Transcripts For CNBC Squawk Box 20150330

Stand. The s p and dow both down more than 2 in march. As for the full quarter, the dow is down 0. 6 . It is a short but busy week. The always important jobs report is due on friday morning and even though the markets will be closed well be here on squawk box, at least joe will bringing you the numbers for the jobs report. Well also be getting personal income and spending at 8 30 a. M. Eastern time today and spending home sales at 10 00. United health right out of the gate at 6 00 is announcing that it is acquiring catamaran ct rx for 61. 50 a share in cash. And that is not i dont know what that quote youre seeing right there is because this is going to move sharply higher i think, United Health probably can write a check that wont bounce on the deal is to be net earnings by 30 cents a share for United Health by next year. By 2016. Lets see, the company is also making some other comments and a firm 6. 25 a share for 2015. The croweo of a catamaran will become the new ceo for pharmacy benefit manager. Its defining with United Health groups Free Standing Pharmacy Group service. Yeah. It is a pbm deal. We mentioned the 30 cents. Its just out of the gate. I havent looked at the expected deal to close in the Fourth Quarter. United Health Shares are indicated 116 to 128. I havent seen any trades there. We have seen the Pharmacy Benefit Management getting bigger and bigger and excerting their will over the Drug Companies in the situation. In the release it said that 2015 catamaran expects to fulfill more than 400 million prescriptions combined with the 600 million annual. It will combined the data to be a competitive force in the industry. Weve seen express scripts kind of putting their pressure on the Drug Companies to say what they will and wont pay for. It seems like its an industry where you have to be big to enforce your will on some of the Drug Companies. I dont even know catamaran. Ive never heard of them. But we are seeing more and more clout from the companies and were seeing cost pressures everywhere in health care. So take a look at that. I was just proud i remembered United Health care was here are the big go fast on a monday morning. Here we go other big stories were watching. The Nuclear Talks with iran are going down to the wire. Now New York Times the lead story iran is reportedly refusing to shift nuclear fuel outside the country supposed to go to russia. That could be a sticking point. Negotiators must agree to an outline by tomorrow midnight. Iran one of the negotiators talking to reporters saying no way. The United States is saying theres other ways of sequestering it or something. But they have until june to fill in the details. Theres still a lot of i dont know very questionable what finally happens here in terms of what the senate does here. Netanyahu saying the deal is even worse than the one he was talking about. So well see. Oil prices are lower this morning in part on potential on the potential for an iran deal. More on that story in a minute. In other global news, the clock is ticking on the talks in greece between altogetherthens and the lenders are continuing the countrys deputy finance minister said greece has not given up on the goal. Meantime at home a bullish view of the u. S. This morning. A new survey of forecasters going point to the economy gaining strength this emperoryear as well as next. It tops 3 . And we have more from steve leaseman. And the guy hes the head guy did you know that . I didnt know that. And john will be us. Hes a chief economist at wells fargo. Hell be with us in about 20 minutes. I was looking for the maybe it will be here the big lead story that i saw which was . Which was seriously . The big lead story youre talking about . Lifestyle lift chapter 11. Youve seen that one, right . Where yes no they use i dont know ive seen the commercial. They tried to they tried to i shouldnt be laughing because will why do you because im looking for a rut yutble company. Its Plastic Surgery for the masses. About 50 or so. And they do a lift. Yeah. And for people that, unfortunately, need these things. None of us here do. But we have an bob got one. If i wanted one because im on tv. Im perfectly entitled if i see fit, but, no an elective surgery. Right. I dont like cutting my nails. I get nervous. I get scared. I dont like haircuts. Needles. I dont like needles. They did it with local anesthesia. Thats how they pioneered a facelift with local anesthesia. Give me the max. Anyway, thats on the front page of the journal but then its on page b 9. Somehow we missed it. Anyway. I skimmed over that one. Let me tell youre young. So youll be young forever. Dont worry about it let me tell you about Corporate News that caught our attention fidelity is reportedly putting pressure on dupont to reach a settlement calling the dispute a proxy fight. Its the sixth larger shareholder. Yahoo and microsoft are extenldsing their search talks for 30 days. Renegotiating a search deal put together by former executives. And the new York Auto Show kicks off this week. Ford is bringing back the lincoln continental. It dates back to the 30s and once the pinnacle of luxury. Ford stopped making it in 2002. We all my parents would do you remember the doors, the back doors that opened like i do. My grandpa grandparents had one. Really, you come from some no. This was a big that was in the 60s, you know, her say her say mercedes i guess some people wanted those. Ford is looking to push it in china. The iran Nuclear Talks, saudi arabia attacking yemen and nigeria elections big events potential to have a Significant Impact on the Energy Markets today. Rpc Capital Markets is here. Ynt believe what the list of issues that i rattled off. Were talking about oil trading below 50. Right its the expectations. Iranian officials saying we can put a million extra barrels on the market. Everyone believes them. Theres no sense theres a long path to getting a nuclear resolution. I think the market is getting ahead of itself believing an iran deal is done. What do you think you look at the iran deal being done. Im talking about the tensions in the middle east. What is happening with yemen. With all of these things and oil below 50. What is amazing we were yemen is one of four middle Eastern States involved in active fighting. Saudi arabia amassing 150,000 troops on the border with yemen. Its the mother of all proxy wars with iran. You have nigeria announcing the election results. Highly polarizing election there. We think geopolitical risk could be coming into the markets. Everyone is focussed on the iran story now and the expectations you get the iranian barrels back in the near term. What would happen, i mean, it seems to me theres so much more unrest in the middle east than weve seen in quite awhile. Theres so much higher tension. Yeah. How much does that actually play . What kind of premium. I think theres almost no premium now. What would you put on it . I think what you have to look for is there physical supply disruption. Right now the story is about oversupply in the market because of north america. If you want to find out where you can lose physical barrels quickly thats where nigeria is important. We have lost sometimes 850,000 barrels. One of the most volatile states over the weekend river state. Thats important because you can literally lose barrels quickly in the oil market. Attention is not there now. Its on iran. Its also on as you mentioned the north american production. Theres a huge school of thought that said we could be looking at peek peak production. We could look at more coming in filling up the capacity we have for any of the supply to be stored. What happens at that point . Are you in that camp some people said we could see 30 or below . What is an interesting question were going to becoming out of refinery maintenance soon. The interesting question if you fill all the storage and you do push prices to 20 or 30 as some are saying is that what causes production finally to stop in the United States. Is that what you need to slow the north american story down. Its not happening at 45 a barrel . You have the uncompleted wells. Theres a school of thought you have a frank log once prices go up in the 0u6d and 70 theyll be bringing the production on. You need tow move significantly lower to significantly slow this. Its been part of my question. The idea that technology is allowing us to find more oil. I think its allowing us to turn the spigot on and off more quickly. You may not see the highs and lows weve seen in the past. Do you believe that we could look at a more moderated price . I think if we had no geopolitical risk in the oil market then you could be talking about a moderated price. But, you know, the middle east still remains such an important production zone. When you have stories about the saudis, you know, putting new troops around Oil Facilities that kuwaitties bolstering oil securities. If you have one significant event in one of the countries, in iraq for example, that would push prices higher. Were not entirely free from the dependence on middle eastern oil for the market. Thank you very much for coming on. Thank you. And we probably heard by now news all weekend a backlash against indiana governor mike pence and his states new religion use freedom law. Hes defendsing the move. This is where the debate has gone with misinformation and its just a question sir. Yes or no . Well, theres been shameless rhetoric about my state and about this law and about its intention all over the internet. People are trying to make it about one particular issue and now youre doing that as well. Some of the nations Biggest Companies have been speaking out opposing the law. Eli lily threatening to pull business from indiana. The latest well known ceo to talk apple tim cook. He writes in part that in his words americas Business Community recognized a long time the discrimination in all forms is bad for business. He goes on to say on behalf of apple, im standing up to im imoppose the new waive of legislation. Im writing that hopes in many more will join the movement from North Carolina to nevada. And these bills under consideration truly will hurt jobs, growth and the economic vibrancy of the parts of the country where 21st century economy was once welcomed with open arms. And john harwood joins us from d. C. This morning. I dont know the specifics, john because there are existing laws in a number of states that they say are similar, but then i saw that supposedly there are parts of the indiana law that are different and go i guess in the detractors words that go even further. Do you know the details on the specifics . I dont know how to parse the differences, joe on the laws in 19 other states and indiana. But i know that at this particular moment to press this has gotten mike pence in a buzz saw. Reshows the reaction of the multinational and National Firms angies list, apple. The limits of what red state governors can do on issues they may think are unremarkable. Mike pence yesterday on steph no liss show say there other states that have one. Bill clinton signed a law that contained provisions similar to this. That all may be true but in 2015, hes in a position given how fast Public Opinion has shifted on these issues and where they sort of Political Center of gravity has gone its put him in a real bind. Yeah. And i didnt realize what you said about the president or bill clinton. But youre right. Its moved the favorability for same sex marriage is in 60 or so . Yeah. The fastest changing social issue in the recorded history of polling. It youre mike pence, youre a conservative republican youve come up politically in a world where the views that hes expressing and the desire to stand up for those who feel aggrieved by the expansion of support for samesex marriage. Its sort of like a almost a routine kind of step to say, yeah, i stand with you and we cant the government cant force you to violate your conception of practicing your religion. But he has been overtaken by an accelerating shift in Public Opinion that we just havent seen before. And i think thats the reason why i would say in arizona, jan brewer resisted a law of the kind that mike pence has signed. An jan brewer is also a republican. John, i dont understand the specifics enough to get it. I understand where people say because of the law you could somehow choose to not serve people in your establishment to not do business with them because you disagree with their way of life. Whether its because you choose not to i dont know provide a cake for samesex marriage. I get that and understand clearly that is discrimination weve been trying to prevent for years. Mike pence said its one small aspect of the law that was not intended to be there. What is the intexntion of the law . What mike pence and proponents of the law are doing is saying were standing against government comepelling you to do something you think violates your religion. I think the government compulsion in this case has to do with government authorizing samesex marriage. So that by the fact of government authorizing same sex marriage that is a government step that in the view of the propoebts points of the law would force a retailer in the circumstances you mentioned, becky, to serve a customer who is participating in something they think is offensive to their religion. I think thats the theory behind the law. But, i mean, thats like saying if a by racial couple walked in and you didnt feel like serving them you could say no. Exactly. Basic premise is something that has been learn. Thats why tim cook is speaking out. I dont know if thats religious grounds. Im sure you could find somebody. Thats a weird religion. I think its something simpler. I may be a lapse catholic but can you you imagine knowing people eat meat on friday and say youre not getting flowers here, pal. I saw you walk out of burger king but then i bet you didnt get the fish sandwich. Its absurd. You are illustrating how uphill the fight is for mike pence and the proponents of the law. Because thats what i never really understood. What i cant understand in this day and age you know what people do or why would that affect me what they do. Thats what i dont understand. Its like i can practice my religion exactly how i want to and but you cant make everybody else practice it that way. Right. Because it would be a slippery slope. What if you have weird religion you founded, you know, take your pick. This is a bit of the conundrum facing the Republican Party. Right. While the National Opinion on this issue of samesex marriage is rapidly moving you still have a Critical Mass of the republican president ial field standing up against that. Ted cruz when he announced last week saying no we support traditional marriage. And thats because thats a very popular position with the people who vote in republican president ial primaries. Do you accommodate yourself to the broader Public Opinion or appeal to those in the Republican Base . If youre a republican president ial candidate, most are choosing to appeal to the base now. So is mike pence himself is considered a potential president ial candidate. Right. We had eric can ton cantor on. I said no one is asking you to marry a man. What difference is it to you . Thats what i dont get. But, i mean, i think thats pretty common. Anyway i hear the music. Youre not going to congratulate me on duke . Yeah that was pretty good. I watched it. They looked strong. They look strong. I i dont know i wish i picked all the top teams. I got some bad advise. The final four with Michigan State. Michigan state, ill tell you, what i have come to realize is that all of these teams have a lot of talent. Somehow a coach can bring out something. Great coaches can bring out maximum performance from a lot of guys who are all good. It is a great coach. He. He is look how far louisville went. Congratulations, john. I say that with great love and affection and appreciate it and honesty. When we come back ben bernanke defends the fed. Why Interest Rates are solo low. First, a look back at this date in history. I am never getting married. Never. Psssssh. Guaranteed. You picked a beautiful ring. Thank you. Were never having kids. Mmmmmm. Breathe. I love it here. We are never moving to the suburbs. We are never getting one of those minivan . We are never having another kid. Im pregnant. I am never letting go. For all the nevers in life state farm is there. 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. Steve leaseman is here. He joins us on set. Ben bernanke becoming a blogger today. This is news. Yeah. Hes basically been speaking at private affairs for lots of money. Well into six figures. And now hes sort of said i left the fed and the capable hands of janet yellen. I can comment on, you know, a current economic issues. But does he do that and get into fed policy . He does a little bit. Except he does it in a way that is not all that controversial except for one thing that we can talk about. Let me say what he said. Hes penning this blog at the brooklyns institution and hes defending low Interest Rates the way it is. Here are some of the things he said. He said low Interest Rates are not a short term aberration and he points out something that has been going down for a long time. He complains about what he calls confused criticism of the federal reserve. Basically saying that the fed is setting rates commence rate with the market and is trying to affect real rates and real rates are determined essentially by the market. One area where we gets into a little bit of controversy. He point outs the major Central Banks in the past prematurely raise rates. He doesnt say anything in the current fed. But being on the cusp of the Interest Rates. You wonder if theres a tweak saying the maybe the fed ought to be careful. We brought this up a million times. Rates where they wouldnt be just left at their own devices. Given the global Interest Rate picture are they really held artificially low by central bankers or does the Global Growth picture warrant where rates are. Hes pointing everybody to real Interest Rates. I wish he wouldnt write a blog. Its like former president s need to shut up too. We appreciate we do. First of all, the guy is one of Monetary Policy experts in the world. Dont we want the benefit with the blog and he sounds defensive. Hes out there talking to private groups. Why shouldnt the broader public have the benefit . You see the car commercial where the october again their wants the blog and the car has wifi. Right. And that reminds me of the same thing. Youre too old to blog. You know . It reminded me of her. I wonder if he goes whoa have you seen that . I have. The march madness yeah. One of the 50 ive seen every commercial to man because im watching live sports. Im stuck. They have a captive audience. How is your bracket doing . The brackets are dead to me. Dead to you . Yeah. You know im doing well though. She pressed a button that picked the highest seeds. Which i was told not to do. Im planning next year. And matt and sandy im going start watching not just when the individual scc and acc tournaments. Im going to watch the whole thing. Thats the problem. You know too much. Im going to be able to gauge the talent of each team and how they play together. All 64. Or push the button and pick the top seed. And be in fifth place. I think im seventh. Stay with us. The result of a new nabe Outlook Survey for 2015. Who are you . Youre, like in charge of this thing, right . How do they pick the guy that runs nabe. How did you get that . Did you bribe someone . I get elected. Yeah you get elected. You get much like the process. You get elected. Very simple and straightforward. Did you leadership forobby for it . Like schumer . Who else was in the running. This is is more like the 19th century president ial elections. You dont run for the presidency. You allow yourself given your history to appeal to people and then they vote for you. Second place gets to serve twice. You didnt campaign for it . It is a lot of work, no doubt about it. Youre still over 3 . That gets me. And weve had people. Weve actually had some ceos of Big Companies like utx they call themselves utc, i think, talk about 3 plus. I thought the numbers that have been coming in aennd weve seen lately its hard to believe weve going hit 3 but the members believe it. I would refer again im sure steve has a comment. Its important distinguish between the nominal numbers like retail sales and durable goods orders from the real Consumer Spending. What you saw in the latest gdp report but what youre seeing within i think, developing in 2015 is that its real Consumer Spending that is kicked up a notch or two and that is really supporting the Economic Growth going forward. Along with some improvement in residential investment. Not just Housing Starts but improvements in the home. And then finally the Government Spending continues to improve as well. Especially state and local government. I dont see a lot of this as a leading indicator. I saw that the members downgraded their price targets on oil. They have seen i dont know they looked at something and saw that maybe their forecast for oil like 120 or something wasnt going to happen this time. They came down on oil. How old is that . Its six months old. Yeah. I mean clearly one the biggest surprises i think to the economic profession in general it has been the oil shock of the surprise that oil has broken down as much as it had. I think there was a surprise in the Financial Markets and the economy as well. I think, also another element that is really important here joe, is the Dollar Strength is a little bit stronger than what had been expected in the past. I think the result for investors. Steve can weigh in. Probably what some fed tightening or raising the Interest Rates whenever september or june or whenever youll have a flatter yield curve. And then i think also with respect to oil and the dollar youre probably going to have a little bit less Profit Growth than expected earlier. For investors its that flatter yield curve and a little bit less profit. Steve loves, loves, loves surveys. He does like how many do you do . The all american the yeah. The fed survey. You love surveys its better to talk with actual information than the other alternative. Im going try that sometime. I dont mean that you. Thats okay. But, john i think one of the issues around the table here has been a kind of mathematical question which is given the First Quarter softness, how do we get to the 3 growth and then you kind of go on and ask, well, if were not going to do 3 this year and we didnt do it last year like you told us and the year before are we talking about an economy that is stuck in this low mid is the high for Economic Growth and we cannot ever have that break out year from a gdp standpoint that everybody has been waiting for. Well i would say, steve, that is the fundamental question longterm not only with respect to entitlements, the pace of growth of the economy, job creation overall. You know, for us for me personally yeah i think 3 is probably too aggressive in terms of the longterm trend growth of the u. S. Economy. I think 2 and a half is probably what it is. And thats based upon as you know the fundamentals which is the productivity growth. And both of those together, to me at least, suggests 2. 5 is probably the longterm trend. 3 is too aggressive. Thats your forecast. And, steve inflationary expectations are brought down. These guys tend to be theres an elephant thats what youre saying they notice an elephant in the room. Theres an elephant in the room. Which of your oil you love your surveys. Were predicting 50 oil. All they do is incorporate basic elements im not saying analysts are any better than economists. No. Theyre tied. They lowered the dollar and the oil and thanks john. Congratulations, too. You got it. Thank you. Thank you, sir. When we come back this morning the table is set for the final four. Nbc sports will join us to talk about the dance right after this. E financial noise financial noise financial noise financial noise the real question that needs to be asked is what is it that we can do that is impactful . What the cloud enables is computing to empower cancer researchers. It used to take two weeks to sequence and analyze a genome; with the microsoft cloud we can analyze 100 per day. Whatever i can do to help compute a cure for cancer, thats what id like to do. Welcome back to squawk box. Some great basketball this weekend. Final four is set. Nbc sports joins us in the chair this morning. You know the first thing he said this morning because we walked in at the same time. What is the let me i never heard the expression before. I know villanova. You dont know ville thatanova stinks and no one told you. What did you say . Four number one seeds never make the final four. Four final four you said something about the chalk. She did the chalk and shes in fifth place and you have kentucky. Joe always wants a straw mat. He wants thank you. And im not going to be its not just you. You share it with nate. Silver. The wall street journal wrote a piece dont pick kentucky because everybody does. Thats journalism. You have to say, you know, whatever is opposite next year. Next year im going watch from the beginning. Thats what youre supposed to do make an informed decision based on the knowledge of the team. Sometimes its hard to watch early on and watch you only have to watch the last couple of weeks. You can watch the last ten days. I watched all the tournaments. This is a dream final four. We have forage dare coaches. We have one hall of famer in coach kay, 12 final fours tieing john wooden alltime record. Three other future hall of famers. Tom, john, and bob. That is 25 final four combined and the four coaches most all time. The stars of College Basketball are the coaches. Thats why this is kind of your Mount Rushmore if you will. Its a dream matchup. And you have the two biggest stars on the court. Youre looking at girl telling her. She knows who he plays for. You dont need to be that nice to him. God knows youre not. Right. The other thing that got me is watching coach kay and how emotional he got. I didnt, you know it seems like soon or later you get to used to winning. Its a tough year for him. He dismissed a player for the first time in history at duke. They thought the duke team is going to unraveling and fall apart. He took the Youngest Team ever at duke all the way to the final four. I think it was tieing john wooden for the most all time all time final fours everyones hero if youre involved in the game of basketball. I think that meant a lot to him. The emotions overcame him. Its going to be fantastic to see him against tom. 81 all time. And you talk about the coaches. The coaches are pivotal tournament every year. Thats why you dont pick ville villanova villanova. And the other thing that got me. My daughter had Michigan State. I didnt know why i didnt take her bracket. Watching louisville was up by 9 at the half werent they . And louisville is 940 with more than a sixpoint lead. And the guys talked about izzo and what he said. They said youve got do not leave your energy level somewhere else during the game. Get it to where it needs to be. You saw what happened they came out of the gate and took the game. The game went further. They clamped further down. They clamped down defensively. Every minute that got later their defense got better. Thats why they got a shot. I felt bad for him. There was pivotal missed free throws. But look, you know not only are they going have to play defense, you talked about this indiana bill. It will become a huge final four issue. Indianapolis hosting the final four. Charles barkley called for it to be moved. Which is ludicrous. Doesnt it go through 2017. You cant move final four. This will become a issue for indiana. They have to explain the bill better than the governor did yesterday. Even the governor said while hes defending it, he thinks it could certainly be tweaked or something along those words. He just signed it. Right. But part of the it doesnt get passed without him. You have to carve out an exemption against gays especially if youre hosting a National Event to the volume of the final four. All right. But, i like duke, kentucky. I still think kentucky is the best team in the tournament. My heart says duke at their best theyre better than kentucky. Michigan state then . It will be a close game but i dont think Michigan State can score enough. Dukes problem is wisconsins problem. Duke had no bench. Wisconsin had five. Duke sucks ill take the devils all the way. I dulds. And hopefully it comes through. Next year youre going to do your homework . Yeah. Youre going watch basketball. Im not going to ask you anything. Monday morning deal two tieups to talk about first as we head to break. Check out the futures. Squawk box is coming right back. Stay tuned. Theres nothing more romantic than a spontaneous moment. So why pause to take a pill . And why stop what youre doing to find a bathroom . With cialis for daily use, you dont have to plan around either. Its the only daily tablet approved to treat erectile dysfunction so you can be Ready Anytime the moment is right. Plus cialis treats the frustrating urinary symptoms of bph, like needing to go frequently, day or night. Tell your doctor about all your medical conditions and medicines, and ask if your heart is healthy enough for sex. Do not take cialis if you take nitrates for chest pain as it may cause an unsafe drop in blood pressure. Do not drink alcohol in excess. 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Catamaran will be combined with optimum rx. They say by doing this they are going to have a much bigger base. Theyll have Something Like where were the numbers . Opt numb rx has about prescriptions. Weve seen them excerting their force as theyve gotten bigger and bigger trying to cap the drug price finance looks like game where so you to have size compete. It looks like its happening here. The catamaran shares up by about 20 this morning. Another deal hitting the tape this morning hyperion is being brought for 46 a share in cash about 1. 1 billion. When we come back this morning a warning for smartphone users. Thats basically all of us. Why your personal data might be at risk. A scary story and well have more when squawk box comes right back. What if we finally had a backyard . Thatd be amazing. Hey, what if we took down this wall . What if this was my art studio . What if we were preapproved . Shut up. From finding, to financing. Howd you do that . Zillow. Welcome back, everybody. Most smartphone users think they practice good mobile security to keep their data safe. But a new report out this morning says incomplete security measures can put your personal information at risk. John herring is founder and executive chairman of lookout. John thanks for being here today. Thanks for having me. For people who havent seen you before you come through this by way of formerly being a hacker in another life. Knowing the tricks of the trade out there, youre teaching people how to protect themselves from those tricks. We think were safe right now. But what did your survey find. We conducted a mobile privacy setting. We called the privacy iq study. We found users are generally aware of privacy, but theres a huge delta between being aware and taking action. And in fact most people are actually exposing their information in ways that are very compromising to their personal privacy. I think im safe with this stuff. I never use free wifi networks. I dont trust them. I dont download too many applications. But what am i doing wrong . Youre better than most. We found about 76 of people do use open networks such as ones at a coffee shop or public location. And things that will be compromise compromising. What could you potentially be doing . You think youre at starbucks using a free network. What are you opening up to . You might be broadcasting your credentials, passwords. Things can be out in the open for those to take. We recommend that people use a vpn, but thats not an action people are taking these days. Heres my weakness that i assume is the weak spot that we have in our kind of mode around us. We have kids. And while i will never use a free wifi thing, im not sure they are quite as careful when theyre downloading stuff. When theyre going into free wifi areas. That means im just as vulnerable. In our study we found that millennials are the most privacy aware and take the least action. Somewhat ironically theyre the most aware but the least likely to take steps to look at their privacy. Application security is a big part of that. What can you do . What can you find out about somebody if you are trying to nefariously trying to scope whatever information you could get off of a phone . We found about 33 of users are donewn loading mobile apps without a look at permissions. Location is a big one. If theres one doing something with location data, you might see everywhere you been physically. It could be someone using that information to kind of compromise your privacy, if you will. A lot of the apps dont worry. I allow waze to tell me my location if i need it. Google maps. And the mississippiy disney experience if you want to know where you are in the park. Thats where judgment comes in. Google is a Great Company to try o protect you. Waze and google maps you might trust. An application provider you may not have heard of before you may not want to use. Use judgment as to if you feel you trust that brand or trust that company with your personal information. Am i safe to think if its a big company, theyre not going to be misusing my data . Sometimes i read the privacy things and im offended by what it does in what they will and wont do but they also have me because i want to use this. I dont think its safe to assume just because a company is big that theyre good one for privacy. But theyre likely to be under the scrutiny of the public. Were seeing previous becoming something that companies have to adhere to great Privacy Policy policies. Has the sony incident changed how theyre coming up to better practices in some situations . I think the game has changed for the first time in history were looking at incidents like this where, you know executives are actually losing their jobs because of security issues. We live in a byod world. You know people who go to world with their personal device use their personal device in that environment. So were seeing a blend between personal and professional all come together. Heres my smartphone. Can you look at it and tell me if ive done anything you would say this is crazy . I know im not giving much time. What i recommend is if you go through your settings and look at your Location Service settings. One of the simplest things you can do is log into their device go into the general settings go into location and actually change your privacy. And you can actually look at Location Services for example. Should i turn it off. And on System Services we can see do you want to share your frequent locations . I can look and i wont say what here but you see this physically shows the locations of everywhere youve been recently. So i can clear the history. You can clear the history. Then then decide to turn that off if you wanted to. What will i not get as a result of that . Mapping wont work as well for the default map. But if youre a google maps user youre totally fine. So what this does is changes the ability of the operating system to advertise against you. Im in general, where am i going . Go into system settings. Then go into system settings. I dont see. Here. Let me have john hold it. Then you go into privacy. I guess we didnt tell you how much we charge for you to be on cnbc. Going to be a lot more than you charge. And then frequent locations. Weve got yours too. Check this out. Where am i . Oh my gosh. Thank you for coming in today. Thank you for having me. Financial noise financial noise financial noise hello. I am here to offer sophisticated investing strategies. My technology can help you choose the right portfolio. Monitor it. And automatically rebalance it. All without charging advisory fees, account service fees or commissions. That may be hard to compute. But im a computer. So trust me. It computes. Say hello at intelligent. Schwab. Com iran Nuclear Talks coming down to the wire. But negotiations have reportedly hit a snag. James wolsy will tell us whats at stake for the entire middle east. Controversy bubbling over in indiana. Apples tim cook is the latest ceo to speak out against socalled religious freedom laws calling them dangerous. Will the backlash have the state back tracking . And clear your minds. A pioneer of mind body medicine dee pack depak chopra is our guest. Squawk box starts now. Live from the beating heart of business new york city, this is squawk box. Welcome back to squawk box, everyone. This is cnbc first in business worldwide. Im becky quick along with joe kernen. Andrew is off this week. Our guest host is harold ford jr. In the meantime it does look to be a good day on wall street at least based on what were expecting at the open. Dow futures up by almost triple digits. Right now looks like it would open up 95 points above fair value. Nasdaq up by just over 30. And there are just two trading days left in the First Quarter. So far this year the dow is down. 6 but the other indexes are higher. The nasdaq up more than 3 in fact. Another deal in biotech, biopharmaceutical just hitting the tape. Auspex is being bought by teva. That is a total of 3. 2 billion. Auspex went public last year. It closed at 70. 91. So its going to be a big gainer today. It specializes in treatments for people with Movement Disorders and other rare diseases. And the headline from teva says that teva reinforces its leadership position and Central Nervous system treatment and diseases. And so i guess theyve got treatments for huntingtons and turrets and other disorders. You can see that teva is trading higher today. Thats not a real quote you see on auspex. Its up 23 at least on the bid. And the other one we alluded to United Health is acquiring catamaran for 61. 50 in cash or 12. 8 billion. And hyperion therapy puteutics. In negotiations over Irans Nuclear program entering a critical phase. Differences still remain a day away from the deadline. Michelle carusocabrera is here with more. As that deadline approaches the state Department Officials are pushing back against a report in the New York Times that iran has reneged on a previously agreed to negotiating point which had them sending uranium to be reprocessed into a form of fuel that would make it more difficult to use in a weapon. Officials saying there are other options for ensuring the inability to produce a weapon. Top diplomats are meeting in switzerland about Irans Nuclear program. Theyre trying to bridge the remaining gaps and hammer out the deal that would be the basis for a final deal to be reached by the end of june. Secretary of state john kerry and his iranian counterpart mohammed jahvid zarif are looking at what would curb the activities in exchange for sanctions relief. Michelle, they are pushing back against the New York Times report that iran has reneged on this idea. Theyre pushing back saying thats incorrect or saying we could find other ways both. So throughout this process, it has come to be understood as fact based on this reporting that iran had agreed to this deal with russia as part of the underlying. When you read now the details today from the various officials involved in the negotiations, they say that was actually never, you know, put pen to paper right in the negotiating room. That was never, you know one of the final things. One. Two, even if they dont agree to that, there are other ways to ensure. As long as we do that, you know inspections et cetera theres ways to ensure its not going to be turned into weapons grade fuel. Its like tap dancing in a big way. Yes. Its a big negotiation that weve been at for more than a year. Remember its originally only going to be six months back in 2013. Were in 2015. Its highly politically charged. Weve heard were giving away the store from people that dont like the deal. And then were bending backwards for everything iran wants. Were finding a way just because we want it so badly someone wants it so badly to say theres other ways to do it. Looks like more accommodation, doesnt it . It does. When you talk to European Business leaders, its kind of done. Right . I mean, the reason the sanctions against iran worked so well is that every other country went along with them. You talk to French Business people and italian business people, and they assume within a year theyre going in. So if these talks fall apart, forget it. Youre not going to have the same coalition . I dont get that sense at all. Thats absolutely the sense i get from people that theyve been given the message that this is over. That theyre going to be able to start doing business there. So that leaves us in the position of taking whatever deal we could get. Right. I mean you know the administration would argue in the first place, look. They were so close already. Lets come to some kind of agreement. Because the situation before was they were getting closer and closer and closer. They were the breakout period. Their ability to produce a weapon was getting shorter and shorter and shorter so try to get something done now. In fairness, i think we tried to let them work through this. Theres no doubt this cant be worked out. Because the belief was this stuff could be shipped to russia and we would be ensured it would not be developed into a bomb or not have the potential to do that. But let them work through this. The iranians were closer to having a weapon anyway. The deal will allow the most important is two parts of the monitoring and the sunset. Some want the sunset to be 15 years. If we can only get ten and find ways in which to mitigate the danger, i think thats a win. But these things have to be worked out. If this piece on centrifuge, youre going to have huge problems here in congress trying to get this approved as well. All right. Michelle, stick around. Joining us now is former director of the Central Intelligence agency and the chairman of the foundation of defense of democracies. We talked about it earlier that depending on where you sit, you can have widely varying perceptions of whats going on. Im looking at one website today that says netanyahu is saying this is an even worse deal dangerous for all humanity. Iran is maneuvering to take over the entire middle east. And you in recent interviews have said that you used the analogy that iran is like germany in 1934 or 1936. Yes. I think they are. I think if you look at the four capitals of neighboring countries now, damascus baghdad, lebanon, and beirut they are expanding their empire throughout this part of the world. Theyre doing it on a highly ideological basis. They never stopped chanting death to issrael and the United States. They are an imperial power and trying to become more of an imperial power. They already have a reasonably long range ballistic missiles. I think if they add Nuclear Weapons to that it will be less than a year or so before they have a nuclear weapon. Then they can threaten a great deal including by detonating in orbit they could threaten us. That could take our electric grid. I remember the election before 2008 and there was a time when candidate senator obama talked about that i think we should even talk to iran and maybe negotiate with iran. And at the time it seemed like a really kind of an outlined statement to make. Its only six years later and, i mean were fully engaged in negotiations here. I dont know if its whether were getting help with isis or what. But did they moderate their activity in the past six years to the extent they dropped off our radar as a member of the axis of evil . Why suddenly the New Friendship in. Well i think the president wants a Good Relationship with iran. Were certainly not sticking to our guns. App year or so ago we caved on some of the key issues which the big one was to let iran continue to enrich uranium. We were going to try. We were trying to stop them from enriching uranium. And thats terrible. Because lets say you enrich only to the level of 20 which you need for some medical purposes. That youre only 20 of the way you have for a bomb. Thats not true. Youre about 80 to 90 along the way of having what you need for a bomb. So there is really given irans aggressiveness and the fa fanticism. The position of the Foreign Policy position of the United States was that iran should have zero nuclear capability. We gave that away right away. Was there ever a possibility we were going to be able to achieve by iran even for the supposedly peaceful means . Do we have to give them some of that at all . Or could we really have stuck to our guns on that . It would take a political change in tehran. I was the chief negotiator and ambassador to the conventional forces in the late 80s and early 90s. It looked in the late 80s as if there would never be progress on putting a clamp on all soviet military. But just as we started the negotiations, the berlin wall went down. The political situation even inside the soviet union even before further changes occurred had had nonetheless renounced. We were able because of political change inside the soviet union to get a very good agreement. It would take Something Like that in iran. It would take the greens coming to power or Something Better than weve got. This group is absolutely committed to lying to infidels. They will not hesitate to lie about everything theyre doing. Do you think a Nuclear Armed iran is a liability. Were making it more inevitable. If we stop the talks, clamp further sanctions, introduce far more competition than exists today into the oil business so we could slow them down. But if we accommodate them as we have so far were going to see if we could argue about them whether these were enrichment steps they took before 2015 or after 2015. Thats not going to slow them down. But as michelle just pointed out, the idea of being able to put up that embargo and making sure other nations arent going along with it all resides on the idea the other nations will go along with it. It doesnt sound like the europeans nearly as on board for Something Like that. We could take the lead in introducing a situation where very minor modifications to engines and cars cars could drive on alcohols as well as on gras lean. And for a 95 change. And that means like wood residues lots of things can go into making ethanol. I think there is a way to do this in which we introduce competition and let the competition drive the price of oil down. Not rely entirely on sanctions which would require other countries approval. Thank you. We appreciate it. Thank you. Congressman ford will be with us people still call you that . They do, dont you . You dont. You dont care what i call you. Harold. Harold is good. Yeah. Good to see you on a real morning show by the way. Thank you, sir. When we come back this morning, indiana in a state of controversy. Apples tim cook the latest to speak out against recommendation freedom laws. And thousands of jetblue passengers are stranded at the airport. Find out why flights are delayed this morning. Squawk box will be right back. Focused. I was determined to create new york citys first selfserve frozen yogurt franchise. And now you have 42 locations. The more i put into my business the more i get out of it. Like 5x your rewards when you make select business purchases with your ink plus card from chase. And with ink, i choose how to redeem my points for things like cash or travel. Hows the froyo . Just peachy. Literally. Ink from chase. So you can. In my world, wall isnt a street. Return on investment isnt the only return im looking forward to. For some every dollar is earned with sweat, sacrifice, courage. Which is why usaa is honored to help our members with everything from investing for retirement to saving for college. Our commitment to current and former military members and their families is without equal. Start investing with as little as fifty dollars. Welcome back to squawk box, everyone. Attention travelers today. Jetblue is dealing with the leftover effects of a systemwide computer outage. Its snarling the checkin process at several airports delaying thousands of passengers. Boston tampa, orlando were being issued. Handwritten boarding passes. The system outage has been fixed but still causing delays trying to get through the backlog. Well talk more about the indiana law backlash against indiana governor mike pence and his states new religious freedom law. But he continues to defend the move. This is where this debate has gone. With misinformation and its just a question sir. Yes or no. Well theres been shameless rhetoric about my state and about this law and about its intention all over the internet. People are trying to make it one particular issue. And now youre doing that as well. Some of the Biggest Companies have been threat tong pull business from indiana. The latest wellknown ceo to talk apples tim cook. He writes in part that americas Business Community reck niced a long tienl allege that discrimination in all its forms is bad for business. And also eli lilly and angies list and charles barkley. Lets get to our guest harold ford. Im not an expert people said this laws got other stuff in it different than what the other 19 states have. Because i dont think right now. Have there been big problems with it . I dont know what governor pence, the problem he was trying to solve. Itd be different if he could point to one or two significant challenges that the law was attempting to fix. And then other than maybe the samesex marriage. It almost seems the timing is a little weird. You saw some of the challenges to the Affordable Care act around religious objections. I dont know governor pences motivations. But you see how the market has responded. You would think the governor as well as the legislature there think about the economic footing and situation, the state would want to step back and say maybe we should reassess this to address the one or two problems that are percolating across the state. What im trying to get at here, theres 19 where these other states are not theyre not in the crosshairs of any ceos or any companies, nobodys talking about it. Were the laws passed in the other states before we got to 60 favorability for samesex marriage so that it sort of people werent as animated back then . Or is this law actually more draconian, if you will than more sweeping. Is it . Do we know . Or is it just the timing . Im thinking all of the above, what you said. The reality is hes now dealing with this. And heres a guy just look at him for a moment who was talked about seriously in the last several months as a president ial contender. This has to be damaging. If indeed hes serious about that. At the same time if he loves the Hoosier State so much which i saw him repeat several times on georges show yesterday, this cannot be helpful to attracting commerce and Economic Development initiatives to your state. So id imagine if i were a member of the state legislature there, id be urging the governor lets revisit this. And if there are 19 other states with similar laws lets be able to compare apples for apples and oranges for oranges what were trying to get accomplished. It sounds like hes already kind of paving the way for that. Saying the law may need some tweaks changes along the way. It sounds like hes preparing for that. I served with him in congress. I didnt know him to be a hostile guy or have these kind of views. But im hopeful hes smart enough to come back and say weve got to revisit this. And i see what youre saying. For a president ial candidate. But in this case takes this law and then saying he obviously must be antisamesex marriage you have to take a couple of leaps there for pence. Theres candidates running on the Republican Party that just in their speeches i am in favor of the way marriage has always been. So you dont even have to connect the dots. There are candidates running on that. But this law im in an interracial marriage. Can you walk into a place of business and say our religion shouldnt serve kids from an interracial marriage or people engaged in them . Or from different religions. If you want to go if youre muslim and walk into a place so those are the questions that have been raised. If i was the chair of the Judiciary Committee there. I would say we need to fix this problem. It is too broad. And theres states that or theres laws of the state as long as the laws of the state arent being if its a law, then you dont violate it. But if you decide in your religion you believe this or that, its not against the state law. Freedom of religion should allow you to practice your religion as you see fit. When we come back this morning, tom brady is all business on the field. So what does the fourtime super bowl champ do for fun . How about taking a flying leap. Well get to that story after this. You can call me shallow. But, i have a wandering eye. I mean, come on. National gives me the control to choose any car in the aisle i want. I could choose you. Or i could choose her if i like her more. And i do. Oh, the silent treatment. Real mature. So you wanna get out of here . Go national. Go like a pro. [ male announcer ] your love for trading never stops. So if you get a trade idea about, say organic food stocks schwab can help. With a trading specialist just a tap away. Whats on your mind lisa . Id like to talk about a trade idea. Lets hear it. [ male announcer ] see how schwab can help light a way forward. So you can make your move wherever you are. And start working on your next big idea. What if we finally had a backyard . Thatd be amazing. Hey, what if we took down this wall . What if this was my art studio . What if we were preapproved . Shut up. From finding, to financing. Howd you do that . Zillow. Why do we do it . Why do we spend every waking moment, thinking about people . Why are we so committed to keeping you connected . Why combine performance with a conscience . Why innovate for a future without accidents . Why do any of it . Why do all of it . Because if it matters to you its everything to us. The xc60 crossover. From volvo. Lease the well equiped volvo xc60 today. Visit your local volvo showroom for details. E financial noise financial noise financial noise financial noise welcome back. Getting stuck on a roller coast ser not the way you want to spend your weekend. Remember what i told you . Oh no remember what i told you, thats my biggest fear or a ski left or a gondola or something. Riders on coney islands legendary cyclone got caught on opening day and riders had to walk down after a mechanical issue stopped the 88yearold see, right there. Thats the operative term for me with this one. The 88yearold roller coaster. Uhhuh. The oldest wooden roller coaster in the country, i think. That would be my first clue. The 88yearold roller coaster. That doesnt look like townfun to me right there. They look fine. Although she looks like you are kind of saying. Like whoa. There have been people that were on one of them that was upside down. I dont know if that happened last week but the people that came down they were like beat red because of all the blood that thats dangerous. One happened last week. Yeah. I dont like that. You know im leaving for orlando, im going to be on some of these things by the end of the week. Theres a couple of scary ones down there. Yeah there are. When we come back this morning, tom bradys flying leap off the field. Plus our next guest has advised president s, world leaders, and written more than 80 biks. Now Deepak Chopra is giving some of his wisdom. Clear your mind and get ready. Squawk box will be right back. Ameriprise asked people a simple question in retirement, will you have enough money to live life on your terms . I sure hope so. With healthcare costs, who knows. Umm. 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. Start building your confident retirement today. Welcome back to squawk box, everyone. A big morning. United health is buying catamaran for 12. 8 billion or 61. 50 a share. Irelands Horizon Pharma is buying hyperion for 46 a share. And teva is buying auspex for 101 a share or 3. 2 billion. All three of these are cash deals. We are just about an hour away from the first of a number of key economic reports due this week. When we get the latest on personal income and spending. Later this week of course well get the adp report and the government employer reports for february. And a study is predicting a 3. 1 Economic Growth this year. That number if we hit it, would be the best in a decade. Dreamworks animation, the big winner at the box office. Home taking in 54 million this weekend beating out the will Ferrell Kevin hart comedy get hard. That movie only taking in 34 million. Its about, i think, toughening up for prison. Yeah. Also, check this out. What do you do after winning a fourth super bowl if you were tom brady you . You jump off a cliff. This is brady taking a leap in costa rica. It was about a 40foot drop. He posted on facebook with the caption never doing that again. Air brady was the pound symbol he sent out with that. Of course he is getting plenty of feedback from worried patriot fans who would rather he not be doing this. Like bob kraft was like hey, tom. Enough. No more. Our next guest is a true pioneer in the field of mind body medicine. He has written over 80 books. Time magazine has heralded him as one of the top 100 heroes and icons of the century. Joining us right now is Deepak Chopra. Hes author of the new book out this morning the 13th disciple. Thank you for being here today. Thanks. And by the way, brady is a changer. What do you think about him jumping like this . I think he can afford to do that. I think Woody Johnson arranged for that entire trip down there. Take a nice trip. On me. Yeah. Check out this place. How long has he been doing that . Year and a half. With you . Through us yes. Thats great. Lets talk about the book. The 13th books and nonfiction books that have jumped to the top of the charts. Its unusual for someone who is a Nonfiction Author to write a fiction book. I have ten novels. Four of which did jump to the charts also. Is book is about the six prevailing attitudes towards the mystery of our existence. Atheism, atheism, agnosticism, and enlightened awareness. And its done through the eyes of the divine feminine. You know weve kind of the divine feminine which is present in all religious traditions. That which focuses on beauty intuition, affection, tenderness, love compassion, joy. All of that. What inspired you to write this . I had been thinking of writing a book on the subject far long time. I went to a Catholic School by the way, run by irish christian missionaries. Sop i was very influenced by the rituals. I knew there was a deeper meaning to the phrase the way of the truth, the light. The light is the light of awareness. The truth is our nonlocal self which i explain in the book. And the selfawareness. In writing this book who are you really trying to reach . Im reaching my audience which is a lot of women and theyre all over my demographic is mostly women over 35. Theyre looking for a new spirituality. But i think young men are also understanding that the way of predation is no longer tenable. Weve become predators and survival of the fittest has to be replaced by survival of the wisest. So its time for women to take over. You mention what you were just talking about, the six what did you call them . The six attitudes of our existence. Where would you put yourself . On your journey. On the final two stages yes. Ive been been out, this is already taking place. They dont were deep into it. Do you feel like they need to be put in charge . Theyre getting in charge. Theyre in charge. Look at the next president ial candidate. Its already happened. And were happy about it. Accepting. Joe asked you when you walked in if you had meditated for two hours because i know this is something you do every morning. Its early dpp you do that . Yes. I get up a little before 4 00, meditate for two hours and then go to a yoga class wish i skipped this morning because im here. Tell us about meditation. Why do you think more people need to do this . I think stress is the number one epidemic of our civilization. Its related to things like insomnia, anxiety, fear. But cardiovascular inflammation in the body heart disease, autoimmune diseases many types of cancer are connected directly or indirectly to inflammation in the body. So meditation is very effective to start tackling this problem, this epidemic of stress. But then beyond that its a way of getting in touch with your spiritual self. I dont have any problem with meditation. I dont do it myself. I think its great for people who do. But how is it different from prayer . Prayer is you telling god what to do and meditation is you listening. Not necessarily. A lot of times you pray for god to show you the way. Yeah. Thats close tore meditation than if you surrender to the idea of thy will be done, then its closer to meditation. By the way we have a Program Going on. You can find it on Chopra Center meditation. Com. Its a free 21day online meditation. And weve actually reached 3. 6 Million People with that. So anyone watching us now should what does ut teach you along the way . Selfreflection, selfawareness taking a theme this particular theme right now is on success. But weve had themes on relationships, on intuition, on creativity, on health and well being, et cetera. The meditation that you talk about, is it transdental meditation . Is it different . There are elements of it close to that but also just awareness of your body your breath your mental space your sensations images feelings thoughts. And also reflection. What do i want . Do i have a purpose . What am i grateful for . How did you get on this path to begin with . I was a very busy internist. I was seeing the correlation through my interest many brain chemistry. But i was also myself smoking a pack of cigarettes a day, stressed out. I had 30 patients in the hospital, 10 in the icu. I wasnt taking care of myself. So i realized i couldnt help my patient ifs i didnt take care of myself. For someone who is lets say a busy executive running around someone with a hairy life can they do it if they cant commit fully with two hours a day . Yeah. 15 minutes. Who manages a hedge fund. His entire staff meditates. So i know many others that we teach actually and it makes them much more productive because theyre centered and not distracted. Most of your news is very melodramatic. You know things change by the minute and that can cause a lot of stress to people. So do i need a word . Do i need to say the word . You may or may not. I mean you could choose any word you want including your own name if you wanted. You could keep saying joe. So and for 15 minutes just feel each breath feel actually thats the simplest way to start. Sit down quietly and just observe your breath. If you get distracted come back to observing your breath. Try to clear any thoughts . Dont try to clear your mind. Because trying to clear your mind is a thought. Just focus on the breath. Take it easy. Mind is distracted thats part of the story. Come back to your breath. Feel your body. And once in awhile ask a question. How would you like this day to go . I introduce four intentions every day. Joyful energetic body loving compassionate heart, reflective mind, and lightness of being. It makes a lot of sense. Thank you so much for joining us. Congratulations on the new book. Thank you. Its called the 13th disciple. Thank you for having me in. Do you ever do this harold . I dont. I pray every morning and go to church every sunday but perhaps i do need to do this. 15 minutes, i think i might be able to i mean during the show i can do that. A lot of people do take a tenminute break during the day. Andrew gets back next week. Coming up theyre not on a theyre not a household name, but they make half the stuff in your medicine cabinet. The stock off theceo of perrigo joins us when squawk box returns. Generic over the counter drug maker perrigo set to make a huge deal for omega pharmaceuticals. Perrigo shares hitting alltime highs recently. You may not have heard about perrigo, but you probably have some of their products in your medicine cabinet. They make a host of generic cough, cold, and pain medications you see at basically every major retailer in america. Joseph papa is the ceo of perrigo. You probably also remember elan because perrigo acquired elan. Thats how you ended up. Dublin. And you still get royalties from an ms drug i think elan along with biogen right. Thanks for being here. Pleasuring to here. What is perrigo at that point . Who do we think of you as like a maker of generic drugs . The answer is both. We would be a top five Global Player when it comes to over the counter products. So well have the scope and the magnitude, Critical Mass to do that. Were still going to be about store brand private labels. We have a great approach here on the store brand side in a sense that we provide the same active ingredient as National Brand but price it to consumers for 30 , 40 savings. Were going to do both as a result of this omega transaction today. Omega was also a foreign entity, right . Belgian, correct. 3. 8 billion in euros. Today that will close. What did omega have to bring into your fold . Well go from perrigo to omega was in eight countries. Now well be in 39 countries. It was for us to do a european expansion and make us a top five global over the counter company. We also think we could bring perrigo today in the u. S. Has about 3,000 products. We can bring many of those to the european platform. Gives us a continue to have significant revenue for the future. How much of the business is generic drugs . For us its only about 20 of our business. Much of what we do though is the store brand over the counter which we put at a separate category. In total it will be about 70 over the counter. 20 generic precipitation drugs. And 10 , a couple other things. We didnt i mean this is not a story about inversions or Corporate Tax rates, but it was advantageous for perrigo to move to ireland. Because if theres money thats left over that would have gone towards what some people think is a globally high tax rate you can use it for other things that you might be able to do something worthwhile with. That was part of the deal wasnt it . Perrigo as a company has been growing. We grow about midrevenue growth for the past five or six years. Its always been about half our growth organic. Half of it has come through m a. Having a lower tax rate helps. But i will say that what was really important for us with elan is it gave us the gateway to get to europe so we could have european expansion. Clearly todays announcement on the omega closing will be a natural opportunity for us. There was another announcement today that teva is buying auspex. When we talked about inversion, when we talked about why there was a need for corporate reform of Corporate Taxes, we talked about inversions as being one where companies would end up domiciled at other places. We also talked about how it would make assets more valuable to overseas players. Teva has a lower tax base. I just wonder if this makes targets here more valuable to other organizations outside of this country. We clearly believe that the Corporate Tax code has to be revised here in the United States. I mean thats something longterm we will get done. But i do think youre absolutely correct in terms of a Foreign Company comes to the u. S. , buying u. S. Companies. Paying lower taxes automatically. That is an issue occurring. I think for us at the perrigo company, what weve tried to do is to be competitive, certainly thats one of the things we had to think about as we thought about our future. Harold how does that play out in congress . You know i thought the issue would have caused congress to have acted sooner. I would have thought the beginning of the year there might have been incentive on both sides. Democrats generically not liking inversions, republicans a lot of ways believing this could be a catalyst for broader reform. But theyve been unable to negotiate it all. I would have thought they would have asked give me minimum wage increase give me protection. Its likely we wont get it before summer. Even if you do it with that legislation and close the loopholes that allow inversions you dont take care of the idea that these American Assets are more valuable to Foreign Corporations who can then coming in and buy it. So there are a number of factors. But i would have thought the catalyst would have been all of the political hysteria that grip the deals that happened right before the election last year. But a lot of it subsided. As one question i have for the ceos obviously you must believe theres going to be growth intermediate longterm in europe for you to be making this enormous jump. No question. The over the Counter Space is important. It is an efficient way to deliver health care. If you have a need for you have allergies, for example. You know you have allergies every spring. The ability to go just to your local cvs, target, palwalmart, costco, youll get products at a lower cost to society. We believe that space is so important. Thats why we made this move. Harold its unfortunate. Just curing the inversion with some curing the symptom the way they did it instead of making it a place where capital should be attracted. We should want capital to come here. I would agree. We shouldnt be forcing it to leave with these cosmetic changes. Will hillary see, im worried. And i worry about you. I know youre going to have to whoever your party puts up, youre going to have to support. I know that. And shes going to be pulled left by elizabeth warren. Shell probably say im doing nothing on Corporate Tax reform and youll go with it. Ive been on this show and others and publicly written how youve been on other shows besides this show . Its hard to believe. But im a supporter of tax reform. I think its one of the ways to raise wages. You going to stick to that when she gets moved left . I promise you. , if any you talk to her youll say dont do that. I promise you. I did it publicly when democrats were talking that way before. Before you leave, lets pin down something stronger on this. Hes got juice, he does in his party. But want to make sure you use it productively. Youre here for another hour. When we come back this morning, another deal in health care topping the industry. And the secret lives of the super rich with robert frank. He found the most expensive listings in america. 195 million for this home in Beverly Hills. Well peek inside later on squawk box. Lets take a look at some stocks to watch this morning. United Health Buying pharmacy benefits manager catamaran for 61. 50 a share or 12. 8 billion. Nike, the dow component. Boom. Again. I got United Health and nike. Upgraded to out perform from neutral. They call the stock reasonably valued for one of the highest quality large Cap Growth Companies thats in the Consumer Discretionary sector. And oracle was upgraded to outperform from sector perform at rbc. The firm points to a more confident view on the companys cloudbased growth future. When we come back protests in indiana. A controversial decision over religious freedom has some residents and corporations crying foul. Even apples tim cook is speaking out. And the iran Nuclear Talks coming down to the wire. But the devil, of course is in the details. Can both sides iron out a deal by tuesdays deadline . Well have more on that when squawk box returns. under loud music this is the place. Their beard salve is made from sustainable tea tree oil and kale. You, my friend, recognize when a trend has reached Critical Mass. Yes, when others focus on one thing you see whats coming next. You see opportunity. Thats what a type e does. And so it begins. With e trades investing insights center, you can spot trends before they become trendy. E trade. Opportunity is everywhere. Say youre a finance guy. A farmer. A researcher. You used to depend on experience. The internet. Your gut. Today you can use ibm watson analytics. It can make sense of all kinds of data. Uncover hidden correlations and new opportunities. And give recommendations with more confidence on who will buy. What to make. Where to plant. Which helps you make smarter decisions. 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If you have any sudden decrease or loss in hearing or vision or any symptoms of an allergic reaction stop taking cialis and get medical help right away. Why pause the moment . Ask your doctor about cialis for daily use. For a free 30tablet trial go to cialis. Com march madness going down to the wire. Put back. Oh what a beautiful shot the major indices down for the month although we could have a positive First Quarter. Should investors worry about more wild swings heading into earnings season . Plus indiana under fire. Protesters politicians, and ceos speaking out against the states religious freedom law. Apples tim cook calling this law dangerous. And secret lives of the super rich. 20 down in a super jumbo mortgage could get you into this 195 million megahome. Well get a peek inside. Squawk box begins right now. Live from the most powerful city in the world, new york, this is squawk box. Welcome back everybody. This is squawk box here on cnbc, first in business worldwide. Im becky quick along with joe kernen. Andrew is off this week. Our guest host today is harold ford jr. Hes now managing director at morgan stanley. Good morning. Morning. Great to have you here. We have a lot to talk about. After a rough week last week it looks like the futures this morning are indicated higher. In fact, the dow futures are up by triple digits. Right now up by about 118 points above fair value. S p futures up by 10. The nasdaq up by 29. If you check out whats been happening in european stocks youll see right now the cac is up by. 9 . Are you sure . You read to joe. You do that when the cameras pointed at you because youre a pro. U. S. iran Nuclear Talks going down to the wire. Iran reportedly is now reneging or refusing to ship fuel outside of the country. Supposed to go to russia. Could be a big sticking point. Others say were going to do this deal no matter what happens. Oil prices down this morning on part on potential for an iranian deal. More on that story in about 15 minutes and a bullish view of the u. S. Economy this morning. We had the head of nabe on and the economist put the median forecast for gdp growth in 2015 at 3. 1 . But he said thats probably not right. Never mind. It was bizarre. Meanwhile, jetblue has fixed a widespread computer outage. But its snarling the checkin process delaying thousands of passengers. This says joe. I think we go back to our own at this point. Its not opposite day. I can feel it. I feel it. Three deals in the news this morning. All cash transactions. United health is buying pharmacy benefits manager catamaran for 650 a share or 12. 8 billion drs. And hyperion is being bought by irelands pharma. I guess you could ask the same question. It does. If youre looking at the companies, theyre more valuable with a Foreign Corporation who could take the same sales and lower taxes. And another were talking about in this teva acquired californiabased auspex for 101 a share or 3. 2 billion. When you start looking at deals, the Foreign Company is always going to be able to pay more for a deal than the u. S. Company would be able to because they can pay lower taxes on it. Thats why we need a fix when it comes to Corporate Tax rates. I would agree. Also a state law in indiana causing a National Outcry from the Business Community that governor michael pence cant silence. Mary thompson joins us with more from indianapolis. Good morning. Good morning to you becky. This law is seen as providing legal cover for businesses that want to discriminate against members of the gay and transgender communities. Governor pence says its about empowering people but certainly state and National Businesses dont see it that way. In an oped published in the washington post, apple ceo tim cook wrote that America First learned long ago that any discrimination is bad for business. He writes, from North Carolina to nevada these bills under consideration will truly hurt jobs growth and economic vibrancy in parts of the country where a 21st century economy was once welcomed with open arms. Many proclaim they serve everyone. Florist amy watts sees the fact that the signs have to be hung. Im here to sell flowers and make people happy. Eli lilly denouncing the law as it fears it would make it difficult to retain employees. Other businesses also concerned how it will impact the 4 billion a Year Convention business. Pence said he is hoping to clarify the intent of his law and is working with state legislators. But democrats and republicans will be making statements later today and well bring that to you. Thanks. Lets get back to our guest host harold ford jr. Weve talked about it already. And we im not sure how we decide what the eventual outcome is but you figure the implications will get the attention. Becky said it earlier. It sounds as if leaders in the legislature there particularly democrats coming saying how do we think about redoing this. When i was in congress, we didnt agree on everything, but we take him as the word he didnt believe the law would be interpreted this way. He should come back and correct it immediately. If he doesnt, the state should suffer the consequences that tim cook and others have forecast. Mary said it in plain english too. Its seen as a way that businesses can discriminate against gay people or transgendered people. Heres the situation. Indianas new law, it tries to it says that the government cannot intrude on a persons religious liberty unless it can prove a compelling interest in imposing that burden and do so in the least restrictive way. This is open to interpretation. What people are pointing to is you could look at a situation and say this could come from it. With the law, things are always gray. This is not a clear cut saying heres what will and wont happen. This is an interpretation of that law. I think thats why its different than the other 19 states the laws in 19 other states. Two gay people walk into a counter and order a meal would that owner thats up to the interpretation of the state. That law would allow it you think . That allows a defense of the restaurant owner. I dont know how a court would rule on that. Arent there antidiscrimination laws already . Im not sure if there are specific. I know some of the other states that have these laws have absolute antidiscrimination laws. According to one of the shows governor pence was on yesterday, Sexual Orientation is not covered under state law as a protected class of civil rights. But i think there are others who argue that this law could be interpreted more broadly to allow discrimination against people who may have a different set of religious beliefs than you who may interact with people who you dont interact with. So i think its a cause for concern. So hopefully they come back and fix it. But the question what were they trying to fix . Where fs the problem . Ordinarily you offer Public Policy answers because theres a question or set of problems. I dont know what the problem was in indiana where this kind of proposal was needed. Whatever this situation was, this may have taken a much broader stance against a smaller more defined like a hobby lobby thing. I dont know. Right. But if indeed he thought this would be targeted around gays and lesbians why would you go forward with it . Hopefully it gets fixed. Final four is there saturday and monday. Thats right. Weve been watching closely. Harolds going to be with us for the rest of the show. Well talk to him about other issues on the table. Up next the other controversial story that spans the globe. Nuclear talks with iran. And later, the secret lives of the super rich exposed. How about going inside a 195 million home . Check out this super listing in the next half hour of squawk box. Stick around. Well be right back. You can call me shallow. But, i have a wandering eye. I mean, come on. National gives me the control to choose any car in the aisle i want. I could choose you. Or i could choose her if i like her more. And i do. Oh, the silent treatment. Real mature. So you wanna get out of here . Go national. Go like a pro. [ male announcer ] your love for trading never stops. So open an account with schwab. And when a market move affects, say a Cloud Computing stock youre holding, we can help you decide what to do. With tools that help you see how market activity is affecting your positions. So when the time comes to decide whether to scale in or scale out. You can make your move wherever you are. And start working on your next big idea. What if we finally had a backyard . Thatd be amazing. Hey, what if we took down this wall . What if this was my art studio . What if we were preapproved . Shut up. From finding, to financing. Howd you do that . Zillow. Welcome back to squawk box. Futures right now indicated up about 123 points. Weve been adding to our gains this morning. 123 on the dow. Almost 11 on the s p 500. Nasdaq indicated to open sharply higher up 31 points. Making headlines not even running a country can keep your identity safe the uks guardian reports personal details of leaders including barack obama, vladimir putin, and Angela Merkel and David Cameron all disclosed by an employee. The official sent the information to the organizers of the asian cup soccer tournament. The info included birth dates, passport numbers, and visa details of all the leaders. Thats unbelievable. Funny. Wow. All right. Moving on to another story thats been occupying your attention this morning iran denies its trying to build a nuclear weapon. The International Community is attempting to look at the possibility. A global and intelligence and Advisory Firm riva thanks for being here today. Thank you. Good morning. We are just a day away from a deadline for these talks. It sounds like there are still plenty of details that need to be worked out. What do you think happens . Well wbl some signs of progress where rooirn has went from maintaining 10,000 centrifuges now down to 6,000. On the other hand, signs of regression where iran is now saying that its not okay with shipping its uranium outside of the country. That was a process to be handled by russia. In the end it would be surprising if you didnt see Something Like this happen in the final hours of the negotiation you can expect at least one party to throw a wrench into the talks. Looks like the whole thing is falling a i part. Usually its to deflect attention and make another concession seem more reasonable in the end. But we are into the details. I think one way or another come down the. Weve talked back and forth for weeks at this point about whether we should be in this situation. Whether were giving away too much in this deal. But our International Correspondent was here earlier and said if we wanted to go back to saxes that got the iranians to the table to begin with we might not have support from the International Community. So we may have no other choice than to do some sort of a deal. What do you think our options are at this point . Well in fact i think the u. S. Administration is in some ways counting on that leniency from the europeans to actually allow this deal to go through. As we know, the sanctions are codified in u. S. Legislation. Thats not going to be removed any time soon. But through the u. S. Executive power, you can choose not to enforce the sanctions currently on the table. So that will allow some easing. But iran is certainly looking to the europeans to ease up on sanctions as well as i think the u. S. Administration. So thats one part of it. Theres also the u. N. Sanctions and thats really the core of the negotiation right now is to lift those related to weapons proliferation and sanctions on individuals. But youre going to see this negotiation is going to occur in phases. 2016 is when the u. S. Legislation on iran sanctions rests. To basically make it inevitable that we have something between iran and the United States and allow the politics to play out over time. Do you think this will help us prevent iran from becoming nuclear empowered . Well naturally any deal is going to have tremendous oversight. And i think thats one of the core parts of this negotiation. And really this is the new reality for the region. I mean you see a saudibacked Coalition Bombing yemen right now. Certainly the saudis still have a close relationship with the United States. But they see they need to take matters into their own hands. At the same time you see turkey in a more and more open confrontation with iranians. Thats a natural rivalry that has to play out. You see the United States essentially taking a back seat providing support where it needs to but maintaining a working relationship with multiple strategies. And finally youre starting to actually see that happen on the ground. This is harold ford good morning. If the negotiations do not produce the kind of confidence on both sides that the iranians will not, indeed be able to develop a weapon and theres a belief that they can develop a weapon, theres been some talks that both the sue dees and turks would create the weapon. How does that impact the balance of power in the region . Certainly, there is a lot of speculation this could drive a nuclear race. But theres still a lot that goes into pip when were talking about a nuclear program. Theres another level when it comes to a nuclear device. While we do have to watch for that, thats still a very long and complicated process and a very big investment. Certainly its a possibility one that the United States thats a reality that it may have to reckon with in his region but still on the ground. You see a number of proxy battles playing out mons all these different players. When the United States has arguably much bigger problems to deal with with the russia crisis still out in the open the future of the eurozone in question, and other questions on the table, the u. S. Cannot afford to be the First Responder to every fire that breaks out in the middle east. And so having and maintaining a hostile relationship to iran is not conducive to that strategy and basically maintaining the ability for the United States to respond to other crises elsewhere. Although we had james wolsy on the show earlier this morning and he pointed out hes been doing this for a long time. In the past you could never count on these people to deal honestly with you. That theyre okay with lying to us because they consider us the infidels. If that puts you at the negotiating table where you are relying on some level of trust, how useful is an agreement like that . Well thats where the details on oversight become very critical. Obviously there will have to be a rigorous inspection regime as part of this negotiation. Or else there is no deal. And if iran chooses to not come ply with that of course there will be consequences. Im sure that is also part of the agreement. I think for irans political purposes, it doesnt want to necessarily publicize those details on the level of oversight. Thats something that they want to save face on at home. And so really we have to expect that sort of rigorous inspection to be part of it. But if that rigorous inspection is not enumerated dont you feel there will be the backlash in congress. A balance between the bash backlash in congratulations. Youve got democrats and republicans including the leaders of the Foreign Affairs committee in the senate who have come together to try to address this issue. Absolutely. And the backlash in congress is expected. And i think is one of the biggest things to watch here. But we also see efforts to engage with a number of Nuclear Experts who can be counted on and who are studying the terms of the deal. Thats where the u. S. Administration will say dont take my word for it lets see what the experts have to say. Is this a robust deal or not . I hear your concerns about the United States not being the First Responder to every problem around the globe at every time but the policy that were setting out right now, the path that weve taken does put us as odds with israel who has for a long time been our closest ally in the region. Are you concerned about setting some sort of a precedent and not having the same partners weve had in the region in the past . If we look at the conflicts in the middle east right now. Obviously you see two key players. One is saudi arabia and its longtime rivalry with the iranians. And then you see of course turkey which has been coming out of its shell slowly but surely. So if the emphasis in the region is on Conflicts Associated with these powers the u. S. Cant exactly afford a policy that only takes israels interests into account. Of course the relationship is an important one and one that will be maintained and israel cannot necessarily forego the operation of having an external but the u. S. Is basically looking beyond israel how to manage the region and managing the region entails working with partners like iran like saudi arabia, like turkey. The players that will have to shoulder more of the burden in this region. And that involves a lot of conflict overall. But ultimately its not the u. S. Thats at the center of that conflict. Thank you for joining us today. Thank you. When we come back Comedy Central may have a replacement for jon stewart. We have that story next. Get this though. Hes worth a reported half a billion dollars. Now rap superstar jay z is taking on big competition with a new Business Venture and hes getting help from his friends. Thats next. At mfs, we believe in the power of active management. Our teams collaborate around the world, which leads to better decisions for our clients. Put our global active management expertise to work for you. Mfs. There is no expertise without collaboration. All right. Media news this morning, the New York Times is reporting that Comedy Central has chosen Comedian Trevor Noah to replace jon stewart on the daily show. The official announcement is expected today. Stewarts going to be stepping down later this year but no date has been announced. Yes, trevor noah is not worth half a billion dollars, but this next guy is. Jay z is taking over for jon stewart . Thats what i thought. I mushed the reads together. I messed up. No you didnt. So the comedians not worth a half billion. No. Jay zs not taking over. No. But jay z is worth half a billion dollars. Our viewers are so confused at this point. Join the party. Rap and music mogul jay z apparently did not get the jon stewart job, but he is taking his game to the next level. Hes relaunching high fidelity Music Streaming Service tidal. There will be two subscription options. 19. 99 a month and 9. 99. Kanye west jack white, rihanna, and many other alist artists are supporting jay zs new business. Taylor swift which has had a very public feud with spotify is letting her music go on tidal. Wow. So take that. So someone told me mp3 stuff is crappy sound. Is it bad . Do you know how that works . I dont. No. I dont know. I have issues sometimes with like sirius satellite. I think its not great quality. Yeah. Interference. But its not just that it sounds tinny to me. But i dont know. I dont know either. I think you have to get two audio files to compare. I would dry anything high fidelity. But i dont know if i could tell the difference. Necessarily. Yeah. When we come back this morning, the data point of the day, personal income and spending. Then citis chief u. S. Equity strategist tells us why to invest on. Right now take a look at equity futures. Dow up 126 points above fair value. S p up by 10, nasdaq up by 30. They were asking me what youre doing now, janice. Blogging. Your blog is just pictures of you in the mirror. Its called a fashion blog todd. Well, ive been helping people save money with progressives discounts. Flo, can you get janice a job . [ laughs ] you shouldve stuck to softball i was so much better at softball than janice, dad. Wheres your wife, todd . Vacation. Discounts like homeowners multipolicy i got a discount on this ham. Ive got the meat sweats. This is good ham, diane. Paperless discounts give it a rest, flo. All yeah, flo, give it a rest. Barbara just bought a bike. She wrote a tweet about it. You cant learn much from that. But take data from millions of tweets combine that with your companys supply chain and sales data. Apply ibm analytics and expertise, and all of a sudden, you can learn which bikes to build what to make them from, where to sell them. Because barbara and the world just told you how to build a better bike. Theres a new way to work and its made with ibm. February personal income and spending a out. Rick santelli is sanding by in chicago. Take away. Survey says up. 4 on income. Thats better than we were expecting. Now lets look at the spending side. A little less than we were looking for. Up. 1 . January on the income side was upgraded by. 1 to make it the same. Up. 3 to now. 4 . Stands at two months in a row. And unrevised on spending. If we look at personal consumption deflator up month over month. Year over year up. 3 . Pretty much as expected. Dont see any surprises here. You know the income side to many is the most important issue maybe to the fed and central bankers. Spending is the most important issue. They like debt. Interest rates, theyre hovering just below 2 most likely continuing to be in a range. Maybe the biggest dynamic is how well Global Equities are doing this morning from the dax and the cac to preopening. Dow up 127. Of course if youre looking at t3 or t4 for settlements of stocks, maybe some of those issues have passed. But all in all we continue to pretty much look at the Foreign Exchange markets which are ongoing stories. And of course today the euro is down, a dollar up and equities up. Maybe some of the speculators are going to have a bit of a rough morning. Back to you. All right, rick. Thank you. Well talk to you again tomorrow. When we come back robert frank goes house hunting. And he found the most expensive listing in america. Come inside the 195 million listing in Beverly Hills. Trevor noahs house, isnt it . The guy from comedy no . But what if you could see more of what you wanted to know . With fidelitys new active trader pro investing platform, the information thats important to you is all in one place, so finding more insight is easier. Its your idea powered by active trader pro. Another way fidelity gives you a more powerful investing experience. Call our specialists today to get up and running. Boy once upon a time, there was a nice house that lived with a family. One day, it started to rain and rain. Water got inside and ruined everybodys everythings. The house thought she let the family down. But the family just didnt think a flood could ever happen. The reality is floods do happen. Protect what matters. Get flood insurance. Visit floodsmart. Gov flood to learn more. Welcome back to squawk box. The new York Auto Show kicks off this week. Among the headlines, ford is bringing back the lincoln continental. The brand days back to the 1930s and was once the pinnacle of luxury. Ford stopped making it in 2002. Ford is looking to push the continental in china where customers seem to like lincolns history. I guess thats what it looks like. Theres no town cars now. I wish theyd bring down the town car. A lot of people didnt know what to drive after that. And then in other auto news, volvo will invest 500 million in its first u. S. Assembly plant. Announcing plans today. And volvos in advanced talks with several states. They will announce a decision in a couple weeks. Rolls back the moves we seemed to build in mexico recently. Good for us. Spring housing season is underway. Robert frank joins us right now with a listing that may be just a little bit out of your price range. Out of all of our price range. It is the most expensive listing in all of america. Price tag 195 million. Its a 25 acre estate and vineyard in Beverly Hills. We got a tour with the builder. Check it out. There are 22 more bathrooms, plus a total of 12 bedrooms. Yes, this is one enormous bedroom. Theres also a standalone guest house. And a 15,000battle wine cellar. Even more impressive is this. A 12 acre vineyard that produces up to 500 cases of its own private label wine. I think this is a probably the only winemaking estate in Beverly Hills. Theres even a 15,000 square foot entertainment complex. To get inside guests walk across a glass foot bridge lined by olive trees. There are about a hundred of these trees on the ground. All hand picked from Northern California for 10,000 a piece. Do these trees actually produce olives . No. These have been sprayed not to produce olives. That way it doesnt mess up the grounds. Yes. Past the grove of olive trees is the twostory party complex. Theres a 50seat Movie Theater downstairs. Upstairs, a party space that includes a 150,000 revolving dance floor. And as you guessed, that is jeff greens house. Heres the irony here. He became a billionaire by shorting the Housing Market going into hes putting his house on the market. We talked a lot about his bet right now. And hes betting a lot of real estate in florida. Thats where e the growth is. So you know this is the ultimate highend home but hes doing a lot in florida. We caught up with him at his own place in palm beach which is you know at least 100 million property in palm beach thats just crazy nice. So you see both of his houses there in this one episode tomorrow night. Wow. Do both houses have elevators . Did that house in Beverly Hills have an elevator . I dont know about the one in palm beach, but the one in Beverly Hills does. Just the trees in the yard more than a Million Dollars just worth of trees. Do you get a mortgage for 195 million home . Joe mentioned that. I figured it out, if you put 20 down, 39 million, and you got a 30year. 730,000 a month would be your mortgage payment. But thats actually so you could rent this place now. He rents it out for a half Million Dollars a month. Losing money if youve got the 20 down. So theres actually some saudi royals who rent the place for a half Million Dollars a month. Its cheaper to rent it than buy it if you take a mortgage. How much is a Million Dollars how much can you write off . Absolutely nothing. You know jeff. Jeff is a democratic senator and a big democratic donor. Interesting guy. All right. But you dont know if theres an elevator in the palm beach house. And trevor noah does not own this house. I thought a half Million Dollars, why would you work there . He could own this house, apparently. Yeah, just. All right. Jay z could own it. Right. Thanks, robert. Thanks guys. By the way, dont forget to tune in tomorrow night for secret lives of the super rich. Is that this week the jobs report . Yeah. Friday. And youre not here . Nope. Its good friday. Sorkins not here. I will be here. I will be here. Just me. The markets waiting on the jobs report. Lets find out what our next guest is watching. Are you around . Could you no. Ill be in palm beach looking at the house. Tobias is chief equity strategist at citigroup. So many times we will ask you for your market thoughts which may or may not be related to your thoughts about the economy which is always weird. Especially in this day and age where a lot of times people just care about the fed and if the economys bad enough for the fed to say in then they buy the market which is bizarre. Where are you right now in terms of lets start we the market. We think the market is in the earnings phase. One of the Earnings Results coming up, people will be watching that for guidance. Less so of the backward data. They will care if Companies Miss big time. The markets kind of got low expectations. Its the outlooks. I dont think a lot of companies will have great guidance yet because its the visibility of the benefits of lower energy prices. More second half weighted. Thats one aspect. The second is the fed. When are they going to do it . Its almost by the news, lets get it done already. And in the meantime we churn. I know its a terrible way to put it but the market doesnt have a great direction to it. If there are negative surprises in the earnings purely related to forex, will there be enough . Its the same money, isnt it . Weve done a lot of looks at this. Those stocks actually go up when the Dollar Strengthens even though theyre the most exposed to the Foreign Exchange transaction. So the market seems to not really put lots of value on the fx issue. And we know that energy is going to be a hell of a drag. Current bottom up consensus shows about 6 decline. You have a 63 decline in energy. Thats accounting for all of that decline for the broad index. Then youve got kind of understood lying strength. You were talking about the underlying economic benefits. Is there underlying strength . How strong . The economists and nabe said the average was 3. 1 for the year. Citi is at 3. 3 . Are you really . Our forecast is 3. 3. Its so geeky math its so terrible. But a lot of people cut back their forecasts when they saw the Fourth Quarter numbers was because the starting point of the Fourth Quarter was lower. And so people who had 3. 5 went to 3. 2 3. 3 . A lot of that was your starting point. Thats why i call it geeky math. No other way to describe it. It wasnt like a real change in the economic outlook. It was more about your starting base. Do you believe over 3 . I do. Ill tell you why. Its not just i believe forecasts. Forecasts are i dont know. I walked out this morning, there were flurries outside my door and its spring. So i dont believe forecasts either. Thats the global warming. So i think the best way to think about it is youve got hiring intentions. Both surveys showing very strong power intentions. Thats 19,000 or so Companies Planning to do something theyve always done over the last 30 to 40 years. As opposed to any contractor you hired. On the other side of that if you look at the Capital Spending intentions, can look at we look at 670 companies. If you pull out of Energy Everybody is talking about a 5 increase in capx. What are companies saying theyre going to do . Thats interesting. We talk about energy being 25 of the capx spending. So 25 of s p 500 but its less than 7 of u. S. If there are Companies Spending money in ayenigeria, thats not a u. S. Aspect but it shows up in the numbers. I think people miss that. Is there any way to consolidate whats spent in e u. S. . Companies dont disclose it. Thats why we have to look at the companies to get a feel for what theyre doing. Were further along rather than other country around the world. They may do that in a slightly longer term perspective. With biotech and tech which, you know, its in the paper today about how quickly that selloff has been. Is this a time you buy because theyll lead again . Were more comfortable in the software aspects. Were less comfortable in the biotech space. The valuations and revisions started to roll over. And if we do get these rate hikes, what you typically have is stocks that will get hurt because of the discounting factor starts to compound. Compound is a wonderful thing that works for you. It can be dangerous when it works against you. Okay. And will waging rise finally . We believe so. One of the things we watch carefully is the number of people that are unemployed looking to get jobs and then the number of jobs that are open we kind of mush the two together. I actually call this one in our presentation our geeky cool chart opposed to real cool would be me and Scarlett Johansson at the oscars. The geeky cool stuff would be if you look at the that ratio. When you have six people for every one job, you have no pressure. Were down to about two to one at this point. High degree of correlation to higher wage increases. So were starting to see it. Some of the Bigger Companies are talking about it. But its much deeper in the economy. Tobias thank you. Youre welcome. You wont be around friday. No. But ill email you, joe. Programming note. The markets may be closed on good friday. Squawk joe will be here. Yes, i will be here. I dont know if i was in indiana, i might use the religious thing and say i cant come in. Do you think i can can i come in on good friday . You can. I dont know if this is going to hold up. Im going to be here for the jobs report starting at 7 00 a. M. 7 00 . Thats okay. 7 00 a. M. To 9 00 a. M. Eastern time. Where are you going to be . Im going to be here. You think about coming in and hanging out . If you invite me ill come in. You would . Its not like youre going to be alone. I know. We should do a conference. I should get a millennial person to come in that can bring other millennials on board. Thats a good idea. Unless if you really why dont you just auction the seat . Sell it to the highest bidder . You dont have a religious objection against that do you . Someone wrote in what about the First Amendment . Isnt a lot of religious freedom guaranteed in the amendment . Do we need more . Do you know . Yeah religious freedom is guaranteed in the First Amendment. Arent you a lawyer . It is guaranteed in the First Amendment which begs the question of why they thought to highlight the fact that people could discriminate against certain groups of people. When we come back this morning, the world according to jim. Jim cramer will tell us whats on his radar after this. And check out a few of the guests coming up this week including kevin warsh, david steiner, sam zell and mike jackson. Stick around. More squawk box in just a moment. Anyone have occasional constipation diarrhea, gas, bloating . Yes one Phillips Colon Health probiotic cap each day helps defend against these occasional digestive issues. With 3 types of good bacteria. Live the regular life. Phillips you can call me shallow. But, i have a wandering eye. I mean, come on. National gives me the control to choose any car in the aisle i want. I could choose you. Or i could choose her if i like her more. And i do. Oh, the silent treatment. Real mature. So you wanna get out of here . Go national. Go like a pro. You can buy groceries on its sites, and you can also store your photos. Now amazon wants to be your Home Services middle man. The company is expanding an initiative known as Home Services. It helps connect customers with a variety of professionals from electricians to yoga instructors, and Service Providers will compete for top rankings through price ratings and other factors, and amazon gets a cut between 10 and 20 of every service thats arranged through its site. Gnc is reaching a Settlement Agreement with new York Attorney general, the new York Attorney general. As part of that deal the company will strengthen its supplement quality controls. The Attorney Generals Office accused gnc and three other retailers of selling supplements contaminated with unlisted ingredients that could post health risks. Lets get down to the new york stock exchange. Jim cramer joins us this morning. I know youve been kicking around this settlement deal. What do you think it means . I know theyve been saying look, weve really been hurt by chinese supplements. Without identifying necessarily that these are chinese supplements that are going to be letsysay, banned they make their supplements in the United States. Theres no chinese. He came on mad money and said look, if we can get the chinese to not ship its going to be huge for perigot. You have to see whether the other guys will fall in line. We do know this is perrigos biggest disappointment for the quarter. I was saying wow, he might have this in his back pocket. Because theres no way that people if they knew they were buying chinese supplements would continue to do so. All right. Thats a great point. Thank you for flushing that out for us. Jim, you know weve seen several deals this morning. A couple of them have kind of gotten us thinking because when you have an Israeli Company buying a californiabased company, and then you have an Irish Company irelands Horizon Pharma buying therapeutics, it starts you thinking about the inversions and all the issues that come from just Corporate Tax laws being uneven in different companies. We worried about the inversions and figure we can fix the loophole on that but what you cant do is make it less valuable for a Foreign Company to come in and buy a u. S. Company, have the very same products that they are selling and paying lower taxes on. Great point becky. Its like how great it was for activist to buy allergen. I know this is a little bit of a change of strategy for horizon. Ive had horizon on. I think what this is is it puts them much more in the developmental business. Youll see milen down a lot. Tevo also moving into a proprietary business. These are strange deals, because they do seem to be motivated by tax, which is why i know you guys spent a lot of time on it. Perrigo is another one of these. Anybody that is grandfathered in is coming off of companies and knows they can make much more money. We cant change this unless you actually have legislation in the United States. You cant change what it means for Foreign Companies to come by us. No, not at all. These are done deals. You can change the loopholes for inversions but these deals, where American Companies look more attractive to Companies Overseas we cant change that unless we actually address the differences in Corporate Tax rates. Right. And otherwise, its just not a level playing field. Activist i think by q4 will be in good enough shape that they can make another acquisition. Obviously this horizon is just so bullish for them. Youve really got to be very careful if youre an american company. Because youre just going to get beat. Thats what will happen. Youll get beat. Im surprised youre not down there in washington saying youve got to give us tax reform. Going to get beat endlessly. Thank you so much. We will see you in just a few minutes. The lifestyle lift like i was telling you, they owe money to allergen. Botox . They must choose a lot of that with the focus on lifestyle left. Its the end of a Great American story. Maybe not the end. Chapter 11. Coming up going to be a dynasty decision. Harold ford jr. Sounds off on Hillary Clinton and jeb bush and other contenders. Harold might have a little bit different view since your father was a senator, was he not . He was my predecessor in congress. Oh, in congress. Thats right. There can be dynasties that are good dynasties, like the ford dynasty. I feel strongly that people ought to be able to succeed their parents. And tomorrow, dont miss the president of the ncaa. Well talk basketball and the controversy over the new law in indiana, and paying athletes all that stuff. As the final four prepares to tip off in annapolis. In my world, wall isnt a street. Return on investment isnt the only return im looking forward to. For some every dollar is earned with sweat, sacrifice, courage. Which is why usaa is honored to help our members with everything from investing for retirement to saving for college. Our commitment to current and former military members and their families is without equal. Start investing with as little as fifty dollars. Lets get back to harold ford. Were going to talk ncaa stuff tomorrow with emmert. You like kentucky i know right . Im a big fan of calipari. I think the guy is underrated. Hes taken three different teams to the final four. Three totally different teams. I love coach k, but you cant deny what this guys accomplished. But youre having mark emmert on an athlete should be jay bilass piece. I thought it was fantastic. Each of the point i think the ncaa has raised about why athletes should not be compensated, i thought he obliterated each of those points and laid out a path to do the right thing, which is providing some kind of cost of living. He even advocated paying these kids to go to different universities. I dont quite understand that fully. But i do think president emmert has a set of questions to answer. How is it in a free market system a lot of them dont get a good education. How do you claim that this is fair . I think the fiction is going to explode at some point and the ncaa is going to have to do more by these kids and their families for them generating millions of dollars. If you look at all the great teams that weve watched, the guys that finally hit pay dirt in the nba, its a small number right . Very small number. Less than 50 of them. If not smaller than that. These kids are generating huge amounts of money and tv revenue. And the scholarship alone doesnt cover all of it that they should be receiving. All right. I like hillary. You have to say that. Thank you, harold. Great having you. Thanks for having me. Ill come back friday. You just missed the millennial cutoff. You just missed our time cutoff. Make sure you join us tomorrow. Squawk on the street is next. Good monday morning. Welcome to squawk on the street. Im Carl Quintanilla with jim cramer and david faber at the new york stock exchange. Two days left in q1. The s p is trying to avoid its first negative quarter since 2012. We have a boat load of health care mna this morning. Oil is coming back a little bit on hopes perhaps of a nuclear deal with