earnings season so far, right? what are your expectations for the rest of the earnings season, and what do you make of the strengt

that would be our view at pimco. you know, the fed's view basically is one of stock, they basically compare it to -- basically compare it to a wine cellar in which a lot of wine has been drunk in the last few months and has to be replaced so i think the argument critically hinges on whether it's a stock or a flow type of situation going forward. >> we'll dive into more. we have a lot to do. a quick break. we're minute as way from finding out exactly what the fed will do and say. it could have a big impact on your money. we've got steve, bill, charles, ken will come along and even the octo box. an investment opportunity you didn't see before. fidelity's next generation ipad app lets you see what's trending around the world, as well as what over a million fidelity customers are trading throughout the day. and advanced charting lets you customize your views and set up your own comparisons. our ipad app can help refine your strategy or even find a new one. i'm velia carboni, and i helped create fidelity's next generation

when we come back this morning, pimco's bill gross.hat the manager of the world's biggest bond fund has to say about investing. one more look at futures, looking to open on the upside. more "squawk on the street" when we return. are you still sleeping? just wanted to check and make sure that we were on schedule. the first technology of its kind... mom and dad, i have great news. is now providing answers families need. siemens. answers. >>> welcome back to "squawk on the street." we have march industrial production. goose egg. unchanged for the month. that's not as good as we expected. we were expecting something up three to four tenths. capacity utilization, 70.6. that matches expectations. it's just a tenth less than the unrevised pace last month at 78.7. we are flirting with 2%. the data isn't affecting the market in a huge way. we are up in equities which is all important these days as we shadow box on the credit side. melissa lee, back to you. >> thank you, rick. we are getting news about what president obama is expected to speak a

our thanks to pimco's mohamed el-erian.sed to have him as an advisory board member for our second -- some people search for alpha. we deliver alpha. delivering alpha conference. unique meeting featuring the biggest hedge fund managers and investors from around the fwloeb. i want takes place july 18th in new york city. check out delivering alpha.com for more information. >> when we come back we'll have more on the walmart corruption scandal. it's raising further questions about the company's history in mexico. our michelle caruso-cabrera will join us live right after this. "squawk" will be back right after this. according to the sig, ford is having some sort of big tire event. i just want to confirm a few things with fiona. how would you describe the event? it's big. no,i mean in terms of savings how would you sum it up? big in your own words, with respect to selection, what would you say? big okay, let's talk rebates mike, they're big they're big get $100 rebate, plus the low price tire guarantee during the big tire event.

paul, you used to work at pimco, which is obviously the biggest player in the debt market. you are now a philanthropist, global independence center and the think tank you set up recently is looking at these questions. you coined the phrase, mensky moment. who is responsible for the minski moment? >> we the people are responsible for the minski moment. the contribution to economic thought is that capitalism is inherently not self-stabilizing but self-destabilizing. that we move from boom to bust, and that proper regulation can dampen that human nature. but can't eliminate it. so the essential contribution was that we should assume boom and bust tendencies to the economy, as opposed to self-correcting tendencies. and, therefore, we are responsible for, collectively, what happened in the minski moment. i think that we could have done things well before 2008 that would have dampened it. so i do believe in the power of we the people through the regulatory structure to dampen our own pathologists, but we clearly didn't. if i have to point one finger, i actually have ten, just giv

we'll talk markets next with pim pimco's bill gross. carfirmation.you a carfirmation. hey, this is challenger. i'll be waiting for you in stall 5. it confirms your reservation and the location your car is in, the moment you land. it's just another way you'll be traveling at the speed of hertz. >>> about an hour here in trading. 10:34 here on wall street. starbucks one of the bright spots with all-time highs after goldman sachs added it to the conviction buy list. sandisk down 9%. citing weaker than expected demand and pricing. and signs of a growth slow down in the services sector, ism non-manufacturing index falling to 56 even in march down more than a point from 1-year highs sunset february. >>> today is a day when the headlines speak for themselves. look at where we are on the commodities at the moment. if we have a look at the stock markets, i can tell you the breadth of the move is major. so far today, only two members of the dow in positive territory. the rest have fallen. 70% of the s&p 500 is in negative territory. if you look at the decline

. >> i pimco. -- i think so. >> we put a little deficit in the rainfall totals yesterday. got about a quarter inch on average across most of our region. some places got less than some places got a little more. good prospects for rain this weekend. sunday accumulation locations are little uncertain. sunshine today, koppel temperatures. 52 in the district, 50 degrees in cumberland. not much of a temperature spread all across the area currently this morning. here's the forecast. we will have a bright sunshine this afternoon with blue skies. clouds will hang on through the early morning. and we will break out into sunshine) 10:00 or 11:00 and it will be beautiful, 70 degrees later on today, near average. here's a look at the clouds still lingering overhead through the eastern half of west virginia and all of virginia and maryland. showers are on the eastern shore and in the atlantic and moving out of our area. we will shift our focus to an area of low pressure developing east of the rockies parts. of colorado, nebraska, parts this will be part of our rainmaker this weekend. as

of pimco is writing about the jobs numbers on friday saying you know during a recession people cut and so after that they had to do some hiring to to catch up but now he's looking at this in terms of future employment how people are thinking about the future and there's a lot of uncertainties about why companies even though they have cash they're not hiring people do you agree with that and do you think it has to do with fiscal uncertainty over what the government will do about the death as you think the debt overhang is the biggest issue i think it's it's essentially all of the issues that we have right now we go the health care law which is increasing dramatically for businesses we don't know whether it's going to stand down it's in the supreme court so we the the fact is with the debt that the government is taking on this is people go to some point to either has to be paid or to salsa and if you pay it it means taxes are going to go up dramatically and if you default to that it means that the stability of the entire economy and monetary system is called into question and neither of

of pimco, a global investment management firm and the world's largest bond fund. and peter wallison, senior fellow for financial policy at the american enterprise institute. he served in the treasury department in the reagan administration and as general counsel at the treasury department and as a member of the financial crisis inquiry commission. lynn stout, i'll start with you. so whe when you look at the prae of financial institutions, do you see good or bad from a few years somethat that. >> oh, we only wish we saw big changes it has... there have certainly been some changes, but the really fundamental problems have not been grappled with. there there seems to be a denial on the part of the industry that there was ever anything wrong in the first place. so what we're seeing is marginal tweaks, a a little retrenchment. but the structural problems that drove us into the 2008 crisis are still there. brown pwoup we'll come back to some specifics but first, peter wallison, a denial? what do you see? >> i don't see denial. i think the industry is disspirited, maybe

pimco's thinks qe-3 is not off the table. boone pickens gives us his oil and nat gas prices. the ceo of simon property group. and don't miss an exclusive interview with billionaire activist investor carl icahn. that's all ahead in just a few on "closing bell," guys. >>> all right. last pick of the cnbc stocks draft, last pick. >> brian, can i call you brian? facebook is going to stay on the board. with the seventh and final pick i'm going to ft. worth, texas. >> no way. >> yes, it is. and it's radio shack. >> oh, sorry, guy adami. we love you. but your draft pick is our disaster du jour. radio shack, ticker rsh, is not looking so hot today. in fact, it's looking particularly low. 3.6% to the downside to be exact. so why don't we add in some sunshine with shares of dollar tree. that stock was actually left unpicked in our stocks draft. and today trading at an all-time high. dollar tree saw a round of upgrades last week which may be carrying over into today's trade. although as we speak it's down about 0.6%. still hitting a new high in trade today. well, do check out streetsign

the answer, pimco total return. the holdings exceed the annual gross domestic product of finland. more on retirement, go to cnbc.com. >>> another great day for the stock market. the dow down 100 points. s&p off 11. we are seeing some names, like ebay and others rise. the majority of stocks, as you can see, are in the red. >>> all right. fire up the frying pan. it's finally time for to's edition of bacon news. darren rovell is here to chew the fat. a regular grand slam of bacon news. >> all right. let's get to -- the uk bacon crisis. okay? because you might have heard about this, you might not have heard about it. january 1st, 2013, some will not be able to put the pigs in the crates, pigpens, and therefore the production will go down, costs go up. here in the united states, $2.5 billion in supermarket bacon sold over the last year, and sales are up 2.8%. this year, it's $4.02 for a package. that's up 40 cents from last year. the unit volume, however, is down 2.4%. so there you have it there. and finally, the burger in japan. a whopper, a japanese man, you can get by the slice baco

pimco's ceo jones us. >> friday the 13th on "squawk bo box", investors dig in to earnings from googlechop up jp morgan earnings. with their numbers send chills down the spine of investors? plus guest ann mulcahey. or is it just a copy of the guest host? to and in tomorrow to find out. . duff & phelps financial advisory and investment banking services. [ male announcer ] aggressive styling. a more fuel-efficient turbocharged engine. and a completely redesigned interior. ♪ the 2012 c-class with over 2,000 refinements. it's amazing...inside and out. ♪ the c-class starts at just $34,800. with rent2buy from hertz car sales, you skip the lots... and pushy sales people... it's a fast, easy way to buy a used car. three days to try. zero pressure to buy. it's just another way you'll be traveling at the speed of hertz. between listening to the numbers... ...and listening to your instinct duff & phelps finds the sweet spot that powers sound decisions. duff & phelps financial advisory and investment banking services. >>> let's get some more thoughts from our guest coast jim chanos. i'm curious, y

. >> coming up, the man who runs one pimco fund that's managed outside the firm. but first, some sports news. the nfl draft last night for those of you who were awake or not awake, quarterbacks andrew luck and robert griffin going one and two as expected. and then everybody wanted to it make a trade. there were eight trades involving 12 of the league's 32 teams. minnesota swapped its number three choice for cleveland's number four pick. the browns who also gave up a fourth, fifth and seventh rounder desperately wanted alabama running back trent richardson. vikings still got matt khaleel. and there you have. i should have been watching the draft. >> is there a cnbc stocks draft? >> i did. >> we had 21 stocks. >> doing a good job. [ wind howling ] [ technician ] are you busy? management just sent over these new technical manuals. they need you to translate them into portuguese. by tomorrow. [ male announcer ] ducati knows it's better for xerox to manage their global publications. so they can focus on building amazing bikes. with xerox, you're ready for real business

and then pimco's tony krescnezi right next to me. what he's doing with his money. ceo of adobe systems on the company's software announcement and how the company is venturing into cloud. and less than an hour away from the close in europe. man are they going to be glad to put this market day to bed. markets overseas getting hit hard. we're feeling some of that pain here as well. we'll tell you how to play it all and keep your money safe coming up in the next hour. we'll start with walmart. investors trying to figure out if they can still trust the big box retailer with their money in the mid stf this huge corruption scandal. courtney reagan is live outside a walmart joining us with more on at least the investor sentiment angle. morning, courtney. >> good morning to you, carl. it may be the talk of wall street. most of the shoppers here at walmart don't even seem to know about that explosive "new york times" article that alleges the world's largest retailer paid $24 million in bribes to mexican officials and then covered it up. so if

invest themselves in size and also through some of the world's most experienced fund managers like pimco in the u.s. and others in europe and asia. so they've learned an awful lot in a short time. and i don't think they'll try to call the bottom in europe, but they will look for people primarily who want to cooperate with them andness their point of view and see a long term future with china. that will be their number one interest. >> charles, the other story dominating asia is the widening of the currency trading ban by china. how soon before we see the currency becoming fully convertible? >> i'm in the short term or medium term camp. i think it's probably a three year job, maybe four or five year job. i don't think it will be a 50 or 20 year job. because i think china immediates to realize that having the yuan as a reserve currency is very useful for china. the other big implication is that the more convertible and more liberalized the u.n. becomes, the more independent chinese interest rate policy becomes and that could have a very significant impact for interest rates within china. a

. >> this weekend to bring their wine to pimco. it is reaching a whole new audience.re making -- there are maybe some people look at our wine before. >> let the people come up and do a tasting. look around. what the vineyards. the weather is nice. >> this weekend, you can try all kinds of maryland winds. i'm committed casing with admission are of great capacity at this class was signature once. >> this year, it is a two day of benton set of one. here in sparks, dba ltv 11 news. >> -- wbal-tv 11 news. >> the congressman speaks out about how he feels the obama administration is handling the civil service scandal. and goal completed? and annapolis sailor has balked at his welcome home. >> and this is an editorial. >> our goal has been your number one choice. we also strive to be your number one choice on the web with more than 12 million page views per month. the bail -- wbaltv.com won the award for best broadcast website. we'll listen to your feedback and heard you loud and clear. this week, will present a new web site that we hope he will visit every day. we designed t

then it's a new norm al just like they said at pimco and we're stuck above 8% unemployment. >> the housingbeing worked through. we were looking at 20% down on housing prices. now we're flat. >> stay where you are. they're playing us out but you're here for the next two hours. if you're feeling dazed and confused thinking about the european markets, our next guest is one of our favorites. she's my cliff note verse to what's going on in the rest of world. jillian ted joins us right after the break. between listening to e numbers... ...and listening to your instinct duff & phelps finds the sweet spot that powers sound decisions. duff & phelps financial advisory and investment banking services. in here, the landscaping business grows with snow. to keep big winter jobs on track, at&t provided a mobile solution that lets everyone from field workers to accounting, initiate, bill, and track work in real time. you can't live under a dome in minnesota, that's why there's guys like me. [ male announcer ] it's a network of possibilities -- helping you do what you do... even better. ♪ between black and

if you are pimco or federated, are you going to move some of your bond trading away from goldman sachswhich may be more cost efficient for you and you could pass those cost savings onto your clients and those on your funds. in fact, you will go through a platform that is essentially being run by one of your direct competitors. >> let me ask you about this big report about asset allocation trade that happened partly yesterday and part of today. is it tied to this china rumor about gdp being hotter than people otherwise thought. do you think it's responsible for action we are seeing today? >> this china stuff, you know, now there's some interpretation of what came out of china wasn't there. i don't know. you know what i'm looking at here? when we were together here on tuesday, i referenced that although the equity markets were having a very poor morning and subsequently had a poor afternoon, i said look at high yield index which i did at this time. if you can bring up in your control room the five-day chart, you know there was no followthrough really in high yield credit markets from wha