Transcripts For CNBC Squawk Box 20240713

We havent seen for quite some time i can deal with two, three, i dont know eight if it is going up for the right reason it has been good so far there is a lot of floating rate stuff around tensions in hong kong escalating overnight. A flash mob. More than 1,000 people wearing office clothes and face masks blocked roads in the Central District as police fired tear gas as well as at two University Campuses carrie lam said that the protesters are selfish well continue to monitor the updates as they come in. Thats after yesterday when she said they are her enemy. Enemy of the people i think i am as a member of the media. Although not comfort as a member of the Mainstream Media. Am i really part of the Mainstream Media yes hello. An update now on the controversy over the apple card. Goldman sachs denies gender bias but says it will reevaluate those who received lower credits lines to begin with. It may be because existing cards could be combined with a spouses account leading to lower availability boeing said to deliver the 737 max next month and could start commercial service as soon as january this is near term. Boeing shares as a result rose sharply. Pushing the dow to negative territory from positivetar territory. I meant by the end of the day. The company said it has completed a test of the new Flight Control software in a sim simulator. Well talk to a boeing share holder later this hour on this front. Okay, we know theyve completed one of five check points, it is still the faa that will make the final determination. The other issue is will there be heightened training required for pilots the chairman said they expected one regulator to assume the flight at the end of the year. You are saying it was weird because they put out later dates. Because it wasnt up that much early on. There are some new increment al comments about when or how it was going to be reintroduced anybody buying into this is reading the tea leaves of the faa. It was up quite a bit from where it was that day. I thought he did a really nice job i was sitting at home watching it i thought it was very, very credible what time do you go into far point . I usually work 11 00 to 2 00. You are really busting your as far point, tom farley thats right. And im a partner at third point. You didnt pay anyone for that no. It is a good name. Did you pay yourself. 6 million. Sold to to myself. U. S. Regulators considered grounding southwest planes because of gaps in safety records. At issue are safety and repairs for foreign aircrafts. Saying they had found dozens of repairs performed before it bought them. Southwest couldnt produce documentation saying the plaebs met all Safety Standards disney officially entering the streaming war today. The launch of disney plus. Looking to capitalize on popular franchises that iger has acquired likepix ar, marvel, star wars. The service will cost 6. 99 or 12. 99 monthly bundled with hulu and espn plus. Subscribers can get the service free for the first year. Well get an early view of the offerings and talk about this big gamble late in bob igers tenure maybe his biggest gamble to date they used to get a lot of money from netflix now they are going to do it themselves thats the guest we had on saying it is becoming very si siloh. Youll have to pay each one for the content. I have verizon unlimited plan ill get it free i want to get this downloaded. Every verizon customer with unlimited data you can use far point for that thats personal i can watch star wars when im on the subway. Write it off. You have a partner, get him to pay for it in my special interest company, all the banking costs, come out of the principals personally no way. Who is your accountant. That Business Model has evolved. All the money comes in from investors sits in a trust account. You are sowing investors. This isnt a pitch. Just explaining how it works. Sounds like a pitch it is a Public Company traded on the stock exchange. So you cant. That would be a no. When we get you back, well get you ready for the day ahead. What you need to watch ahead of the hope President Trump set to give a speech at the Economic Club of new york today well tell you what to expect. Obvious. Sometimes, they just drop in. Cme group can help you navigate risks and capture opportunities. We enable you to reach Global Markets and drive forward with broader possibilities. Cme group how the world advances. What are you doing back there, junior . Since were obviously lost, im rescheduling my Xfinity Customer Service appointment. Ah, relax. I got this. Which gps are you using anyway . A Little Something called instinct. Been using it for years. Yeah, thats what im afraid of. He knows exactly where were going. My whole body is a compass. Oh boy. The my account app makes todays Xfinity Customer Service simple, easy, awesome. Not my thing. Welcome back, investors will be keeping close watch of President Trump when he addresses the Economic Club of new york expected to talk about the china trade talks and to announce another delay on tariffs on cars lets talk strategy, our next guest says stocks could rally. Chief investment strategist. You think yields will continue to push higher too i think so, becky i think there is a lot of stuff going on with the trade agreement and president ial impeachment stuff. I think the main thing driving things is that Economic Data is turning out better than feared i think that is driving both yields and stock Prices Higher people have found out they are under allocated risk the ghost of recession kind of peeked in august since then, yields have bottomed out around the world also the leadership has really shifted away from low ball defensing and to cyclical areas to International Markets you think this will be the story too . I think the International Market has some catch up to do efrp time in this recovery if theyve had the recovery pick up and International Markets have picked up in the United States you are the only person on the planet who thinks that might be working. You think that is a positive and rekindling those have had less and less impact i think it was a big assumption to make that they suddenly stopped working sooner or later, they are working on the impact. There is a oneyear lag you think about it as we tightened a lot now we are about a year past the time bond yields started collapsing about a year later, we are seeing a pick up now how much room do they have with only 13 to 13. 5. What you are saying makes sense i dont understand how we are in that world you are saying both are going to increase, how much interesting to me how long they have outperformed already even the china etf have matched the spy in this country since may despite the trade war. Some of this going on without getting attention when you think of taking the german bund from plus 80 to minus 80. A lot of stimulus in terms of the capital. We have depressed multiples and earnings both could turn upward even though the rate is rising, you think the dollar could weaken, and that could be a assume in terms of exports and multinationals a few aspects our gdp growth rate held up a lot better our yields have held up better and then Inflation Expectations, when that goes down, it really benefits the dollar. When that goes back up, it retards the value of the dollar. When the dollar comes down, you bring Commodity Prices up. You praise Inflation Expectations and bond yields the rest of the world is much more composed by industrial manufacturing, commodity oriented enter prizes in the United States. We are Service Based inflation benefits the rest of the world more than it benefits us not only do you get a weaker dollar but raising Commodity Prices we were with talking yield d and looking at almost 10 on the tenyear if you think it is a signal of positive things. I think it is a signal of positive things. By comparison. In march of 2018, we have a 22 times earnings on trailing earnings that were rising. We had almost a 3 interests your today, we have about 20 multiple with about 1. 9 trezy there is quite a bit of room there. Particularly this wall of what i call worry warts that have held a lot more cash. If you slowly convince them of winning more i think it is helping part of that is they havent turned bullish that brings a lot more capital to the market. I still think there is room. I think well see the treasury around 3 again. It will be okay probably well see how this plays out we have this fear of what hatched happened in japan for 20 years even if we go above 2. 5. The difference between us and japan. You can still have babies. Thats true japan went into an inflationary abyss. They were coming over and buying up our golf courses. 30 rock we were enjoying their polite no one was there to help them. Today, the world is in the same boat they are all massively easing policy i think well have a revive al in inflation. Meaning the good news becomes bad news with all of this massive easing i think so. But there is a lot of good news before it becomes bad news every recovery weve had has ended in some sense of overheat hitting it. Bottom line is there as well. We are starting to have productivity pick up we are having the labor force rate pick up we are having a house hold inflation boom we have a strong Balance Sheet with personal savings. We have a manufacturing session we could revive. Odd to have that much left this lace in the cycle. Thank you for coming in it is a lot warmer here. A bunch of clients back here he told me thats why hes back here. The clients are the secondary part he was here to see you we are your most important client im getting out before the cold wave comes here it is coming. Cold from all the warming after the three year hiatus, the zagat guide is back. New york state is taking business to the next level. Supporting Innovative Companies that will shape tomorrow and Building Workforce development and tuitionfree College Programs to generate the talent companies need. With a 150 billion investment in state of the art, modern infrastructure, and a nationleading commitment to lowcost clean energy, new york is doing more than any other state to build for the future of your business. New york state, the state of the future. Learn more at esd. Ny. Gov. Time for the executive edge this got us relaunching. In print today after three year hi hiatus is the 2020 zagat guide when were you on . After the acquisition march of last year we bought it from Google Google bought it from the founders in 2011 we acquired it last year i thought you were on before then when you had brought it back no. I dont think i came here to tell us our plans. At this point, it is going to be coexisting. One is the Community Rating and infatuation does the panel we have a team of people in our cities that they operate in and write the reviews from their point of view. Zagat has always been user generated. Thats how we made the book and will build the digital platform. The book is here for good we bought it to continue to push the brand forward in the digital platform zagat started in 1979 so this is an anniversary so hang on to this one the first time we printed a book it comes out today from here, well see where it goes and assess from there we even talked about it before the cameras started rolling. Books are nice what weve seen and heard is that they really want this back. It has been gone for three years. We are excited to give it back what call can i do with it . You can text us with an app it is a discovery platform we had a big audience on instagram. The whole thing is about restaurant discovery helping you find restaurants starting with a certain scenario business dinner, first dates and dates with your significant other are different. We try to get specific about the situation and back you into the best restaurant. Social media savvy, were you all linkedin we started in new york and were only in new york a long time but instagram really helped us become a global brand moving into other cities, that was part of that google buying zagat really helped us. Google lost money no idea what did you pay . I can tell you what they paid . I can tell you it was not what they paid was it less we can tell you less for sure money that would fit in a bread box. If i text you, can you get me a table near a waiter. No. We stay out of the residence servations well help you to one of the platforms that does. We are just about the recommendations. How many cities 25 with the infatuation and zagat will relaunch in 25 cities and go global after that when we come back, burger king is betting big on Meat Alternatives here in the states and europe take a look at yesterdays s p 500 winners and losers through the at t network, edgetoedge intelligence gives you the power to see every corner of your growing business. From managing inventory. To detecting and preventing threats. To scaling up your production. Giving you a nice big edge over your competition. Thats the power of edgetoedge intelligence. Whether your beauty routine is 3or 57,. Make natures bounty hair skin and nails step one. Its the number one brand uniquely formulated for silky hair, glowing skin and healthy nails. Natures bounty, because youre better off healthy. I am royalty of racing, i am alfa romeo. Good morning. Welcome back to squawk box. Green arrows across the board. S p 500 up by 3, dow up by 20. Chipotle extends carne asada was able to source some additional supply. The weirdest thing is that crazy spicy chicken sandwich the popeys one. Sounds really good. I havent had it how good can it be. I like how theyve been trolling chickfila they brought it back on a sunday they are like ha ha. We brought it in very successful place, chickfila. I cant help put think about that mcrib they have a mold parts is parts not all parts is good burger king is bringing a plants based burger to 20 markets in europe it is not the impossible whoper that is a hip here in the United States the Dutch Company is going to supply a new soy based rebel whoper the impossible burger has not been approved in the eu. It requires further testing because it contains geneticly modified ingredients burger kings u. S. Sales rose by 5 in the Third Quarter. The biggest increase theyve seen since 2015. Restaurant brands and unilever shares are up a little bit so thats not really a impossible or beyond meet burger it is a veggie burger some are really good. Ever tried morning star grillers those are good. Why would i low calorie thats a reason it is not like the impossible burger where it is the same. I like regular burgers. The 3 g guys. They need some good news theyve had a rough run. Restaurant brands has not done well so good for them. Theyve had a terrible 12 to 18 months. Coming up, boeing is talking deliveries and details on plans for the max jet. Disney plus launches today what does this mean for the battle for your screen stay tuned you are watching squawk box. When you retire will you act or feel different . Or will you just be you, without the constraints of a full time job . You can grow your Retirement Savings with pacific life and create the future thats most meaningful to you. Which means you can retire, without retiring from life. Having the flexibility to retire on your terms. Thats the power of pacific. Ask your financial professional about pacific life today. But when i started seeing things, i didnt know what was happening. So i kept it in. He started believing things that werent true. I knew something was wrong. But i didnt say a word. During the course of their disease around 50 of people with parkinsons may experience hallucinations or delusions. But now, doctors are prescribing nuplazid. The only fda approved medicine. Proven to significantly reduce hallucinations and delusions related to parkinsons. Dont take nuplazid if you are allergic to its ingredients. Nuplazid can increase the risk of death in elderly people with dementiarelated psychosis and is not for treating symptoms unrelated to parkinsons disease. Nuplazid can cause changes in heart rhythm and should not be taken if you have certain abnormal heart rhythms or take other drugs that are known to cause changes in heart rhythm. Tell your doctor about any changes in medicines youre taking. The most common side effects are swelling of the arms and legs and confusion. We spoke up and it made all the difference. Ask your parkinsons specialist about nuplazid. Boeing shares rose sharply after the company said the 737 max may return to service sooner than expected. The company is expected to report october orderers and deliveries at 11 00 a. M. Eastern. Someone will be waiting and watching that rally sparked by the belief many people had that they are close to the end in terms of getting the max fixed and back in service there are a number of hurdles the Company Still needs to overcome this sparked shares to move higher faa certification is expected by middecember the faa will go first and followed by other regulators around the world deliveries can resume once recertification is in place. Pilot training rules expected to be set by midjanuary. If you are an airline that has received your max update, the fix is in place, the delivery has taken place, pilots have been trained, you could see service by the end of january. Dont expect southwest and american to immediately put it in the air it is off the schedule until likely early march united similar to what weve seen from southwest and american and in the u. S. , not only about getting the planes parked and waiting to be updated but the Pilot Training that is the big hurdle from them and coordinating the schedules and deciding when do we believe there are routes we will find people who quantity to fly the max. You take a look at shares of boeing, the company will be reporting its october orders and deliveries, 11 00 a. M. Today well see if there is any change on the backlog of the 737 max. Youve got other aviation related stocks that moved higher in conjunction with boeing spirit for example make the fus lodges for the 737 well wait to see what those deliveries look like when they come out head of faa talking in washington, d. C. Around 1 00 p. M. Eastern time. Thats a big deal what he thinks about it is more important than what we hear from the company. Obviously im not sure how much color hell give he made it clear when there was this incident of whether the information was shared with the faa. He made it clear, he was not happy with boeing. Im not sure how much hell get into that. Certainly people will be watching his speech to see if they can read anything into the position of the faa. Right now for more, we are joined by david bonson they are earn roughly 35 billio shares of boeing for their investors. Sounds like details need to be worked out there are i expect other hickups to come the whole thing is messy you have a company with a Balance Sheet that was at no point threatened here. Ive never seen a company have such a difficult year, be the source of so much understandable attention, negative and yet the stock is up 14 on the year. We talk as if this has been this collapse well off the highs we trend the position on 414. Now in the 350s, it is still up not only on the year but the last couple of years 10 billion cash on hand we believe they are going to get through this but it wont be an easy ride. What was the good news yesterday. It was clear as mud to me. Maybe good news yet the stock ripped a good question the answer is that there has been expectation the news was coming and return to service would be delayed the news came that it would not be delayed beyond january. They expect things to rev up in december and be flying in january. Some estimate it could be kicked off to april or may next year. The idea three or four months further is not on the table is what is on the table yesterday ralph nader came on and talked about the structure of the plane. If you take it all the way to the scream, what does boeing look like worse Case Scenario for the max . The ultimate tale risk, you cant price it in. If ralph was correct, i dont think anybody would be ordering boeing airplanes im saying the 737 not coming back much much longer time they are generating 13 billion of profits on 100 billion of revenue it is a good margin business and one of the best generators in market history it has been the best returner of capital since about the year 2000 many people have owned boeing long term have a dividend that is almost what they paid for the stock year over year they are a diversified company in terms of 737 max, it would redefine the company how do you price an event into one single stock i dont think that would ever freely happen. If it had, i think it would have been worse for the company theyve managed the process well i dont agree with mr. Naders a saesment of a plane built to fall out of the sky. You are talking about a couple of outlier events that were very, very unfortunate it is a good company and a good plane. Have you been adding . We havent raised the target rating weve kept it steady we wanted to recognize the risk. But we didnt lower the waiting through it we stayed at same as the beginning of the year. That target is what 2 of our dividend portfolio. Thank you it is called swine slurry. Thats what they make mcribs out of you heard from the chef i did i looked it up ill read this later to you. Please dont. I think this is an exaggeration anyway buried in an obfiscation of riched Barbecue Sauce it says eye balls. People are eating breakfast they are not eating the mcrib. Search out the mcrib coming up, the big day is here bacon bacon is like health food disney plus is going to launch about 45 minutes ago well take a look under the hood after the break. Announcer dont forget to subscribe to our podcast youll get interviews, original content and behind the scenes access look for us on Apple Podcast and subscribe to squawk pod today. 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You were playing some simpsons music. Star wars and simpsons they loaded right up it looks like the netflix user interface but no glitches whatsoever i downloaded it. Popped right up on the Verizon Wireless phone service. Paid for you write it off with your company. I do not. I do not. The latest entrance into the streaming apple service. Steven beck, cg 42 and george salai, International Business editor at the Hollywood Reporter theyre missing out on what they used to get from netflix, right . Is it going to be replaced by this yeah, its going to be replaced by this netflix is highly vulnerable based on our surveys, 30 of their user base currently in the u. S. Thats 60 million households right now. About 30 of those are vulnerable to switching in the next three months. George, do you think iger i feeling really good right now . Do you think he thinks this is a pretty big risk late in his tenure well, i think he is very comfortable that this is the right direction for the company but he knows that the next few years the company will be losing out on earnings and will be not profitable for this service. Hell hope to get to enough subscribers quickly enough maybe 2025 he can make a profit off of this and show that this was the right call. 2025. What would be a good number of subscribers by 2025, george . Some research that i just heard last night was about 100 million globally disney said it could get up to 90 million by 2024 and i think theyre hoping that with the low price they have, the strong brands, pixar, marvel, disney, et cetera, that they can get a lot of subscribers early on and theyll worry about the profitability somewhere in the coming years. Thats a strategy, steven, that probably bob igers the only one that could do that because he has a long track record, he has a lot of faith built up with the shareholders somebody new wouldnt be able to do the same thing. And he has a massive amount of content that people want and want to watch. Our estimates show 45 of current streaming subscribers are planning on signing up for disney plus over the course of the next three months. That puts them well on the way to their goal. We think out of the box theyre going to just really kill it and, again, its obvious its all about the content its about star wars, its about marvel, its about pixar, its about the disney catalog and thats something that the competitive set in terms of netflix as the main one just cant match. Can i ask one question though look, it seems to me that this is a good deal for anybody thats got kids in their family, however, it may mean that i am not going to be buying the dvds to this point. Thats true. I can see other ways that it will start to cannibalize other profit streams. For 6. 99 i probably own every one of these. As do i. Its a shift but its a shift thats inevitable. Whether they were licensing that content or somebody else or having a direct relationship with the consumer, theyre opting to have the direct relationship with the consumer and give them the wealth of content that they have and content that they have in the pipeline, it makes complete sense to go direct i was a little surprised to hear you say that netflix users will switch. In other words, youre not saying they will add disney, they will switch. In the beginning theyll add disney, but heres the thing about the Current Subscription business theres no lock in if youre not using it and you dont want to have it anymore, spending 15 bucks to not watch something isnt going to happen. Youre going to see netflix have to respond theyre losing two of the main shows that people watch on their network, friends and the office. The other one is Stranger Things. Thats great are you going to put Stranger Things up against the franchises of star wars or marvel i dont think so they have to find content thats unique to them to keep people watching if youre not watching, youre not subscribing. Its that simple. George, have you written a story on the new golden age of hollywood for writers and producers of content and Everything Else . Is it happening . How is it not happening if are you working on that piece . Weve been writing this for the last couple of years it seems like every creative wants to get into the streaming space now, whether its with apple or with disney or somebody else everybody is excited about this. Money companies are throwing at creatives right now well see a little bit of a shakeout when we see what kind of original shows work in the streaming space, what kind of feedback disney and others get from fans. Youll probably see a little bit of a pick and choose approach in the coming years saying, hey, lets keep going with these kind of products. Lets cut up the content thats not making a difference for us in the streaming space is being an agent out there pretty good right now, do you think . Who should you focus on, writers, producers, actors all of the above anybody one of the things i always hear from people out of hollywood is anybody with a voice. Anybody who has something to say that they think can really, you know, be a branding piece for new streaming service, something that people can gather around, like the next game of thrones, if you will, so to speak everybody is looking for that hit show. Big agencies have packaging fees it seems like individual people should maybe get a discount on what theyve been used to paying for so many years with all of the maybe with all of the packaging fees whining im thinking they should share the share the wealth . Yeah im not expecting that any time soon from my agent bombasti bombastic butchkin. You remember that totally. When we come back, investing in space weve got a special report on the te olastut of this world opportunities. The economy front and center President Trump set to deliver a speech in new york today well tell you what investors expect to hear. Huawei battles the u. S the company is willing to pay up one of the companys top security execs live. Plus, snap chat just added new glasses that allow you to add crazy effects to their videos but theres a catch. They are very expensive. Weve got the details as the second hour of squawk box begins right now. Good morning and welcome back to squawk box on cnbc im joe kernen along with becky quick and we have a cnbc contributor. He is flush at this point. Cnbc contributor. New york stock exchange. Thats why i intduced you to come i think you can cover your first month of disney with your appearance today. Disney plus. That and once a week i can get a latte. Maybe and disney plus all right. U. S. Equity futures at this hour are indicated higher again theres been the default position for these premarket futures for the last month it seems like its green just has been. Yesterday when it started red only came along and ended posi alets get you caught up on some of the other headlines this morning. Small Business Optimism rose in the mo that monthly index from the National Federation of independent business came m at 102. 4. That was up 0. 6 from september Small Businesses are still creating jobs, expanding their e will delay a decision on whether to impose tariffs on cars imported from the European Union. Thats according to e. U. Officials who say they have solid indication from the white house that tariffs wont be announced this week. The president is in new york today where hell be giving a speech to the Economic Club of new york its going to be taking place at noon eastern time. It may address u. S. China trade as well. The president , in fact, tweeting just in the last half hour, economy is booming seems set to have yet another record day possibly well see. The dow finishing yesterday at a record close its ninth of theyear joining us now, gihan above little our own mike santoli is with us as well. Gihan, bracket capital your goal was to take International Money and connect that with some Technology Stalwarts out in Silicon Valley and upstarts. Thats it we focus on growth and late Stage Private Companies. The likes of uber, wework, sp e spacex thats where we focus our investors capital. In the last three months what do you make of whats happening and how does it affect whether your businesses some things are even more attractive. We have a long volatility strategy we have a lot of tactical allocation we are looking to invest on the Second Market buying early from employees. When volatility increases and uncertainty increases, weve seen that, it produces a lot of interesting entry points. There must have been a lot of interesting things youve seen in the wake of wework. We werent an investor. All of a sudden, employees are like, hold on a second thats made that conversation a lot more interesting they thought they were investing in companies that might go public the average is 10 to 12. Within that you see interest to access it. They think the private space got out of whack. Yes. Do new highs in the Public Markets start to bring confidence back to the private markets . Or does it not matter . Its been a little bit bifurcated you can go back to 2014 and say the private markets is where all of the aggressiveness, the growth was happening its almost just that theyre not in sync in terms of when were hitting new highs for valuation. Whats interesting about the Public Markets is theyve walled off what they would perceive as excessive valuations and new ipos or theyve not received them well. Look at the direct listing of slack. If we get ebullient, does the new ipo market reopen i think its still open its a matter of being more selective. I dont think new highs in themselves the way were rachetting to new highs tells you that were ebullient necessarily. No. If we get there, yeah 3500 on the s p people are going to start thinking this is still not the most loved market, is it, that you see . We had a guest on this morning saying everything is great. Hes rare hes rare. All around the world is fine. Gihan, there is a mania that overtook the Silicon Valley Public Markets are terrible, we can do everything better than Public Market investors. I think thats been proved a little bit silly i look at a number of the companies that you invest in and i would put them in that kadri, ai airbnb, lyft, uber they have developed Business Models, ready to go public theyve chosen not to go public and i think it has harmed many of them. Is that a threat to your Business Model you know, it really, like all things, depends on entry points as well, right were not investing preipo post the announcement, were three to five years out if things have gone well were deep in the money by the time that conversation is starting to happen it is true i think theres this new asset class. Its somewhere between venture and Public Markets, right . Late Stage Private Companies that would have been public in any other sort of space and time and so were kind of in and out trading actively in the secondary market on some of these names. Its less on longterm only buy and hold for the existing portfolio, volatility can affect it negatively it presents entry points and weve gotten more active. You like lyft better than uber we did. Did change your mind exited a while ago. You had lyft . The impossible food phenomenon is going to continue absolutely. Big deal. Thats a big that stuff is right. I think impossible foods and even its competitors sitting out in california you can very clearly see that this is a very, very strong and growing macro trend. What about coin base, crypto . I thought youd ask yeah, were still an investor in coin base. Were an investor ina variety of picks and shovels so to speak around the crypto universe we dont track it the same way daytoday that bitcoin investors would. These are intermediate to longterm holds. We are very bullish and we continue to hold. If it went away, it would seem like coin base would go away. Its highly leaf verivered. If it works, its huge. Thats right. Theyve made their bet. Thats right. What is the next thing that i dont know about that you can tell me . And thats not a very high bar, but what do you think youre out there. Your ears to the ground. Youve located out there for a reason. Yeah, absolutely. Its important to be close to the deal flow. Theres a lot happening broadly speaking in the world of Artificial Intelligence. Thats a high level word there are interesting things happening with Machine Learning, audio interfaces the way we might interact with audio will be less the screen and more audiobased things. Theres a lot of very Interesting Technology and i. P. Being developed there. Weve been placing investments in that space in recent months. We hear from ann winblad. Steel pipes. Its not something sexy like social media its Something Like Enterprise Software. That actually makes money. The place to be. Yeah. Unit economics, to your point earlier on wework, what we have seen in private markets is kind of a retrenchment and refocus on companies with strong Business Plans and sas and b2b businesses. The tmobile guy, is it based on the hair . I wasnt in the room for that conversation but its do you understand that . I think its more than the hair. They look alike theyre brothers. Thats what they came up with is there any synergy between tmobile and sprint. I dont get it. Theyre going to be 100 million company. Is masa going to support john leaving tmobile to go to wework whos going to run tmobile sprint . There arent a lot of ceos that have that 60s hair hes the only one. Flowing locks no. I can think of who else . Michael furtick. Thats not a ceo. He was at reputation. Yeah, okay. He may be in the running who knows. Richard branson. Branson branson. Branson might. Okay thats just a Bill Mcdermott has great hair but were talking long hair now, flowing locks . Were talking where you just put the guy right into wework and its like, wow, we dont miss a beat. To your point, tom, is it considered a project as opposed to running this Company Long Term for wework . Is he going to be put there to do a retool and then is this a jack dorsey is he going to run both companies . Right because of what youre describing. Thats an interesting that was my first reaction. Otherwise, it doesnt make sense to take a gia way from a 100 billion company where hes done a fabulous job. Its all the same guys that have been involved in this marcello. Michael combs, yes. Gihan, good to have you here. Santoli, come back i know you will. For you i know you will youre not here for me, youre here for him . Well he was at barons. If you want the he loves barons he loves barons. You still read that. Barons was great this weekend. Xerox article. Honeywell. What theyre doing darrius with the software. He read the entire magazine. Yeah. All right when we come back this mornings top corporate headlines including the launch of disney plus plus, could 5g give a boost to Sports Betting . Those stories and much more. Squawk box will be back after a quick break. Dont forget to subscribe to our podcast. Youll get interviews, original content, and behind the scenes access look for us on Apple Podcasts or on your favorite podcast app and subsibtoquk d dacre sawpotoy. Robinhood believes now is the time to do money. Without the Commission Fees and account minimums. So, you can start investing wherever you are even on the bus. Download now and get your first stock on us. Robinhood. But in my mind im still 25. Thats why i take osteo biflex, to keep me moving the way i was made to. It nourishes and strengthens my joints for the long term. Osteo biflex now in triple strength plus magnesium. What are you doing back there, junior . Since were obviously lost, im rescheduling my Xfinity Customer Service appointment. Ah, relax. I got this. Which gps are you using anyway . A Little Something called instinct. Been using it for years. Yeah, thats what im afraid of. He knows exactly where were going. My whole body is a compass. Oh boy. The my account app makes todays Xfinity Customer Service simple, easy, awesome. Not my thing. Welcome back, everybody. Check out the u. S. Equity futures on this tuesday morning. Youll see there are still green arrows weve paired our gains but the dow futures are up 12. 5. The s p gave back a little ground yesterday but its indicated up by 1. 5. Nasdaq was also down yesterday but its indicated up by 6 points right now in our headlines, disney plus is launching today. The streaming Video Service will cost 6. 99 a month disney has spent more than 3 billion on technology and content to launch that new service. Disney shares so far this year have picked up quite a bit of ground they were trading around 105 when the year began. Right now trading at 137. 75. Officials in states that allow Sports Betting now say that the advent of faster 5g Wireless Service could be a big boon to the industry wall street journal says the Faster Response time could allow the way for in game bets and perhaps wagers on every play 4th and 6. Do they make it . I cant even would you get drawn into that world . No. I only do one thing. The outcome of the game the outcome of the game. With the points although the other day it looked like one team was going to win and they asked me five minutes left whether i wanted to set the for 20 less than i was going to win do you want to cash out now . No, i didnt. It went all the way down to the very end where they were on the 1 yard line and i would have lost i had wished that i but its amazing. The more you bet, the more you lose the more the house wins. You cant win. Wait a minute, the house usually wins yeah. Its called vigorous no matter what happens. Do you have evidence of that . Is that a factual i have a doctoral degree. We all know that and here we go look whos playing tonight. We all think we are greater than average, dont we if you break even, im happy. Youre so engaged. I think all of the sports teams are going to be worth more its fun you dont live in jersey no, i live in new york city. So you cant do it . Go ahead, nanny, nanny. [ audience booing you can booboo users will receive estimates they say you dont know the gender or status she said the disparate in goldman said that its looking into credit card accounts. Coming up, huawei the battle for the u. S coming up next 96. 7 billion. Thats the total venture of capital deals through the rsfit threequarters according to data by pitch book. Make fitness routine with pure protein. High protein. Low sugar. Tastes great high protein. Low sugar. So good high protein. Low sugar. Mmmm, birthday cake pure protein. The best combination for every fitness routine. Is that pgim, we see alpha emerging in the trendsete . Driving specific sectors of outperformance. Where a rising middle class powers a booming auto industry. A leap into the digital era draws youthful populations to mobile banking and ecommerce. Trade and travel surge between emerging markets. Every day, our 1,100 investment professionals around the world search out opportunities for alpha. Partner with pgim, the Global Investment management businesses of prudential. Welcome back, everybody. U. S. Equity futures are higher dow futures up by 22 points. In our headlines today, disney plus is launching today. The streaming Video Service is going to be costing 6. 99 a month. Disney has spent more than 3 billion on technology and content to launch the new service. Also, weve been talking a little bit about huawei. Is rewarding its employees for riding out the ongoing black listing by the u. S the Telecom Giant will give staff working to navigate that standoff 286 million in bonuses. The company says its going to double pay this month for nearly all of its 190,000 workers joining us right now is andy purdy. He is the chief Security Officer of Huawei Technologies u. S. A andy, thanks for being here. Welcome the reason youre paying your employees is to keep them from jumping ship is it getting more difficult sledding its a commendation for how hard people are working and the stress people are working under. We have to move forward and were determined i guess its a thank you. The fcc really doubled down last week on their concerns about huawei they are now saying that theyre not going to loan money to any of the telecom companies, especially the rural ones, who in the past have taken that money and gone ahead and used huawei and zte equipment they are saying not only will they not give them money for additional equipment, theres a very good chance theyd like to see them rip out the existing huawei and zte equipment because they think it places a Security Threat whats your response to that this is one of the ways u. S. Government actions arehurting american jobs. The customers have proposed it to the government and were happy to talk to the government about effective measurements that can be implemented, the kind that allow nokia and eriksson to do business in the United States despite their connections. The problem is that any Chinese Company would be forced to cooperate with the Chinese Government if they were asked to do so and they would not be allowed to tell their customers they were doing that what do you say to that accusation well, as Henry Kissinger once said, even paranoids have enemies. So its a complex situation. But the fact is, look at what the European Union is doing. Look at what germany is doing. They know theres real Cyber Security risk. Theyre going to implement measures to address the risks that come from all vendors china can implant hidden functionality and malware in everybodys products we have to make sure everybodys products are implemented. You said china could do this. What do you mean trust through verification if theres a back door, its a high bar to know that thats been put in. You have would it be constant checks of whats happening with it thats why you have the kind of testing mechanisms that bsi, the agency in germany is studying there are mechanisms as the former Principal Deputy to our director of National Intelligence says. Back doors, i can test for those. They can be tested all updates can go through the independent evaluation process thats how we make sure that huawei products eerarent bad by your own admission, if these back doors can be forced to be coded in, i can understand why some u. S. Regulators, some officials would say, forget it, its not worth the risk. But the fact is, our competitors have the same risk china and four other nations in the world have the capability to virtually implant hidden functionality in back doors in everybodys products lets not be distracted by china or huawei. To be safe we have to evaluate everybodys products. Our relationship with china is more frayed than with those other nations. Nokia and eriksson does tremendous business. Close connections on the ground where china could theoretically implant hidden functionality theyre not different in that sense so we need to take the measures as the former head of the fcc said, admiral simpson. We cant be distracted we have to evaluate nokia, huawei and eriksson products. Youre a spokesperson for the company. Yeah, they can make us do it and they can make everybody else do it, too. The defense is we need to learn the lessons from the kinetic warfare. In cyber space we need to be ready as a nation on our allies. We as the last great bull wart of freedom and human rights. We have to implement these relative to everybodys products and the telecom and mobile operators. Thats whats necessary regardless where the companies are headquartered, regardless where theyre plfrd. Settimanufactured. One of the reasons why youre having a difficult time in the u. S. They complain about the forced Technology Transfers and the unlevel Playing Field for these, lets say American Companies, to go compete directly in china so i think theres a lot of viewers and Business People who would say, well, thats probably a good thing that huawei is having difficulty in the u. S. Because we have an extremely difficult time in china. As you know, thats one of the primary agenda items for the trump administrations in the trade talks. And the concern that china is not a rule of law nation we see that china is making steps towards. Im not saying implemented theyve implemented additional protections for intellectual property theyve created an appellate court. Theyve lightened the forced technology transfer. Those are moving in the right direction. I agree. Thats a major concern thats one of the reasons the trump administration, both democrats and republicans actually, are very concerned about that our private sector and the private sector around the world is concerned about it. If there is not a solution that comes any time soon, what will it mean for huawei . How damaging has this been well, not very. You see our Third Quarter year over year results were up 24. 4 . Profit of 8. 7 the fact is, were doing fine. How much of an impact . Its not clear the american jobs, both our customers, but more importantly 200 American Companies are waiting to sell nonstrategic parts to huawei. 11 or 12 billion a year. 40,000 american jobs are at risk and if we have to, we will go over seas and buy them right now were able to make our 5g technology with no american components we want to come back we want to continue to partner with google but if were forced to, well go elsewhere. Do you think this is trade talks . Do you think this is security . What do you think the issue is because of the trade talks the u. S. Government wont talk with us. Theres a continuum of people and their hostility with china some would say dont allow anybody to sell to china dont allow anybody to sell to huawei economic superiority is critical to military superiority. So they want to try to hurt china. But we have to not cut off our nose despite our face. If we hurt americans to hurt china, we havent improved our position we need an industrial policy to figure out whether and how we want to compete in 5g and 6g andy, want to thank you for your time today. Youre welcome. Still to come on squawk box, wall street bonuses are poised to decline. Those details next. Then why would that guy at t mobile with the hair, why would he want to leave tmobile to run wework tom farley do you want an opinion yeah, i do. Lets talk about it. Plus, google entering the Health Care Arena and raising privacy concerns in the u. S. Those stories and more when squawk box comes right back. New york state is taking business to the next level. Supporting Innovative Companies that will shape tomorrow and Building Workforce development and tuitionfree College Programs to generate the talent companies need. With a 150 billion investment in state of the art, modern infrastructure, and a nationleading commitment to lowcost clean energy, new york is doing more than any other state to build for the future of your business. New york state, the state of the future. Learn more at esd. Ny. Gov. To take care of yourself. But natures bounty has innovative ways to help you maintain balance and help keep you active and wellrested. Because hey, tomorrows coming up fast. Natures bounty. Because youre better off healthy. Rowithout the Commission Fees nand account minimums. So, you can start investing today, wherever you are even hanging with your dog. Ooh, like her. Shes probably investing right now. Taking charge of her money, making it happen. Shes not going to be happy about that pillow. Its time to do money, so what are you waiting for. Download now and get your first stock on us. Robinhood. What are you doing back there, junior . Since were obviously lost, im rescheduling my Xfinity Customer Service appointment. Ah, relax. I got this. Which gps are you using anyway . A Little Something called instinct. Been using it for years. Yeah, thats what im afraid of. He knows exactly where were going. My whole body is a compass. Oh boy. The my account app makes todays Xfinity Customer Service simple, easy, awesome. Not my thing. Good morning and welcome back to squawk box live from the Nasdaq Market site in times square u. S. Equity futures indicated up the nasdaq indicated about 12. That will drive you nuts before it drives me nuts. The little kid thing. All right in our headlines it finds wall street Johnson Associates predicts that equity traders are likely to make out the worse debt and equity underwriters are forecast to see a 10 decline. This comes as the banks are focused on cost cutting. Workers at hedge funds and private equity at Investment Banking Advisory Firms might do okay the report says they could see bonuses increase by about 5 . Back to the story that we mentioned earlier. Wework, the wall street journal says theyre in talks with john legere to take over the Office Sharing startup i guess you have some comments, tom . Do you understand . Can you explain . Im very confused. Youre confused you have this deal where youre putting together two giant companies. You need to get the deal completed. Right. Considerable risk to getting it completed, then you need to effect the Merger Integration that has massive synergies and you have a ceo that does a really good job. Why would the softbank group, which as we nomar sell clare and others own sprint encourage john legere to leave the helm of that integration to run a business, wework, that frankly has less potential . Its a business that rents office space on longterm leases, leases it out to people like me on shortterm leases it has tough competition in the u. S. In the form of regis. It doesnt have a particularly bright future. Im quite confused is this a jack dorsey situation where theyre talking to him about running both that would make more sense to me although neither makes a lot of sense than him just running one. You just described how much work and attention its going to need to merge the two companies. Dont you think wework also has some yes. Needs some tending to . How could you do both . I guess i have a lot more optimism about wework as a business and investment than i do the combined tmobile and sprint youre taking a proven operator, a guy who hoos moved verizon from 4 to 3, youre pulling him out of that and putting him into a less interesting role. You dont i have im just told that we have a prepared side by side you dont think this is what caused it, do you . It could be related theres leather jackets, theres i mean, is it that simple the guy can step right into but i dont think the last guy had a great track record toward the end, right maybe we ought to get like a bald guy is there a way we could super impose one of those we tshirts on legere . Cgi its interesting. Its not immediately obvious why experience at tmobile would translate into wework Business Model. If this is softbank making a decision that, hey, weve lost face on wework we have to prove this as an investment, we have to thats what it seems like. Theyve got an 18 billion investment yeah. It feels shortsighted. It feels shortsighted to me. Its number one, i would not be john legere, i would be legere he is a great singer has great tunes, doesnt he . Yeah. All right john legend legend. Not legere different guillen materially the great space race Morgan Brennan is going to join us with the story of out of this world investments. Hey, morgan. Reporter hey, joe. Well, this one is for you because i am betting that you remember the apollo program. It was engines like the ones behind me that saturn 5 that launched american astronauts to the moon this is one of the reasons that huntsville is known as rocket city, but there is more to the area than just space and we have e earyomg aerinupft thbrk. Ng. The problem is corporations and the people who run and own them have purchased our democracy. Heres the difference between me and the other candidates. I dont think we can fix our democracy from the inside. I dont believe washington politicians and big corporations will let that happen. The only way we can make change happen is from the outside. For me, this comes down to whether you trust the politicians or the people. And if you say you trust the people, are you willing to stand up to the insiders and the big corporations, and give the people the tools they need to fix our democracy. A national referendum. Term limits. Eliminating corporate money in politics. Making it easy to vote. I trust the people. And as president , i will give you tools we need to fix our democracy. Im tom steyer, and i approve this message. Weveryone, looknk isntat your phones. The design thinking, the digital engineering, security, blockchain, and we will be first to market yes. When we do we launch . Unfortunately, in 2 or 3, hours. Why the delay . Cognizant is helping banks use Digital Technologies at scale to advance speed to market. Welcome back, everybody. The renewed space race has one u. S. City cashing in its rocket city, huntsville, alabama. Thats where we find our Morgan Brennan. Rocket city has been a moniker for how long, morgan reporter since the 1960s really since the 1950s with the launch of the first redstone rocket before that it was the watercress capitol of the world, becky. Huntsvilles very much a government town, and thats thanks to Redstone Arsenal which is its own census designated place and the areas top employer also thanks to nasa and the Marshall Space Center has 4 billion impact on Madison County resurgence in defense spending and burgeoning commercial space economy is fueling the growth. Theres more to this story as well its called rocket city u. S. A. Home to the highest concentration of engineers per capita, an Education System that teaches s. T. E. M. Starting in Elementary School and the long standing ties to aerospace. We have legacy. So our aerospace heritage, we work hard to make sure we maintain that. 400 Aerospace Companies in our market very rich concentration of them and a lot of expansion in that. Reporter now huntsville is a manufacturing hub catering to more than the federal government. Polaris spent money to open a factory here after vetting 100 sites across 16 states scott wein said it was an easy decision. I think the long standing commitment to engineering thats been in huntsville for so many years, since world war ii really, and then with the Redstone Arsenal there and the Army Stratcom there as well, theres a good infrastructure of personnel. Reporter polaris isnt alone. Ge aviation opened advanced technology and lg technologies is building a plant. Toyotas engine facility and the joint venture with mazda is building a 1. 6 billion factory set to open in 2021. Even tech is taking up residence with facebook building a data center. I think one of the reasons weve been successful is weve always been, you can call it picky, we call it selective. Reporter so basically bragging rights backed by big numbers. From 2000 to 2017 the huntsville metro area has seen population, jobs, and wage growth that have been twice the rate of the nation also, Unemployment Rate that is a staggering low 2. 1 . Guys good football players, too, morgan thank you, morgan. Reporter yes, that, too. For a closer look at investing in space, lets welcome chad anderson, ceo of vc firm space angels. Chad, the point that i guess you need to get across is that this is not a 20, 30type endeavor that youre doing right now, but you need to convince me that there are nearterm profit potentials for some of these companies that youre investing in once you do that, give us the nuts and bolts about what some of these companies actually do its fascinating, but it seems like its still a ways off into the future. There is a ton of activity over the last ten years. Theres been 25 billion invested into 500 Space Companies. Unique Space Companies over the last few years before that there wasnt a whole lot of anything going on entrepreneurially speaking its all very new that weve seen the barriers to entry come crashing down in space x and theyve brought transparency to the market by publishing their pricing. This is whats enabled all of the new startups and companies to come in. Its not a vc space ship. Youre one of the Biggest Vc Companies and you do 30 million. Theyre talking about 100 billion ep did he ever is expected to be 30 million out of 100 billion, youre not its not a vc really type space yet. I would argue that it absolutely is. Why didnt you put more than 30 million into it . Because were ten years into it spacex brought down the barriers to entry there was a dozen privately funded Space Companies in the entire world before 2009. Spacex came along and weve seen new companies building on the back of that access to space so we have invested in more Space Companies than anyone else on the planet. I can tell you there is money to be made here, especially in the early stages. But lets say its 100 Story Building i would say were on the second floor, arent we thats where were trying to make it. Its very new. Yeah. Were definitely not on the first floor. Resigning like living quarters on the moon, right . Yeah. So space today is a very large market we make a lot of money from space data if you think about gps, its a great place to start right. Gps was initially funded by the military, there was a lot of infrastructure and investment. There was Companies Like magellan, trimbol, made use of that, propagated that. Weve seen what the Tech Community has done with that most of the venture returns that weve seen are driven by Companies Based on the gps signal the same thing is happening with Geospatial Intelligence and satellites going around the planet taking images. For what kind of use . All kinds of things agriculture. This is new. Were seeing the demand is coming from agriculture, insurance, construction. You can think anything thats a big asset that you want to monitor at a global scale, different channels. Ive paid close attention to the Virgin Galactic acquisition. I run like chamas that merged with Virgin Galactic the retail was very supportive institutions were more skeptical, uncertain about how many people will want to pay a lot of money to go to space and take what may be some safety risks on and so forth. Are you bullish on Space Tourism as a business . So i think that this is a very exciting thing to happen and its great to see that one of these new companies is going out and making you know, taking the bold, brave stance and going public i think running a Human Space Flight Program on a quarterly schedule is going to be challenging and well see how this plays out were not invested in the sub orbital space. We are interested really in the data that comes from space Geospatial Intelligence. Would you like to go up in space with Virgin Galactic, you personally i certainly would ive already done the training so im not a Ticket Holder now, but i do think that both that i recall offering and blue origins new shepherd vehicle are both very compelling. It would be a lot of fun you no, i dont just because of fear. You know, that yeah. Hello . Thats the rest of us. That sounds mean. What else would it be you got Something Else youre doing . No, ive got yeah, fear. Fear abject, overwhelming i could get over that though. Data if theres a whole bunch of safe flights, i could get over it and, yeah, it would be fun. You dont jump out of airplanes, do you . No. Fear. Zip line . Yes. Thats as bad as it gets for me really deep bunkers like a tough course anyway, thank you. Good luck. First floor. Thank you second floor second floor . Sikd floor. Okay. Ten years in. Ten years in. A lot of up side. When we come back, microsoft president brad smith will join us live. Plus, dont forget to subscribe to our podcast youll get interviews and behind the scenes access. Not what we talk about in the commercial breaks though, but you can look for us on Apple Podcast or your favorite podcast site you can subscribe to squawk pod today. See ya whether your beauty routine is 3or 57,. Make natures bounty hair skin and nails step one. Its the number one brand uniquely formulated for silky hair, glowing skin and healthy nails. Natures bounty, because youre better off healthy. Ive been a caregiver for 20 years. No two patients are the same. Predicting the next step for them can be challenging. Today were using the ibm cloud to run new analytics tools that help us better predict and plan a patients recovery. Ultimately, its helping thousands of patients return home. And who doesnt love going home. Welcome back, everybody. The Supreme Court is going to be hearing oral arguments today challenging the deferred action for Childhood Arrival Program known as daca. The courts decision to affect hundreds of thousands of dreamers in the United States. President trump tweeted, many of the people in daca, are far from angels some are very harened tough criminals. If the Supreme Court remedies with overturn, a deal will be made with dems for them to stay. Joining us now is microsoft president brad smith microsoft, we should point out is the only company that is a plaintiff before the Supreme Court to defend daca the company has more than 5,000 employees who are dreamers brad, thanks for being here. Thank you before we jump into the heart of this, lets go to the president s tweet. I believe hes incorrect if youre in daca you could not have been committed a serious crime, is that true . Youre correct. You must have documents and have arrived in the United States before 15 years old. You have to have lived here five years. You have to be a High School Graduate or veteran and you cannot have committed any crimes so you are correct microsoft is the only Company Listed as a plaintiff. To we had other companies in support of daca. The very day that daca was rescinded back in 2017, we said we would stand next to and stand behind our employees as you mentioned, we have more than five dozen employees who are dreamers doing great work for our company. And the opportunity 0 rose beginning with Princeton University and a princeton student to bring that case we brought that case and as you pointed out it is now one of the cases before the Supreme Court today. Three courts on this have ruled. However, the president seems to think the Supreme Court that has more supreme justices on it will rule in his favor. What do you think the odds are well, this is our fifth case as a company before the Supreme Court. You never know when you walk into the room where the justices stand. The truth is you dont completely now when you walk out of the courtroom either. I will say, i feel good about this case. I think our legal argument is clear. Were not arguing that theres no way for the administration to rescind daca, but we are saying it wasnt done in the right way, in this instance it was put together quickly. It was put together on a very narrow legal rationale that we dont think stands scrutiny. And from our perspective, this is an important opportunity to, frankly, encourage all of us, whether in the executive branch, congress or the public to keep focused on what were ultimately going to need, a legislative solution and a permanent pathway to citizenship for these dreamers brad, ultimately, i suspect were going to need a congressional fix here in order to do that in the dreamers favor, youre going to have to win the hearts and minds of the american electorate and public yesterday, we did polling that said illegal immigration is the number two concern across the United States electorate. And i think in some corners people view daca as a form of amnesty. And in that respect, it sets a bad precedent. So when i say hearts and minds, really appealing to compassion and empathy, these are people effectively told now youre here, certainly not illegally, but perhaps even legally do you think the hearts and minds are being won . Do you think that battle is being won or not i think the American Public wants to see some Immigration Reform they want to see Border Security but they also want to see the kind of steps were talking about for daca this is not an everyday immigrant. These people came as children. You know, let me describe one of our employees. He arrived in the United States when he was 4 months old grew up in poverty got a Computer Science degree from cal poly. Is now doing important work on our a our Azure Technology supporting the United States and the pentagon it would not only be cruel to support someone who a country they have lived in since 4 years old. Its bad for america its bad for immigration, its bad for the economy. These are good people. 650,000 daca residents, well educated, serving in the United States military, serving in this country every day. Brad, even if you win, though, even it just leaving it up to the administration to find a different way of rolling back daca well, the truth is, as you all have noted, there will come a day when we need congress to come to terms with this issue, when we need a bipartisan solution on the daca issues. Now, this case is still, i think, of great importance if the daca rescission is upheld by the court, that means that all of these people would be thrown into limbo next summer, and we would be trying to go to congress in the middle of a president ial campaign. That is not a recipe for, you know, reasoned bipartisan action i think we need and we hope the Supreme Court will uphold the ki case that we won below we will ultimately have to find our way to congress. We would love to do so sooner than later, but we need to be politically realistic. We have got to see the right time come together to protect these people brad, thank you for joining us thank you coming up, President Trump is in new york today to give a speech on the economy. Later, our newsmaker michael dell will join us later. Youre watching squawk box on cnbc oh, wow. You two are going to have such a great trip. Yeah, have fun thanks to you, we will. Aw, stop. This is why voya helps reach todays goals. All while helping you to and through retirement. Um, you guys are just going for a week, right . Yeah thats right. Can you help with these . Oh. Um, were more of the plan, invest and protect kind of help. Sorry, little paws, so. But have fun send a postcard voya. Helping you to and through retirement. Servicenow put our this changes everything. Youre right sir. Everything. No not everything, i mean youre still blatantly sucking up to me gary. Brilliantly observed, sir. Always three steps ahead. Six steps ahead. Sixteen. So many steps. You done . A million steps ahead. Servicenow. Works for you. President trump set to speak on the Economy Today well tell you what to expect on the trade wars and how the impeachment hearings could impact the markets a whole new world. A new world disney jumping into the streaming wars weve got early reviews and what it means for the competition. And a pc pioneer, dell Founder Michael dell will join us live agency the final hour of squawk box begins right now. Good morning, welcome back to squawk box here on cnbc live from the Nasdaq Market site in times square. Im joe kernin along with becky quick. Andrew is off today. Our guest host, tom farley, u. S. Equity futures are up today. In the green, a little bit anyway well see what happens as the actual regular session starts, right at 9 30. At east the bond markets opened today. We didnt have that yesterday to trade from up about 19, 9 on the nasdaq there you can go the bond markup, 194. And cbs out. Out with the earning, it looked like the number is an adjusted 95 cents, thats adjusted with the 92 cents that the street was anticipating. 3. 357 billion the company talked how the affiliate and subscription fees up 12 fees from networkaffiliated stations and the revenues that came from it advertising revenue was down by 7 in the Third Quarter of 2018. The company says thats when they had record political Advertising Sales that were fueled by the 2018 midterm elections. We know whats just around the corner wonder what that might mean for all of this. Very quickly, taking a look at cash flow, cass flow was 127 million compared with 137 million compared to last year. Trying to look through they say the decreases over that period of time, the nine months for this year versus the nine months of last year mainly driven by increased investment in content and nonrecurring income tax payment in 2018. Take a look, shares down by 8 cents. Lets get you caught up on other stories that investors are talking about today. More tensions in hong kong overnight. A flash mob of 9,000 people blocked roads in the Central District police fired tear fashion and trying to break up the protests. Carrie lam speaking at a regular media address said that the protesters are paralyzing the city and said that theyre selfir. Boeing said it expected to accept deliveries of the 737 max planes as early as next month. And the airplanes could be expected to Start Service as near as january. Boeing has completed tests of the software with the faa in a simulator. Thats just one part of a checklist thats required to return planes to service you can see boeings shares down 0. 4 after being up sharply on this news. And today is launch day for disneys new streaming Service Disney plus. Disney spent more than 3 billion on technology and content prior to the launch. The stock has already been up a couple times this year based on this news that theyve been awaiting for today and President Trump is set to deliver a highly amended speech at the new york Economic Club today eamon javers joins us. I ask you to go out an a limb. Okay. Are you expecting President Trump to talk up the Economy Today . Thats something, are you willing to ill put on my pundit tree hat and the answer is, yes this is going to be a victory lap, right the president wants to talk about the economy. Wants to talk about the records weve seen in the stock market over the past week what everyone is watching for here, to see whether or not the president is giving any hint on china trade. Theres a report in reuters this morning that the president is expected to hold off on eu auto tariffs. Im today, though, that is not in the draft of the speech thats been circulating in the white house today. He is going to make that announcement we dont know if hes going to make it today. Its scompeblgexpected to not b speech what is in the speech, joe, all of the highlights including on the screen, president is going to talk about lower taxes, deregulation, fair and reciprocal trade he always talks about that word reciprocal hes going to talk about record low unemployment, rising wages, soaring confidence all of the pieces that he talks about the trump economy as we go to marine one, the helicopter, the president talks about these as well. This is a formal way for the president to wrap up all in one big speech and, of course, everyone is watching to see what he says about china. Have you seen a draft i have not seen a draft ive talked to people who have seen drafts. You have talked to people who have seen the socalled leakers . Thats right. Its our job to i understand that how much do you actually think you know about whats in the speech a lot or i think i know about four sentences. I dont think i know much. Theyve been keeping this very close to the vest. Ive been pinging everybody trying to get an indication of whats in there. Whether hes going to say anything significant on china. Whether he masshas a rabbit in hat. Do you think this is a lastminute decision theyre all lastminute decisions in the white house the president keeps it down to the wire and very keen and keeps it to the last minute. Anything thats happening today were not hearing or fed do you have an idea that he wanted to come before the Economic Club of new york to make a speech is significant in itself he has something right, the venue itself would suggest who is the lead author this week donald j. Trump like everyone else, i find it a lot more entertaining when he speaks off the cuff. Yeah. Are you expecting them to read a speech or donald trump in a rally . I think both. Were expecting him to read the speech but the president is a master of commenting on the teleprompter hell say thats so true, thats so true. Or he goes off on a jag. Is it possible that he goes off on one of his patented is he going to call someone little or Something Like that absolutely. I think for the Economic Club in new york i dont know, there are a lot of Little People in the room maybe somebody little Michael Bloomberg was the most recent. I heard a person that was called little in this administration the three of us were in davos three years ago when trump came. That was the happiest ive ever seen him he was Walking Around the room like say returning he knew i was going to interview him. Hes moved out of new york. And he will assail new yorkers at times but it was clear in that community, coming back as the president of the United States made him very, very happy, proud and at home. I think this is that square to some extent. Being in the august new york economic environment even though hes a florida resident this is a person who ultimately wanted acceptance of the new York Financial league. And never got got iit, despite f the billions despite the names on the hotels he was never accepted as a true insider now, hes the ultimate insider he gets to walk in that room, not just agency a member, but sort of the king of the room eamon, thank you. Lets bring in David Whetsel who is the director of the Monetary Policy at the brookings institute. Vince rinehart who is mellons chief economist. Vince, what are you anticipating to hear from the president today . I havent gotten the draft of the speech either. But i think we can pretty much know there will be a strong point to job creation income, of a wellperforming economy. What id like to hear like most investors, were kind of needy wed like to hear the direction of the u. S. china trade dispute. Wed like to hear support for the effort on the hill the past usmca deal with the mexico and china and wed like but not likely to not hear about auto trade because anything he would say about auto trade probably would be negative. David, lets run through the list, in terms of the mcaa, its up to the house to take action on that. But the other two items are unilaterally under the president s control. Thats trade with china and the auto sectors in terms of the eu tariffs that may or may not go on thats right. I think people in the audience all know how well the economy is doing. They all know theres a risk for the economy going forward. For the people in the room, theres a lot of focus on whatever he says about u. S. china particular. I think the auto tariffs are alarming to a lot of people. Id go with what eamon says, hes probably not going to use this forum to announce one thing or another i think the focus will be largely on china i think one thing thats interesting, all of the people who sit behind him at the new york Economic Club, the board of directors, how many decide not to come today because theyre not comfortable with donald trump ive heard theres quite a few id be surprised if there was an empty dias. Youre getting out the popcorn, is that what youre saying no thanks getting out the popcorn to watch. Vince, lets run through the idea of china. Now, he may not touch on the issue of car tariffs for the eu. But there are questions that will be asked afterwards, as well my guess is among the questions would not only be the eu potential car tariffs, but also what he thinks about the fed and where theyre they hre headed right now. Is that something to push or rock the stock market even higher on any given day, the president could resort to twitter to send his message about the fed. Hopefully, we dont hear about jerome today because its not particularly productive the problem for the fed is they have to base policy on an outlook. And the outlook importantly depends on what donald trump is going to do on trade they just cant say it out loud. What do you mean . Would you be able to write an fmoc statement that said we put insurance easing in place because we were worried the president might do something bad on trade right, right. Really hard to do so, they have to be quiet about that hey, david, we have watched yields start to push back higher looking at the tenyear almost at 2 today. The tenyear at 2 , i should say. That is something that a lot of our guests today have said, look, thats because the economy is improving and things look good what do you think about where its headed and potentially what that means . Well, i think the risk of recession has receded in the minds of forecasters in the market thats a good thing. I think the fact that the fed cut Interest Rate 75 basis points gave the economy a lift i think therisks remain. The two big risks, one, trade war with china resumes i think its interesting it was september 2016 when he was running for president that trump went to the new york Economic Club and made this very hostile protectionist speech its interesting what he says there now. Thats one risk. And the other thing is the Global Economy is slowing down europe is particularly weak. And china because of whats going don domestically i think that remains a risk. For now, my feelings is people are doing better earnings are going strong. I think thats the missing link right now. David, do you think this is likely to be some sort of a policy rollout, though no. No . No. I think this is rah rah, look at the great job im doing as an economy. You are lucky you have me as president. I think thats the message ill be there today keeping score for the markets if he pushes on youre going with david and not going to show up ill be there and ill be on the dias, ill be on the dias for the jack mott speech and im on the board. Youre going . Yes no facial expressions you show up behind him, and well all know what youre thinking my question is what will he say about china will cause the markets to jump because investors will be excited . Or is there anything they can say . Yeah, i think if hes optimistic and says were close to a deal that will cheer people, i think thats what hes hoping for or if like Bob Lighthizer saying were not getting anywhere theyre wrong. I think people will be disappointed people want to know what are the odds that we get a coolingoff of the trade war in the next few months i think the president knows how important that is to the market and business investment. He has to triangulate this he has to worry about his base people in the community and ordinary citizens think its time to get tough with china but he has to be careful not to spook the markets as we goes into the election fight. David, thanks for your time youre welcome. Eamon, see you later. Coming up, could they be the new goggles and facebook and tech pioneer michael dell joins us for a wideranging conversation on the biggest headwinds and tailwinds facing his sector stay tuned youre watching squawk box on cnbc when we were looking for a roommate, he wanted someone super quiet. Yeah, and he wanted someone to help out with chores. So, we got jeanpierre. But one thing we could both agree on was getting geico to help with renters insurance. Yeah, geico did make it easy to switch and save. Oh no. Theres a wall there now. Thats too bad. Visit geico. Com and see how easy saving on renters insurance can be. To take care of yourself. But natures bounty has innovative ways to help you maintain balance and help keep you active and wellrested. Because hey, tomorrows coming up fast. Natures bounty. Because youre better off healthy. Welcome back to squawk box, everybody. Youve been watching the futures this morning the dow is up by 20 points weve been in the green all morning long s p is indicated by 2, nasdaq close to 10. The closure to the apple card Goldman Sachs has denied accusations of gender bias lowering the expected limits goldmans retail bank ceo says the company does not know your marital or gender status during the application process. The disparity in credit lines may be because existing cards or supplemental cards under a spouses primary account which could result in lower personal Credit History goldman says its looking into the ways for family members to share a single apple card account which could address the issue. Googles issues with health care is raising quality concerns the wall street journal found that google collected patient records for millions of people across 21 states it didnt notify patients or doctors. The initiative is code named project nightingale. Its an initiative that represents doctors, offices and other facilities the wall street journal report says at least 150,000 google employees have access on tens of thousands of patients including names, data like health histories. Google is trying to use ai and Machine Learning to improve patient care and lower costs it says the Health Records wont be combined with any consumer data its actually not a violation of hipaa because its used to improve Patient Access and care over time but you can understand how theyre concerned about this when patients and doctors arent notified its happening. When we come back, disney joining the fray launching the overthetop video streaming service. Well tell you who is poised to capitalize squawk box will be right back. Still to come a Technology Pioneer on the industrys Biggest Challenges and opportunities. Dell Founder Michael dell joins us in minutes with his views on tech sector growth, dealmaking and headwinds out of washington. Stay tuned youre watching squawk box on cnbc platform in the cloud age. When we started datadog nine years ago, our mission was to break down silos and bring teams together. Nearly 9,000 of the worlds most Innovative Companies rely on our platform daily to run their business and delight their own customers. We see a massive opportunity in the years to come, and as we celebrate todays milestone, we are even more excited about the future. Congratulations datadog. Val, vern. Im off to college and im not gonna be around. Im worried about my parents retirement. Oh, dont worry. Voya helps them to and through retirement. Dealing with todays expenses. Like college. While helping plan, investand protect for the future. So theyll be okay. Without me . Um. And when we knock out this wall. Imagine the closet space. Yes oh hey, son. Yeah, i think theyll be fine. Voya. Helping you to and through retirement. I am royalty of racing, i am alfa romeo. Welcome back to squawk box, everyone the futures this morning have been indicated higher. Dow yesterday was up, thanks in large part, to boeing, which came out with news that it anticipates it could see some commercial aircraft back in the air. Some of the 737 max thats been grounded by the beginning of the year, sometime in january. You can see right now, dow futures are indicated up once again this morning by 21 points. Thats off of the new high set yesterday. Nasdaq up by 11. S p, by 2. 5. Disney longtime streaming Service Disney plus rolls out today. Its got big implications for the company line and streaming, too. Julia borinstein joins us. Reporter thats right, todays centerpiece is disney. And disney strategy, disney plus for 70 a month or 70 a year has ten original series and two original films that launched along with 700 tv episodes and films. These are disneys flagship brand along with pixar, star wars the last jedi and national geographic. Disneys shares have gained about 17 and netflix has lost 19 . Todays launch isnt just about competing with netflix and hbo max. Its part of disneys advertising strategy disney is bundling with who in espn and it does have ads. And now disney is opening to gross digital ad audience competing with viacoms pluto tv, youtube and peacock. Disney has projected that the digital ad market will be worth over 50 billion by the year 2022 and growing hulu by offering a discount with disney plus is one key way to tackle that market. Becky. Julia, thank you very much. By the way, with its streaming context, how is it going to compete with netflix joining us is rich greenfield, Technology Analyst at Lightshed Partners and jim stewart, a columnist and cnbc contributor jim, what do you think, in terms of the pricing, whats it mean for disney well, i think the pricing is aggressive aggressive meaning low . Meaning low its shock waves, with the whole media when it came out with that price. Look, theyre investing for the long term. I think thats smart theyre going to get a massive base in there. And as weve seen netflix raise prices, when they can, theyll raise prices its kind of amazon strategy is that everybody wants to put into play which is, you know, trust us, this is a longterm investment and theres going to be some high costs and its going to pay off. I think thats clearly the strategy rich, are investors going to be patient disney is telling the entire world the cable bundle is dead theyre just owning it, right . Instead of fighting it and trying to battle with investors saying no, no, it will be okay, theyre literally saying were putting our best streaming on. Theyre telling us, fx content, it airs on fx, if you have charter or context, a few hours later, its going to be on hulu. You dont need a cable bundle to watch American Horror story. All of it is on hulu without the need for cable i think this is disney acknowledging that the future is streaming. The only problem is they have this part called espn and theres no strategy for what happens with espn. They just have the right spot. Are the investors out in the next several years or is there a turn that says hold on a second dollars being traded for a digital time . This is a real challenge, becky. Youre trading big profitable Cable Networks that people bought whether they wanted them or not people watched dvds whether they wanted them or not big markets youd have to be literally not on planet earth to know disney is not happening and Companies Like netflix are only focused on the future theres no balancing disney is getting more aggressive between prices. Jim just talked about, theyre getting more aggressive than people expected them to be yeah. But this is still from an investment standpoint, earnings estimates a year ago for 2020 were 8. 30 now theyre sub6, and some say 5 its a challenging execution it sounds like betting the house, right, jim . This is relation father theyre abandoning the cable and theyre also abandoning the concept we make it and we distribute it. Now theyre going into full bore with the streaming that is i new business for them. Does that mean theyre gathering information and finding a way to get some of this back on the massive database i assume so thats the digit sal world right thats what every tech company has done its been the holy grail i think its definitely part of the strategy what do they need to charge when, you know, declining cable bundles, what will they eventually need to charge for disney plus to be as profitable as they were last year whats the Monthly Price well, theres two aspects one is when do they put their best content on to disney plus right now, their best content is still going to the movie theaters so if you want to see frozen 2 its in theaters and itunes sand amazon and six months after theatrical. If they end up with day and date like netflix is doing with movies like the irishman they could charge 15, 20 a month. You got to remember i was thinking through, i own every one of these dvds. If i dont have to buy the dvds anymore, if i dont have to do those things theres more than one or two Revenue Streams that make an impact thats true the question is whats the future ric original programming is there. I got up the 6 00 a. M. This morning and watched you got up at 6 00 to watch that i did they make you wait a week to watch the next episode there isnt a lot to do. I think the low price is emblematic of the fact that there isnt that much new content. Ala apple, right . I do think disney has a cost advantage here because they own so much of their property that they develop on their own. They have their own library bidding war is going on with apple, amazon. The money theyre shelling out is massive disney is not getting involved in that. They dont have to do it that is where theyre very good on production and capitalizing on intellectual property in terms of where this price ends up, i think a lot of that is how many of these things survive fun end up with three major streaming services, theyre going to start moving the price up pretty dramatically the other thing to think about, most tv shows that have been successful in history have not come from movie franchises if you think about the most iconic tv shows that you love go all the way back in time the only one that jumps off the page is m. A. S. H. That started as a movie that started as a movie american graffiti. Oh. The idea that youre creating original movie ideas movies into tv shows is something new. Well see how well disney does the big part of the strategy is to take movies, mandelorean. And these are never been iconic tv shows that the whole world feasted on were going to see how well it does, my First Impression of man mandolauren. Its a mass audience the way avengers feels mass audience are large sports going to be on disney plus well, they have espn plus and there are live sports. Its more niche sports not like monday night football on last night. The Court Cutting 4 decrease year over year in q3 2019 is what weve just seen reported comcast, your parent company, increasingly focused on the broad band and moving away from the video business it raises the question how many video cable subscribers there will ultimate eyly be. Because of sports the 44 are the diehard sports fans. The problem is is that a business for a business like espn hard to support multiple dollars of dollars of football when you only have so many subscribers. Live sports is keeping everybody afloat you dont think that exists anymore, even with a property like the olympics or something look. I think it keeps a reason for these channels to exist. The question is, if youre not a sports fan, why do you need to bundle the best content, apple tv plus, Stranger Things. The first thing i go to on tv is through the guides to see if i want to watch that then i go to the others. I dont think thats the behavior of a younger person ooh Morgan Brennan said you remember the apollo. I said, i do remember, morgan and it wasnt tom hanks. Julia, will it be referred to as the good old days where we are some days . There will never be a business as profitable will there ever be new days for disney if youre a consumer right now and youre watching content, youll have more options if you are selling shows what about well, i think he has a couple more years left on his contract what were going to see here is this transition where theyre going to try to make a lot more money from this direct to consumer model and trying to figure out how to monetize that advertising piece that i mentioned remember, if theyre not sharing that ad, theyre really going to be targeting ads digitally, able to understand who their consumer is and make those ads so much more valuable on hulu and espn plus, the bases of opportunities down the line to benefit from that onetoone relationship with the consumer. I think its going to be a couple years of tough competition and aiger has talke about the high costs five years from now, well not see the streaming services well see it whittled down and new bundles, right i dont think will ever be a business as profitable as people paying 9 a month. It was terrible for consumers because consumers hated the cable model they were locked into it. And now it is a golden age its like that new poll out over the weekend saying they plan on taking 3. 8 different subscribers and willing to f iiy 40 for it anyways so were right back there. Nobody has to install a cable box. Wait on hold you literally click on and off, you pause your subscription. Its literally that easy youtube tv lets you actually pause. If you pause for six months, they keep your dvr in the cloud. They encourage you to pause. Disney is already getting to the point where they lock people up for three years is that going to be the point that you can no longer do it on a monthbymonth base to maintain revenue control or know whats coming for the course of the year its hard to lock people. I remember wwe early on, my colleague brendon ross covers it they tried to lock people in for a year people hate being locked in. People like the ability to choose directv, remember, used to try to lock you in for a year i do think were in the world where people expect, table stakes is an ability to cancel at anytime there are people who have the money to afford a longterm plan i took the fouryear plan do for disney plus. That was a great deal for 4 a month. I think its hard to get away from that. Rich, jim, thank you for joining us for those of you at home desperately googling for sports coats that jim is wearing, that is not a sports coat that is a suit it is a suit did you notice that nice. It is but it works i thought, wow, thats a great sports coat holymoley, those are pants. You can wear it either way. Its very flexible thats a good idea. All right. Coming up would you do that yeah. I think you could yeah. All right. The next wave that could become household names. Were going to talk about the hottest new companies attracting attention around the world as we head to break, make sure to subscribe to our podcast, squawk pod to get interviews or on your favorite podcast which is word which is like two years old. Stay tuned well be back. Gentlemen for the drive to create a new kind of family car, that became a new kind of race car. For the drive to rebel, zag. For the drive thats inside you. And inside us. Thats the drive under the hood of every mini. Because every mini is. For the drive. Have you ever worked with dr. Francis . Oh yeah, hes ok. Just ok . Guess who just got reinstated well, not officially. Nervous . Yeah. Yeah me too. 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Stepbystep options trading support from Td Ameritrade welcome back to squawk box, everybody. The futures this morning are indicated higher but theyre barely hanging in the green right now. Dow futures up by 3. 5, s p up by 2. And nasdaq by 4. The new decade of technologies that can help firms utilize and gain insight from data joining us michael dell, founder and ceo of Dell Technology michael i dont know if youre ears were burning. We were just having a conversation about one of the things that youre introducing today. Thats what we want to ask you if you can explain in laymans terms. I just read it to tom farley an ondemand consumptionbased azure delivery model for the industrys broader structure portfolio that combines flexible payment models from Infrastructure Solutions from edge and end points from core to data to cloud. I said, i dont think michael knows what the hell you built a pc in your dorm room are you tech savvy enough to understand exactly what youre doing . And you can explain it to tom, becky and me sure. Well, great to be with you all good morning look, what were doing is creating the infrastructure for this incredible explosion in data thats occurring in the world. And what were really talking about is how do you automate this infrastructure. So organizations can focus on outcomes and results from all of that date. You know, you know whats going on in the world today is that everything is becoming intelligent and connected. And that data, along with Artificial Intelligence and Machine Learning is being used to create Better Outcomes for all kinds of organizations, for the whole society. So, you know, this is largely called the Digital Transformation but behind the scenes, it requires a mixed generation of autonomous infrastructure. Were allowing our customers to consume that any way they want thats the thing. Ondemand bashes. So there you go. Instead of one size fits all and you pay a huge amount of money. This is consumptionbased, ondemand. You need it, you get it, that would be a big step forward from whats around right now, is that right . Pay as you go you know, i think if youve been watching our business, you can see that its been transforming. You know, last quarter, our deferred revenues grew 17 year over year, to 25 billion. Operating income grew 30 year over year. So the growth in software and services has been significant. And weve changed our business in the last, you know, five or seven years, pretty substantially. And well be talking about that. And also our 2030 goals that weve laid out for ourselves we do this about every ten years. We just retired our 2020 legacy of good goals. And now were setting forth a series of moonshot goals around advancing sustainability, cultivating inclusion, and transforming lives and around data privacy these are the things well be talking about today, in addition to this idea of autonomous infrastructure were introducing a new product which especially is, you know, a cloud in a box that scales from the smallest organizations to the largest. And, of course, it can be consumed on demand it sounds like, michael, that youre edging it like Amazon Web Service business or microsoft azure. Is it competitive of those businesses, collaborative, a little bit of both its a little bit of both with the Vm Cloud Foundation vmware being an important part of dell technologies, weve extended our multinetwork structure to all of the clouds the other thing is theres this boom thats starting in Edge Computing where everything in the world is being connected so, you truly have this environment where data and applications are spread out all over and organizations need a multicloud infrastructure. And dell technologies, along with vmware is really at the center of that so, michael, can i switch gears for a second you know, youre one of these billionaires, that everybodys talking about. I have no doubt your dorm room was goldplated. Doubt your dormm was gold plated and born on third base. Cinder block dorm room as i remember it, and, yeah, we had everything was made out of metal and concrete. So that, you know, we didnt destroy it. How many jobs how many employees at dell . 157,000 oh. Tens of billions of shareholder value. Youre a bad guy. Youre a bad guy youre one of the bad guys. What do you think about being a bad guy . Well, i think we need more entrepreneurship and we need more new business creation and, you know, we always have been a proponent of, you know, a fair and free and open market we recognize that has got to be balanced by the Public Interest and a lot of what were talking about with our social impact goals, this is not first time we did this, right . We did it a decade ago and we have been caring about these things for quite some time, i think if you look at the number of jobs that have been created, by the Free Enterprise system, you know, this is the best thing, you know, going and, you know, we believe it is important to preserve the entrepreneurship and the risk taking that has allowed the creation of all of these incredible businesses advancing the world forward. Were fortunate in the United States to have, you know, a lot of the worlds greatest company s. For now do some of the companies dyi deserve a lot more closer scrutiny selfregulation . Well, thats not my area of expertise, joe im not a regulator. So im not going to weigh in on that i do think that companies have a duty and responsibility to be clear about what theyre doing with customers data certainly in our case, customers own their data, we dont use the data, dont own the data and were inconsiderably transparent about that and always have been. I think thats, you know, a good standard that Many Companies are adopting. Michael, as you may remember, it bugs me a little bit when you were at the nyse, you talked about how you enjoyed being private and didnt want to be a Public Company, has your perspective changed at all. We had fun with that. You beat me up pretty good. Has your perspective changed at all . Well, as you know, were public now and, you know, were our business during the time that we were private transformed considerably we acquired emc and vm ware and pivotal and grew more than 20 billion in revenues. Evolved the business substantially and it was the right time with the strength that we were seeing in our business, to bring all the shareholder interest together, and, you know, align for the future and kin continue to stay offense. Happy with the position we have now. As i mentioned earlier, earnings in the last reported quarter up 30 year over year so, you know, were doing well. Ive known you a long time. Ill ask you anyway. What do you think of the prospect of an Elizabeth Warren presidency what would that mean for technology for the economy for u. S. Business the entrepreneur spirit that helped create lots of great businesses around the world. The Free Enterprise system, fair, free and open markets, and, you know, ill work with anyone and everyone who wants to advance those goals. Okay. I told you. Okay. Ive known him a long time. Michael, thanks, thanks for coming on today, we appreciate it and good luck explaining all that stuff to People Like Us anyway, thanks thanks, michael. Thank you lets get down to the new york stock exchange. Jim cramer is standing by. Jim, it is disney plus launch day. What do you think about what this means for the streaming wars and whats to come . I think everyone likes to sample things. I looked at the program this morning and i can say, well, 20 years ago i would have loved it. To me, it is no thank you. Dont feel any need for it it is a good value for them not everybody is the same. I love the espn plus i know rich was saying espn is a danger zone. I play fantasy football. Espn plus, without it, i dont think i can win. To each his own. Won thing i lo one thing i love about this, i can put together my own bundle it will cost me less thats the way of the world. I think it is super for the consumer. What does that mean and what does it mean for any of the companies, though i think that disney they had no choice, they had it take some sort of action, the bundle is old school. I think that this is a very smart move by iger because he has all this what jim stewart said, has all this intellectual property, and it is very inexpensive for him to make programming versus apple i thought a lot of good points were made by your discussion this morning and i do think that jim stewart is right, that the competitive advantage they have over apple, over amazon, i was watching the jack ryan production, thats paramount, which is viacom, that costs a fortune. I would much rather be in a situation like iger with where everything is paid for okay. Jim, thank you and well see you in a couple of minutes. I think michael dell is a Great American there, i said it. I agree i agree. Folks, make sure you join us tomorrow right here on squawk box for a special interview with billionaire investor Paul Tudor Jones at 8 00 a. M. Eastern time. Stay tuned squawk box will be right back. Do you have concerns about mild memory loss related to aging . Prevagen is the number one pharmacistrecommended memory support brand. You can find it in the vitamin aisle in stores everywhere. Prevagen. Healthier brain. Better life. Danafarber Cancer Institute discovered the pdl1 pathway. Pdl1. They changed how the world fights cancer. Blocking the pdl1 protein, lets the immune system attack, attack, attack cancer. Pdl1 transformed, revolutionized, immunotherapy. Pdl1 saved my life. Saved my life. Saved my life. What we do here at danafaber, changes lives everywhere. Everywhere. Everywhere. Everywhere. Everywhere. Final check on the markets, up 7 1 2 that would be a new high president will speak at the Economics Club today, probably likes new highs when hes talking. Thank you. Well see you again and make sure you join us tomorrow. Squawk on the street is coming up next. I feel so close to you right now its a force field i wear my heart up on my sleeve good morning, welcome to squawk on the street. Futures largely unchanged here as the market awaits the president speaking at noon well look for any news regarding u. S. China trade, relief and more. Road map begins with the latest volley in the streaming wars, disney enters the