Transcripts For CNBC Squawk Box 20140515

Including the Worlds Largest retailer, walmart. That report is expected at 7 00 a. M. Eastern time. Kohls expected to report. After the closing bell this afternoon, we hear from troubled retailer, jcpenney. Right now we see the Dow Jones Industrial average basically open flat. The tenyearyearolds, this is such a big focus. 2. 53 . Were looking at multimonth low there. Again, the mystery remains, why is it so let that chart up. Weve been talking about. You can remember, i really initially in february, it looks like it was late january or february, if we were going to go 3 anden was saying wed do 3 , it broke down from 2. 85. Becky and i had a bet when the tapering started. It was 2. 876. It would close above or below that . Weve been waiting for above 3 for so long. All those moves there, up down, up down, up down. Is the bond market so big and so much smarter than every other market, is it saying 3 is not doable . We have had guys come in here and give every other reason other than the theories are tons and tons. Theres a shortage of supply. Theres so much fixed income in the world. It never hen ends. The other side of the trade was so heavy, naturally people take this side of the trade because it couldnt keep going. Nobody wants to say its signaling a bad economy. Except for David Tepper Pap he says theres a problem. This is the first time. Did you see what he made last year . 3. 5 billion. Personally. He was up 4 again. Right. We made him a demigod two or three years ago when he was on. He was bullish, came back and affirmed it and reaffirmed his bullishness. This is as negative as hes sounding. Hes not necessarily a onetrick pony. This guy repeatedly has done this now. Finances, he made it in airlines last year, getting in early on dael to and others. Were calling him a hedge fund titan, his name is david tepper. He walks around, over near the short hills mall. Behind it in an office building, totally nondescript. My wife has played tennis with his wife. Nobody knows who they are. Who makes 3. 5 billion in a year . Have you seen the house . Is it big . His personal life is his personal life. Hes very smart. Kind of of course noxious sometimes when he comes on. Then he feels bad about it. He send in, just kidding. Thats worse. I never apologize. To the long shoreman, i did. Normal people say, oh, its a bad economy. They have a simple expectation. They know it. Were trying to figure out things. I try to think of it at a basic level. It rattles my head. These alltime highs are point games. The chart is flat for the year. Its doubled. Its only may. You look at the large cap stocks and theyre cheap. Low Interest Rates, you do the zounded model and lower Interest Rates give you a higher multiple. We had a guy on earlier this week or last week from black rock. Yes. I wrote it down. Okay. 3 to 3. 5 . Definitely within a couple of months. A lot of people have not lived through a fast, high inflation experience. I was out with a friend who was in his 70s. He said you have no idea this can go to double digits. Joe and i remember those times. Speak for yourself. I do. I dont think you do. I remember being in the front seat of the car in a snow suit waiting in gas lines. I remember being in the back seat for a gas line. Do you remember that . Lets get to kate. She joins from us sin city. We couldnt get her in front a camera . Its early there. Youre sitting there smiling with this frozen look on your face, kate. Im sitting here at sin city at 3 00 in the morning bringing you news of this electrifying change. The whole city shuts down at 3 00 a. M. Nothing doing. I couldnt even find a cup of coffee. The streets are dead. The streetlights are all off. Nothing nothing happening. Maybe our crew was out playing, perhaps. Chief, chief, chief. Go ahead. Joe, this was fascinating. David tepper was the guy who was known for embracing the bernanke put, the idea that quantitative easing would pick up the stock markets in the u. S. On an ongoing basis. He made a four tune based on that belief even when others were starting to get uncomfortable. Hes saying he essentially struggled to complete things accurately this year because the picture is getting cloudy. Weve moved our position around different times. Now i have my position such that im low enough in exposure, i can bring it up or take it back down. I think its verous time. He said first of all, the Central Banks which ill come back to in more detail, chinese con teary policy, still too light. He thinks its overnecessary at this point. U. S. Growth, too slow for his taste. He had thoughts on deflation. Finally, he said he thinks theres too much leverage in the system. He talked about how they describe Central Banks around his business which manages 20 billion and only has 33 people in that nonscript office building. Its completed coordinates placency. Just that all at the same time, theyre doing nothing, tutu little or theyre overoptimistic about the effect theyll have. He said the order complacency is complaining to double investors like me. At the end of the day, im not saying good short but just dont be too frigginlong. Theres a california pizza kitchen. Theyre right next to the best mall in the country. Very swanky. The people who make the most money are always the cheapest. Hes worried about the rent. My biggest fear is, the fed has decided theyre going to pull back. So basically, i think they have no dry ammo left at this point. What if it doesnt work, what if everything doesnt proceed as expected . What do very to to do anything with. Farber has talked qe 6, 7, 8, 9, all the way into the teens. At the same time, the leverage is building up. We think weve deleavered. I followed up with him on the leverage quae. He said its still a levered system in general. Do you see it at 2007 levels an we just havent realized it yet . No. On the growth and the we point, joe, this is another comment from him. He said theres times to make money and theres times not to lose money and the latter is what were going through. Again, in his own words. This is close to time to think about preserving your own money. I think youre supposed to be long but have cash on you. In terms of the fed and inflation, he told a story about ben bernanke. He said he was at a private dinner with bond insurer who was talking about setting a goal of a 2 inflation target. Tepper said that the ecp is also targeting that. How do you even know . If youre going for 1 , a teenly inkrmt aol level. Hespecifically talking about deflation in the United States . Its been less of a discussion here in the United States. In the context, michelle, it does look that way. Like the United States . He made the parallel with europe. He was talking about bernanke and said if youre targeting 1 , this is a athlete receipt cal. If youre targeting 1 you might already be in dough flags and you just dont know it. Whens the last time we were hoping for a hot Producer Price number. Kate, any progress made in Nuclear Disarmament out at the salt conference youre at right now . Im sorry to report that has not happened yet. Am i confused . Its strategic dshl. I actually i think the stronger has changed it to the sack row anymore. I looked for what the letters stand for. Are there russians there . No, no, its about hedge fund ideas, joe. Not nearly that excitement. Im entirely wrong then. Its a different salt, apparently. Exactly. Do you think the repatriation of the cash, thats the biggest problem, the biggest thing the government can do. You cant buy companies in this country anymore. We had barney frank. Id like him to come back for two hours. Why . We even found common ground. See, my problem is, theyre insisting that anything we do with Corporate Taxation has to be reef knew neutral, which if ear uncompetitive what is your choice . Leave it over there and bring it back. If we bring it back, well just then theyre going to going to do it more. Were buying itover seas but its less. Its completely logical, Barney Franks answ frank s hes a lib ral. If theres anything the government does defense. They do defense. Even in 1900, it was 8 of gdp. It wasnt 25 . There is something you need to pay for. Sure. Instead of not getting enough money, the people that are going to make more money as corporations are more profitable, its going to flow through to shareholders . Right. Tax the wealthy shareholders more. You still have taxation. Or to get the left, youve got to give them something. Nobody will do anythigive someb anything for nothing. Rebuild midway. Whats the other one . Ohare. Sorkin, the one way we really need him. A big shakeup at the New York Times. He wouldnt say anything about this. Hed be close to the vest. I cant even believe its controversial. You have all these companies with this. Were moving on. You know anything about this . I Read Everything about it. Well get to it. New york times calls it, times oust. The times reciting management issues. The publisher and chairman of the New York New York says he believes new leadership would improve aspects of the management in the newsroom. Dan baquet has been appointed to replace her. He was also down in, i this i we may have been down at a new orleans paper at one point, too. If you read all the background, he was butting heads with her because she appointed someone that was going to be cohead. Theres a story about him slamming the door. There was also a story about her that came out a few months ago, that was very detrimental. The whole thing, you can say that. Thats not what im saying. I did not say that. That was to raise an eye from steinberg. I did not. Lots of speculation, including, ive seen this on dredge. I dont see it anywhere else in a report that she discovered the guy before her, what was that guys name . Bill keller. Her pension benefits were slower than a lot of her pred secessop. Tthe New York Times, i think its triquarterly they do their compensation guilti iguilting c theres journalist aenvy. Anybody making over 250,000 basically. Here it is. Right no house the head person didnt make enough money and shes mad. I dont know anything about it. Im sure thats part of the story. How are you sure . If there was a compensation dispute . Theres a lot of she shouldnt want that much money. Thats his point. This is the New York Times. This is a vocation. Did you see when Time Magazine executive compensation plans came outing with 9 million, 8 million. Theyre mad at chipotle. They have two ceos at chipotle. If you add both of them its even more money. Cokrer is the worst Corporate Structure in the world. Which is why this team got mad. Before we come to break, you is a difficult . Bring up the gift. Im going to be a little embarrassed about that. Should we explain this . A murse. Oh, my god. I got you exactly the same one. Its a male purse, a murse. You pull the bottom part out. Do i feel more rugged . Its preworn, sort of. It is the Indiana Jones look. Youre going to use it or not . I cant guarantee it. Thats a new. All my makeup is here. This is a hurry up and get better card. This is when you rip somebody on the air. You only have one. Yes. Maybe i can put it in one of those presenters. This is when a liberal comes on and youre totally bored, you can do that. I know youre always asking me about the internet and social media. I brought you social media engagement for dummies. Thats a magazine . This is a murse starter set. Over the shoulder. If youre wearing a suit, you dont want to mess up your murse. If youre wearing a suit, you can do this. Im not wearing a suit. You want your murse to go over your tip. Thank you. Why dont we go to work and ill come back. I heard you can use cargo pants in lieu of a mers. I like the muurse. I dont like cargo pants. Myra forbes a cool lit button thing here. Sorry. She tells us why its about europeship. Life with Crohns Disease or Ulcerative Colitis is a daily game of what ifs. What if my abdominal pain and cramps end our night before it even starts . What if i eat the wrong thing . What if . What if i suddenly have to go . What if . But what if the most important question is the one youre not asking . What if the underlying cause of your symptoms is damaging inflammation . For help getting the answers you need, talk to your doctor and visit crohnsandcolitisadvocates. Com to connect with a patient advocate from abbvie for onetoone support and education. Forbes is holding its second womens summit this morning. Mora forbes, publisher of forbes women whos coming and whats the goal . Were excited about the lineup. The theme of the conference is the entrepreneurship of everything. Whether youre leading a multinational, multibillion dollar corporation, youre launching a business or creating a social movement to impact the lives of millions, it really is about entrepreneurship. We have great corporate ceos, traditional power players like ma mary eardo, Kathy Ireland who went from swimsuit model to entrepreneur. Jessica simpson. Its an eclectic group. In order to achieve your goal, what are they going to do . Were going to be talking about issues and challenges affecting all leaders, not just women. So not just how these women are doing what theyre doing but how theyre taking that entrepreneurial approach and reinventing their businesses. How they navigated their careers and how they faced huge obstacles. Were looking at economic motivation, health and a number of issues. You know whos newly available, jill abrahamson. That is true. That is true. She used to be the competitive . Shes an extraordinary power woman but it goes to show you, never before has it been easier to attain power with social media and connectivity. Its never been faster to lose it. She was a huge influential voice in the media world. Yesterdays news, still things shaking up. Hello. We were college classmates. I can give you a lot more to make fun on john. Did you have a murse. He didnt have a murse but theres more incriminating things. Julia borston was in our class, too. Are there any other sectors that jump out to you as big areas that will be discussed . I think the main sector where we see women really driving entrepreneurship is still in the lifestyle and consumer arina. Theyre doing it in dynamic, unconventional ways. Were seeing different businesses that are revolutionizing retale as we know it. We see these women that are turning their personal brands into huge, Million Dollar businesses. Its very, very difficult. Someone like a Kathy Ireland is a great example of that. You mentioned jessica simpson, too. I dont know if you have a monitor we just happen to have that. Oh, my gosh. In the photo file. Thats not photo shopped. Its over at this point. It was hot, it was heavy you look good together. Can they put a murse on that shot . Could i market murss . My stomach there you may need to wear spanx. Founded by one of the selfmade billionaires, sara blakley. I think it could happen. Tory burch, thats the giant entrepreneur, the huge one out of all this. Whats she dong in revenue . Do you have a sense . Its an xreert story. In a decade she went from preppy clothing that naysayers dismissed to now being one of the hottesten brads around the globe. You go to asia and shes a rock star. Shes joining us today. Shes one of the few selfmade. Theres only about 12 selfmade billionaires in the world. Shes taking her business acumen and empowering hundreds of thousands of entrepreneurs around the world. She started an Amazing Foundation working with the likes of bank of america and Goldman Sachs on it. Thats an example of what power means today, not just recrating businesses but how do you take that still and used it for the greater good. The New York Times as we all know is going through a tumultuous period. All media is. When you bring in a new voice and person at the top, there will be roua lot of ruffling th feathers. She was a controversial figure. Theres different challenges emerge. Sometimes that change of leadership is important. I dont doubt that well continue to see her make big waves. Myra, great having you on. Best of luck with the conference. Sounds terrific. Thanks so much for having me. Care. Com ceo Sheila Marcella will be joining us today. I think abrahamson, there are two days they did not lead with Global Warming in the lead story here. They got rid of her. She missed those two days. Not on board. Anyway, coming up, more on David Teppers cautious comments about the markets plus an update speaking of which on the wildfires forcing massive ev evacuations in california. True businessgrade internet comes with secure wifi for your business. It also comes with public wifi for your customers. Not so with internet from the phone company. I would email the phone company to inquire as to why they have shortchanged these customers. But that would require wifi. Switch to comcast Business Internet and get two Wifi Networks included. Comcast business built for business. E financial noise financial noise financial noise financial noise no matter what kind of business you own, at t Business Experts can help keep it running. Seamlessly. So you can get back to what you love. When everyone and everything works together, business just sings. Improving everything from booking to baggage claim. Were raising the bar on flying and tomorrow well raise it yet again. Whon a certified preownedan unlimitedmercedesbenz . Nty what does it mean to drive as far as you want. For up to three years and be covered . It means your odometer. Is there to record the memories. During the mercedesbenz certified preowned sales event now through june 2nd, youll get complimentary prepaid maintenance and may qualify for a twomonth payment credit. Only at your authorized mercedesbenz dealer. Good morning and welcome back to squawk box here on cnbc. Im joe kernen along with becky quick and Andrew Ross Sorkin. In the headlines this morning, were about a half hour away, are you putting it in front of me, im reading it. Were a half hour away from the earnings from walmart. Analysts expecting First Quarter profit of 1. 15 a share a. On quarterly revenue of 116. 3 billion, like its the most normal thing in the world. 116 billion in the quarter. Home foreclosures down 1 in april compared to march. According to new figures on realty track. That marked the 43rd straight month of falling foreclosure activity. Weill fires continue to burn out of control in southern california. Thousands in san diego, carlsbad, san diego county, have been forced to evacuate their homes. The fires will burn more than 9,000 acres and the ongoing drought will make fighting the fires more difficult. The markets after the selloff yesterday, the futures suggest a flat open. Dow opening higher by a point. Nasdaq by five points. Ill show you whats going on over in europe as theyre growing and the ecb doing something in june. The dow jones European Index along with the italian index are all lower. As to what happened overnight in asia be with the nikkei was lower by threequarter percent. Shanghai fell by more than 1 . Price of oil, 1. 10. There it is. Lets show you whats going on with the tenyear yield. 2. 53 , just below 2. 54 . Weve been talking about it for weeks. Well talk about it for the rest of the show im sure as well. From 2. 6 they said it would have to go down another 3. 5 before signaled trouble. We were down at 2. 25. Something like that. Jeff dunlap suggested it was possible. Not probable. Crazy. The dollar is stronger against all the major currencies. The pound will cost you 1. 67. The euro at 1. 36. 101. 91 yen for every dollar. Who do you think this is . It could have been becky or miranda. Exactly. Theyre quick like that. The foreign minister of cyprus is in town for meetings in washington to discuss the situation with ukraine and russia. Cypruss economy has been in for two years. What would happen to the cyprus economy if there were bigger and larger sanctions again the russians . It depends if the sanctions are going to be blanket ones against Financial Transactions with russia, then its going to be a disaster for the economy of cyprus. I hope this doesnt happen. Are you telling people in washington that . Are you telling your fellow european Foreign Ministers that as well . Yes. This is our position in washington and in brussels. But you know i am relieved to hear if there is a need to enter into the third phase of sanctions these sanctions will be smart sanctions in the surgical sections and, therefore, not on an croacross board thing. To translate people, level three sanctions are when you would just ban an entire sector in some way and the talk of surgical sanctions would be targeted within the sector. Exactly. A lot of people say if you do surgical sanctions, it doesnt punish russia. In particular, cyprus, who has been the victim of the territorial of its territorial integrity and sovereignty back in 1974 is the first one to advocate against any attempt against the territory of ukraine. On the other hand, we should not as you have rightly said, punish ourselves in order to punish russia. I hope that the way things are going at the moment, this is not the case. I read reports there were another 13 billion worth of russian investment went into cyprus just the First Quarter of this year alone, even though so Many Russians suffered during the crisis last year where they took big hits to their deposits. Indeed. The deposit of city banks have suffered the bailin which cut their deposits to half. It was this that happened to cyprus. Despite this, our Services Sector with the Services Offer has been resilient and that is why our economy is recovering and is presenting very good results despite the fact that last year the model was destroyed. You suffered recession for the last two years. When do you finally lift all of the capital controls . First of all, to remind you, because of the capital controls, not only are they allowing to have their assets frozen but everybody cannot get their money out of cyprsigcypressigcyprus. We hope by the end of the year would be the end of all the restrictive measures and domestic restrictive measureses have been lifted. The last thing that will happen, capital control going outside the country. We really appreciate you joining us this morning, getting up early while you visit in washington. Thank you. Thank you very much indeed. Pleasure. Thank you. Hows it going over there . I noticed. He likes it. I thought this was the murse. You showed me how to do this. You lift this side up. Ive been in downpours, snowstorms. This thing is amazing. I thought you might have put a bro in here so i could carry my bro around. Some people call it a manzere. I dont need a bro because i swim. That would have been insulting. Everything i put in there was something i knew you needed. I wanted to get a stack of apology notes but i couldnt get to the stationery store. One time the guys on wall street got upset because he called them longshoremen. Then he apologized to the longshoremen. Long shoremen . Theyre not. Paid very well. Next we used to have a guy working here that was lee cobbs son, jerry cobb. Next, the fast food nation may be about to go on strike. A quick check of whats happening in the european markets right now. When folks think about what they get from alaska, they think salmon and energy. But the energy bp produces up here creates Something Else as well jobs all over america. Engineering and innovation jobs. Advanced Safety Systems technology. Shipping and manufacturing. Across the United States, bp supports more than a quarter million jobs. When we set up operation in one part of the country, people in other parts go to work. Thats not a coincidence. Its one more part of our commitment to america. Predibut, manufacturings a prettin the United States do. Means advanced technology. We learned that Technology Allows us to be craft oriented. No ones losing their job. Theres no beer robot that has suddenly chased them out. The technology is actually creating new jobs. Siemens designed and built the right tools and resources to get the job done. Welcome back. Time for todays squawk planner. Walmart on the earnings calendar today. The king of all retailers expected to roll out results at 7 00 a. M. Eastern time. Jc penpy reports after the closing bell. The government releases the april Consumer Price index and jobless claims at 8 30 am eastern time. Fed chair janet yellen will address the u. S. Chamber of commerce on Small Businesses and the economy. Thats happening this evening. Thats your squawk planner. Joe, back to you. Thanks, michelle. The Fast Food Workers Movement for higher wages is spreading another big strike is scheduled for today. Protesters scheduled for 150 u. S. Cities and 33 countries. The protest which started in 2012 are to try to get minimum wages raised to 15 an hour. Also the ability to form unions. Thousands are expected to walk off the job at fast food chains which include mcdonalds, burger king, wendys and kfc. 134 of the new protest cities would include philadelphia, miami, orlando and sacramento. Among others. Well go back to break. Im having a flashback. I remember one time one time i happen to say to you you were wrong on twitter. You have been hurt and scarred. You think i hurt all guests . I think you never gave me the credit on facebook. You were right about twitter. Im giving you credit now. Thank you. Thank you for my murse. Its important you say murse and not mers. Mers is the disease. This is rugged. Is this as rugged as the Indiana Jones murse . He made it okay. I dont think youre joking. I think you like this and are going to use it. You know what, its growing on me. Ive said that. Ive been called rugged before. Look at him. Look at him. Look at him. Who doesnt want to be him . I went as him for four years in a row. For halloween . Yes. Hes just the best. The best. You dont really look bad. I thought it was key ananu reeves. We talk to the ceo of care. Com about his new partnership. Thats next on squawk box. Ameriprise asked people a simple question can you keep your lifestyle in retirement . I dont want to think about the alternative. I dont even know how to answer that. I mean, no one knows how long their money is going to last. I try not to worry, but you worry. What happens when your paychecks stop . Because everyone has retirement questions. Ameriprise created the exclusive confident retirement approach. To get the real answers you need. Start building your confident retirement today. Transportation disruptor ubber tapping into the family market with the help of new partners care. Com. Joining us with more on the partnership is the ceo of care. Com. Sheila is also participating in todays forbes womens segment. Great to see you. Can you explain . I know youre already trading. And i should know all about. But explain exactly how do you do you bring caregivers to the kids . Can you put a kid in the car and take him to child care . It goes both ways . Good morning, joe. Yeah. No, so care. Com helps families find caregivers. Child care, senior care, all under one umbrella. We are supporting putting child care seats in the ubber cars. Mothers day we covered those fees just to make it easier for families because its all about safety. I think they are making headway to make sure families can get around and really protect children. Hi, sheila. Hi. How many care rides did you guys do over mothers day weekend . You know, it was very, very popular. We got a lot of testimonials of people writing in and just super excited about the program. We hope to launch it in other cities. Was it thousands of rides . Tens of thousands of rides . Hundreds . Just a census. It is still early. Both companies are super excited. But definitely a large volume that i think both companies expected more was in high demand. Beyond the mothers day sponsorship, does the relationship continue . Is it a certification and the car seats . How will it continue beyond the first weekend . Our teams are actually talking quite a lot about safety. Weve invested millions of dollars in safety at care. Com. We are thrilled both our management teams really believe in the overall safety for families and building trust. And so our plan is to actually expand it beyond the pilot in new york city. But are you continuing now . Is the whole entire uber family still run by care. Com, or was that just the weekend thing . It was over the weekend, but we are certainly talking. Both companies are talking about launching that in other cities and extending that Program Overall because of our belief in just, again, making it easier for families to find care that is super easy, as well as making sure transportation is easy. Over 50 of the jobs posted on care. Com require transportation. It is often after school and very difficult for families. What do you see as the biggest growth areas you want to expand into . Handling the payments angle . Thats a hot space. What are your thoughts on that . Yeah, andrew. 42 million households that were going after and were only 2 penetrated. It is raising the awareness about child care and senior care. It is an aging population. Payments is super and to make it very easy. We really believe in care giving. Our children are well loved. Our parents can age and die in grace. So you have to do a lot of background checks, dont, you sheila . Yes, we do. If i needed my kid to go to an activity, can i put my kid in the car with a guy and not worry about it . We have built a platform. We have created a Safety Advisory Board and coalition across the industry, the care industry, and invited other players to share what we have done. But at the end of the day, we are a marketplace. Were not an agency. We try to make it easy for a family to find resources in a costeffective way to check on sexual offenders. It is very important. I think that other Companies Need to do the same thing. Okay, great. Sheila, thank you. Appreciate your time today. Have fun at the conference. Good luck at the conference. Okay. Thank you guys. Coming up, worlds of caution from a hedge fund giant. David tepper getting nervous. Used those words and said dont be too freaking long. All stations come over to mission a for a final go. This is for real this time. Step seven point two one two. Verify and lock. Command is locked. Five seconds. Three, two, one. Standing by for capture. The most Innovative Software on the planet. Dragon is captured. Is connecting todays leading companies to places beyond it. Siemens. Answers. What is this place . Where are we . This is where we bring together reliably fast internet and the best in entertainment. We call it the x1 entertainment operating system. It looks like the future we must have encountered a temporal vortex. Further analytics are necessary. Beam us up. Thats my phone. Hey. [ female announcer ] the x1 entertainment operating system. Only from xfinity. Tv and internet together like never before. Good morning. And welcome to squawk box on cnbc. Im joe kernen along with michelle crews show cabrera. Joining us is John Steinberg. He does a good andrew imitation. Some of our guests that cant see think you are andrew. I am. Im going to get book deal and movie out of this. Thats a reflection of you being tech savvy. It might be an age thing. Im not sure what it was. I needed a murse. It may make me feel a little younger. This is my guest today from jack coffey. This is the outside. You open it up like that and you can reach in and get your compact or your eye liner. Your laptop, your tablet. Guest host totally murseless. What do you carry . I will stay murseless. Hennessey funds. Original. Exactly. Its your company. Correct. Youre the big cheese. Well, thats not what my employees say. Well talk about tepper and whether you think the market is where you should be long. I have seen it both ways, yes. The future when tepper says something the futures move. Not today. Heres one of the things he talked about and we have talked about ever since we fell below 285 or so. 2. 54 on the 10year. In a 3 above gdp economy that everyone is forecasting this Economic Growth, people are assuming is going to happen even though we might have a negative print in the First Quarter, when its all said and done, 2. 54. The economy is sputtering. Still its troublesome. I mean, its nice that rates are low. Hopefully it helps the mortgage market. It makes stocks more competitive. It makes it hard. The only game in town is still stocks. But it still makes you wonder. It makes me very nervous. Stkedoes it . Yeah, it does. The excuse why the 10jeer was falling pwe 4 , the chinese had a fixed currency. They were get anything examine buying all the currencies. And then we had a big crisis. Anyone that was nervous that the fed, by orchestrating low Interest Rates, was causing huge dislocations from where it actually should be. You let it float. And it doesnt even go up. Right. For yields to fall as the fed is exiting, some should take sole as. Will it move on walmart today . The 10year yield . Well not know what the numbers are. We do have the actual earnings number. I havent heard revenue yet. Were working without computers, folks. 1. 10 a share is where it came in. Estimate was 1. 15 a share. And the revenue expectation was 116. 27 billion. Yes. Thats for one quarter. 1. 5 billion. So 114. 96. Slight miss on the revenue. No one seems to care. It shows in the screen. I dont know whether thats a nice little trade. Well keep an eye on it. And same story sales, 0. 2 . Weather was 3 cents. That puts it 1. 13. Whats the other two cents . I dont have the release yet either because of computer issues. Back out to kate. Hedge fund david tepper in las vegas. Lets get to kate kelly on the squawk news line. Is it friggin or freaking. I heard fr frickin. I think he would be cool if we used the g. Longstanding in recent years made him a bundle in the market. While hes not going short he is saying keep some cash on the sidelines and be mindful of a possibly reversal. Here he is on n his own words on market. We have moved our position around several times. Now im low enough in exposure, i can take the it up or down. Im nervous. Its nervous time. Tepper is about flat so far this year according to recent hedge funds. Palomino is about a quarter 1. 25 up. You can see that he is kind of struggling to find direction like a lot of us. Then he says the reason he is nervous, chinese Monetary Policy too tight. He is hoping we will see an easing event in june. He thinks it may be too late. But better late than never in his view. U. S. Growth has been too slow. Risk of deflation. He said if i put it in terms of economical values, if it looked like the u. S. Would be 4 at the end of the year, i would be a lot more comfortable. He thinks the First Quarter was not as bad as we saw. He thinks it will be revised upward. Even if were in the mid twos rather than at three and a half, we still have major problems. He finished that thought by saying were probably okay, but its getting more dangerous. He went on to talk in noncorporate earnings and what we will see in the stocks. Growth is slower. You will have lower profits. This is a mixed environment. Once again, dont be too freaking long. Like many people, i think hes trying to figure out where the economy is going and not feeling a comfortable sense of direction. Kate . Yeah. What did you say just now about 4 . Someone was in my ear. I missed your entire point there. If it was 4 , what . If we were going to have 4 toward the back half of the year, i would be a lot more comfortable. But you should hear this too because you were talking about it earlier. The First Quarter was not as bad as initially reported. He thinks it will be revised upwards. But say were in the mid twos rather than mid threes, i dont like it. That was his bottom line. We have had mid twos for years. And then we have these spring swoons. Lets see how Neil Hennessey feels. Ill tell you quick story. I was doing a radio interview. It looks very benign. 2. 6. We have come to grips with it being 2. 6. Thats a great number for the stock market. Europe seems to be a little bit better. Corporate profits seem to be upticking. The Housing Market. I thought it was a very benign environment for the stock market. But then when it suddenly goes, again, below 2. 6 and may go below 2. 5, does that make you worry . Not at all. I think youre correct. If you ten back from all the hoopla out there and you take the dow jones. Its yielding 2. 2 . Would you rather own those 30 companies for 10 years or 10year government bond. Corporate earnings are going to slow. Its been a slow environment. They dont need to make anymore money than they are now. And they can afford to wait for the economy to pick up. In the next 18, 24, 36 months, you will start to see Companies Start to spend money. Instead of raising dividends or stock buybacks, even acquisitions, because that part of the game is pretty much over on the acquisition side, from the easy deals. But i think you will see why do it if there was no demand. The demand hasnt been there. What changed . Ive been on this for about three or four years. There was no reason to expand. There was no cost to defer. If your competitors werent expanding, why should you . Because washington is still disfunctional, in my opinion, businesses still dont have clarity. If they want to grow their sales and easy pickings are over, they have to start to expand. Once one company starts to expand, the competitor will have to expand. They have to move it in organic growth, which in turn should lead to hiring. And thats what janet yellen is looking at. Shes looking at the 6. 3 number on unemployment and saying, this isnt a good number. I agree with you on the choice. You can say i can buy 10year at 2. 5 . Or stocks. Hopefully the underlying asset appreciates and hopefully i get a dividend et cetera. And yet millions of investors around the world put billions to work in the 10year. Why . I have absolutely no idea. Because i use common sense and logic in the way i look at things. And i can say that Interest Rates most likely will be higher in three to five years than they are now. We had a 32year bull market from 21. 5 on the prime rate almost down to zero. So that is over. So rates will go up. I got a current quote on walmart. It is down a couple of dollars. The earnings release. It closed at 78. 74. It is now 76. 50 with quarterly results. 1. 10 below expectations on the number. And 114 and change. Below 116 billion. We have an explanation on why the comp sales declined . Delay in Income Tax Refund checks. Less grocerily inflation than expected and payroll tax increase. Lets talk to paul. Is this trestle or tressel. Trestle. Thanks for joining us today. The market is 2 bucks. Its very widely held stock with a lot of shares. I would like to say a lot of this is weather. But, it is being met with selling initially. Was it disappointing . Yes. I think the First Quarter results were more or less in line. But the Second Quarter guidance was disappointing. It came in well below the street. Walmart continues to invest in ecommerce and other small store initiatives and continues to invest aggressively in price. That is having a negative effect on the markets near term. I finally got access to estimates and things, paul. They said 1. 22 to 1. 27 is where they are guiding. I see thats below compared to 1. 18 last year. Where were you for the Second Quarter . Where was the street for the Second Quarter . It was 1. 29 to 1. 30 for 2q. Yeah, it is a little bit light. Yeah. It seems like it is due to margins. Price and ecommerce. What was the comp star pwe klein . What was expected . 1. 4. Is that worse than people thought . Comps were flattish for the u. S. And that is a relatively in line with expectations. Thats what walmarts trend has been of late. Flat to slightly down. The guidance for the Second Quarter is more of the same, flattish traffic trends. We would have liked to have seen them be a little bit more optimistic about to go for a period now that weather is weather woes are hopefully behind us now. Do you have the old buy hold sell. Do you do rankings like that or have you moved beyond that . I have a hold on walmart. You have a hold on it . Yeah. We appreciate it. Thanks for working on this so quickly because the numbers just came out. Thanks, paul. Tax refunds were delayed is one of the reasons. Is that because of the drama at the end of the year about what was why would tax refunds be delayed this year . Well figure it out. Sneak peek at apple carplay. Maybe waves in the world of mobile payments. The latest deal with silverlake partners. Squawk returns in just a moment. E financial noise financial noise financial noise financial noise payment rows vantiv announced plans to buy mercury from silverlake group. Joining us to talk about the deal is the president and ceo of vantiv. Good to have you here. Why are you buying this company . Thank you. Part of it is payment. Ecommerce and integrated paymentsis one of the Fastest Growing areas. Mercury is a leader. What does that mean . When you go into a restaurant or hotel its all part of payments are imbedded inside the operating system. So when they swipe your card at the point of sale, its imbedded. So i go into the gift store of a hotel and i buy something. And somehow it ends up on my bill at the end, thats the solution you provide . Exactly. This is so competitive. Square, veriphone. Everybody wants to be in this . They will be using integrated payments. Were the Third Largest acquired in the company. Thats a high growth area. What are the margins . Do you pay the credit card processors as well . We are the credit card processor. We have a lot of scale. The margins are good in the business. If square is getting 30 . Youre getting the whole thing . Our margins are strong. Where do you go from here . Is your plan to do roll ups . Its really about taking the technology and distribution and adding scale to it. So its bringing Value Services to the merchants. It is growing so fast. We have a great distribution channel. We have Great Technology and scale that really creates a winning combination. What do you think about where jim cramer suggests starbucks should spin off their payment center. You have two sides of it. You have the consumer side and the processing side. You need scale in the business. We need scale today. We think we have an incredibly good service. They are dealing with giving people a great experience. And we are the back office side of it. Can you be the back off for google. We can be back office for many merchants. Who do you see . Bank of america, chase. We go toe to toe. Very strong. How much do you pay . 1. 65. People think that is expensive. It is one of the highest growth areas of the market. On a go forward basis, we see it mid to low teens. How long has silverlake has it . I think 2010. You dont get notice from private equity . We have dealt with private educate. Spun out. It is a great partner when we spun out from fifth third. We have been comfortable working with private equity. We have known silver lake for a while. Why are you able to directly process and all the platforms have to have a middleman . Can they not do it . Its about scale. We had over 600 billion worth of dom volume. Scale makes a difference. We create Security Products to the industry. Encryption. We try to lead the market. Who founded the company . Who founded vantiv . Yeah. I helped spin it out from fifth third bank. I wondered. So you have to be a bank to be in this. In cincinnati, we had the mayor on. A lot of businesses spinning up. Its a businessfriendly place. Fifth third is a great bank. It is a great bank. They still partner with us. They still own 25 vantiv. Its not at the corner of fifth and third. It was a merger of the Third National bank and fifth National Bank of cincinnati. Security, security, security. The obligatory what are you doing to preserve your customerss identities and bank accounts. We are leading the path as an adviser to our clients. We take the card number out of the system, endtoend encryption. We are working with large clients and middlesized clients. The merchants are what does it add to cost . It does add to cost. A lot of times, especially with b and b, theres upgrade of their systems. But they are focused on making the investment to preserve their customerss information. Good to have you. Thanks for joining us. Where did you leave, east or west . Towards mason. You do well in cincinnati, you move over. I grew up near pete rose. The other side of the tracks. I still go every so often. Gold star or skyline. Gold star. Good to see you. Flipping out with jeff lewis. Bravo will talk real estate, home design and getting his line of paints into home depot. More squawk box coming up next. At delta were investing billions of dollars, improving everything from booking to baggage claim. Were raising the bar on flying and tomorrow well raise it yet again. Dont move. Coming up next, big phrma and giant tech. Announcement usually move the stocks. A preview next. From mortgage reform to sanctions on russia. Squawk box returns in just a moment. Ameriprise asked people a simple question in retirement, will you outlive your money . Uhhh. No, that cant happen. Thats the thing, you dont know how long it has to last. Everyone has retirement questions. So ameriprise created the exclusive. Confident retirement approach. Now you and your ameripise advisor can get the real answers you need. Well, knowing gives you confidence. Start building your confident retirement today. Welcome back to squawk box. In the headlines this morning, walmart missing estimate witness stand its latest quarterly report. It earned 1. 10 a share. Five cents below estimates. Revenue also missed. And walmart gave a forecast that is below street consensus. Weather shaved 3 cents off profits. Kohls 60 cents per share, 2 cents below estimates with revenue coming in short. Word of warning about the markets from apple managements david tepper. In his words we have moved our position around different times. Now i have my position that i am low enough in exposure in equities or take it back down. I think its nervous time. Im not saying go short but dont be too freaking long. Kohls was 54 and change. Bidding 52, 53. Kohls will be down on the results. It wasnt like that on the other chart. Cancer study data released last night ahead of the big meeting a couple of weeks now. Its causing movement in phrma. Biotech and pharmaceutical meg terrell. Is this bristolmyers. Using your own immune system. That is the big theme. Bristolmyers on a combination of some of those immunotherapy drugs. An experimental drug. And astrazeneca, that of course is important because of the bid from pfizer. They have been really talking a lot about their cancer pipeline season data. Early stage in lung cancer looked pretty good. Interesting twist. Clovis, actually that data. Some analysts saying thats a similar drug to cloviss drug. It might be more potent and might have fewer effects. Finally, we will talk about insight. That company has an approved drug. It is expanding into pancreatic cancer. They are looking to see what patients will work best on isnt as strong as they thought it would be. And an experimental drug focusing on another oncology drug. Maybe not as strong as people were looking for. Asco. May 30th to june 3, chicago. Are you going . I am. Were hoping to do a few interviews with you. She went to wellsly. That is why. Really . I have to rethink my whole southern sisters. The english major i had there was very helpful. Excellent. Thank you. Coming up, senator bob corker. Cory booker. On the here i thought we had core where booker. Its bob corker. It is like when i said twitter was going to open flat. It is exactly like that. I can see the confusion. On the need for mortgage insurance reform, sanctions against russia. And volkswagen in chattanooga. Check out the futures at this hour. Oh the name your price tool you tell them how much you want to pay, and they help you find a policy that fits your budget. I told you to wear something comfortable this is a polyester blend whoa uh. Little help . I got you unh its so beautiful man should we Call Security . No, this is just getting good. The name your price tool, still only from progressive. Im spending too much time hiring and not enough time in my kitchen. [ female announcer ] need to hire fast . Go to ziprecruiter. Com and post your job to over 30 of the webs leading job boards with a single click; then simply select the best candidates from one easy to review list. You put up one post and the next day you have all these candidates. Makes my job a lot easier. 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One of the value criterias is the price of sales ratio. Its a truer number than earnings. You can manipulate them depending what you want to do. We wont buy anything over 1. 5. Were not going to pay more than 1. 50 for a dollar. Sales, when you look at, say, pilgrims pride, they process 2 billion chickens a year. Thats a lot of chicken wings. But youre talking about a company that is possible. Ratio of. 7. You can buy them for 70 cents on the dollar. Theres a lot of companies out there like that. Did that stock go . The dividend, if i remember correctly, there is a dividend on it. Companies are sitting on 3 trillion in cash. Record profits and corporate america. But they have been initiating dividends, raising dividends. Stock is up 106 a year and youre still comfortable with it. Yes. Youre in pretty good shape. You brought up the social media stocks. 8 of 14 large cap internet stocks are less than one. Do you like anything there . I cant speak real integritily because i cant look at every stock. But we are trying to find good businesses that are fundamental that can be there. Im not first of all, ive been in the business 35 years and im still trying to figure out technology and my smartphone they just got me. But you look at sisco, their price of sales ratio is in good shape. You look at the dow joins, 1. 75. And the s p at 1. 7. So the bigger companies, okay, the price of sales ratios arent like they were in the late 90s when you had sisco selling 25 times. You would pay 250 million for 10 million in revenues . That didnt make any sense. Thats what im saying. The bigger companies, hewlettpackards, they are not way out of line. Do you like amazon . I dont know much about it, john. Im sorry. But the Different Companies we look at. We screen 8,800 Different Companies and pick the 30 best with the best relative strength over a 12month period. Thanks. Senator bob corker wants to unwind fannie mae and freddie mac and replace it with a new corporation. Ranking member of the foreign realizes committee. You first told us about this a while ago, wasnt it, senator . Youre still plugging away . Been at it a long time. In a body like yours to make big things happen. We will have a great vote today in our committee. A strong bipartisan vote. I think we have laid the groundwork, no doubt, for the future and how Housing Finance will work. Today we have a system, as you know, with no competition and no capital. And obviously this bill would move us to a situation with a lot of capital a lot of competition and a lot of capital. Again, its been a great effort. Were going to have a successful markup today. And you think something might actually happen . We were going off the next two years, that nothing was ever going to happen again. This is a long game, zoe. And i dont think theres any question. But there is tremendous consensus about the fact that we need a lot more capital in the system. We dont want our system to be a duopoly like a russian arrangement that we have today. So, look, whether we do something this year or not, who knows . Unfortunately we have elections every two years around here. But it doesnt keep those of us who want our country to be strong, want our Economic Growth to be dynamic from plugging away. Look, im very happy with where we will end up today after the vote. Im just surprised that it even has a chance. Were back thinking its fine to make it money again. People are so worried if we dont subsidize. Were counting to have this 3 growth this year. This isnt the time to mess around with subsidized housing. Joe, its always not the time to do something that is difficult to do and makes sense and moves our nation ahead. You guys have been talking about territorial tax reform forever. Where the only nation in the world that has this crazy taxation system why dont you leave fannie and freddie alone . That seems a lot more important. You know, joe, i think ive demonstrated the ability to walk and chew gum at the same time. Ive never seen you do that. When have you done that . Can you do that for us. I dont want to embarrass myself in front of michelle but i might do it in front of you. You Vice President practiced lately. Sanctions against rush shafplt ythat. They are dead set against it. Do you think anything is ever going to come of efforts to do anything to russia relative to ukraine, or is europe just too weak . Yeah. You know, i could not be more disappointed in the way we have dealt with the russian issue. You know, they are doing exactly what they wish to do in Eastern Ukraine day by day. You know better than anybody, michelle, this election on may 25. If they are ale to show it is discredited or didnt represent all the people of ukraine in the same way, obviously its a major victory for them. At the same time really doing nothing to push back. The fact that putin still has the forces on the border which are intimidating. Lots of problems inside Eastern Ukraine. You know what, senator, just this morning we had the foreign minister of cypress on. Hes in washington. He said were extremely worried there might be level three sanctions against russia but i am very relieved between his meetings in europe and washington, no, they are going to be surgical. Theyre not going to be that bad, et cetera. I mean, is that it . Is he right . Michelle, heres the problem. We have done nothing if you look at since we announced the sanctions and implemented the sanctions, the russian stock market is up. I mean, these were nothing but tweets. What we have been indicating is that we hit some Important Companies in important sectors. Not the whole sectors. These are second party sanctions. What we did is third party sanctions. If any of you do business with iran, you cannot do business with the u. S. Thats not the kind of sanctions we have been talking about initially. It is second party saying we will not do business with them. That will accepted a strong message to their economy. It would affect them in a big way but would not affect europe. I dont know why we continue to move the red line like we have done on so many other issues. Syria is back too. Red line, syria. If carl introduces something that is just as palable and say protection for pfizer, would pfizer, would that pass . Would that pass the Republican House . I dont know exactly the details of what he might pass. But if you just have the concept that says no American Company can move, i just cant imagine Something Like that passing. I will say this, joe, you have to be careful around here. You have Pay Attention. Because sometimes emotional things can happen on the floor which make absolutely no sense for the long haul. Thats why i appreciate you guys having this program. And having people be able to come on and talk about the longterm effects of legislation and what it really means to our nation and the world candidly over the longer term. I dont think Something Like that would stand a chance of passing. I would hope not. It just means were not going to do anything and people will keep leaving. No. What it means is we ought to pass tax reform. Were not going to, though. I think we may do that. Really . I think there are enough people on the other side of the aisle that realize its ridiculous for us to be the the only nation in the world with this kind of tax system. And pfizer points to many problems we have within our Corporate Tax system. That is one of the singular issues. If the republicans were in the majority it is one of those singular issues we might pass as a stand alone. Because i think there are enough awful democrats that realize this is really problematic. The other side will give you a finger when you try to do it probably. If you have to describe the timeline, what would that look like that you would like and that is possible . Yeah. Well, of course immediate. I just see no reason that we want to trap capital in other places. Cash builds up. People say 2 trillion. I dont know what the number is. And politicians want to use it as a way of funding their favorite things. We do a onetimest. Eight or ten years goes by and we do Something Else. I just want to fix it. It is an impediment to Economic Growth in our nation. And i want to make sure people invest here. I think there are enough people on both sides of the aisle that at least on that singular issue we can come together and solve it. Were not going to do something between now and year end other than some repate kwraeugz that maybe does something for infrastructure on a shortterm basis. Thats not the way you create a stable long term economy in america. Hopefully we will do something thats more permanent and gives people the knowledge that this is the way its going to be in the future. We can invest, have Corporate Headquarters in america. We can operate all around the world and not be penalized. Senator, this is Neil Hennessey. The Corporate Tax reform, perception from the American People is once again washington is trying to protect the big corporations and this and that. When you talk about tax overhaul, do you ever talk about the individuals and what their tax rates are . Sure. And you look at the bottom line is poverty in the United States is about 11,000 is the cutoff. Nobody can live in america off 11,000. Right. Have you talked about raising that up so people can actually get more money to be able to keep more money and spend more money . Yeah. I was the only senator who voted to at least debate the minimum wage issue on my side of the aisle. Okay. I think the fundamental debate one of the fundamental issues in america of whether of how you increase the standard of living of average americans to me is a very, very important thing. Some people look at the earned income tax credit and expanding that. If you work, you have no taxes. Other people have looked at minimum wage. To me that is a debate the senate should take up. Its very important. Look, i was the mayor of a city. The most important thing to the citizens i represented was heads of households having good paying jobs. Being able to raise their families in an appropriate way. It is a fund mental issue. Its an issue no doubt we as americans need to debate as the middle income citizens in our country find it ever more difficult to raise their families in the way they seat fit. How can we not talk the corporate issue . Taking these crummy jobs were creating right now, and not very quickly, and adding 2 to minimum wage, thats not foggy to help anyone. Our vibrant corporations responding to increased command and providing more jobs. You cant put a patch on and ledge slate that we are going to raise the standard of living without the private sector accomplishing it. Well, i would agree 100 . So to me the very issue youre bringing up would be central to that discussion. But look at the pass throughs as was brought up a minute ago. Actually, if you look at between the highest rate that people pay, 39 , you add the medicare tax that was added on with, you know, the new health care bill, you add to that state and local taxes, pass through, many cases are paying 50 of their taxes away. If youre going to reform the corporate side, you have to reform the pass throughs, the individual tax rates. Because both in America Today drive the economy. So i couldnt agree more. Youre saying that the companies that arent incorporated that pay individual rates, those and a lot of Small Businesses are like that too. My company was that way. Dont you remember when we were raising rates, the Obama Administration said the Small Businesses only represent 2 . What they didnt say the big ones thats right. Over 50 employees represented 50 of actual revenue for small business. It is so frustrating. It is very frustrating. And, again, the whole topic of Economic Growth of upward mobility, that entire topic has not been debated in the United States. I know, i know. All of these things, all of these things play into that. And it is it is frustrating that the one thing that Americans Care most about we will not deal with yet. Hopefully if we get in the majority, that will be one of the first. This is why the wage issue of minimum wage is being put forward every couple of days in front of nodding people standing behind the president. Its so its another issue. Just a way to swing the election that way. And another one two years after that. Anyway, senator you got it. Reporter its a dirty business. I dont know why you chose it. Youre trying to do good. I understand that. Yeah. Why anyone would go into that business. I am just practicing so some day i will be asked to be a host of squawk box or Something Like that. When i grow up, i want to be joe. Coming up, are you ready for carplay . The time has finally come for apple to be incorporatevehide. We preview the technology ahead of todays announcement. And jerry baker joins us to talk news of the morning and whats in the paper. You, my friend are a master of diversification. Who would have thought three cheese lasagna would go with chocolate cake and ceviche . The same guy who thought that small caps and bond funds would go with a merging markets. Its a masterpiece. Thanks. Clearly you are type e. You made it phil. Welcome home. Now whats our strategy with the fondue . Diversifying your portfolio . E trade gives you the tools and resources to get it right. Are you type e . In a we believe outshining the competition tomorrow requires challenging your Business Inside and out today. At cognizant, we help forwardlooking Companies Run better and run different to give your customers every reason to keep looking for you. So if youre ready to see opportunities and see them through, we say lets get to work. Because the future belongs to those who challenge the present. Been eye long time in the making but it is finally here. Apple carplay. Josh lipton is in san jose this morning. Josh . Reporter yeah, michelle. Good news for apple fans. You can turn your current car into an iphone on wheels. In march apple announced it was partnering with a range of carmakers. Mercedes, toyota. It will offer carplay. You dont need to buy a new car. You can upgrade what you already known with the pioneer technology. Five of its radios will integrate apples carplay. We all know theres a whole lot of vehicles already on the road and a whole lot of consumers around iphones that dont have the financial means to buy a new vehicle. But they may want apple carplay in their car. Get a new pioneer radio as early as this summer. It allows consumers to use their iphones in their cars to make calls, use maps, listen to music, access messages with their voice or touch. Its easy to use. I get in your car, plug in your car, and plug it in and access this on board display. For pioneer, these radios could boost a hefty share of the incar radio market. As for apple, analysts dont think of carplay as a direct revenue generator. It is another potentially powerful way to broaden its devices and services. Apple wants consumers to use it no matter where they are at home, at work or in their cars. It will work with most cars but not all. Mercedes, bmw dont easily accommodate the systems, michelle. All right. Josh lipton, thanks so much. Good to see you this morning. We want to thank Neil Hennessey for joining us and for coming in studio. Youre out in the midwest . Marin county. Thats the far west. Good to see you in studio. Wall street journal editorinchief jerry baker for the remainder of the show. Later, the host of bravos hit show flipping out jeff lewis talks real estate trends. Squawk box will be right back. Mine was earned in korea in 1953. Afghanistan, in 2009. Orbiting the moon in 1971. [ male announcer ] once its earned, usaa Auto Insurance is often handed down from generation to generation. Because it offers a superior level of protection. And because usaas commitment to serve current and former military members and their families is without equal. Begin your legacy. Get an Auto Insurance quote. Usaa. We know what it means to serve. Welcome back to squawk box here on cnbc. First in business worldwide. Im joe kernen along with michelle carusocabrera. Becky and andrew are off today. Key inflation data down 15 points. Part of the reason is what michelle will tell you about right now. That is walmart. Walmart shares under pressure this morning. 1. 10 a share, 5 cents below estimates. Revenue also below estimates. The weather did shave 3 cents off its quarterly numbers. You can see it is lower by a little more than 4 . General motors is recalling 2014 Chevy Silverado and sierra for a tie rod issues. And one that affects powerassisted brakes. The man at the helm from one of the most prominent news organizations. Guest host John Steinberg. I wondered why it has gotten to that. I dont know why we couldnt introduce you with michelle. As one of the anchors. You need to weigh in. Thats your biggest competitor, the New York Times. Yeah. To me it looked like you had a little bounce in your step. You would never be one to foreshadow. His counterpart at the new york sometimes got fired yesterday. Interesting in sights for you. I know what we have reported. Clearly there was some serious tensions there. It was two and a half years. And thats usually not the kind of tenure you expect. Can you tell me if there are any gender compensation issues. We had that piece from pretty good sources. We dont know. Were trying to figure this out obviously. Look, all i can say, speaking very personally, i think it just underscores how important it is to have a proprietor who really believes in his editors. Who really supports and commits. A tough proprietor lets his employers make that decision for him. And i think that just shows how important it is. Consistency. And speaking with what youre doing is really important. And youre not necessarily the overseer of opinions. No. Lets just say compensation erbs in the wall street journal editorial pages are looking in a more aspirational way. Right. Not an envious way. Why dont you go start in the mail room. What a country to grow up i think he grew up in the bronx. In the converse, i wondered how many times does a New York Times business section have that ceo piece. Every quarter . It seems like it is twice a quarter. They rank everyone. They call them out. They make ceos feel bad. Now theres a compensation issue . She wanted more money and she had to leave. She shouldnt want more money. They have been very aggressively reporting. They have done a lot of reporting on this issue of the gender gap, president obamas determination. Women in the white house are underpaid. In your role, how much do you collaborate with the business side . She was against native advertise thing, more innovative forms of revenue generation. How is that view from your seat . I dont know what went on. Look, we work with the business side obviously. Its in our interest to sell the newspaper. Were newspaper that has to stride and succeed that way. We dont work against them. We are independent. We dont make editorial decisions at all on business decisions. We do them within the boundaries we set down. Look, we have all concerns about advertising. But only in a way thats very, very clear. It is a division between what our news is, what comes from the news side and what comes from an advertiser. We are very happy to help advertise advertisers. As long as there is no confusion between what is news and what is advertising. We have more from jerry and john throughout the show. We want to get an update on what is happening in turkey with the miners. One of the worst industrial disasters in that cups history. Richard, whats the latest . Well, it is more of a recovery operation at this stage. I am overlooking the mine sight right now. The rescue and recovery operation has resumed. But they have not pulled a survivor out of this mine in over 24 hours. They have been pulling some bodies out. There was still a fire burning in this mine shaft. They have been pumping a lot of water down into the mine shaft as well which goes down about one mile. So you have parts of the mine that are smoldering. Other parts are flooded and not a lot of hope that anyone down there is still alive. As you know, this company has been a tinder box because the Prime Minister has been so controversial. Could this spark something wider in terms of protests or things that we saw last summer . The protests have begun. That is what people are wondering here. Will this start a new wave of antigovernment violence. We saw it last night. We are seeing more of it. He didnt help himself much in this particular crisis. He came down to this mining area yesterday. He gave a press conference. He addressed families. He basically said, well, mining is dangerous and difficult work. And accidents happen. And as he left, one of his advisers was caught on tape actually kicking a protester after he made those comments. The Prime Ministers delegation was mobbed. They had to be rushed out of the area by their security detail as people threw stones and kicked their vehicles. So now you have the turkish president who came here to do damage control. Yes, it could start a new wave of demonstrations. Just one day or two days. This story is about you. I couldnt help but watching last night. My kids and i were watching. We are big fans of you and your work. Werent you in ukraine recently . You were in, what is it, turkey. I think that was the name. Soma. Where were you three days ago . Did you fly into istanbul. Then what do you do, take a car . How did you get there so quickly . So we were in Eastern Ukraine covering the separatist movement there. As the prorussian militias were declaring bogus referendum. And then this mine tragedy happened. A couple of people were missing. One dead. Our office here said this is a lot worse than initially reported. Could be a few hundred dead, maybe more than that. Turn Issue Airlines is accused of very expansive, very well connected hub. So we went straight from donetsk in ukraine, landed in istanbul with a flight to ismir, with we made it in time for the today show. Quick turnaround. We packed light. You have a home in istanbul or an apartment. I do. I pretty much live in istanbul, between istanbul and new york. These clashes took place right below my window in istanbul. I might be heading home from cover the next live shots from outside my window. You have an experience with this. Richard, always great to have you. Really appreciate you calling in. Thanks, richard. My pleasure. Ill be in touch. Coming up, indias election results, new investments between the United States and that company can. Were going to speak to the ceo of capri capital. How investors should be approaching the company. As we head to break, check out the squawk box market indicator. 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Record stocks hit record highs. Takes a look at what it has done the. Exit polls came out. Now is a good time to invest in india . With us say big investor in india. Chairman and ceo of capri capital partners, and cnbc contributor. Good to have you here. Thank you so much, michelle. 3. 5 billion in investments. 3. 8. How much is india . Why are you there . Thats u. S. Domestic assets. In india, we have a roughly 200 million portfolio. The magic middle of india, the burgeoning middleclass. We are doing lending primarily in that market. So liberalization of the markets. When you see what it did on the hopes that it was the next Prime Minister, is that a justified move . I think so. I think that modi is a very business candidate. I think he indeed will win. What he did is just amazing. Chief minister. He captured 25 of the exports of the entire country. So his pro business agenda is one that is greatly anticipated. So i think theres going to be a lot of new Business Investment initially. If hes able to capture 272 votes or seats in the lower house of parliament, that will be a clear indication that he will have a mandate to go forward and make the reforms to regulation, to go after corruption and other things that will be critical to the growth of the country. Would you put more money as a result . We were in india very early. Because of him there would be more now maybe . No question. A big investor in nigeria, when you see the situation with the girls being kidnapped, how do you feel of it in terms of an investor and whether you should put money there . The situation indeed is very, very tragic. I think, though, the western media tends to focus on social unrest and focus much less on very positive stories like Economic Growth and the wonderful things that are happening in africa. When we invest in a country like africa, things like Economic Growth, stability, transparency, rule of law, these things we believe are more important than social stability. Theres the always unrest. It will continue. Its not going to go away. Economic growth is more important. Nigeria doesnt have a great reputation. Are you suggesting moving up the curve when it comes to Getting Better . Well, economics trumps politics nigeria is an economic powerhouse. You cant have an african strategy without nye year ya igt of it. Its been a democracy for quite some time now. Its not perfect. But the size of the economy, the natural resources, the land. It has all the factors one would want for Significant Growth over the future. The central banker, he comes on. Rajon. He is transform active. He is willing to do i remember volcker had to do some things that werent near term, werent positive for the business environment. If modi is elected they will both be emboldened to take hard steps. Rajon has been extraordinary for india. So in terms of expanding foreign reserves, stabilizing the currency, these are things that clearly are of longterm benefit to the country. I cant think of anything negative. Really . The flight capital will come in and go out. But in terms of Capital Expenditures and longterm investments, its still quite positive. How do you handle the neighbors. Pakistan, china. I think in general he will have to improve his cultural sensitivity. Dramatically. He has to be a bit more culturally sensitive. I think hes going to reach out to his neighbors. I think its critical to his own growth. What is the one thing you have seen . We have stepped back from the brink a few times from kashmir to pakistan. Its been proven again and again. And i think we will see it again. U. S. Real estate. Yes. What do you make of the 10year . Its good for u. S. Real estate. Okay. Getting the banks to lend a little bit more. Is that the problem . Theres no shortage of liquidity in the real estate markets. The conditions are actually very good. On the demand side, you have had a modestly growing economy. You have had job growth. You have had a relatively weak currency. Its great forex ports and the manufacturing sector. On the supply side, growth has been relatively muted. Back in the 80s, 90s, we had gross overhang of supply. That really hurt the market. Lenders have not been too aggressive. So supplies have been muted. These are ideal conditions. You invest in capri . Pardon . Do you invest in capri in the island. We generally stay away. Dont be afraid to ask. See how youre too smart, joe. Thank you. Some people think i ask stupid questions. Now they feel pretty stupid. Thank you. Thank you. Good to see. You coming up, if youre worried about inflation, well, investors are piling into bonds yesterday. And the 10year we just talked about to a level not seen since october. Now cpi data is out. Have you ever hoped for hot numbers in inflation . Begging for inflation . Please. Just a little. We will look at those in just a few minutes. Ameriprise asked people a simple question can you keep your lifestyle in retirement . I dont want to think about the alternative. I dont even know how to answer that. I mean, no one knows how long their money is going to last. I try not to worry, but you worry. What happens when your paychecks stop . Because everyone has retirement questions. Ameriprise created the exclusive confident retirement approach. To get the real answers you need. Start building your confident retirement today. Predibut, manufacturings a prettin the United States do. Means advanced technology. We learned that Technology Allows us to be craft oriented. No ones losing their job. Theres no beer robot that has suddenly chased them out. The technology is actually creating new jobs. Siemens designed and built the right tools and resources to get the job done. Welcome back to squawk box. Usually when we hear about oil spills they occur in the water not on city streets. That wasnt the case in glendale, can qaa. A ruptured pipe spills 50,000 gallons of crude. The oil was knee deep. The pipe is being repaired. No injuries being reported. You yeah. Knee deep. Ask a frog about that knee deep. That was on for a couple of blocks. Not that that helps. But, i mean, it wasnt the hole can you imagine . Knee deep oil. Lets get insight on the days top stories from the man t helm of one of the most prominent news organizations. Still at the helm. What else should we what else is most compelling in term of when youre going to put together in tomorrows paper . Well, i guess we will put a little bit more at friends across town. Where is Andrew Ross Sorkin when you really need him. Whats going on in the markets, bond markets. We saw these pretty awful gdp numbers this morning. He said that the ecb doesnt get off its tuckus. It is going to finally. Dropped opposition to whatever it takes. I think we will see in june some tougher measures. Inflation is very low. Horrible gdp numbers. You see whats happening to bundes. Giving a year of accelerating growth. Everybody was expecting bond yields to rise and a return to normality, its not really looking like that. When we watch rough and tumble politics, we love looking the its not the house of lords. Its the other house. The house of commons. House of cards. They throw things at each other. Its worse. I find this whole thing, its always been like that. Not always. But there have been many times in American History where the quality of public debate has been way lower and the hostility has been way worse. Like the founding father. Absolutely. They were united around only one thing, a desire to kick out the british. Sadly, we have come back. You still looked pained when you said that. The government is intercepting routers and installing firmware to spy on people. Is that a true story . It broke late, late yesterday. I guess theres and lots of things were learning about the way the government is interacting with tech companies. And, you know, some tech comes a are incorporating. I dont know enough about the details. So this is another snoweden leak. An internal nsa newsletter. They had photos of workers intercepting sisco boxes, opening them, installing devices and sending them off. Michelle made the point in november they said it hit sales. Foreign companies didnt want to buy routers. That is one of the many interesting things. To the extent in which it is affecting u. S. Company activities. That sounds like an excuse. Europe, the germans unhappy about it, pushing back. I want to talk about november whether it really matters. Were used to this. Inflation data, right . Dont move. Inflation data, super important. Especially in light of what david tepper said. Thats right after the break. Plus, bravos flipping out star will join us about investing. What is this place . Where are we . This is where we bring together reliably fast internet and the best in entertainment. We call it the x1 entertainment operating system. It looks like the future we must have encountered a temporal vortex. Further analytics are necessary. Beam us up. Thats my phone. Hey. [ female announcer ] the x1 entertainment operating system. Only from xfinity. Tv and internet together like never before. Welcome to squawk box. Here we go. Data. April cpi up 0. 3 as expected. The all important food and energy. Up 0. 2. Surging for a may read. 19 and change. Definitely leap frogs over last look 1. 29. Lets look at initial claims, shall we . 297. We have dipped below 300,000. So that is minus, what, minus 24,000 from a 3. 21 slightly very viced from 3. 19. Continuing claims under 2. 67 million. So i can hear it now. All the macro data people out there. Wow, the drop in claims, the economy is robust. I will look at the jump up in cpi. Its not as aggressive as up 0. 6. And then 0. 5 sequentially back in time. But the year over year numbers, 2 on headline, 1. 8 on core, is something we need to Pay Attention to. What did Interest Rates do . We had a basis point and a higher yield from 253 1 2 to 255 on a 10. It really seems as though inflation should always put rates higher, maybe even steepen the curve a bit. The dynamics of relative value against the sovereigns and the notion that the economy, though improving, isnt doing it at a record pace. The two issues seem to be bigger in keeping yields down than the outlook picking up. Thats an important consideration to ponder. Back to you. It certainly is, rick. Steve, what do you think . We havent had 2 year after year since february 2013. Got there and came back down. Im not seeing anything that particularly drove the cpi higher on its own sum. Im just going back to the table here, which is right there. We always look at rent and housing, which is about 40 of the index. Went up to 0. 2. That wasnt the big driver. Transportation up 1. 1 . Gasoline up 2. 3. Theres always these 0. 1, 0. 2 in there. This is getting to where the fed wants to bring the inflation rate. Its up and near there. Whether or not you get more excited about inflation thinking the fed can actually control it. Im not going to say what rick suggested. I think the way to put this in context, you had some seasonal issues around easter that take it up to 3. 45, 3. 21, coming back down to 2. 97. Before you respond, rick, in the control room, it only moved two basis points. Two ticks. What was the core . 1. 8 year over year. Up 0. 2. The fed follows the pce, which doesnt include housing so much. That was always greenspans favorite. Its the feds actual official thing now. Thats what they found. That runs a little bit lower. It shows inflation is not as hot as it is in the cpi. As for bonds, rick, you know, i know that the street essentially dismissed theory. Bernanke would sit there time after time and say its the stock not the flow. And the idea that bonds are so low, are we looking at by the way, what they say about Monetary Policy, it works with long and variable legs. Are you now seeing the effect of buying a trillion of duration off the market. You know what, now is when it really gets tough. Maybe the last 1,000 points were easy. Now that you have stocks at 16,600 on the dow and now you have to really make that choice to buy stocks or bonds, i wonder if we will have this for a long time to come. Well, i think obviously the pool of fish that they have taken off the shipping lanes is important. I really think that is important. But i dont think its a driving force. And how long are these lags . Qe1 started a while ago. Believe me, i think theres a lot of reasons why rates are down. And nobody is going to get a memo that says who is right and who is wrong. There is very little doubt in my mind that geo politics is much lower. And the notion that it isnt we are saying the economy and im speaking like for the bond market, is horrible. It has improved. But selling treasuries to chief anything doesnt make sense because the economy hasnt improved that much. Rick, i have not seen the bond market sell off on positive economic data. We had the squirrely retail data. Retail sales, we saw five basis points lower immediately when the number was released. I think that gives you good insight. Parallel shift. No difference between there was evidence from you heard what he said . I heard this all morning. Im paraphrasing. Your point, joe is bond market is more likely sniffing out. Not after you told me theres a lot of Different Reasons why it is 2. 6. You told me. The trade got too crowded. Over europe the yields are everyone lower. So you are off the aoe con theory. You told me. Back to the econ theory. We have bad walmart number. Bad kohls number. Is that a leading indicator of a bad economy . What we saw in the retail number was you saw a massive revision in march. And then april kind of keeping pace with that. So it means the april, may, june, gdp is on pace to be unchanged at a much higher level which means you will still have Consumer Spending growth. The bank of japan after the increase in april, once again saying they are committed to even more stimulus. Ecb we now know will be doing something in june. The fed. Yellen has been ambiguous. Still clearly not putting their foot on the brake. Jerry baker Global Banking theory. I like that. The all american thing. All american index. Every one of those guys convince me. They all saided no. Were going above 3 . 3 to 3. 5 . Thats why i get nervous. Listen to these guys. I just want to be clear. What they are talking about, my report a week ago, the 4 a quarter. They were all up there. They arent always right. No, thats true. 4 . 4 for the Second Quarter. They have been looking for 3. 5 , 4 for 15 quarters in a row. At 4. 2, hes raising our level. It is just unbelievable to me. Sooner or later you know those people that go to the mountain every week and call for the end of the world and then on monday morning they have to go back to work, sooner or later theyre going to be right and sooner or later some of these economists will be right. Good to see you. Thank you, guys. That was nice. Up next, hes a star of bravos hit series flipping out. Jeff lewis is here. Ill going to show him my new murse. Lets see if they have improved. Good claims number. We need some good numbers for a change. E financial noise financial noise financial noise financial noise our next guest is regarded as americas wellknown house flipper, the star of bravos series flipping out launched a paint law called jeff lewis paint picked pwup i home depot. I try not to get too excited until things happen. The paint line, i have been working on that for years. We started off at a west coast retailer. Its been plugging away for a year. Were lucky enough to get called into home depot. Thats what happens. When you get an opportunity to pitch to home depot. You fly to atlanta. Whatever day, whatever time you are there. We got very lucky because my manufacturing partner, dunn edwards had been working towards a pitch with home depot. They were very generous. At the end of their pitch, they said do you want to come in and pitch your brand in the last 15 minutes. And we did. Is in like walmart where there are 10 of you pitching stuff that day . Was it just you . I think it was probably more than 10. People were lined up around the block. Really . Its like oz. In terms of the way the advertising and product worbs. Everything that goes on shark tank blows up that night. Does bravo get a cut of the paint . How do you make it into a unified basis . Bethenny frankel jokes about a bethenny deal. We signed our contracts eight years ago. This is before people started making a gajillian doctors. I have the bethenny clause also. They have no stake in anything that i do. Are you going to use the jeff lewis paint . I do. I use it on interior therapy and flipping out. Its subtle how we use it. But im not Walking Around the with can in my hand. We would have no issue with you Walking Around with a can. This is cnbc. Sell it. I dont think people understand how truly lucrative reality tv business is. Just the episode fee that you negotiate. These are substantial numbers. I would not have started doing that show if it wasnt played well. What about a brokerage firm. Wouldnt that be more lucrative than the products . Thats not really my forte. It is probably more the Million Dollar listing guys. I was a house flipper for a good 10 years. When the Housing Market collapsed my income that was my only stream of income. So i had to quickly reinvent myself. I formed the design business. I have been building that business for the last five years. So whats next . Home fragrance. Im working towards getting something out by the holidays. Whats the cool color . Everybody is using the grays. The taupes. Grays, taupes, creams. Shades of gray. Thats what everybody wants. People criticize and say do you have any other color besides gray . But im going to use it until they dont want it anymore. How long is that trend . Youll find other places, states will pick up on it. So whatever were doing in chicago, new york, los angeles, it takes a few years to kind of whats your anticipation between online and instore retail that you will do . Do you have experience with other products that you have done . How much paint will you sell online versus stores . If we go into stores, its a whole new world. Thats the whole. The goal is the online sales continue to grow and they decide to put us in a test store. Thats what they will do. They put us hopefully they will put me in a dozen stores, reevaluate in 90 days. And that could be life changing. Do you know how many shades of gray . I have 32 colors. Bethenny did the that skinny girl margarita and sold it for 100 million. That was disputed, i think. We had the lady from one of the housewives. They call th she has a spanx competitor. Yummy tummy. I follow her now. I dont know why. It is a multiMillion Dollar market. You and i should roll out the murse. Do you have a murse . Joe has a new murse. I have one that i travel with but its a lot nicer than that. He got you a cheap murse . Cheap murse. Its Indiana Jones. You have been talking about it all morning. Are you making me an offer . No. Do you have the jeff lewis bethenny contract . Cnbc gets everything. Its ridiculous. Dont get me started. I think i get to fly first class once every six years. But you never leave here. I never leave. Great to have you on. Thanks. Good luck with the paints. Thank you. All grays, though . Thats really a hot color. Does anyone ever finish the house when they said they would . Im redoing a house. No. Its never on budget. Never . But you know what, my clients dont take responsibility for that. We make changes during the process. And at the end its like you said this would be done. I said you added 12 things. Can you take responsibility for that . I think you cause most of the delays, though, right . No. Im just trolling. I was trying to get you worked up. I was working it. Cramers take on the 10year. Plus, he got the chance to talk to former treasury secretary tim geithner about the lasting damage from the financial crisis. Im not sure whether he worked with him at goldman or not. We know were not the center of your life, but well do our best to help you connect to what is. In todays market, a lot can happen in a second. With fidelitys guaranteed onesecond trade execution, we route your order to up to 75 Market Centers to look for the best possible price, maybe even better than you expected. Its all part of our goal to execute your trade in one second. Im derrick chan of Fidelity Investments. Our onesecond trade execution is one more innovative reason serious investors are choosing fidelity. Call or click to open your fidelity account today. I think that, you know, theres a tremendous damage in this crisis. You know, worst damage to unemployment, businesses, housing, peoples basic sense of security. Worst damage since the great decision really. And enormous loss of confidence in government, deep lasting scars to peoples confidence in their security and their quality of decisions they get from their country. So you may not have seen it in the shape of breadlines and soup lines, but you can still see today in peoples sense of darkness. And that was former treasure secretary tim geithner. Jim cramer last night. Jim joins us from the new york stock exchange. Im trying to think back on your entire shift with geithner. Am i wrong, did you have did it start out bad and became better . Do you remember . Isnt that the way it was. It started out real bad. Real bad. But it grew hes a very affable great guy in person, you know what i mean. I totally agree. I started off look my rant about which he mentioned positively, i was thrilled he said you got it early. I had been poking fun at him, i felt he was completely unaware of what was happening. Over time, i think in the book he will tell you look, we didnt our data wasnt giving us the right thing. We didnt see subprime coming, we didnt see citi coming. We saw many things that told us it couldnt be this bad. Hes a selfafacing guy. Our relationship blossomed over delivering alpha and its been pretty good. Yep. What did you make of what tepper said . You know, look, its funny, by the way in the book tepper is the only guy who says, im going to bank wit you buying all these bank stops. When i hear tepper now, i say tepper is just money. If tepper is not crazy about the market, rethink your inputs. At the same time, i wish i knew more about sectors he likes and didnt like, tired of the banks, because tepper is an individual stock guy, sector and market guy. You cant reach a broad conclusion to sell things because of what he says. Hes much more he makes top down statements but all miss money bottoms up. Does he no longer like the sfwhanks i would have liked to hear that question. I think it tepper is a fabulous guy. If you ask me who i care more about whether he likes the market or not, when i read that, i said darn, dont want to lose tepper. Where youre losing him from and if he comes back. Hes a great guy. Did work with him when at Goldman Sachs and hes kind of a different cloth. Hes a good guy. He was at Goldman Sachs. You were really at Goldman Sachs. I kid geithner, people think he was a member of congress yeah. Geithner told a great anecdote, multihour meeting with bloomberg came out and bloomberg said its great to spend some time with a guy who spent his whole career at goldman. That was it. Thats the urban legend. Done. Can never remove it. Do you think we should make Jill Abramson a cnbc contributor . Good friend and great editor and would be terrific. I heard you talking yesterday. I thought thats the answer i would get. Shes at the journal. My friend for 40 years, old family friend too. Thanks, jim. Coming up, john stein burg and jerry baker on the stories making headlines and what investors will need to know to keep an eye on this summer. Check out the futures at this hour. Today is thursday today, we greet you. Treat you. Care for you. Today, you can come to Cleveland Clinic for anything, everything or just to get that thing checked out. Big, small, and yes, the best heart care in the nation. Its here everyday, for everyone. Thats the power the power, thats the power of today. Cleveland clinic. Call today, for an appointment today. Lets get back to our guest host John Steinberg and jerry baker. I will ask you both the same question. Lets just assume we never do anything on Corporate Tax, because we probably wont. Obama care is here to stay. Individual tax rates are going to be where they are. Is the market and the economy okay with that and will we be able to get to 3. 5 gdp eventually or are we really do we need to do something proactively in washington to help . I think look, whether you believe the were still in the long, slow recovery from the financial crisis or we have this secular stagnation. Regulations . Structural impediment in the economy, we seem to be stuck in a rut here and i think until we, you know, one option is to sit it all out and say everything is going to be this is a ryanhart row gof world or say we need to do more. Its more than just monetary stimulus from the fed. There could be another Ronald Reagan that came in and all of a sudden 700,000 jobs. I would never say there could never be another Ronald Reagan. America has a great capacity to reinvent itself. The great thing about this country ability to come back when people are counting it out. Whether its leadership or the character of the american spirit, there is something that is able to region rate this country. Why its such a great country. Hard to see normal jobs. Whats amazing about that, your point about entrepreneurship and starting companies in america you would be blown away by how many super early age startups bs, they say now, theyve been saying the past couple weeks, maybe we should start our companies abroad, maybe do this inversion . Really. People never interested. That may you say no change Corporate Taxation. I think this inversion stuff, particularly the pfizer case. Passing a law against it or fixing fixing Corporate Tax. You talk to people, again no one is going to get overoptimistic about this, talk to people in washington on both sides there is a willingness to do that, Something Like pfizer and the other space of inversions you may have may be the catalyst. I cant imagine them passing a law we had a senator on saying you cant move your company abroad. Barney frank yesterday. No, i didnt. Barney had there were little not for you. Im trying to be barney frank hold an entrepreneur forum. The center of gravity in the u. S. Congress what he stands for. Saying hear a bunch of people in their 20s saying were going to start abroad. Right. Okay. Thank you very much. Thank you very much. Thanks, guys. Great. And make sure you join us tomorrow. Squawk on the street is next. Good thursday morning. Welcome to squawk on the street. Im Carl Quintanilla and david faber and jim cramer fresh from his one on one with tim geithner from barnes noble in new york city. Futures are weak on the earnings miss out of walmart, one of the worst misses for that company in several years, offsetting strength in cisco after those reports last night. Boat load of economic data, the tenyear was spooked, jobless claims at a sevenyear low, cpi in line,