she will be replaced by insider ramon laguarta. candidate to take over since being promoted to president last year. a semiconductor company that makes chips for iphone says it was crippled by a cyber virus similar to wanna cry. the outbreak shut several factories just as the company ramped up for the new iphone. it says full operations have resumed. learned the parent of mercedes is in talks with beijing electric vehicles to set up a joint ventured to manufacture a smart car rand. that is your bloomberg business flash. david: thanks. the u.s. is ramping up economic sanctions on iran as part of the president's efforts to get the irani and's to renegotiate -- theiranians to renegotiate nuclear deal. golhar,us now to shawn barclays head of public policy research. and michael cohen, barclays' head of energy market research. take us through the first round of sanctions. disparatede range of products and activities to how much pressure is as likely to bear? shawn: we are seeing pressure anianhe irani and -- ir economy already. the admini

indra nooyi will step down next month and ramon laguarta will take over.ight ahead >>> apple won the race to the trillion-dollar market cap and alphabet made it interesting. we'll talk to ann winblad. >>> plus a streaming success story. a closer look at spotify's plan to beat apple, amazon, and google at the music game the final hour of "squawk box" begins right now ♪ >>> live from the most powerful city in the world, new york, this is "squawk box. >> good morning and welcome back to "squawk box" here on cnbc live from the nasdaq market site in times square. i'm joe kernen along with andrew ross sorkin and morgan brennan becky is off today the futures have been around the flat line for most of the session. they've been a little green, a little red they're a little red again down nine or so on the dow the nasdaq is up 4.5 the s&p is unchanged treasury yields are below 3% again. they did get up above 3% never seems to last that long. one of these days maybe. 2.958% this morning. >>> and some breaking news this morning. the big headline, pepsico, the company

she'll be succeeded by ramon laguarta. joining us is nic modi.sector perform rating and a $111 price rating on the stock. what does this mean for the future pepsi? had a clear vision on what she wanted to accomplish. our senses, based on our discussion with our contacts, she had notified the board she was looking to step down. logical successor as many of the other successors left the organization over the last several years. you're going to see more of the focus on building the nutrition portfolio part of pepsi but also reinvesting in the core brands that have lost focus within pepsi that has caused weak results. we think we're going to see more of the same. the question is, she was instrumental in buying in the pepsi bottling assets in the u.s. they need to get rid of those assets. does this transition happening now make us closer to that and that is what we will be watching for. vonnie: with that have the backing of activist investors? -- would that have the backing of activist investors? now, there are no large activist investors. it is our v

that will be the real focus for ramon laguarta. scarlet: that is the weaker link.rta has been there for almost as long as his 24ooyi, 22 years to years -- her 24 years. should he be looking for somebody from the outside to bring some leadership to that part of the business to get it back on the right foot? bill: as we put in our note today, it depends on what pepsico's perception is of the north american business. i would say most people would say that it has been very choppy, and they are at a disadvantage against coke, in the u.s. especially, with these changes. they would probably tell you after this last quarter that they are back on track. they had a couple of choppy quarters, but things are looking better and it is smooth sailing from here, so maybe they do not need as much action. i think it depends as he go over the next few quarters, the north american beverage business that have favorable comparisons, so it might look like of a breathing is ok and you might not see changes whatsoever, until we get some change or until we get to later in 2019. taylor: i wa

now the company being led by ramon laguarta he is an inside were tremendous international experiencehe rally in the stock has to do with the belief that he'll do something radical to unlock value my charitable trust has a position in the stock. we're grateful for today's gain. but let's not get ahead of the story. nooyi has been bringing out story the whole way. if laguarta can follow in her giant footsteps, i'd be thrilled it would be graep great. we want long-term sustainability we want what indra has given us for years. so we offer her our congratulations as her tenure closes, and we wish her all the luck in the world as she carries on her championing of larger causes han just faithfully delivering the better than earnings expected share that pepsico has given us for so many years. >>> steve in missouri, steve >> caller: hello, professor cramer how are you? >> i am good, steve. how about you? >> caller: good, thank you it's a little hot here in missouri, though that. >> could be. >> caller: hey, my question is about national beverage, tickerz i've been in this stock for about a ye

. >> aramon worked for me for many years, so i know ramon laguarta for many years, he's got a -- ramon in that he ran spain, russia s and larger markets, europe and most recently aspresident of pepsico, he was always very entrepreneurial. he came to us from a lollipop company, and we had our spain business selling loply pop l iin the side in addition to our beverage products. his style is very different than indra, he's pragmatic, he's got terrific people skills, he's a savvy operator and is very grounded but like indra, he's going to have a high passion for excellence, he's very results oriented, he's global and he's going to embrace trying to adapt to change as indra has for more than a decade now. >> michael white, talking about indra noi avg oyleinpepsi. s&p continues to hold on to a modest 3-point gain, we'll be right back about potential investment opportunities in real time. fidelity. open an account today. the kayak explore tool shows you the places you can fly on your budget. so you can be confident you're getting the most bang for your buck. alo-ha. kayak. search one and done