Transcripts For CNBC Squawk Box 20150409

Things dont look great. All in the red. Dow would open off 23 points. S p 500 off about 4 points and the nasdaq off about 5 points. Its great to see all of you. I havent brought bird flu back but i brought something back. Probably that our immune systems have not seen. Its right here. I heard you were sick and almost gave it to becky last week. I think i did but you never know. You had to do dna testing or rna test testing. You think this might be a hong kong. No i was fine there and then i made it to bangkok. Oh bangkok. Always the problem. You always catch something in bangkok, do you know what im saying . Then from bangkok to hong kong and once i hit hong kong is when i started to feel something. It was like hangover2. We had drinks on the roof of a hotel. At least you didnt get a mike tyson. Remember if we were really fast they actually had the picture of me with the thats right. We need to talk we have to tornadoes in kansas shows you the world were living in right now when tornadoes start occurring in kansas. Is that a Global Warming reference. Yeah. Wasnt it wizard of oz. Yes. In the 40s or something. But you would not like it because all they do is talk about Global Warming and greening. Theres no smoking allowed. Everybody haze solar everything. Its all very green. My question to you is you were much closer to the the higher that you get the closer that you are the himalayas. Did you meditate up there . I did do a little meditation. A couple of times. Was it hard . No its easier up there. You have to focus on nothing. After about a week of vacation you could start to think. In the beginning, no. And you talked to some monks and they speak english. Yes. Did you ask them for tips . On the stock market . The lifestyle, the meditation . The eastern philosophy. No, i got in trouble i was on a temple called tigers nest and you have to keep your legs criss crossed. You cant say indian style. You cant say indian style. American style. I dont know what youre supposed to say and i stuck my feet out and apparently i was sticking my feet out and thats something to the gods. You got like size 13. We saw the sid owe yesterday. You have some big dogs. They would notice those immediately. They came right over me and said i have you know. You probably had the biggest feet at that time. Dont you think . Which is saying something. Yeah it is. Not true. You know what they say about guy with big feet. They wear big socks. Big socks. Big shoes. I told you inside this head is a 15yearold. Working with you, you never know what might happen. Heres the big stories were watching today. Greece confirming it will pay a 485 million loan installment to the imf today. Theyre in talks with International Partners over reforms and hopes it will unlock more bailout aid. Well talk to the the chief european economists about the situation there. In the u. S. Two economic reports of note. Weakly jobless clalims out at 8 30 a. M. Eastern time. Animal spirits could be back. The wall street journal report ifs the current pace keeps up volume would top 3. 7 trillion and that would make 2015 the second biggest year in history. Among our stocks to watch today, alcoa had a mixed quarter. Now were calling it a former dow component. The earnings and revenues were a bit short. Many retailers are going to report Monthly Sales with costco dropping 2 in march. But same store sales rose 4 but both numbers were short of estimates estimates. Full year same store Sales Guidance was a little bit light. Thats got the stock down a little and shares of zynga are under pressure. The ceo is resigning and the founder is going to return to lead the social gaming company. 33 cents is not a lot but it cant go down 33 cent toos many more times i dont think unless it welcomes like swiss Interest Rate which is are negative. For ten years. For ten years you pay someone to hold your money. You give your money to the swiss government and ten years later they give you less back. You agree to that up front. And then in mexico. 100 year bonds at 4 . Theyre in euros so within a couple of years when the euro is gone theyll go what . We dont have to pay it. Euro is gone. We dont even know what youre talking about. But why would anybody do this. Based on inflation and you get your money back if its deflation youre ahead of the game getting your money back. You think prices are go down 4 getting negative 1 is good. Are they actually based in switzerland . Well theres a shortage of high quality collateral all over the world and treasuries and sovereigns in particular so its much more than the swiss as well. This plays into do you remember before yellen there was a chance if the left hadnt hammered him that he would have been fed chairman. He had a more hawkish position and i was going to say now you dont want to raise rates. Suddenly you changed but with whats happened in europe the situation has changed from when he was being considered for that. When i read the notes it suggests he doesnt want it for a long time. Before he seemed more hawkish but if we ask him about it did you see rand paul listing all the things he changed on. He did the interview. With savannah guthrie. With savannah. He said why dont you do it this way, request dont you ask me have your opinions changed and let me tell you what they are instead of all the grilling. Did you watch it . Did it get pickrickly . Way too early. A little quick. They were both talking for that would never happen here where people were talking over interrupting and all of that stuff. Not on this show. Jp diamond pinning a letter to shareholders as part of the annual report. He defends jp morgans size saying that the company is not not necessarily more risky because of its size. The potential of additional regulatory and legal costs is holding the value down among his other headline grabbing comments warning there will be another crisis. Market reaction could be even more volatile. Diamond argues that the rules will interfere with the banks abilities to act as a buffer against shocks in the markets. He writes regulations will make it more likely that a crisis will cause more volatile market movements with a rapid decline in valuations even in what are very liquid markets. He says recent activities in the treasury markets and currency markets is a warning shot across the bow. He goes through great data points about the level of inventories and how the size of the market increased dramatically and the amount of trading has dropped and your ability to trade has dropped. The bond crash flash in the fall. October 15th. That date is going down in history as something the whole market sees as important and frightening. I think greg is just on the growth of the shadow bairnging again. Thats where it will come from next time. He also talks about the clearing houses which is actually consensus when you start really talking about Market Structure right now. Also talked about he has been on the thing for seven years now but arguing that if the government called him in another crisis he said i dont think my board would allow me to pick up the phone. Right. So. Yeah whats the Say Something no good deed goes unpunished. Ive seen that. It happens again and again and again. Andrew showed you earlier the futures were slightly negative. The dow would open lower. S p by a little more than 3. Nasdaq lower by 5. Show you whats happening over in europe. Not very interesting. Kind of flat. Generally positive. Even greece is positive. I just are received confirmation from a spokesperson that yes greece made the payment to the imf. I believe thats a 15 year high. Gain of 147 points overnight. The hang seng is higher by nearly 3 . Were seeing more influence of this movement from shanghai into hong kong. Energy is higher across the board. A gain of more than 1. Brent is at 57. 02. The ten year yield is at 1. 88. I feel like thats exactly where it was 24 hours ago and the dollar is stronger against the euro. 10738. Weaker against the yen. Stronger against the pound and the price of gold this morning is lower by 6. All right. Greece, the big market story today as we have mentioned athens making a key imf payment this morning but the country is still running out of money. Joining us is the chief european economists at bank of America Merrill lynch. Good to have you here. Good morning. I dont know if youve seen the wall street journal today. The lead editorial is the case for letting greece go. Do you agree . No i dont. Why . I think its not worth it. I think that it would still be fairly complicated to control the consequences of this. Its probably not as bad as one or two years ago because we have more instruments to deal with that but its a risk that is not worth taking. They acknowledge there are risks. It would be complicated and devastating to greece but the cost of keeping them in is what is too high because it could unralph unravel reforms. It depends on what we end up with in greece. If you look at whats the strength of both parties there, he had one chance to really get concessions from the europeans. It was so elicit so much that this has failed. Fortunately for europe qe came before the greek elections. The greek government will probably accept quite a lot of where we used to be the program. He was not elected to take greece out of the area. He doesnt have we dont think he has a democratic mandate to do this and honestly all of this is profoundly frustrating. Now its clear to everyone that greece was always sustainable. This country had Market Access last year. We were that close. They blew it. Of getting greece it would have always been complicated but we were that close of getting in. I dont think the europeans are ready to give up on greece. Youre an economist. You build models. What do you do with greece . When you assume make assumptions or try to project whats going to happen to european gdp . Do you care ultimately what happens to greece when youre putting in all the data points . On gdp, clearly no. This is creating some sort of minor vent. This has become minor related to the kind of tail winds were getting right now. Really decline in oil prices and decline in the actions rate. The end of physical austerity in the rest of europe all of this is probably minor. For me greece is not an issue for the next few months. Its not going to decide the fate of the european economy within the next six to nine months. It can be a medium term issue. Qe determines the fate at this time it seems like. Qe is crucial because even if its normally motivated by Monetary Policy what it really does is that it brings back actual market rates back to where the Interest Rates are in countries such as italy. Even at 2 where we were in november before the market started pricing qe. We were still at the level of Interest Rates. It was too high to where potential growth is and where inflation was. So the only solution was to deliver all the time and this had become impossible. So you have two options there. Either you wait you think Structural Reforms will bring it higher or you dont have the luxury to wait and force market rates back to a level sustainable for this country. This is what qe is achieving. Its a major change in the way its working. Sounds like youre optimistic. Well leave it on that note. Right. I am. All right. Always good to be optimistic. Thank you. Coming up when we return its a marathon not a sprint. The race for the white house is heating up. A sit down conversation talking with candidate ted cruz next. But first as we head to a break heres a look back at this day in history. We sat down with senator cruz for a cnbc digital original. Went to a wall street guy the other day and said how does wall street feel about cruz. They said they think hes dangerous. I get portrayed in a lot of outlets as a wild eyed lunatic. At the end of the day, that doesnt bother me. Ive got real confidence that the American People make their own judgment. Youre wellknown in texas but nationally people dont know that much about you. You were the guy mt. Middle of the shutdown and you were reading green eggs and ham on the senate floor. Everybody has seen that clip. You mentioned your buddy on wall street that said cruz wont raise the debt ceiling. I said i wouldnt agree to raise the debt ceiling without meaningful Structural Reforms. History was on hi side. Of the last 55 Times Congress had raised the debt ceiling it attached meaningful conditions to it 28 times. Now your wall street buddy might say well that was irresponsible for congress to use the debt ceiling to force that. Thats how you stop bankrupting our kids and grand kids. When historians write 30 years from now when they write that government in the form of george w. Bush ben bernake and bar ram obama saved the world from depression you say what . I dont think anyone is going to write that and if we dont stop the path were on. Theyre saying it right now. Well yes but theyre the same liberal academics whose answer to everything is more and more spending. So you can watch the entire video on cnbc. Com but guys you can see with the 31 million that ted cruz amassed in recent days he is going to be heard in this race and well have to see how much of a factor he is. He is certainly competing with rand paul that announced earlier this week. How much of a factor. If you were to handi cap the lineup as it is today . I think bush is the favorite to win the nomination despite the vulnerabilities he has which are are considerable. Scott walker is probably his chief competitor but somebody else is going to emerge as a third wheel in the race. Theres many more wheels in the race now but the thing tends to funnel down to a small number of people. Thats just the physics of it. It happens cycle after cycle so i would expect that lets put it this way, from the cruz and Paul Ben Carson wing i would expect one of those to be a serious player and i would think that cruz may have the best chance of that group to be the player. The one who is the rival to jeb bush and scott walker. You spent time with him before right . This wasnt your first time . I was going to ask you your impressions instead of telling you what your impressions were. But what were your impressions . I found ted cruz to be more charming in person than i expected. Thats what im talking about. Ive had democrats sit with him, big time democrats. Big time friends of bill and they came to me they had exchanged email with the senator. Loved him. Made so much sense. Hes very i dont know whether its what the media would like everyone to believe about cruz. Thats his argument. Theres some truth to that. Princeton, harvard. He is incredibly smart. Ive seen people was it jerry brown or something saying this guy is a clown. He has no business even thinking he could ever be president and its like do you know anything about ted cruz. Its weird isnt it . But heres what i would say on that this is is where he has an advantage over paul. He is more fluid and better at connecting oneonone and thats going to be a challenge as hes on the trail is establishing a personal connection. Ted cruz is better at it. Rand paul got really pickly really fast yesterday. Cruz is disarm you fairly quickly on a oneonone conversation conversation. Look. He was a champion debater and he talks really well. Didnt he call him the best student he ever had at some charts. He said he was off the charts brilliant. But historical irony here. Were on the verge of reestablishing relations with cuba and you have two cuban americans running for president at the same tile. Youre exactly right. One other thing. He told me when he was a kid in houston he loved acting and theater. He noted one of his favorite roles was the bad guy in oliver. He said its fun to play the bad guy and get killed on stage and everybody is cheering. He briefly considered. He likes that. Yes. He briefly considered moving to hollywood and trying to start an acting career. Would he consider it a win even if he doesnt win the election but just to even pull the party one direction or another . Sure. Is that considered a win in his if at the end of the day jeb bush wins but has to pivot toward his direction. Yes. I dont think jeb bush will do that in a meaningful way but youre right andrew. Lets say theres a dozen guys out there right now and women looking at running in this race. One will get nominated. They get their name out there and become known and may influence the process and force the paertd to the party to consider issues or consider them in a way they havent done in the past. Thats one me tricktric for judging campaigns. Hilary is the overwhelming favorite to win. But if theres someone else a sanders or Martin Omalley theyre going to be trying to influence what she says. You two cuban americans and a welsley grad. You dont know what to do. Italian american and well be all good. Thanks john. Coming up the 2015 masters tees off this morning. He joins us to handicap the contenders next. But first a look at yesterdays s p 500 winners and losers. 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. Side effects may include headache, upset stomach, delayed backache or muscle ache. To avoid longterm injury, get medical help right away for an erection lasting more than four hours. 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 i care deeply about the gulf. I grew up in louisiana. I went to school here. Ive been with bp ever since. Today, i lead a team that sets our Global Safety standards. After the spill we made two commitments. To help the gulf recover and become a safer company. Weve worked hard to honor both. Bp has spent nearly 28 billion dollars so far to help the gulf economy and environment. And five years of Research Shows that the gulf is coming back faster than predicted. Weve toughened Safety Standards too. Including enhanced training. And 24 7 on shore monitoring of our wells drilling in the gulf. And everyone has the power to stop a job at any time if they consider it unsafe. What happened here five years ago changed us. Im proud of the progress weve made both in the gulf and inside bp. Heres jack at number four. Par 3 across the water. Really a good golf hole. What a beautiful play. Come on jack. Yes. Yes oh still has it. No one ever said he couldnt still hit irons, you know like 8s and 9s and wedges. Jack nicklaus adding to his legacy yesterday at the par 3 contest at the masters. He gets a hole in one. 75yearold has 6 green jackets. Winning back in 1963 when he really wasnt supposed to that first time and geary said it doesnt matter who you talk about today jack was still better than any of them. And 50 yards further. The masters will tee off this morning. You probably heard that. The first major of the year and bubba watson hasnt played since finishing 3rd on march 8th at the world championships. He was voted the least liked player. It was a weird poll. If you came out in the parking lot and there was a fight going on. Who are you not helping. Who are you not going to help in the fight. Thats going much further than the least liked. Thats a guy youre not even bailing out of a fight. Youre not even helping your guy. Letting him get your butt kicked. Peel know you because of that thing you do on weekend whens you come off of the sports desk. People know because of you joe. This is the awesome dave briggs of nbc sports. I like that. One person we havent talked about him much maybe not having that great of a year. This is the wheels up add but it features Rickie Fowler who is awesome and hes a guy you dont know. Last year he finished in the top five of every major. Thats who rick is. Hes easily a top five golfer in the world. Hes a guy thats going to finish 2nd or 3rd but hes the bridesmaid. Hes the bridesmaid until he isnt. One win. Right okay. How about speith. We talked about jordan about a month ago when he was under the radar starting to play well. Now hes the second favorite to win the masters. The guy i like to win the masters is jordan. 21 years old. Two second places but he has the swagger. Hes not at all phased. He doesnt get nervous. Incredible putter. I think he looks at 35 foot putts and says im going to put this in the left side of the hole. He thinks the hole looks about 12 inches wide. Its huge right now and dont forget last year he was second place. He had a two shot lead in the masters last year. He is fuelled by that. You have to go through that. Thats why its so hard to win the masters. In any tournament a guy can get hot but to close it at augusta on a sunday. Dont underestimate the long shots shots. Definitely an underthe radar but i like speith. They say tiger looks react. This is tiger 2. 0. This is a different guy than weve seen. Weve never seen him embrace fatherhood on the course. Heres his two young kids. One finishing off a putt for him which eliminated him from the par 3. On the range you couldnt look him in the eye. You would get in trouble as a journalist. If you looked him in the eye. So he was so focused. I wondered if maybe thats one of the problems is hes not as focused as he used to be. Ten days ago he was a 601 shot. It went down to 4540 and this morning hes a 161 favorite to win the masters. Better than the guys you and i like a lot. Better than patrick reid. Better than jimmy walker. Tiger woods. A guy in three events this year that shot an 82 the last time we saw him on a full field and with drew in the first tournament of the year. If he even makes the cut that would be a successful weekend. No way hes going to win this thing. Hes been in front of cameras his whole life but augusta if you have if youre yippa at all. You can use that word. He had it the last time i saw him two plus months ago. Ive tried everything but you need a psychiatrist at some point. Thats what he looked like the last time we saw him. Like he did need a psychiatrist but look the course sets up very well for bubba watson. Somehow people are forgetting about him. Two jackets in the last three years but the fact that he is the guy that no one would bailout of a fight in the parking lot is interesting for a guy that the public loves. I thought he was class sy in his response to that. Did you read it. He said im working on that. That is good for me. He also said he voted for himself in that poll. He said he wouldnt throw anyone else out of the bus. Hes the guy thats got his caddie in public. Complained about the weather in front of an open microphone. Complained about a long drive contest. Complained about pace of play but he is long he is playing well. He cuts the course well at augusta. He could easily make it three out of four. Dont be surprised. You didnt mention rory mcllroy. Isnt it interesting that we havent talked much about rory mcllroy that is the favorite at 81. I think tiger woods plagueying takes the pressure off of him a little bit. But then again hes also not played that well at augusta. His best finish last year 8th place. He hasnt shown the ability when theres a tiger fuelled field that he can step up and reclaim number one in the world. But hes always capable. Hes the best player in the world by a long shot. Something about this tournament tournament tournament. I love the u. S. Open and the open. Theres nothing like the maers masters. Clear your weekend. Ill be lying in bed watching. Please. Youre not going to watch any of this but even at 7 30. We have about an hour until we see jack arnie and gary player. Everybody is around and all the pros come out to watch. All the current guys get up early even though theyll be teeing up later in the day. Theres Nothing Better than that moment when those three tee off. The coverage doesnt kick off until 3 00. You have to wait to see it all unfold. Number one might be number one is one of the hardest holes down there. You see where they drive the ball, they dont theyre probably not they may have that as the par 5 at their age. The par 5s will be the key for rory. He struggled on the par 5s last year and struggled at augusta. He does get his first green jacket and completes the career grand slam and a lot of people will be pulling for him. I will be watching. Will you . I will. I will. Just clear sunday. Im going to clear sunday. Friday looks like a rain out. That will play into the tournament. Awful weather friday. Arent you watching all show time all the time . All the time. Ill be watching show time. Well be tweeting you on sunday making sure youre watching. All right. You know he has a show on. Hes a big stair. 2016. You have to wait. Patience. Patience. But i cant wait. Right. We also need your help this morning, thank you sir. We need to know what story that youre buzzing about today. Is there something that you have read or you think that the rest of our viewers need to hear about . Tweet to us about it at squawk cnbc and use the keep squawking. Well post them on the facebook page. Well read them all and share the best of the bunch. Well do that at 7 50 eastern time. Coming up earnings season is open for play but the forecast is anything but bright. Were going to handicap expectations next and later formerform former treasury secretary treasurer will join us. Plus squawk is called to order. Republican senator jornhn barrosso will join us on set at 8 15 eastern time. Stick around. [ 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. E financial noise financial noise financial noise financial noise welcome back. Making headlines this morning theres an outbreak of a deadly strain of bird flu. A flock in minnesota has been affected in less than a week. Minnesota is the nations top turkey producing state. I didnt know that. Expert sas the number of infections is climbing as ducks spreading the disease return to breed after spending the winter farther south. So they come up and here we are. Here we are. I missed that. 85 companies have issued negative Earnings Guidance compared to 16 positive. Expectations for the s p 500 and all sectors have fallen significant significantly. Youre more negative than anyone. Year over year down 4. 6 . I have been wondering why people arent negative. Do you feel comfortable down 4. 6. Down 4. 6 but if you take out the commodity plays energies and materials youll be up 5 . So its not all bad news but obviously theres been even the sector we figured without benefit from lower Commodity Prices Consumer Discretionary has seen a hit as well but analysts are setting this up for well have a descent earnings season. The numbers from a psychological standpoint are negative but i think earnings will outperform expectations. As you point out, 85 Companies Issued negative earnings per share guidance. 16 issued positive and youll call it a good earnings season. Its cynical. It is. That is true there will be pockets of strength but weakness as well. Lets say you keep it simple stupid and someone tells you when we have people on they call it negative growth which is hike does that mean down . That means down. So there will be negative growth in earnings. If multiples will expand because Interest Rates are headed up and if earnings are going down why would you stay in the stock market. Its a one to two quarter phenomenon. We expect earnings to pick up in the third and fourth quarter. I think once the currency stuff plays out and things become more stable theres good opportunities. Its like inflation. If you dont drive and you dont eat theres no inflation. Well how do you take out. I think you can make a case. Right now on a 12 month forward multiple the s p is trading at five times earnings. If you look at the five year average its about 14. 5. Yeah if you look at it from that standpoint. From a strictly valuations standpoint we are expensive but where are investors going to put their money. Why do you think things get better later in the year . You less head winds. Might get new head winds. Energy comps would be easier. If oil stays at this level at least things dont keep going down. They dont keep going down and you figure generally the Market Sentiment is positive. More positive in the second half of the year. Earnings comparisons are a little bit better than they are in the first and Second Quarter of this year but you never know. You really dont know but thats what the market is forecasting for the second half of the year in terms of earnings expectation but valuation is an issue. Were 16. 5 times where as we have been down to 14 or 15 but we have also been over 20 in different markets like this. This is amazing. The estimates for earnings in the energy is down 29 . Its now down 64 is the estimate. Even the good ones Like Health Care was supposed to be up 15. It will be down 10 but Consumer Discretionary ended up 14. Now up 6. 6 . Thats the interesting thing because you think they would be the winners of this. Oil. Exactly. With these terrible numbers they would be crazy to boost Interest Rates in june. In 2015 . Forget it. Just the other day i was saying they have to. Maybe ill switch. Anyway thank you. Thanks guys. Coming up when we return can a super hero help netflix battle hbo now . Netflix shows based on marvel characters launching this week just as hbo starts its new service. Media fight with the cape included. Well talk about it, next. I bring the gift of the name your price tool to help you find a price that fits your budget. Uhoh. The name your price tool. Shes not to be trusted. Kill her. Flo it will save you money the name your price tool isnt witchcraft and i didnt turn your daughter into a rooster. She just looks like that. Burn the witch the name your price tool a dangerously progressive idea. Netflix will be using super heros as part of its battle with services. Thats right. Get ready. Netflix is enlisting a lesser known Marvel Super Hero in its for sub skriekers. Hitting at midnight tonight. The first of a partnership with marvel. He expects the new show to appeal not just to fan boys but also to marvels broader audience. Ahead of netflix earnings shares rising 4 yesterday on analyst expectations on the company will be guidance. Daredevil launches just before hbo now. It goes head to head with netflix. Drawing subscribers with their new season of game of thrones. That costs 15 a month compared to netflix at 9. Hbo working to appeal to millennials. The target age group now because theyre less likely to pay for cable. Its giving away an episode of Silicon Valley on twitch. Which company will win this content faceoff . Hbo now is called quote, validation of the internet tv model. He says its not a winner take all situation. Thanks julia. Lets bring in anthony de clemente. When you look at what marvel is going to do to netflix, how many new subscribers do you think you could actually put on this new show and what when you model out hbo now over the next six months, what does it look like . I think its not about one show driving subscribers. Its about what theyre trying to do is diversify the content to appeal to so many people. You dont think house of cards, when that first started it was maybe on the margin you could say 150,000, 200,000 could be driven in that quarter. But i think if more broadly what it is is driving retention, driving if theres a diversity of product on your platform its less likely youre going to turn. Trying to get to 60 to 90 million subs in the u. S. Cant do it by only appealing to fan boys or only affluent women. And on the price point . We saw what a dollar was worth. Heres the main thing on the price point. Netflix just said this week that 20 billion hours of netflix were streamed in the First Quarter. That works out to be two hours per subscriber per day. Thats why higher than hbo. It indicates theres Pricing Power for netflix given the value of the number of hours per its subscription. For us every dollar additional to netflix its half a billion dollars of operating income. Opportunity to netflix not as downward pressure on hbo. No. Because i dont think its i think its showing that the validation of the price of power of internet video. I think hbo nows strategy is different than netflix. Right . Because hbo still has theyre still tethered to the ecosystem in there. They want to ensure theyre not cannibalizing those subs. Netflix strategy had been stand alone. How do they make sure of that . If i can subscribe directly without if they undercut themselves. Say you have Time Warner Cable in new york. Youre already paying 15 bucks a month. If it were priced at 10 they would undercut themselves. I see. Thats whats behind that price opposed to yeah. They want a price for a premium product. Correct. Still, we should mark this moment, right . Here we are. Its finally arrived. Hbo establishing hbo now. To julias point, a quote from the netflix executive, validating this idea of cutting from cable eventually and buying the content you want directly. Its not like a its basically seen plain as day in the data. We talk about the 50 increase in viewing hours at netflix year over year. Those ratings are down 10 , 12 consistently. Everything is moving to internet video, it really is. And for netflix, one last point is that the Parent Company of this organization could be ultimately 30 million subscribe subscribers subscribers. Talking about media over time, we talked about content versus distribution. Comcast was thought to be the biggest distributor. Well netflix has more and is growing much faster. This is going to to be the most powerful Media Company in the world. Netflix. Julia is in l. A. Get her involved. Julia . I think its really interesting when you look at netflix programming for its 57 million or so subscribers, it makes sense to invest in a wide variety of products. Because if you have content thats like house of cards to a certain demographic. But then theres other shows like Hemlock Grove which is just as popular with others. He says its not the idea to create a new show to add new subscribers right away. You rarely see a boost in subscribers for a certain show in its first season. Its about the idea theyre investing in these brands for the longterm. And so its really more of a longterm play. People dont talk about it enough, but i would argue and bet that those two hours, a large part of those is kids programming. They invest in what hbo does not have. Glad you brought that up. Because the margin reminder of the relationship, the positive relationship that netflix has with disney. We know with all the robust disney content, were reminded of that deal that was signed a couple years ago. Were starting in january of 2016 netflix will have the exclusive paid tv content for disney films. Including, you know, pixar and star wars films. I agree, thats a huge edge for them. For my daughter all she wants to watch is netflix. So that is a huge thing. Its one of the demographics shes talking about. Julia, weve got to run. Anthony, thank you. Thanks. Closely watched retailers reporting Monthly Sales today. Consumers are more confident in the u. S. Economy than they have been in a decade. Names like macys and target are trading near alltime highs. A look at why the american shopper is more important than ever to Economic Growth. Thats next. The fed should hold its fire. Thats according to Larry Summers summers. Why he thinks a central bank needs to pump the brakes on rate hikes. Cutting uncertainty on the retails. Wall street top analysts picks. And one of the first apps on the apple watch. Hell give us the good bad, and ugly for apples latest offering. The second hour of squawk box begins right now. Live from the beating heart of business, new york city, this is squawk box. Welcome back to its darius. But before he left. Launched his own country welcome back to squawk box here on cnbc first in business worldwide. Good golfer by the way. Plays in the celebrity tournaments. Im joe kernen along with Andrew Ross Sorkin and michelle carusocabrera. Becky is off today. Equity futures at this hour were down a bit. Now only down 4 points. Make no determination about what happens throughout the session. Its been a weird week. You know initially on monday we were supposed to be down 150 points. Closed up a hundred. Tuesday it was closing well off the highs. So i dont know whether its fed relates or earnings related or what. But kind of having a hard time to decide what to do. It will fluctuate. The bank of england just announcing it will leave rates unchanged at. 5 as expected. And the cac is up nearly 1 . And greece higher by about. 5 . They have made their imf payment. Among the other stories were watching at this hour greece confirming to the installment today. Over reforms that it hopes will unlock more money. Irans president says the country will only agree to a Nuclear Accord if sanctions are lifted. He says he wants a win win deal for all parts involved. And for iran that means removing all the sanctions the same day a Nuclear Agreement is implemented. June 30th is contradictory to what weve been hearing from our negotiators who say it would be gradual when it comes to lifts of sanctions. Samsung says it expects record shipments for its new galaxy s6 phones. The new device gos on sale in 20 countries starting tomorrow. Jpmorgans jamie dimon defending the banks size saying it quote, not a conglomerate. And not risky because of its size. Citing the regulatory and legal costs holding down the majority of the shares. Also continues to blame the acquisitions of bear sterns on so much of their troubles. Were getting same store sales for the big retailers throughout the day today. L brands just reporting rising 9 . That was better than the 6 increase that was expected. Retails have fallen for the past three months and the data this year has been mixed. But stocks of Companies Like macys and target they are trading near alltime highs. Plus the cnbc all America Survey says our view on the economy is at an eight year high. Mixed messages though. Joining us now is our consumer and retail panel. Jan kniffen and matthew boss. We should probably also talk at some point about the apple watch which from a retail perspective i think is what everybody is looking at. Everybody is worried about pipt it. Everybodys looking at it. Im wearing a fitbit. Im not getting an apple watch. But im sure many are. Right now low end are rolling over anyway. I think this is going to put a stake in the lower end watch market. I think the high end watches are still doing well. I dont think anybody is going to be out buying the very high end apple watch big shopping weekend because people are going to be out to either apple stores or any store to buy you cant preorder it. You have to look at it physically. Its going to be big at the apple store. And the fallout traffic from the apple store is not that good. Theyre not in many shopping malls. They are doing 5,000 a square foot in shopping malls. But theyre a funny store in they dont create drift traffic. Whereas if youre a Department Store and people come in in the mall, people go to the apple store and then leave the apple store. Matthew, lets get you involved. When you look at the stocks of macys and target at an alltime high. You say they still go higher from here or this is the high and this is a little too high . Yeah its a great question. And i agree with a lot of the points that your survey made. We actually had macys yesterday in philadelphia boston the day before. I think you have some near term noise in the numbers. Youve had weather wearing winter coats after easter is not a positive for apparel sales. Some shift in spending. Consumer electronics, a lot of the durables doing better than apparel. I think underlying that when you look at gas prices down 35 year over year. When you think about home prices have stabilized. When you think about wages, a number of retailers talking about potential wage inflation. I think it sets up well for the back half of the year. We look for some of the near term noise. We want to own the names into the back half of the year and into 2016. I actually agree with matt on that. And i also think we had a strong easter selling period. Thats not going to really be reflected until we see april because it jams the business into march. Until you get past the next easter selling period you dont know how well it did. But i believe well find out that we had a very strong finish to the month driven by easter. Is there a retailer out there give me the dark horse retailer thats doing better than we think. I dont know if theres a big surprise on the upside. I think today youre going to see disappointment with the numbers costco put out. Since i think theyre the best retailer in the world, id be out buying them. That is a gas story and a Foreign Exchange story. They would have been more like 6 had it not been for those two items. But they reported negative numbers. That will be so their stock dips youre buying. If their stock dips any time im a perennial bull on costco on macys. Any time those two dip, i think you should buy them. You guys are captain obvious. Matthew, i need a i want to company that i think is terrible but is much better than it really is. So i think your best in class compounders are nike and Dollar General. That doesnt fit your dark horse though. I think your dark horse out there is jcpenney. And it fits this low end profile. I think if they put up a First Quarter thats a little bit better than expected you have the new ceo going on the road post earnings in may and june. I think that one sets up pretty well. 45 Short Interest still. A stock thats down and out. I think thats your dark horse. Jans making faces over here. Jan . No, im actually im agreeing with matt on everything hes saying. I think jcpenney is going to have a better 2015 than people expect. Its driven by the fact people think theyll have tough comps through the year. But in fact the things they were doing is starting to show up in the store to work for them. I think the low end consumer with better gas prices is going to be right there with them. I do think theyre going to have a better 2015. Im just amazed they survived. I think everyone is. I think you can attribute that to the beauty of the fed. As long as money is free retailers survive even in tough times. Had we been looking at a recession or high Interest Rates, theyd have a tough time surviving. This whole minimum wage debate and the shift towards higher wages, going to impact a lot of lines. Do you think it matters in a good way or bad way . I said when walmart raised wages that barack obama should have written a nice note thanking them for raising the minimum wage. Following them target. Following them mcdonalds. Were going to see wages come up does that mean margins are going to go down . It means margins are going to be pushed and people like mcdonalds will have to work hard. Walmart is already pushing to offset it. It also means where are you going to spend that money when you get more money in your paycheck . Walmart gets that side of the spending as well as the cost side. So i think their spending improves when you raise low end wages. They also have to offset the costs and theyre the best prepared to offset the costs. Weve got to run. Give me a dark horse on the downside. Who do you think is better than they really are. Or worse than they really are in this case. Good question. I think some of these apparel names have some near term headwinds to push through. Were more concerned on big lots over the multiyear period just given a move away from the closeout niche they have. Otherwise, again you want to own this consumer. We like Dollar General and nike. I think lulu is your higher beta play. Coming back from the dead. Okay. Im negative on lieu lieu. Ulu. Why . Nike is the winner always. Oh. Thanks, guys. We will leave it there. Thanks so much. Coming up markets in focus. Brian belski joins us on set next. He says fears of a strong dollar are misplaced. Then Larry Summers makes the case for the fed waiting to hike rates. Well talk to the ceo of a news site that will have one of the first apps on the apple watch. Stick around. Financial noise financial noise financial noise fed minutes from the march meeting showing some seeing june as a possibility. Others saying 2016 may be the first time to raise rates. Joining us now to talk this and more is brian belski. Good so have you here. Morning. I want to start with what was in the tease. The fear of the strong dollar is overrated. Why . We have now reared an entire generation. Thats all they know is dollar goes down quantitative easing, buy stocks. And its not that way. I think that 2015 is the start of a transition phase for the next several years where we recorrelate fundamental investing in the dollar earnings, stock market economy all working together. What a novel concept. Now, why is the dollar going up . Is it a process or as we say in canada process of the u. S. Economy being stronger than everyone else . Is it a process of the overall economy just strengthening longer term . We think thats the case. It has nothing to do with the fact our central bank relatively speaking is more hawkish than the European Central bank the Japanese Central bank. Were exporting qe, right . Qes left right . I think america can go it alone for awhile. Were not ready to start saying decoupling. Last time everyone said that in 2007 and 2008 how that happened. Now its kind of the reverse now. We just think that americas done its job from the corporate side during the lost decade between 2000 or 2010. We had quantitative easing the shock and awe of the crisis. Now its the rest of the worlds turn to do that. I think america is showing signs its solidified to the rest of the world. Your point is when people say the dollar has everything to do with central bankers, theyre wrong. Hence why stocks are going to go up at the same time. That is right. The other thing, too, is we have to remember in the 80s and 90s we had Major Companies in america that were in the beginning stages of becoming more diversified globally. And remember that we had major hedging operations in the 80s and 90s. Its the 25 move that everybody talks about and the dollar weighted index the last 12 months or so. Companies have not gotten too aggressive enough with respect to hedging their dollar like they had in the 80s and 90s. We think thats the major trend going forward. So what do you do . Well from a developed market standpoint, america is underperforming this year. And from a sixyear bull market as joe likes to tease me when i come in i still believe were in the midst of a 20year bull market. Were six years in. Stocks are rarely linear for long. Were dealing with the shock and awe, michelle, of the unwinding of the commodities cycle. I think stocks have actually done very very well considering all of these data points with trying to diagnose when the feds going to change rates, dealing with this higher dollar u. S. Corporations have been guiding lower which is i was going to say, the earnings season, we just had a guy on and it looks pretty meh. Two points on earnings. Its reminiscent to last year on guidance. Number two, this whole notion of a what happens is you have to look at the last 12 months of earnings. When you see a trough there, thats a better signal. Think about the fundamental structure of u. S. Companies out of the last decade. We are now set to underpromise and overdeliver. Its a game. Now theyve guided lower and no ones talking about lower input costs the second half of the year. Its helping the consumer but what about manufacturing and this manufacturing renaissance . If you have lower Natural Gas Prices and Lower Oil Prices thats going to help the manufacturing sector. Back to your original point, we have this whole generation reared on easy money. Were not even bothering to talk about s p 500. All german dax. We are long germany. Theyre cutting rates over there. Theyre doing qe like mad over there. Lesson from the United States is get in front of that train. Heres the lesson there. Do you think wall street and stocks and investing, is it easy . No. Okay. So why are you applying the easy template onto that . Right . Think about this. Because its worked for years in the United States. It works until it doesnt work. The fundamentals of companies in 2009 and 2010 in america are different than in europe right now. Do they have the Balance Sheet strengths, the management, the politics. No they dont. So yes, undeniably the developed markets around the world relative to the u. S. Are going to outperform this year because everyone is chasing the same trade. When they start looking at the actual faculty construct of these companies, theyre going to be left holding a bag. Guess where theyll come back to the u. S. And the Strong Companies in america. All right. Compared to everybody else, weve had so many people say go long europe. You would say no. Go long the United States . This is what i would caution you. Consensus has been wrong for six years. Be very very careful. Whatever you do dont buy the long end of the curve for the last 17 years. What should you have done . Buy the long end. Yes. So we wont have any 20 correction in the next 14 years . Why do we throw out 20 correction . Weve had rolling corrections for the last few years. If the bull market is going to go another 14 years, you cant have a 20 pullback because that would be a bear market. Youre redefining what it means . No. All right. Will we not have a 20 bear market at any time for the next 14 years . 20 bear market and 20 pullback are two different things. Will we have a 20 selloff of stocks from highs in the next 14 years . Probably not. Okay. Thats a big statement. Well see. Means nothing like what we see most of the time. Bull markets dont die from old age. Bull markets never die when everybody is looking for a death in a bull market. And everybody is looking for the death of the bull. It would be a repeat like of the 80s. And even in the 80s we had 1987. But the correction is dangerous too. Thats not a correction. Thats bear market. Correction is 10 to 20 . You can have a bear cyclical market like in 88. Make up your mind. Lets get the dictionary out. Youll be invited back 14 years from now when youre still hosting. We know stocks go up over time. We get that. It was 700 in 1982. We understand they go up. But to say were not going to have a 20 bear market is i dont think you know that. Well. All right. Anyway. Thank you, joe nice to see you. Great waking up early to come here, right . Yes. Coming up, what it takes to get millennials interested. Youve got kids out there. The millennials are there waving at us. They are. No idea who we are. How about online fantasy golf contests with a milliondollar grand prize . Dominic chu will have that. Of course. Ep breath in. And. Exhale. Aflac and a gentle wavelike motion. Ahhh ahhhhhh. Liberate your spine. Ahhhahhhhhh. Aflac and reach, toes blossoming. Not that great at yoga. Yeah, but when i slipped a disk he paid my claim in just one day. Ahh so he had your back . Yep. In just one day, we approve and pay. One day pay, only from aflac. [duck snoring] who can predict the intentions of a storm cloud . Power companies have to. Seven out of ten Power Outages in the us are caused by weather. Utilities cant send crews to chase every storm. So theyre working with ibm to combine micro weather forecasts with detailed local data from sensors analyzing topography. Soil saturation. Even the number of trees. So they can predict within a few city blocks where an outage is most likely to occur. And send crews exactly where theyre needed. When theyre needed. Ibm analytics from the internet of things is making energy smarter every day. Now the answer to todays av flack trivia question. What is the most expensive music app on apples app store . The answer cybertuner at 999 per download. 2015 master teeing off in augusta this morning. Many fans are hoping to win big. Dominic chu tells us about this growing fantasy golf trend. I need to know about it. It depends what kind of game youve got now. The draft is interesting here. Lets talk about some of the growth. Right . Because daily Fantasy Sports provider draft kings say the number of weekly users has grown by tenfold in just the last year. And theyre spending eight times more money on golfrelated fantasy games than they were just last year. In the month of february alone, draft king users doled out 3 million in fees for those golfrelated games. Fantasy sports its evolved so far beyond baseball and football even though those are the sports that have the highest and biggest markets for fantasy. Serious golf fans are a target rich environment for these companies. Some say because the demographic is really seen dishing out more of their disposal income for these games. You had to put an entry fee up front. They limited the number of people in there. The competition sold out so quickly that theyre going to do the same thing for the u. S. Open in june. Chambers bay. And yes, this is the same draft kings guys that reportedly got the 250 Million Investment from the likes of disney just to give an idea of how many people really want to play these types of games, guys. Thats the reason its so important. Hypergrowth in an area that at least for millennials could be the next frontier for sports when it comes to entertainment in viewing, guys. See. Golf. I mean theres fantasy everything now when it comes to sports. Amazing. Its crazy only because if you think about what the reason why some of these companies are doing this, its about that second, third, fourth screen experience. You watch something, you also want these guys to participate and interact with you. Companies like draft kings may be seen doing this because what it does is give a captive audience with you. Then it allows them to engage in the sport through your side. Then you, of course, take your cut of the particular entry fees, the rake on profits, that kind of thing. For draft kings, for a lot of fantasy sites it is really about whether or not they can capitalize on all those people who have cut cords and dont just sit there and watch tv the entire time. They want the second intertiary type of experience. So who do you like . I was just having this conversation with our editor in chief. He likes spieth. But everybody likes spieth and rory. Im going to go out there and say i think its maybe time for Rickie Fowler. All bets are off in this kind of thing. I have no idea. I heard dave briggs he thinks bubba could win his third green jacket in four years. Those are all obvious bigs. I like dustin johnson. He just won. Hes had you remember what happened in what was the name of that place at the pga . It was horrible. The thing that was a sand trap bunker but wasnt. Yeah. Rounding the club. And then you remember at pebble it was number three or number two where he hit it far left and he imploded at we believe. Hes won pebble a couple of times. I think it was the u. S. Open at pebble that year. Hes had the time when he didnt win the major. Then he won earlier. Having a baby and everything. Hes more settled down. He went through the problems from last year. You might be right. I think that the field is so tough. If youve been invited to play in the masters, you have got a shot. Even remotely at winning this thing. Except on sunday on like 15 that shot. Any part of down hill. I want nothing to do with those. The downhill the green is very shallow. Theres water beyond and theres water before and youre in downhill and youve got like 90 yards. I dont think ive ever not gotten like a 16 on that hole. Youre lucky. Ive never played augusta. I hope to some day. The one thing i will say from watching all the masters i have is that i will go into that course and pretty much never fire or aim at any pin on the entire course. Just going to take the easy way out. It is magical. Its something special. Anyway, dom, so are you. Thank you. Play the bromance music. Yeah. Another bromance before we head to a break. Check this out. A spring break booze bust. Heres what happened. Four underage College Students from lsu were pulled over in mississippi on their way to the beach for spring break. They were driving with expired plates. Police found liters of wine multiple bottles of whiskey, vodka, and tequila. Thats not all. They had 2,000 cans of beer in the trailer that they were pulling. Deputies say the teenagers cooperated and were released. They said they cooperated and then released. They just go . Well take the beer and have our own party . Didnt you say they were going to spring break . Thats what you need for spring break, apparently. I dont understand the problem here. 2,000 is good. Did they have enough wine is the question. Underage. Were they underage . Thats the issue. Expired plates. Theyre not the brightest bulbs. Lets say that. Nitpickers. How do you get the girls to come over without beer . How old were they . I dont have the ages. Did you ever drink before you were of age . Tell me the truth. I may have to run for election one day. No. You never exhaled, right . Inhaled or exhaled. Coming up Larry Summers. He doesnt want the fed to hike rates. He says the central bank should hold its fire until it can see the white of inflations eyes. Hell explain what he means next. Take a look at futures at this hour. Dow looking to open 5 points higher. And the s p 500 down marginally. Welcome back to squawk box. Among the stories front and center this morning, a new survey from bank rate finds 52 of americans arent currently invested in the stock market. The most cited reason a lack of cash. So its not theyre worried about the market or think its too high. Thats a good sign. Gm is considering a 1. 3 billion expansion of its arlington, texas plant. A a apache exiting australia. In a group of pe funds for 2. 1 billion in cash. Thank you, andrew. The fed should keep rates low until growth seems more stable. Thats according to our next guest. Were joined by Larry Summers economics professor at harvard university. Recently wrote an oped calling the United States role as a global power player into question. I could go mr. Secretary, i could go mr. President i would use. If i was president of harvard, i would use do you have a preference, larry . Larry will do just fine. Good to be with you. Good to be with you. I want to talk to you a little bit about all the stuff weve talked about in the past. Remember when i think you might have been chairman of the fed until i got behind you. Which may have ruined it. You remember i was supporting you for the yellen job. At that time i had the perception you were more hawkish about where we were and how long we had stayed at the party in terms of accommodative policy. At least that was the perception i got. Now, things do change and we just had tenyear negative Interest Rate bonds in switzerland. I understand things change is that why you seem more dovish now or think weve really got to go slow on rate rises . Ive had a pretty consistent position for six years now. Which is that the greater risk are on the side of slowdown and stagnation rather than on the side of overheating and inflation. And we obviously got to be worried about both of those risks. But you have to Pay Attention to the asymmetry risk. And i look at Economic Data like the Economic Data for the First Quarter of gdps got a good chance of coming in below 1 . I look at what global bond markets are telling us. There is nowhere in the industrialized world where bond markets are looking for 2 inflation over the next decade. There is nowhere over the industrial world where theyre looking for real Interest Rates, anything like 1 over the next decade. And that is telling us that an issue of a chronic excess of savings over investment is going to be important defining of our financial environment at least many the judgment of markets. I think theres a basis for supporting markets judgment for quite some time. And i think that reality which is associated with what i called secular stagnation with what ben bernanke has called a savings glut. But if a defining reality is a tendency towards more savings over investment thats something that Economic Policy has to adopt to. And rushing to raise rates would not be an appropriate adaptation. That doesnt mean we dont need to im sorry. No its not like a new normal where the old relationships break down. Just simply saying 5. 5 unemployment and zero on fed funds sounds crazy compared to past periods. But if youre saying its like a new paradigm, it makes sense. Let me ask you one other thing. Joe, let me just say one thing. Okay. I think its a big mistake to start elevating the curve to be newtons law of gravitation. You look back over history, economists views about the curve has changed radically every 10 or 15 years. The idea theres some mechanical transmission from some unemployment to some inflation rate, i think, is not something we should rely on. We need to be all over the inflation data. And theres it may be that before long the inflation rate data will start to show an acceleration. Or even some slight hints in that direction. Look at whats happened over a variety of big retail and food establishments that have started raising wages. But thats got to be the test. This is preemptive wars dont work and preemptive wars on inflation would be a big mistake. Ill tell you the other thing we talk about constantly here. And not necessarily its not split down ideological lines necessarily. But guys like jim grant, and that is just the notion of price control in terms of Interest Rates and the misallocation of capital. And moving risk out to curve which engendering spirit is what the fed wants to do. Sooner or later theres a day of reckoning. Not even inflation, but some kind of bubble were not thinking about because people are induced to do things they wouldnt do if the market was setting rates. And there are others that think the reason that the economy the recovery has been so slow is because weve been holding it back because rates are unable to be where they wour. Theres been a misallocation of capital. Joe, lets get something straight. Whatever this is its not price controls. Price controls are when you set a price. You dont allow that price to change. And then theres excess supply or excess demand. We dont have that. The bond market clears every day. At most what you have is a question of in what ways should the central bank participate in the bond markets. And, look, ive been very clear for years now that when you have an insufficiency of investment it is a safer bet to try to ramp up Public Investment to try to take structural measures to spur private investment. Than it is to try to create a super low Interest Rate and hyperliquidity to stimulate demand. I would much rather that support come from fixing kennedy airport. I would rather see that coming from the United States no longer having an air Traffic Control system based on tubes. I would rather see that support coming from allowing us to export oil and doing what we can to promote investment in searching for oil and natural gas. Id rather have that mr. Summers. About building a broadband arc tuckture. Let me get your views this morning. I dont know if you saw jamie dimon out with his annual letter saying that he thinks another crisis could be upon us. He points to what was the falls that would happen once every 3 billion years or so. He said a future crisis could be worse because of the greatly reduced supply of treasuries to go around. Do you agree with him . I think what jamie actually was addressing was not quantitative easing question. It was around liquidity in markets. I do think that needs to be a preoccupation of regulatory authorities. And i think theres a danger that in their enthusiasm for keeping each individual institution safe that regulatory authorities will lose sight of keeping markets open and liquid. And i think that is a legitimate concern that is raised. Now, the one in 3 billion years, i think thats got more to do with the quality of the risk models that reached that conclusion than it does with some failure of regulation. So whenever i hear someone in finance say a 1 in 2 billion year event just happened i say to myself you just demonstrated that you had a model for judging tail risks that wasnt any good. Larry that would be the inference i would take from that. Larry, youve advocated for punishing the banks in a postcrisis world. Dimon points to bear stearns and said they would not allow him to take the phone call the next time there is a crisis. And what do you think the impact of that is . Im not in any position to judge what jamie dimon will or will not do in the next crisis. Im not familiar with details of can we go back then to the whole issue i am going to Say Something. Sure. I was going to Say Something concrete there. Which is i do think that it is hugely important that we stay aware of rule of law issues in the wake of crisis. You dont dispute what hes saying with the lack of liquidity in the markets when it comes to treasuries and what Corporate Bonds in general and what could be the implications of that . Have you started to put your head around what could happen as a result . I think i said that there was, i thought, serious issues around liquidity. That i thought that regulatory authorities made a mistake when they looked at each institution and they said youll be safer if you withdraw from the markets a bit. And then forgot that if all institutions withdraw from the markets a bit, the markets will be less liquid. The markets themselves will be less safe. And that will in the end hurt all the institutions. So i think there is a real issue there. And i think that frankly a lot of the effort thats going into whats called macro credential should be shifted towards making sure that we have market liquidity. Who do you like at the masters, larry . I think itll be a tussle. Im for phil. Are you . I love phil too. Well see. And hes closer to our age, maybe, and we kind of pull for him. Were still good at this age at some things. I think. I dont know. His short game is a lot better than yours, joe. A lot better than mine. Talking trash. Phil has pointed that out, as a matter of fact. He has. Anyway, thank you, mr. Secretary, mr. President , mr. Larry. We appreciate it. Good to be with you. Thanks. The ceo of fresco news will join us. Were going to get a look at the apple watch experience. Next. Chatter ] [ male announcer ] andrew. Rita. Sandy. Meet chris jackie joe. Minor damage or major disaster, when you need us most, were there. State farm. Were a force of nature, too. I care deeply about the gulf. I grew up in louisiana. I went to school here. Ive been with bp ever since. Today, i lead a team that sets our Global Safety standards. After the spill we made two commitments. To help the gulf recover and become a safer company. Weve worked hard to honor both. Bp has spent nearly 28 billion dollars so far to help the gulf economy and environment. And five years of Research Shows that the gulf is coming back faster than predicted. Weve toughened Safety Standards too. Including enhanced training. And 24 7 on shore monitoring of our wells drilling in the gulf. And everyone has the power to stop a job at any time if they consider it unsafe. What happened here five years ago changed us. Im proud of the progress weve made both in the gulf and inside bp. Its dubbed the instagram of news. Fresco is a photo sharing app that licenses photos from amateur photographers at the center of breaking news events. The app is one of the first to be released on the apple watch. Joining us this morning, john meyer, the 19yearold founder. Was. Im 20 now. Goodness. Thanks for having me. Thanks for coming in. Tell us about both the experience of trying the watch and also building an app for it. Yeah. So first with building the app. Weve been working on our app for the watch for a good month and a half or so. Whats interesting is all the Developers Working on them up until its really released can only test their apps in a simulator on the computer. So what they developed called watch kit for developers is fantastic. It allowed us to really get our app going fairly quickly. What does your app do . What fresco does its almost like instagram for news. It lets you get your photos from real people at the center of news events with captions below. And thats what we sort of did for the watch. We shrunk that down a bit, create a nice interface that lets you flick through using the damageal crown on the watch our feed of photos and really quickly get a sense of whats going on. You now tried the watch. Yeah. And the verdict . The verdict is i was very very impressed with the sheer fluidity of the os. I think its one of the best examples that apple has done in recent past. Real attention to detail of the operating system. Battery life is fine. It lasted the whole day i used it. But one of the issues that is going to be solved over the next few months is sort of the loading time of apps. And the reason why in reviews some of the apps take long to load, is for the next few months all the apps are not running natively on the watch. They are being loaded on the phone. All the processes are happening on the iphone. What actually happens is the data and the interface is sent to the watch. Thats what takes a bit of time. And thats going to change . Thats definitely going to change. Im very close, you know with a lot of the ways apple starts things out and introduces such products. And one of the things ive learned is they do really try to keep things simple for developers early on. And for me you know i like it. And i know it will be there with the experience. For the users, the experience will always be increasing. If you were to throw out a number of people you think will actually buy this watch. Youre going to buy it. Joe is not buying it. Im buying two of them. Yeah. And youre going to buy one or no . Ill buy one. If we have the cash ill buy one for all my team. I think its a great first generation product. I really do think that obviously with apple, you know the expectations are always monumentally high. But i do think its a pretty solid first gen product. Weve got to take a bit of a chill pill. People are more little sound bite. John thanks for coming in. Appreciate it. Coming up we asked you to tweet us the stories that youre buzzing about this morning. Coming up next, the topics you want to hear about in our new segment keep squawking. Earlier we asked you to send us some stories that have you buzzing. Now its time for us to share some of them. The ones that you wanted us to talk about. Rich tweeted us that bird flu is spreading and andrews comment on squawk had me reading about the top turkey cities and states. And its not clear. We know about minnesota, but theres a lot of claims. It points to a minnesota website on two towns claiming the title of turkey capital of the world. Its not scarsdale. You grew up in scarsdale. I did. Washington, minnesota, hosts a king turkey day each fall. But the city of fuero texas also claims to be the nations turkey capital and holds its own annual turkey festival. So theres a faceoff called the great gobbler gallop pitting the birds against. This is not our fault. We just go where the viewers tell us to go. There you go. Hitting in the topic of my world, this tweet asking how will corruption in chile affect Economic Growth there and the u. S. And Global Recovery . Chile is deeply influenced by one of the most advanced free market economies in the world and has done so well while the rest suffered. And had been free of a lot of the corruption scandals. Now theres several involving all different parties. The son of the current president. So its it seems minor. He got a deal on some loan or something. It doesnt seem like good latinamerican in the scale of scandals its small. But the fact its in chile, its a big deal. Right. I like the big house in mexico. That was a good one. Just got married to a soap opera star. You could make that house any color you want. Chiles got some work to do to raise to the other latinamerican scandals. I cant even tell you my story. Its about activist bad for bonds. That goes without saying. Buybacks and all that other stuff. Naturally some of the Companies Get when we come back how would you life be different with the apple watch . Weve got the today tor in chief of verge to talk to us about the good, bad, and ugly. The Conference Call. The ultimate arena for business. Hour after hour of diving deep, touching base, and putting ducks in rows. The only problem with Conference Calls eventually they have to end. Unless you have the comcast business voiceedge mobile app. It lets you switch seamlessly from your desk phone to your mobile with no interruptions. Ive never felt so alive. Get the future of phone and the phones are free. Comcast business. Built for business. It took tennis legend serena williams, fencing champion Tim Morehouse and the rockettes years to master their craft. But only moments to master paying bills at chase. Com. Depositing checks at the atm and transferring funds on the mobile app. Technology designed for you. So you can easily master the way you bank. Excellent looking below the surface, researching a hunch. And making a decision you are type e. Time for a change of menu. Research and invest from any website. With e trades browser trading. E trade. Opportunity is everywhere. Apple watch mania front and center. You may really want one, but the question is do you really need one . Well go inside the reviews and find out what impact the watch will have on one of the Worlds Largest companies. Is the iran deal about to blow up . News about tehran and what theyre demanding. Senate Foreign Relations Committee Member John Barrasso will join us. This time the bailout for for frankfurts shabby euro statue. Is the 46 foot tall icon worth saving . We run the numbers as the final hour of squawk box begins right now. Live from the most powerful city in the world, new york, this is squawk box. Welcome back to squawk box here on cnbc first in business worldwide. Nothing like a Little German tech techno to get you going in the morning. Im joe kernen along with Andrew Ross Sorkin and michelle carusocabrera. Were 90 minutes away from the opening bell on wall street. The futures right now have turned around and now showing positive movement up about 33 points on the dow. About 3 on the s p and up about 9 on the nasdaq. While we check the german dax, well play more of the techno music. Going to go to a rave. The ftse up about just. 8 . And i like that editorial in the journal, michelle. I mean why cave to greece for the same terms . Case for letting greece go. Id rather let greece go. You give them a better deal everybody else wants one too. You saw that horrific euro statue in frankfurt . I yungsed to mention it every time. The symbol is ugly. But that statue the colors but theyve got the building there. Its always got graffiti and its falling apart. Its a metaphor for whats happening with the euro. And theyre going to spend money to rebuild the thing when the euros going to be gone anyway. They play that music the whole time. Pass out ecstasy in the back and then youve got a rave. Im told this guy is going to play the music for the entire hour. Its german techno. It really is. Yeah. All right. In the headlines at this hour do you remember those three guys . Thats what i was thinking. Go ahead. In the headlines at this hour, we are less than 30 minutes away from the Labor Department weekly report on initial jobless claims. Economists looking for claims to rise to 280,000 from last weeks 268,000. Greece has made a roughly 485 million payment to the International Monetary fund that we skewed today. Whether the country would make that payment. And the bank of england has left its key Interest Rate unchanged as expected. The central bank has its policy meeting next wednesday. Joe . Thank you. Im trying to find out the they did have a band in the big lebowski. Anyway, some wicked weather to tell you about. The central part of the country is bracing for more storms today. Forecasters are warning this could be the most severe outbreak so far this season. 30 Million People are in the path. Thats the new thing we do all the time now. We measure the storm system and we always tell how many people are going to be affected. Thats new though. That was never done before. Probably a Technological Advancement that allows us to do it. It is but makes it sound more important. Reports of tornadoes in kansas last night and dark clouds. In this case were talking about im seeing baseball sized hail all week long and they show pictures of it and its not. Its like maybe golf ball. That was bigger than a golf ball that we just showed. I dont know if this is it was big. That was big hail. It was. I think golf ball size hail is pretty big too. Itll mess up your car. People on the ground said the thunderstorm looked like a mini meteor shower. Its weird to see it on a warm day. There it is. Look. Thats big hail. That is baseball. Yes. All right. Lets catch you up with earnings reports out this morning. Walgreens Boots Alliance first share for the quarter Beat Estimates. Revenue below estimates. However, the drugstore chain also announces plans. And Constellation Brands Beat Estimates with a 1. 03 per share. Also a Quarterly Dividend of 31 cents per share. The apple watch hype is in overdrive with preorders starting tomorrow. The users do that early access to the device almost universally believe its a transformative moment for mobile technology. But they add they dont expect everyone to run out and buy just yet. The editor and chief at the verge here you spent a day wearing the watch. Even when we say will you buy but do you really need it . I mean after food and shelter didnt we learn about 2,000, 3,000 years ago just about everything we buy we dont need. We buy it because, i mean especially in technology. We buy it because we want it not need it. I think its clear the watch is at the top of the hierarchy. Clearly dont need it. But people are going to buy it. Some people will buy it. I think whats clear i had it about a week. It takes that long to understand how it works. You have it on. I have it on. You can get all my emails. Got mickey mouse on the face here. You get a bunch of different faces here. You can customize them. I think whats important about this is apple has validated the market for these guys. There have been smart watches out there. I think people will be interested to see it to play with it to to the apple store to try all the different combination. This piece of technology right now is not quite ready. They have a little bit more work to do to make it more useful to make it faster to really figure out a narrative thread as to why youd want to wear another computer on your wrist to take care of and more importantly charge every single night. I charge my phone every night whats wrong with charging your watch every night. A watch youre used to lasting for years, for days. A lot of people take them off at night. Another charger, another cable, another computer is really computers are demanding objects. You just set it down on the charger. I have it. I got all the stuff. Its a little mat, but its a usb cable. Im kind of digging this. Can you get an apple band . Look at that bracelet, by the way. It clicks onto the back. So its definitely another usb cable. You just set it down there. Right. Youve got to have this. If you travel youve got to carry another cable. What i mean to say is the amount of utility you get out of it versus the amount of care and upkeep to put into it and learning about how to use it at this point is about roughly even. If you like toys youll like it. These guys are going to roll their eyes but i wear this fitbit. I got new software and suddenly this thing tells me when my phone is ringing but buzzing on my arm when the phone is in the purse. That is tremendous functionality. I absolutely love that. The fact this will do that and what if you get a message . It doesnt have messages. It only taps phones. So its even more functionality. I would buy it just for that functionality. And its prettier. It is. You can spend anywhere from 350 to 17,000. And this thing will do all the fitness tracking of a fitbit. The band is easy to use. A bunch of different bands. This is the leather loop. Its magnetic. Okay. Then ive got your calendar here. See what meetings i have. Ive got cnbc going on right now. Good day new york. Yeah. Im going on a whole media tour this morning. Theres a crown movement. Its funny. Theres not many objects in your life that now have knobs. Apple made a knob. So the whole face of the thing is a button. Theres a button on the side that opens the digital feature. Push something or other. Apple is a unique place with naming. Thats what youre not supposed to do to your brother or other children at school. You push it down and the whole face is a force touch. So they push it down. You make jokes. All the time. Do you polish that . No . Did you clean it before coming on . I get it. Make it pretty . You dont need to polish it. Ill say that. It polishes itself. Shes i will go back and watch it. [ laughter ] just forget about it. He started it. You started it with the force touch. Thats what you dont do to your brother or kids at school. Technology is supposed to be fun. Its supposed to enhance your life. Its supposed to reveal something about who you are and how you want to live. Well the single most utility that you get out of this thing . Is there one thing that is the killer app at the moment . The one thing and its the killer app for all watches. This is what i mean by apple validates the watches. All let you keep your phone in your pocket. When it beeps, it shows you whats going on. They all do it. Whats the most promising thing thats on this that doesnt work well now but in a year or two from now its life changing . So theyve built a system called the taptic engine. Its a vibrator. It shakes your wrist when you get a notification. It feels like its poking you. And like with the iphone you wouldnt want it going like that every time something happens. And its a gentle tap at this point. Yeah. They have to build it out. When youre sitting with your family and youre constantly getting tapped . Better than keeping your phone on the table. Sometimes when i go to dinner with my friends and we put our phones away or put ut upside down and make a conscious effort not to look at it. That things on your wrist. Its going to be tapping all the time. I saw a fellow at the new york times, he said he actually was surprised he doesnt look at his phone as much. He was more present. Yes. Yeah, but looking at your watch has a unique going like this in a meeting is just as bad as looking at your phone. A lot of people asked me if i had to go. Thank you. Thank you for the watch. I appreciate it very much. Why dont we play more german music . Up next Congress Role in dealing with iran. John barrasso joins us on set to weigh in on the final agreement. Before we take a break, heres a look at the futures right now. Well be back with senator barrasso barrasso. When the moments spontaneous, why pause to take a pill . Or stop to find a bathroom . Cialis for daily use is approved to treat both erectile dysfunction and the 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. Side effects may include headache, upset stomach, delayed backache or muscle ache. To avoid longterm injury, get medical help right away for an erection lasting more than four hours. 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. Ask your doctor about cialis for daily use and a free 30tablet trial. Welcome back to squawk box this morning. The battle goes on between nelson peltz and dupont. Trian is urging them to vote for peltz and others for the dupont board. Accusing them of misleading stockholders about the performance. Duponts response they say tri trian. A story going on for quite a while. Irans president saying the country will only agree if sanctions are lifted. He wants a win win deal for all parties involved. For iran that means removing all sanctions the same day Nuclear Agreement is implemented. The deadline is june 30th for agreement. Joining us now, one of the members working on the policy. Senator John Barrasso. Thanks for having me. You got a plan . I do. The senate wants to review the deal. We have a bipartisan group. Chuck schumer from new york is one of the cosponsors of this. Before any sanctions are released and you know what this is about. Iran wants the money. They say show us the money. Its because its tens of billions of dollars. When you lift the oil restrictions, when you lift the banking sanctions, theres a lot of money to use to support terrorism elsewhere. But the president s deal doesnt even meet his own standards. The president said early on was that he wanted to end the iran capacity to their nuclear program. Yet, thats not whats in this frame work. You know the number right now . 66 or 67 do you know . We havent been in session for a bit. I talked about corker yesterday. Were continuing to work for we clearly have the number to get it out of committee, the bill but not the override . The committee and bill which will be tuesday. Then the flor of the senate. We will continue to work in a bipartisan way to bring more people in. Visited with john kerry ahead of time as well as joe biden. They were both chairman of the Foreign Relations committee in the senate. They know its important for the senate to have a say in this. Were only talking about the sanctions congress has imposed in the first place. Youre going to get unbelievable not you but the senators on the democratic side are going to get unbelievable pressure from the white house to not go along with this. Fast a funny position because of israel and the close ties with the community. Theyve got to look at their constituents, they dont know what to do. This is a tough spot for them. The sanctions that are an now, the president opposed having those. But we passed them 1000 in the senate. You would think the president would want to come to the senate because it would strengthen his hand. It would give additional validity and credibility to a deal if he had the senate buying in and approving it. Before any congressional sanctions are relieved we want 60 days to review the final deal and say yes or no. Were afraid to say you need to recognize israel. Weve given up on saying that. Were afraid to say you have to stop your terrorist activities . No, go ahead. We cant even get that. Or afraid to say stop enriching. But we wont even say that you need to stop your terrorist president doesnt seem to want to say any of those things. For something that was supposed to stop the iranian program, the president s now talking about how to manage it. You know how to delay nuclear war. I worry about the safety and security of the United States. Thats my number one concern here. Im just concerned that this deal would allow iran to get policy is the purview of the prt and it needed to be that way to get treaties. This isnt even a treaty. In theory it doesnt have to go to you. If you start setting precedent of Congress Getting involved in a dramatic way, it really shackles future president s and future deals. When you look at this president s ability in Foreign Policy, the red line in syria. You look at whats happened with the reset with russia. The pivot to asia. In all of these things this president s Foreign Policy has failed. Around the world now are friends even if everybody agrees [ overlapping speakers ] the Congress Needs to be able to weigh in on this deal. Because these are congressional sanctions im not talking about the executive actions the president s taken. Im not talking about the United Nations sanctions. Im talking about the sanctions put on by congress. Thats the specific issue of the bill in front of the Foreign Relations committee next week. The one the president has threatened to veto. Look what the iranians are saying now. All sanctions have to be lifted day one. Even the explanation we have from the white house. I had a briefing with Samantha Powers the other day. Theyre talking about a gradual release of sanctions over a number of years, not everything happening immediately. Now iran is saying we want them all relieved immediately. One said yesterday it appeared it was from a position desperate to get a deal done opposed to negotiating from a position of strength. Why is the white house just so so intensely focused on getting a deal done at this point . When theres so many questions about it. I agree exactly with him on that position. Met with him a number of times. Hes a forceful leader. The white house seemed to be fixated on getting a deal. Even a bad deal. All weve seen in a framework. The iranians said its just spin. Thats not what we agreed to. But it does seem from what ive read that number one, nothings shut down. Theyre going to continue to have in iran the equipment, the very secure location and bombs cant penetrate. Thats going to continue. Research and development may be able to continue. So its the exact opposite of what the president promised a few years ago when he set his goal. Is the world changed in the past couple years . Thats the real question. What he said three years ago to now. The worlds changed in a lot of ways i think for the worst. Its a much more dangerous place. Youve seen the antagonism of putin and his efforts any more dangerous or less dangerous than they were. This is what thats all about. I think iran continues to be dangerous. And iran with a Nuclear Weapon is much more dangerous than it is today. Youre going to see an explosion of a Nuclear Arms Buildup in the middle east if iran does proceed with a weapon. I visited with saudi arabia. I was there earlier this year. They want Nuclear Weapons. Youre going to see the same thing in turkey and in egypt. And i had a chance to meet with some of the Freedom Fighters the from syria, the syrian free army. What they said was when sanctions were lifted a little bit, the temporary relief they got, that money didnt go to build hospitals and roads. It went to hezbollah. Free leader still says yes death to america. Not that much has changed. Thank you, sir. Everything around iran has changed. Saudi arabia thinks things have changed with iran. Ill tell you that much. Irans warships have been off the coast of yemen. But theyre helping us with isis. Thanks for coming in. Thanks. He is a doctor. Take a look at that ear. Ill give a second opinion. Still to come boxing back on nbc. Ceo of me Barclays Center brett yor mark will join us. But which team own this highest priced ticket in the game . The numbers are next. Squawk box back after this. [ 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 schw can help light a way forward. So you can make your move wherever you are. And start working on your next big idea. New york state is reinventing how we do business by leading the way on tax cuts. We cut the rates on personal income taxes. We enacted the lowest Corporate Tax rate since 1968. We eliminated the income tax on manufacturers altogether. With startupny, qualified businesses that start, expand or relocate to new york state pay no taxes for 10 years. All to grow our economy and create jobs. See how new york can give your business the opportunity to grow at ny. Gov business okay. Before you head to the ballpark you may want to grab a couple of extra dollars to bring along with you. According to secondary ticket site tiqiq. Com, the average cost is 83. Thats an increase from last years price and the biggest percentage increase since 2009. Combine that with some beer a hot dog, and parking and you could be paying an additional 25 or more. Thats just for the hot dog and a beer. Thats for one person . I think. According to data compiled by a Sports Marketing firm where we got all this. Which teams tickets cost the most on the secondary market . The red sox. Average ticket price for fenway is 120. The tigers will run you about 116. The cubs 112 and the blue jays 107. The giants they keep winning world series 105. Note to new yorkers, it will cost you more to go to a mets game this year than a yankees game. 104 a ticket. 101 to see the bronx bombers. And my reds cheapest ticket at 55. And parking is easy. And, you know you can have some chili. The yankees, if you wait on stubhub until 6 30 in new york city, you can get tickets for nothing and then just take a cab over and youre there. Coming up jobless claims data and market reaction. Plus a sign marred by bumper stickers dents, and scratches looking for a bailout. Will they save the giant e in frankfurt . As we head to a break, look at the equities at this hour. 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. This is jim iuorio for squawk box on the floor of the america Mercantile Exchange in chicago. We expected 283. Its a little worse than expected. Last time was revised, down a hair as well. The continuing claims number came out at 2304 from expected 2350. Thats not good either. The last labor data point we saw was friday and it was a disappointment. A week ago we believed that the u. S. Was the pillar of the whole globes economy and that within the u. S. Labor was the thing that was the most strongest. Thats called into question now. The thought of june tightening is way off the point at this time. The stocks come in heavy. The 10year yield was about 1. 88. Kind of stayed the same. The thing im watching today is i dont think our stock market knows whether it wants strong data and the fed tightening or the weak data and fed easing. Looking for clues. I dont think were going to get them today. All right jim. Thanks so much. Weekly claims data. Joining us now head of u. S. Equity strategy. Thanks for being here. Great to be here. You are bullish. We are. I think near term youre probably looking for a range bound trading environment just because people are skittish in the earnings. You also think youve reduced your earnings expectations. We have. I think you need to be realistic of the impact of a stronger dollar and energy on earnings. The flipside of that is what is on multiples. You assume you get multiple expansion for the theory to be true. Correct. Whats the best place to be there. In the u. S. . Yeah. At the end of the day you want to be where the growth is. We have a lot of clients looking at rich sectors. Those stand out to me as not being nearly as affected by a strong dollar. Is that correct . And of course energy. You cant overlook whats going on with the consumer now. We hear more about wage increases. I think walmarts wage hikes hit this week. Youll see people start to spend. We havent seen that come through yet. We think b thats the dark horse for the year. Youre not worried about the strong dollar . It matters, i think it matters more for the first two quarters of the year. Then we start lapping over. The stronger dollar will matter for earnings. Its not going to change the way they sell their products. If you have a great drug its a great drug regardless of the dollar. Youre still bullish an u. S. Equity markets. We have all these people on talking about europe. You know what . Theyre doing qe buy european stocks. Its that simple. I think it is that simple. We are bullish in europe. The difference is theres one market where the economy is much further along in a recovery standpoint, thats the u. S. In europe theyre in the early stages. Its going to suppress rates. That means dividend stocks exporters. What do you do as a u. S. Dollar investor . Hedge. Hedge. Right. But its so expensive, isnt it . It is. We do a lot with our clients to hedge. The best stories that will benefit from the weaker euro you might be able to offset. Already moved significantly. But there are still some stocks you might be able to buy unhedged where they are so high. Theyll be that good that it doesnt matter what happens with the dollar. What do you tell them at this point . Im the equity person. Of course you want to be diversified. At the end of the day if youre in equities, forget bonds. I like to joke about that but its not true. Youre not getting paid as well as in europe to have as much exposure. Yeah. Thats an understatement. Are you worried at all . I mean do your clients call you up and say why is there so Much Negative yield in the world. What do you tell them . I think people wonder what happens when the states start to go in the u. S. You look back when rates get to a higher level, it is generally worse for equities. But that low to moderate rate environment is good for equities. I think thats the difference a lot of people miss. Because we havent been at rates this low so long. Are rates going up in the United States . We think so. Back half of the year. Officially about the fed or are you talking about eventually the curve rising . The fed back half of the year. Why . At some point you say is it strengthening . At the end of the day when you think about the consumer look at whats happening with m a. Corporate extremely bullish. I think that tells you about the underlines of the economy. M a has always been a looking indicator. I dont know if its signal the peak of something. I was on a show like this is a year ago. These deals are happening and here we are and u. S. Markets are a bit higher. And were still getting big deals. You have to look at the deals. Are they all stock . Are they paying cash . What are the multiples . We dont see them through that stretch today. You look at where the m a is you see smart people trying to pick up assets. Thats interesting i think. You telling clients to buy energy stock . The difference between what the commodity will do to oil. But equities are going to look forward. Youre starting to see the stocks start to price that in. I think you want to get through earnings. You would start dipping a toe in here. Thank you. Thank you. Okay. You may think were insane probably, but with this music were playing. But if youre a viewer of squawk box, youve certainly seen frankfurts euro statue. There it is. This is german techno. Thats in frankfurt. Weve talked about this thing a lot. Its hideous, number one. But its also in disrepair. Theres graffiti all over it. Its often standing behind our cnbc colleagues as they report on the euro. But now, its 46 feet high and this symbol is falling apart. Kind of like the euro currency. Story in todays wall street journal notes that vandals recently painted a star red, light bulbs need to be replaced some are out, and there are bumper stickers on it. Ecb doesnt en own the sculpture but it discloses euros for the upkeep. Now asking frankfurt banks to help by becoming a sculpture sponsor. Earlier this year the ecb moved its headquarters to another building in frankfurt leaving the poor statue rundown at another a relic. Another location. It is a perfect metaphor for the currency. And this music, we mentioned the big lebowski. The name in the movie was autobonn. And its actually the name of it meant nail bed. Right behind it when they take it out, is what it feels like. When they take it out, right behind it was the girl in just whipped cream. Remember that withone . Yeah. They thought of everything, the cohen brothers. You are not a niliste istnilist are you . Still working on it. Coming up boxing returns. Well have a preview of this weekends main event. Check out european markets right now. Take a look at whats going on. Seeing green arrows across the board. Squawk box returns in just a moment. The golden bear can still play. Thats for sure. Jack nicklaus adding to his legacy yesterday at the par 3 contest at the masters. He gets a hole in one. The 75yearold has six green jackets. He won his first way back in 1963. Thats a great event before the big event which starts we dont get to watch it yet. I think those guys teed off i think at 7 30. The masters here we go. The masters has now officially teed off. Yesterdays par 3 tournament struck a lighter note. Rory mcilroy turned to one directions neil horan for help as his caddie. Tiger had his two kids caddying. But the 1d heart throb is apparently an avid golfer. Im trying to get over zayn is that his name . He left. Do you know about this . No. Zayn left. Not harry styles but the other one that all the girls love left and immediately released a single. Anyway. Professional boxing is back in primetime on nbc. Six title fights scheduled for this year. The second of which will take place this saturday night at the Barclays Center in brooklyn. Fighting for the middleweight world championship. Joining us now to talk about the fights returning to nbc and brooklyn is brett yormark. Hes ceo of the Brooklyn Nets and the Barclays Center. Perfect fit for brooklyn and the Barclays Center. Absolutely. Boxing is back on primetime. Very excited to be part of it. And certainly excited to go primetime on nbc on saturday night. In fact, the Broadcasting Team is a dream team. Think of bob costas and marve albert and sugar ray leonard. Boxing really started at the Barclays Center when we opened. Its a part of brooklyn. Its got a great history. And were building a great program. This is our 11th night of championship boxing in brooklyn. And for us its also been about cultivating the young boxers in brooklyn. But also bringing some of the more recognizable boxers to the borough. This saturday night should be bigtime boxing in brooklyn. Big boxing with hispanics. You go down to texas, its unbelievable. A kbigbig multicultural following. Youll see a device crowd in brooklyn saturday night. Highest paid athlete in the world . Thats a big event on may 2nd. Not on nbc. Boxing is back. And when you see that how many fights has he had to be the highest paid athlete . I mean, he fights a couple times a year. Boxing never went away. Showtime and hbo are charging 90 bucks. Most theyve ever charged. I think theyre going to get close to 3 million buys. The most ever was a little north of 2 million. I think theyre going to get 3 million. This is one of those where you say i watched i or i was there. I always hear people who love boxing say you know what we really need . America needs another heavyweight again. Another muhammad ali or a mike tyson. Hes married to an american isnt he . Klitschko. Married to hayden panettiere. Oh his brothers fighting. Work with us. The American Heavyweight champion is Deante Wilder who won it in the fall and at some point in time hell probably fight klitschko. Hes a rising star. Probably number one u. S. Ranked. Do you remember his brother in davos . Do you remember how big he was . Klitschko. Yes. He was like eight feet tall and like this. His brother is just an animal isnt he . Yeah. Both of them were great. Obviously vladimir is the only one that still boxes. And you think we need an American Heavyweight . I just we need a super famous heavyweight. And klitschko is well known, but hes no mike tyson. Hes no muhammad ali. Deante wilder will be that next big time heavyweight champion. And youll hear more about him. Let me ask you a fighting question. Its about fighting but the wrong sport. The nba. I dont know if you saw this story in the new york post. You know about it. Im aware of it. I read about it and heard about it yesterday. But seeing all this come this is just one example of it. There seems to be more and more of it. I dont know if were making too much of it or making too little of it and what it means to the sport. I dont think its it means in iganything to the sport. You read things like that every day here in new york. It just happened to involve some nba players. But from our perspective, we meet with our players. Were mindful that theyre public figures. And obviously theres places they should be and places they shouldnt be. Right. This was unfortunate. He was out at 4 00 a. M. In the morning, he was supposed to play the next day. Correct. Shocked. Theyre young. They can, you know i know. But then the question is are there things the coaches need to be doing . These are sort of some of the questions from a team perspective. Teams provide oversight. You know we have our own security people that work with our players and tell them where they should and shouldnt be. Is there an nba policy . Theres not. Theres not a policy on theres no curfew the night before a game . No. So what has nbc signed on for for future boxing at the barclays . Is it just well, nbc is part of the premier boxing champion platform which is boxing. Were fortunate to be hosting the next one. The first nbc event was last month in vegas. This will be number two. But saturday night should be great. Were almost sold out. There are some Tickets Still available. Sports content and you watch espn with all these things locked up. Nbc gets hockey. Everybodys vying for longterm deals to do all the longterm deals. Very coveted. And i think the one sport thats been underdeveloped for lots of Different Reasons has been boxing. And i think al haiman and other leaders in the sport are really trying to build a bigger platform. And it really starts in primetime. Andrew its longterm, not good for people theres concussions. Like the nfl. You think football is going to fall by the wayside. Youre going to have a field day. Generationally boxing lost its way somewhat. People worry 25 years from now theyre deliberately hitting each other in the head. You realize that. Thats got to change right there. By the way, on the nfl, do you have a view . Do you think generationally years from now it wont be around . Its going to be in stadiums its going to be simulated. Its going to be cgi. My sun playson plays basketball. He just gravitated to basketball. Pretty fun. Thanks for coming in. Thank you. Its the end of everything. End of football. End of boxing. End of basketball because the guy was out late. No. I love basketball. I just hope it survives. You can catch the fight live from Barclays Center saturday on nbc at 8 30 p. M. Eastern. Coming up next were going to head to the new york stock exchange. Were going to catch up with jim cramer. Hes standing by to tell us what you should be watching today in todays trading session. Take a look at the futures at this hour. Youre seeing the dow open up about 4. 5 points higher. Nasdaq up 5. 5 points. And the s p well call it slightly down. I care deeply about the gulf. I grew up in louisiana. I went to school here. Ive been with bp ever since. Today, i lead a team that sets our Global Safety standards. After the spill we made two commitments. To help the gulf recover and become a safer company. Weve worked hard to honor both. Bp has spent nearly 28 billion dollars so far to help the gulf economy and environment. And five years of Research Shows that the gulf is coming back faster than predicted. Weve toughened Safety Standards too. Including enhanced training. And 24 7 on shore monitoring of our wells drilling in the gulf. And everyone has the power to stop a job at any time if they consider it unsafe. What happened here five years ago changed us. Im proud of the progress weve made both in the gulf and inside bp. Welcome back to squawk box. Linkedin buying Skills Educator valued 1. 5 billion. It offers courses for individuals and the tieup will bring more video to linkedin. The new york stock exchange. Jim cramer joins us now. Larry summers on earlier. I dont maybe i need to change my tune jim. I guess its not june now, is it . Yeah were just look i was on the alcoa Conference Call last night, they cover Different Industries and every industrys pretty strong. Its such a difficult read because there are some businesses very, very very very good and then emerging markets coming back maybe we shouldnt worry about the dollar. And and we just get employment. Its like, well i thought we were coming back. I think its mixed enough that im not as concerned. But i would point out that there are a lot of Companies Reporting good numbers this very morning, and that does matter. Last night we left thinking bed, bad and alcoa, uhoh. This morning everythings good. Something we have to pay close attention to. Perry go is now elan and its in ireland. Im trying to figure this out. Youve got insight into the mylan perigo the cold and flu season wasnt strong. They lost a lost a lot of business in supplements. This United States a company, i think, is uniquely undervalued by the market. The structure was difficult to understand. I think that it makes a great deal of sense for mylan to do it. It joins acty vift. Its where all of the action is focused on another one, a takeover target in a couple of months. Been a while, maybe somebody else comes in here too. Remember we had gulf and stuff, the good old days they kept coming back and the other one would come back . People should be excited. You know it i know it. They should be saying, wow, i can believe weve got a stock up 30. People saying i guess i cant catch those. Or ive got to be in an etf in oil. And theyre missing great opportunities whether it be with apple or perrigo, accessible ideas. Watching the masters . Its not your thing . This weekends when i kick it. I always watch it. We put it on. Look its in the background until the last day, boy, yeah anyone who doesnt watch it . Honestly. Looking at me jim. Im going to watch. Im going to watch. Everybody watches. Jim, see you later. Coming up how j. Lo inspired Google Images that you search for. But wont admit it. Well be right back. 73 of americans try. To cook healthy meals. Yet up to 90 fall short in getting key nutrients from food alone. Lets do more. Add one a day 50 . Complete with key nutrients we may need. Plus it supports physical energy with b vitamins. One a day 50 welcome back to squawk box. Todays watch list wholesale trade numbers, 10 00 a. M. Eastern time. Analysts believe inventories will continue to look heavy in february but slightly lower than in january. Ruby tuesdays out with results after the closing bell. Analysts believe rising commodity costs and competition in the casual dining sector to weigh on the top line. President obama is in jamaica, first president to visit the island nation since reagan in 19827 hes attending a summit of caribbean nations there. Theres some nice great golf courses. I hope he brought his clubs. Bring your sticks . Did you bring your sticks . Theres a new ad campaign ad campaign for beer popping up on the internet. The message, lets grab a beer. The catch, theres no corporate branding associated with the campaign. Turns out, that is intentional. Anheuserbusch created the campaign and exec from the Beer Division mmm beer say they want to start and continue a conversation about beer and make sure the market for beer stays healthy for the long time. Maybe they could have actually called it duff beer. Homers favorite. We have another fun story. Before kim carl icahnkardashian broke the internet j. Lo, her iconic look then spirration for the advent of google. Eric schmidt revealed j. Lo in her green dress the most popular search at that time. This spurred the idea users were interested in more than just texts. Interested in a dress, thats really weird. Its the dress. I dont know whats great about. I guess the colors nice. Andrew, youre back. See you tomorrow. See you tomorrow. Hope your cold is tomorrow. Join us tomorrow. Squawk on the street is next. Good morning, welcome to squawk on the street. Im Carl Quintanilla with Jim Cramer David Faber at new york stock exchange. Relatively steady premarket this morning as earnings start to hit from bed bad,th, alcoa. Oil rebounding after 6 decline. Ten years below 1. 9. Fourweek average is at a new