Transcripts For CNBC Squawk Box 20160307

Thats starting to play out in what weve seen in gasoline prices. Michelle . Among the top stories, cybersecurity is in focus. SeaGate Technology has been hit by hackers. A fishing email scam resulted in the Data Storage Firm releasing tax information, salaries and their Social Security numbers to an unauthorized third party. Seagate tells cnbc that the data was sent by a seagate employee who believed the phishing email was a legitimate internal company request. Apple mac users have been targeted by ransom ware. What happens is the software steals your files, encorrupts them and then asks you to pay money to get your data back. The asking price for infected users in this attack is one bitcoin, which at this point is about 400 bucks. We told you on friday that amazon decided to drop encryption from its fire operating system. Now the company is backtracking saying it will restore the encryption after customers and privacy advocates complained. People inside and outside of the world of politics remembering nancy reagan this morning. The former first lady died at her Los Angeles Home yesterday at the age of 94. Well have a lot more on her legacy in just a bit. Ive heard so much said already. Any pictures that you see, it starts there, i think they got married in 1952 or something. And they looked you know, there were birds chirping, hearts flying around. Any time you saw those two together all the way they were together for over 50 years. And devoted to each other completely. You know how people i dont want to get political, a lot of times the media or the press will have a certain try to fill in a narrative about in a vacuum. About reagan, it was that he was superficial or an actor, but if you read the letters he wrote, he was a thoughtful, compassionate. He loved her so much. When you read that he says my life stops when youre not around. Cant wait to see you again so i can start living again. Exactly. You talk about her, she when he got alzheimers, one of the reasons she became so active was the golden years, when they could have been looking back at everything they that he had accomplished and she helped him accomplish, that was stolen from them the last ten years. Thats why she got so actively involved in stem cell treatment and she didnt want other families to go through what she had gone through. Very protective of him. Another quote last night said, you know, after ronnie passed that it is supposed to get easier and better, she said it never did. Her death hit me like a ton of bricks. Hers did. His did. Yes. But to see all their photos, how happy they were, also at this moment when the Republican Party is so at war within itself. You miss him so much. And her. And her, absolutely. Her dying right now in this political moment was this kind of crystalizing event, i think to highlight the struggles in the Republican Party. Even the daily news, i guess they would have some i guess they couldnt. I forgot she had spent some time growing up in queens. The daily news says americas first lady. Im surprised. Maybe they can rise to they dont have to be in the toilet every day. A piece of national history, right, ben . Well talk about a lot of things political in a moment. Lets check the markets. Futures under pressure after coming up from some strong gains. Last week alone, the dow was up 366 points. This morning futures down about 73 points. S p off by 11. 5. Again, we showed you europe already, its a similar story there with declines of about 1 for many of the major markets. The dax down by 1 . So is the cac. Ftse down by 0. 85 . In asia overnight, you did see some mixed markets. The nikkei down by 0. 6 . Ill prices over the past week were up by about 8 . Were looking at wti this morning up another 49 cents to 36. 41. If you want to look at the treasury markets, tenyear note now is yielding 1. 911 percent. The highest level in a while. Lets look at whats happening in currencies. The dollar is up against the euro at 1. 09. Euro closed last week at 1. 10. Finally gold prices down about 1. 50. You saw four states you saw what happened last week and tomorrow we have michigan, mississippi, idaho and hawaii. Ahead of that republicans came out swinging on the sunday shows. Democrats apparently had a debate last night, faced off in flint, michigan. I happen to think that when youre fighting an enemy that chops off heads, i happen to think we should use something stronger than we have right now right now basically waterboarding is not allowed, as i understand it. And you would like it to be . I would certainly like it to be, at a minimum to allow that. Ill be voting, before voting for someone on the ballot who i think is a real conservative and makes us proud. I may write in a name if i cant find such a person. We need john kasich to take charge. Im your democratic opponent, i released it here it is. I dont give speeches to wall street for hundreds of thousands of dollars. I voted to save the industry. He voted against the money that ended up saving the auto industry. Oh. I think that is a pretty big difference. I will be damned if it was the working people of this country who had to bail out the crooks on wall street. And who was that . Larry david . Joining us now, ben white, politico chief economic correspondent and cnbc contributor. In the way that the universe works, do you think its weird that were watching this and then all of a sudden Ronald Reagan is thrust back into our view . After what weve seen in sort of in the debates. Suddenly everybody invokes him. The 11th commandment. Mrs. Reagan dies. All of a sudden we think about this again. Where the hell are we . I think michelles point was poignant. You have these republicans in debates just tearing each other apart. Talking about their anatomy, getting into ugly territory, you think about nancy reagan, Ronald Reagan, and the idea that people shouldnt be tearing down each other in public debates. They were both so classy. Right. Its not like in reagans day there were not difficult debates. There were duff discussions and fights within the Republican Party, but nothing like 2016. Nothing as personal or tawdry as weve seen. Thats why you have people like mitt romney coming in trying to stop trump and raise the level of debate. Reagans first rule was one republican should never trash another republican. Thats a fair point. That perhaps you wouldnt want somebody coming in saying that you shouldnt vote for this guy. Please. The same guy he got an endorsement from. The thing about reagan, theres no one he didnt like, genuinely. Tip oneill. Ideological differences with people, partisan differences, but in terms of personal relationships, he was very warm towards just about everybody in the party. The debate hurt trump, i think. The late deciders went to in louisiana. And kansas. Wasnt he ahead in kansas . Is it the debate or the attacks . I think romney helped. Rubio and cruz constantly ganging up and attacking. If you look at early voters versus late deciding election day voters went heavily for cruz. How much is it that carson is out of the race . Carson is out, his vote is going to cruz and others. I think there was a slight move away from trump. That could get reversed in michigan. He could win michigan solidly on tuesday. This is the first real test where everybody has taken out the guns plablazing at trump. This is where we see if hes as teflon as he has seemed to be thus far. Republican pacts are designed to go after donald trump m. One spent 25 million in total against him, not just in michigan, but florida, ohio, they hope that number can bring his numbers down. Where are the polls in ohio . Kasich is up a bit in ohio. Up over trump . Depends on the poll youre looking at, but hes banking on that to win. He said i think a contested convention would be exciting. No kidding. 4 . Thats his only path to the nomination, contested convention. The only person right now with a legitimate shot for trump is ted cruz. The brokered convention, these efforts to try to conscript paul ryan here. How much of this is a fair amount is artifice. No one will say i want the nomination of brokered convention. I dont want to have to get any votes but should it be offered to paul ryan at convention, he would not say no. Even romney said he would not seek the nomination, but im trying to say you dont say you wouldnt take it. It would be political suicide for the party. Not necessarily. Yeah, it would. I dont believe that is true. You think the trump voters would go and vote for hillary . It looks like youre stealing an election. The rules are you have to have a majority of delegates going in. 35 said they would never vote for romney. I think romneys speech only solidified their belief in donald trump. Right. This is an unlikely scenario that you have a brokered convention. Its not impossible. If no one gets the delegates, you have to have a brokered convention. Rubio is not going to win florida. It doesnt look like it. If he doesnt get it, will he get out . I think he has to if he doesnt win. Then youre really left with cruz versus trump. Yeah. Then what happens . Thats the thing that trump says, cruz has been rising and is a challenger for trump. The problem for cruz is the map. If it goes to illinois, california, ohio, northeast, these are not big ted cruz states, evangelical states. Trump has a broader appeal to working class white voters that are less evangelical. I think the map is better for trump in a oneonone with cruz. I read your note this morning, i was shocked to see the idea floated that hillary might choose Bernie Sanders as a running mate . That, to me, is the type of thing that she i understand the desire to want Younger Voters that would be her sarah palin. I dont know quite sarah palin. A socialist on the ticket. She wants the left and liberals and progressives to come out in force. She will win states that bernie would draw voters from any way. If youre a raging liberal, you never vote for the with the right. Why waste putting him on the ticket. I dont think it will be sanders. I dont think it will be Elizabeth Warren either. Because he continues to win states and delegates, she has to do something to appeal to his supporters. How far left does that push you . Not a lot further left than shes already gone. The issue is do you get turnout . He brought turnout if hes not around, his voters are not voting right, right . But if youre facing donald trump, you do not need turnout person on your ticket because everybody who is on the left and doesnt like trump will come out and vote. He drives up democratic turnout if hes the nominee. She doesnt need somebody from the far left to join that ticket. Elizabeth warren hates her, right . I dont think she hates her. She doesnt like the wall street ties, doesnt like the wall street speeches. Shes too far left, too. I agree, but the energy in the Democratic Party is on the left, with the warren wing. Stay there. So theres a lot of pressure on hillary to pick somebody from that era. You saw limbaugh, he has a big following. He was talking about ted cruz, saying it was like a treatise in constitutional pure thinking. That was a big endorsement to cruz. With trump, he said the upside for a Trump Presidency far outweighs the down side that all of the critics are talking about. Hes been fairly supportive of trump. Six months ago, if you told me he keeps saying its not an endorsement when he says t but he keeps saying it. It comes down to cruz and trump . This is the problem with the stop trump move the, a lot of people see it as trump versus cruz. I dont think their desire for cruz is that much higher than trump. The money hasnt gotten anybody anywhere this time around. And it hasnt been prosecuted against trump that much. 9 million has been spent against trump. Maybe double, triple that over the next few weeks. Can we underline the people who complain about spending in politics, that this election should improve just stop complaining, it hasnt done anybody any good anywhere. I guess its anger, on both sides, we are in some alice in wonderland territory. Cruz and trump on one side. Bermers as a viable candidate as a socialist. I blame it on twitter and social media. You can blame it on the economy. The apocalypse, the four horsemen, total collapse of society as we know it this is like antimatter meeting matter. These are strange rumblings happening. Isnt he coming back and taking everybody with him some day . Walking dead zombie. How do you i account for it basically that people are upset about 2. 2 Economic Growth. Upset about wages. More than that. But a lot of it is that and frustration with the political system in washington. Republicans always talk about the people. The people. You know, every vote. Here, if youre seeing it play out. Right. They dont like it. All theyre trying to do is big kingmakers, select people that pass muster from the republican establishment. Thats supposedly the polar opposite of what they supposedly stand for. Here they are, they want to subvert the will of the people theres something very antidemocratic there. The blow hard elders of the party which brought us all this success. If trump wins it fair and square, he wins it fair and square. That may not happen. We may find out soon he has the nomination. The democrats have the superdelegates, and they exist to get Hillary Clinton the ticket. The structure is totally in her favor. The establishment were the Democratic Party shell win it without superdelegates. Make sure that you get 40 miles per hour, make sure that you use this. Theyre used to putting smart people in place. Thank goodness. Thank goodness, yes. So we dont have to think for ourselves. Put the smart people in. I will say this about the superdelegates, theyre insiders, but she will win the majority of delegates any way. If you are a super dl gadelegas should be forced to wear a superhero costume to the convention. She should be afraid of donald trump. If he gets the ticket and what he will say about her. You make the assumption that trump can be made to feel uncomfortable. Nothing makes him feel uncomfortable. Everything makes her uncomfortable. Ive been impressed with how trump has stood up to the attacks in the debates. Swats it off. Loretta lynch you put that under the rug . You tell me. They just offered immunity to the guy who set up the servers. She said she is the most transparent candidate and that is good for more transparency. If youre offering immunity its because you want information and want go higher up the line. Its so ridiculous. Release your Goldman Sachs speeches, tell us more about the email. Shes not transparent. Its nonsense. Well, i dont think this is going anywhere. Theres no way. No way. They probably talked about this they probably talked to Loretta Lynch about this before she became ag. I dont think theres that level of conspiracy. It matters what they figure out. Coming up, u. S. Stocks coming off three straight weeks of gains. Crude climbing to levels not seep since early january. Coming up, your Market Strategy session to start the trading week. Need to hire fast . Go to ziprecruiter. Com and post your job to over one hundred of the webs leading job boards with a single click. Then simply select the best candidates from one easy to review list. And now you can use zip recruiter for free. Go to ziprecruiter. Com. With extraordinary offersmance on the stylish, allnew rx. And the dynamic nx. This is the pursuit of perfection. Hey hows it going, hotcakes . Hotcakes. This place has hotcakes. So why arent they selling like hotcakes . With comcast Business Internet and wifi pro, they could be. Just add a customized message to your wifi pro splash page and youll reach your customers where their eyes are already on their devices. Order up. Its more than just wifi, it can help grow your business. You dont see that every day. Introducing wifi pro, wifi that helps grow your business. Comcast business. Built for business. Welcome back. Its a light week for economic data. On thursday we will get the ecb Meeting Press conference. Details of the announcement could be a driver for the markets this week. For more on the ecb decision and the fallout from fridays jobs report we are joined by anetta markowska. Thanks for coming in today. Thanks for having me. Lets talk about fridays numbers. This was a strong number but not so strong that it flipped people out. Good news . I think it was a great report for the market. At least for the time being, it erased some of the slowdown we saw in the fourth quarter. That was overhanging the market. That was definitely overhanging the market. I was surprised how people were ready to jump on the band wagon of recession risks. At the same time the setback on wage growth allowed the markets to digest it in a way that didnt necessarily put hikes right back on the table, which, from my perspective, is one of the biggest risks for the market going forward. For the time being it gives the fed a bit of an opening to pause and take that pressure off the table. You do not expect the fed will be raising Interest Rates next month when they meet or next week when they meet. Certainly not next week. In fact were only looking for one hike this year. I could see two, but i think the biggest concern or difficulty for the fed is that the market is not priced for any meaningful hikes. At some point if the data does continue to surprise on the upside, particularly wage and inflation data, the fed will start signaling again that will cause the dollar to rally. Financial conditions to tighten. This twoway causality between the fed and markets does not allow either to move much. We look at what the fed is doing. Part of it is the data depend t dependen dependency. The other part of it is the ecb and the bank of japan. Its hard for us to raise rates in the face of that because what it would mean for currency moves. Absolutely, which is why market dependency at this stage of the cycle for the fed is more important than data dependency. Its the only central bank in a world tightening now where were contemplating normalization. As soon as the fed signals were ready to take the next step, will you see the dollar shoot up, financial conditions tighten and the markets will do the tightening for the fed. Thats why one or two is a reasonable assumption. Speaking of tightening credit conditions, we saw an improvement a bit last week. Stocks rallied, high yield improved. How closely are you watching we know the fed is data dependent, but also focused on what credit markets are doing. Last week was definitely encouraging. When you look at the widening over the past 18 months, the trend is still definitely towards tighter, not loser. Inflation expectations are becoming a concern. We saw bullard express that. Were down 100 basis points in terms of fiveyear break evens since about two years ago. And, you know, when we got from 250 to 180 the fed was dismissive of it but at 150, fiveyear forward, i think thats, as bullard said, becoming more difficult for them to stomach. I think thats something that will hold them back. Thank you so much for coming in. Thank you. You still are an international person. The chief international correspondent, yes. Did you see europes pension pinch. I read a lot about their pensions over time. Horrendous. They have rich benefits and promises that theyll never pay. Its a pipe dream. Right now 42 or 42 retired people for every 100 workers. In a couple years it will be 65 retired people for every 100 workers by 2060. They have no money set aside. You know whats amazing about that . Thats on top of having done almost no defense spending for decades. Relying on us. Still they cant manage to make it. How can prospects for europe be positive longterm . Theyre not. You think were bad here, were at 24. They are way worse. Retired people per 100. Yeah. That will be a war, young versus old. It will break out there, its so, so bad. Right. It already is in spain with the unemployment among younger people. Yeah. Coming up people will live. Forever. Yeah. Hopefully. Coming up a red flag for u. S. Auto retailers, why a Record Number of leases could spell trouble for car sales. And the rollout of chip card readers for retailers is not going well. New survey numbers show just how far behind retailers are. As we head to break, a look at last weeks s p 500 winners and losers. Hey, jesse. Who are you . Im vern, the orange money retirement rabbit from voya. Orange money represents the money you put away for retirement. Over time, your money could multiply. Hello, all of you. Get organized at voya. Com. We believe in the power of active management. Management, by debating our research to find the best investments. By looking at global and local insights to benefit from different points of view. And by consistently breaking apart risk to focus on longterm value. We actively manage with expertise and conviction. So you can invest with more certainty. Mfs. Thats the power of active management. Welcome back to squawk box. Time for the executive edge. A new survey finds that less than half of american businesses have adopted the credit card Chip Technology thats intended to fight fraud. 37 of businesses are able to accept those chip cards, thats according to a survey according to the straw hacker group. Retailer and merchants were supposed to adopt the new technology by october or face penalties. It takes longer. Also when you try to use your card at parking places, they want a pin number. I know. I dont have a conumber for corporate card. I tried to dont say it. I tried to use the same one. I must have 1,000 of them. Theyll come up with 1234 . Theres no way. 4321. Or 5555 are the most popular. A piece in the wall street journal raising a red flag for auto retailers. Record numbers of Vehicle Leasing could pinch margins on car sales. Competitive terms on leases have created a glut of used cars. The number will climb to 4 million vehicles in 2018. Are you a leaser or buyer . Buyer. Ive been driving the same car for nine years. Like to pay it off and drive it forever. Me, too. I have 100,000 miles on a 9yearold car. Why do you want to pay that every month . Because you will always basically pay it every month. I paid cash for it during the financial crisis. Picture getting a new car every three years. New color. Its different. I dont care. Girls dont care. I like knowing where all the stuff is and how everything works. I dont want to change things. I like that new car smell. Sure you do. When we come back, voters in michigan go to the polls tomorrow. Its a key state in the democratic race. Hillary clinton spoke to john harwood. Well have her comments on the economy and her competition next. Right now, as we head to break, a quick check of whats happening in the european markets. Under a bit of pressure. Off the lows of the morning. Right now the dax is down by close to 1 . Squawk box will be right back. Youre an at t Small Business expert . Sure am. My staff could use your help staying in touch with customers. At t can help you stay connected. Am i seeing double . No maam. Our at t buy one get one free makes it easier for your staff to send appointment reminders to your customers. And share promotions on social media . You know it now im seeing dollar signs. You should probably get your eyes checked. Good one babe. Optometry humor. Right now get up to 650 in credits to help you switch to at t. Trolling for a gig with cant blame you. Its a drone you control with your brain, which controls your thumbs, which control this joystick. No, im actually over at the ge booth. Were creating the operating system for industry. Its called predix. Its gonna change the way the world works. Ok, im telling my brain to tell the drone to get you a copy of my resume. Umm, maybe keep your hands on the controller. Look out ohhhhhhhhhh. You know what, im just gonna email it to you. Yeah thats probably safer. Ok, cool. When youre on hold, your business is on hold. Thats why comcast business doesnt leave you there. When you call, a Small Business expert will answer you in about 30 seconds. No annoying hold music. Just a real person, real fast. Whenever you need them. Great, thats what i said. So your business can get back to business. Sounds like my rides ready. Dont get stuck on hold. Reach an expert fast. Comcast business. Built for business. Welcome back. Polls open in michigan in just 24 hours. It will be a key state for the democratic president ial race. Hillary clinton and Bernie Sanders appeared in flint, michigan last night in a debate. John harwood spoke to clinton first. John joins us with more. Reporter Bernie Sanders has gotten lift in this race by saying hes thinking big, and Hillary Clinton says there is good reason for that. Ive gone as far as i think the political equation will sustain. I agree thats not a substantive thing. Thats a political calculation. It has to be both. I want to propose things i want to get done. I dont want to make promises i cant keep. I was in favor of a much bigger stimulus package. I was in favor with quantitative easing. What im proposing is on top of what the Congress Finally got around to passing, look how long it took them to pass the highway bill. Another example, neel kashkari, the president of the minneapolis fed said we should break up the big banks. Thats what Bernie Sanders has called for. If a former Goldman Sachs person thinks thats a good idea, why dont you . I have been on record saying we have the tools under doddfrank are you proposing that we break up the big banks . I propose we stay within the law. If any bank has a Systemic Risk, they should be broken up. Sanders wants to do it preemptively. We are a nation of law. We have passed a law which sets forth a process. If you want to claim you can do it without following the law, that seems radical to me. What i have said is i would support breaking up any bank that posed a Systemic Risk to the economy and we have a process now in place, thanks to doddfrank, thanks to president obama. We have the tools. My opponent acts like he will create this. We passed a law. The law gave us the tools. If we meet the criteria, we should act. Im committed to acting. Now, Hillary Clinton and Bernie Sanders like to say their debate is more civil than the one on the republican side. I asked Hillary Clinton whether she was concerned about where the rhetoric would head during a Fall Campaign with donald trump. Donald trump has been a completely unpredictable candidate. He said the other day Hillary Clinton came at me, accused me of sexism, i came back at her hard and her husband. Shell never do that again. Are you worried this will all get out of control . The republicans already are. The insults they engage in is distressing to a lot of voters. I wont jump ahead to think about does it make you nervous . No. Look, one of the reasons why i feel confident about the race im running, and i hope to be so fortunate as to be the democratic nominee, and then to go run against whoever the republicans nominate is theyve been after me for years. Nothing new about that to me. The next step towards Hillary Clinton becoming the democratic nominee is that michigan primary tomorrow. We saw an nbc news wall street journal maris poll over the weekend, shes up by Bernie Sanders. Both of them have a chance to stay on track to their nominations tomorrow night. Im sure you watched the democratic debate last night. What do you think happened and what do you think the impact will be . Not much. This was spirited. She went hard at him for owe posing the t. A. R. P. Vote, the bail jut for wall street. The money used to save the auto industry. Just like president obama said in 2012 that saved the auto industry. Bernie sanders want after her for her trade deals. Though shes come out against the transpacific partnership, he went after her on nafta and other global trade deals and said thats responsible for the hollowing out of detroit and other onetime booming manufacturing hubs. Spirited exchanges nothing hugely dramatic. Theres been so many debates now, a lot of them blend together. I would agree with that. John, thank you very much. Well see you at the top of the hour. Well talk more about the republican field at that point. Coming up, netflix dropping a new season of house of cards over the weekend. Well ask an entertainment reporter how the netflix show stacks up against cable and how it helps netflixs bottom line. Welcome back to squawk box. The latest lundberg is out. The average price of gasoline jumped 7 because of Global Demand and higher oil prices. Despite the increase, the price is still 70 cents cheaper than a year ago. The highest price was in los angeles at 2. 51. But in arizona, its a 1. 33. Over the weekend, moviegoers flocked to zootopia. The animate the movie took in nearly 74 million in the United States and canada. Thats a record debut for disneys Animation Division topping blockbusters big hero 6 and frozen. Zootopia already grossed 160 million overseas. London has fallen came in at number two at the Box Office Opening up with 21. 6 million. Zootopia looks cute. They advertised it during star wars. Big audience. Netflix is spinning out more and more original content. Theres a new season of house of cards that dropped over the weekend thats following fuller house and love. Joining us to talk house of cards and netflix content is brent lang, and to talk about the stock is neil doshe. Brendan, i will start with you, youre in studio how much did w . Is it good enough to increase the number of subscribers or maintain the number of subscribers . I absolutely watched. I only got to about six episodes. I did have to leave the house at some point. Yeah, i think it probably will help them with subscriber growth. Netflix didden an early renewalr season five. They want to keep this brand. You thought it was good . Very good. If you enjoy it. Its a little absurd but maybe, in this election, life may not so absurd. Neil, did you watch . Is it good enough to increase subscriber growth . I definitely watched. It was a very good show. I think it will definitely help at least maintain subscribers. I am not sure about necessarily growing the Subscriber Base but i think some of the other content theyve added including fuller house, crouching tiger and peewees big adventure coming out will help overall. When youre building a business, ceo always asks, do you build it or do you buy it . Do you build out the business you have or does somebody else do it better and you just buy it . The same for content, neil, whats better in terms of costs when theyre obviously in this experiment as is amazon. Do we know right now whats working better . Is it better for them to build or better for them to buy . Definitely seems like its better for them to build original content on their own. They have started to drop off certain large deals with other networks and studios in favor for building out their own content. I think they have figured out a pretty unique little mote around their business. They can come in and pay up pretty aggressively for new content. Two, they dont have to go through this whole pilot, you know, song and dance with content creators. Content creators love that. They can just sell content directly. For content creators, they can come up with edgy, fun and interesting content that they might be limited when trying to sell to a network. Is it worth the price . You know, it seems to be paying off. If we look at the growth of the business, the content that they have been investing in has been adding subscribers. As they grow global, i think theyll be able to expand the content to be able to reach larger, broader audiences. Any opinion on building or buy it, brent . First of all you have to have something to buy. Im thinking their old model was to buy up old movies, et cetera, right . At this point i think they feel there is more value in owning the content. Whats interesting is what its doing is its creating this kind of content arms race across the entertainment industry. And you are seeing more and more of these Companies Spending more and more to try to capture this audience thats migrating away from cable towards digital platforms. You have a real digital land grab, all spurred by netflix and this 5 billion theyre going to spend on programming. Add amazon in as well now. Hbo was already there. Hbo is increasing their programming by 50 . Thats going to tighten margins on these companies. Brent, when i go to netflix, its either to watch an fx or take whatever whoever has done the content, they end up on netflix, so i can get into the series there. I imagine anyone can do that and that there will be bidding for the series i want to watch and it wont always be netflix in the future. Thats why theyve gone into exclusive content. Now theyll be stuck with you read desperate executive whatever it was. You know how hard it is, when you get in a cold streak. Remember desperate house wives and abc got a couple of big ones and a book was written about how nobody else had developed a hit series in years and then they were able to develop two. I think they did lost and desperate house wives. Hbo is feeling a lot of pressure right now. I cant imagine laying my future on having the greatest programmer. Youre always one hit away from being back on top. One miss away from being back on the bottom. That is the risk. I havent been able to find a movie that i wanted to see on netflix. Every time i search for something it gives me like i search for deliverance and it gives me shows similar. Banjo competitions. They dont have anything so when i wanted to see some series, it was always on netflix but i figure someone else will. Hulu is getting into it. Apple now. Deeppocket buyers. If you have to develop your own content, be careful. You get lucky with house of cards and orange is the new black. Nobody knows where the audience is going and theyre banking on the fact that content is king. Apple will probably be amazon is probably theyll all be good at doing this. You only have so much time. Everybody watches squawk box and then they pick Something Else to do. Neil, i assume this discussion is part of the reason why you have this rated high for netflix. Were seeing a slowdown in the u. S. Subscriber base. Its been highly profitable for them. Our concern is if it continues to slow theyll have two big price increases this year that will hit a large percentage of the Subscriber Base. That could generate greater turn. Free cash flow has been negative for some time and its been getting even more negative. Were concerned about the investments theyre making especially in original content. Third, as they move into new countries like japan and india, people dont necessarily watched u. S. Based content. So the formula will change. Theyve expanded into 130 countries quickly. I think it will take a long time for them to figure out how each of these countries really view content and to really go after each of these countries in a major way. For that reason were neutral on the stock. Thank you, guys, for coming in. When we return. Donald trump and ted cruz were the big winners in the weekend nominating contest. Cruz won kansas and maine. Trump look louisiana and kentucky. Well have a full rundown of the delegate count coming up. We needed 30 new hires for our call center. Im spending too much time hiring and not enough time in my kitchen. announcer need to hire fast . Go to ziprecruiter. Com and post your job to over 100 of the webs leading job boards with a single click. Then simply select the best candidates from one easy to review list. You put up one post and the next day you have all these candidates. Makes my job a lot easier. announcer over 400,000 businesses have already used ziprecruiter. And now you can use ziprecruiter for free. Go to ziprecruiter. Com offer2 we believe in the power of active management. Management, by debating our research to find the best investments. By looking at global and local insights to benefit from different points of view. And by consistently breaking apart risk to focus on longterm value. We actively manage with expertise and conviction. So you can invest with more certainty. Mfs. Thats the power of active management. Hey hows it going, hotcakes . Hotcakes. This place has hotcakes. So why arent they selling like hotcakes . With comcast Business Internet and wifi pro, they could be. Just add a customized message to your wifi pro splash page and youll reach your customers where their eyes are already on their devices. Order up. Its more than just wifi, it can help grow your business. You dont see that every day. Introducing wifi pro, wifi that helps grow your business. Comcast business. Built for business. A big weekend in politics. There is nothing so exciting as this stuff. Will the rust belt pay off for the trump train. Can bernie keep the hit on hillary . Well recap the weekends big results. Mourning the loss of first Lady Nancy Reagan. Well look back at her. What impact will Rising Oil Prices and a big decision have on the trading week ahead. Burgers and cereal for breakfast. The latest on why rice crispies, corn flakes and bran are losing their sales. Shake shack, ahead of the results. We have you covered from breakfast to dinner. 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 squawk box here on cnbc. First in business worldwide. Im joe kernen along with Rebecca Quick and michelle carusocabrera. Long day, michelle. Youll be watching from 1 00 to 3 00 when im on later, right . 1 00 to 3 00 p. M. Eastern time. Andrew, does he have the day off . Hes doing stuff. He is busy. I dont think he ever really has a day off. No. He works pretty hard. He does. Futures at this hour are indicated not a whole lot happening. Down about 73 points. We did finally get rid of most of the losses for 2016 and a lot of articles are being written about whether the bounce in commodities and the bounce from the transportation average are significant and show that were kind of out of the woods. I dont know if anyone really knows but we have had a pretty good last two weeks of february and a good start to march after that horrific beginning to the year. The european markets are part of the problem today. All down more than 1 . It wasnt china and it wasnt oil. Oil was up. In China Shanghai back over 2900 all of a sudden. Stuff happening in europe. I dont know. If were depending on europe for our markets to go up after reading the piece in the journal today. Not optimistic. They havent fixed anything on the content. They wont. The vested interest. The inability to get anything done the migrant crisis will turn into such far greater than greece and the threat about the euro zone ever was going to be. As nice as it is over there to visit, you have to try hard to screw that up. Italy, how can you how can you screw that up . Just a little infrastructure, just just do a little and everybody will flock there for the food and the when youre spending everything on pension payments and health care and have you seen those river cruise ads . Yes. Where is that . Is that budapest . Yeah. And vienna. Compare that to like going through West Virginia and portsmouth. I mean, its nice over there. They ought to be able to there are nice places here too. There are a few. But its pretty nice. It is pretty incredible. Thats the one cruise that i would consider taking. Let me run europe. I just think i could bring a bunch of tourists over there. I take it back. That and alaska. France is the most visited country for 20 years. Here are the stories. Two fed speeches will get investor attention today. Fed governor Lyle Brainard and vice chairman Stanley Fisher with speeches scheduled two. The only two such public appearances this week. Users of apples Macintosh Computers targeted by hackers in the first ever ransom case involving the mac. According to researchers with Cyber Security Firm Palo Alto data. United continental chief executive officer will return to work next week. He has been sidelined since suffering a heart attack in october. He underwent a heart transplant in january. Becky. Lots to discuss in the world of pot ticlitics. We start with the nation mourning the loss of first Lady Nancy Reagan who died yesterday at the age of 94. She was known for her style and her just say no to drugs campaign. She stood by her husbands side during his long battle with alzheimers disease. On the campaign trail. Hillary clinton and Bernie Sanders battling it out in flint, michigan, last night. Topics ranged from the economy to the water crisis in flint to the auto bailout. I voted to save the auto industry. He voted against the money that ended up saving the auto industry. Oh i think that is a pretty big difference. Well, i if you are talking about the wall street bailout where some of your friends destroyed this economy you know excuse me. Im talking. Let him go on. If youre going to talk, tell the whole story, senator sanders. Let me tell my story. You tell yours. I will john harwood joins us from washington with more. Lets start off by talking a little bit about everything that happened with nancy reagan this weekend. Look, that was a moment where, for just a second, the two parties sort of laid aside differences and people shared a poignant remembrance of nancy reagan. You had statements coming out from politicians on all sides. From president obama, the clintons. Democratic leaders and then of course from republicans, for whom Ronald Reagan remains the foremost modern democratic president , the one that all the current campaigns model themselves about. They talked about Hillary Clintons alliance and value to Ronald Reagan as a political figure. You know, people in politics say, without nancy reagan there would have been no governor reagan of california, there would have been no president reagan. She was a stead fast ally, she was an important behind the scenes force in the reagan white house. After Ronald Reagan developed alzheimers she stood with him during that very cruel disease over a period of ten years and became a crusader for research into alzheimers. She broke with the Republican Party on things like Stem Cell Research saying she wanted to spare other families what they had gone through. So that was that was a moment where politics stopped and grieving was shared across party lines. We also, of course, had contests over the weekend. Lets talk a little bit about those. You had, on the republican side, a wild weekend of contests with donald trump, ted cruz. Donald trump won the biggest states. He won in louisiana and kentucky. Ted cruz won in maine and kansas. Marco rubio got a victory in the puerto rico primary. On the democratic side, you had Hillary Clinton winning louisiana, which was the biggest primary contest, but Bernie Sanders had wins in maine, in nebraska. So he was making some headway against her in the delegate race. Lets look at where the delegate races stand. Donald trump is leading but its not an overwhelming lead. He has got 395 delegates. You need 1,237 to be nominated. Hillary clinton has got 1,100 if you count the super delegates. Thats a large lead over Bernie Sanders. Not as large a lead among pledge delegates. The contest in michigan will determine what happens with the state of her lead and the state of Donald Trumps lead as well. Both donald trump and clinton are favored handily to win in the state of michigan tomorrow, guys. Lets try to break down the math in the republican field. How likely is it or what has to happen for any of these candidates to reach the actual delegate vote you need to become the nominee before they get to the convention . On the democratic side, Hillary Clinton has a pretty strong chance of doing so. She has got a substantial lead of pledge delegates, much bigger when you look at the super delegates who dont have to follow the results of elections. And because democrats award delegates proportionally, Bernie Sanders will stay in and keep winning delegates even as he loses states. Hard for him to catch up. On the republican side, we switch on march 15th to winnertakeall contests in particularly the big states that day will be ohio, where john kasich hopes to win and block donald trump. Florida where marco rubio hopes to win and block donald trump, both of them have got poll results they can hang on to suggesting that theyve got a shot. But donald trump is in the drivers seat. If he continues to win, he is going to be on track to the nomination. Somebody has got to upset the applecart. Michigan is one chance to do it. Then youve got march 15th. And interestingly, ted cruz is making a play. His super pac is making a play in the state of florida trying to prevent marco rubio he wants to extinguish marco rubio as an alternative, try to get to a oneonone with donald trump and over the weekend donald trump said he wants ted cruz one on one too. Well see if he gets it. Well see if the strategy works. Thanks, john. Lets talk more about nancy reagan legacy. Thanks for joining us. How would you define Nancy Reagans legacy . Nancy reagans legacy is very, very significant. You know, other first ladies who have been very prominent like Hillary Clinton or Eleanor Roosevelt have kind of done it through their public personas, through their public advocacy. Eleanor roosevelt for womens rights and africanamerican rights. Hillary clinton for health care. Nancy reagan was a force inside the white house. She was particularly significant in personnel decisions. No president is all things to all people, and Ronald Reagan was a great communicator, a great leader but not the greatest administrator. She actually probably had a better sense of personnel than he did and was very important in critical personnel decisions, both in the campaign and in the white house. She was also critically important in steering him through the great crisis of his presidency, the iran contra scandal. When the administration was selling arms to the terrorist state of iran and funneling the money to contras in nicaragua. She was important in persuading him to make the kind of halfapology speech that many say saved his presidency. She also encouraged him to pursue the most Critical Initiative of his presidency, the arms control negotiations with gorbachev, the leader of the soviet union that led to the critical intermediate forces treaty that took those horrible missiles out of europe and many said was a prelude to the end of the cold war. Allen, when she died, what it did more than anything for me and i know were supposed to be talking about her but it reminded me of how much i miss Ronald Reagan. What do you think she would make of whats going on within the Republican Party right now . I think she would be extremely unhappy about whats going on in the Republican Party right now. You know, Ronald Reagan worked across the aisles. He had to have democratic support because the democrats controlled the house and later on controlled the senate. You know, he was a conservative but he was a smiling, not a snarling, conservative and never got down into the petty politics of personality. I think she would say, none of you, none of you republicans are being reaganesque right now. Take a look inside your own campaigns and your own selves. Allen, it was great having you on. Allen lightman to talk to us about nancy reagan today and her legacy. When we come back the dow will open up above the key psychological 17,000 mark this morning. Well get you ready for the trading day ahead and tell you what to watch after last weeks Strong Performance in the markets. Later, its National Cereal day today. Sales of the cereal market losing some of its crunch. Whats driving the slump . Well take a closer look straight ahead. Need to hire fast . Go to ziprecruiter. Com and post your job to over one hundred of the webs leading job boards with a single click. Then simply select the best candidates from one easy to review list. And now you can use zip recruiter for free. Go to ziprecruiter. Com. When youre on hold, your business is on hold. Thats why comcast business doesnt leave you there. When you call, a Small Business expert will answer you in about 30 seconds. No annoying hold music. Just a real person, real fast. Whenever you need them. Great, thats what i said. So your business can get back to business. Sounds like my rides ready. Dont get stuck on hold. Reach an expert fast. Comcast business. Built for business. Joining us now to break down the Market Action this morning, joe zidal, a portfolio strategist. Also jim osullivan. High frequency economics chief strategist. We havent talked to you since the number on friday. A lot to like. I know we have been hoping because of income inequality, for wage gains. But with wage gains sometimes there is a problem in terms of marnle margins. If it gets too hot people start to look at it as not a positive. We had everything almost positive on friday. Ill look at it from the economy perspective and joe can look at it from the marmenkets perspective. Fed officials are fretting about Globe Development dragging us you down. Obviously the payroll part, 248,000 a month. Is more the same. Its strong. The wage part for february alone was weak. Minus. 1 . That comes after plus. 5. Year over year its 2. 2 . It was 2. 5 in january. The wage part of the report was a disappointment. But you have to look at it in the context of the volatility for month to month. The back drop is a tightening labor market. The way people look at it is they still dont want the fed to raise. If the wages are not getting too hot, there is no rush, necessarily. I mean, the employment rate is trending down. You keep getting 200,000 plus a month it will continue to come down. Will we . I thought this would be the one where some of the weakness we have seen there are other things that were telegraphing weakness. Probably the best indicator of labor market momentum is the weekly jobless claims number, and that continues to signal strength. How many months in a row has the Participation Rate improved . Its up. 4 in three months. If you keep scoring like that the Unemployment Rate will not go down. In the last three month the Household Survey employment number is up 450,000 per month. Thats volatile. Includes the Participation Rate and the employment part of it. If you keep getting 200,000 a month in payrolls dont we have an unbelievable workforce still waiting to come back into were still at 40year lows, arent we . Thats an ongoing debate among economists and others. I think its clear that the bulk of the drop in the Participation Rate is secular. A lot of it is demographics. People pulling out of the work force for various reasons. Part of it is cyclical. Some of that will come back over time. Its just not plausible that there is a reason why suddenly that number is soaring over the last four months. Its not as if the news in economy has been so good that people will say the labor market is so good, im getting back in. There is just a lot of noise in the numbers. Joe, we talked earlier, people are writing articles that commodities are bouncing and therefore the market is out of the woods, the equity market. And the transportation average is suddenly as it diverged on the way down, now is diverging by going back up. Are things stars aligning for a positive market . I think they are. Its not necessarily a function of commodities. I think there are a few other positives to look at beyond commodities. Our best guess on oil is it says out of the way. 35 to 40 . Sure. Why not. Why not. The momentum in the market is coming from two things. You were just talking about with respect to the consumer and employment. Companies dont hire people they dont need. Clearly there is an underlying demand story thats causing employment gains to continue. Secondly and i think most importantly for stock prices is that the worst of the corporate earnings pretty much appear to be behind us now. If you look at s p 500 earnings on a year over year basis, this quarter that were just coming out of represents what we feel as a pretty solid trough. Stock prices are driven by a combination of profits and Interest Rates. The profit picture is Getting Better now. So overall were bullish. What was i going to ask you. I was looking at your name and got distracted . Zidal is right . Yes. If you wanted ziddal you would add another d. I learned in the military not to correct anyone on my name o pronunciation. Nobody in the world except your family would know if i messed it up. I know bernstein stole you from merrill. He did. Arent there rules about poaching . He took all the best all the best im trying to think of what my last question was. Oh, i know what it was going to be. So here we are. I see negative Interest Rates all over the place. In europe. That just that worries me. Theyre that stuck in the mud and its not even working. Isnt that something that we need to i know were yeah. Were not an island. Its as if the whole world is becoming japan. How come we shouldnt worry about that . From a longterm perspective and certainly jim can talk about the economic side of it, i think there is a lot to worry about with that much debt. If we think about over the next 12 to 18 or 24 months and whats going to drive portfolios in stock returns its frankly not a bad thing. When the fed took rates to zero they put a floor in the economy and in the stock market. Europe is doing the same thing. Whats gefd . Global economic and financial developments. Its what fed officials keep highlighting as the threat to the economy. Thats the new acronym. Gefd. Theyre viewing it big Joe Biden Health care bill. Anyway, thank you. Coming up, a big weekend in the world of politics. Well hear from both sides of the aisle in two key states as the race for the white house heats up. Former texas senate cay Bailey Hutchinson and former michigan governor Jennifer Granholm will be our guests next. Coming up, after nearly a decade, have we found a replacement for the beloved animal orchestra on squawk box . We reveal a contestant after the break. Squawk box will be right back. Professor richard thaler. You are called the father of behavioral economics. Ive been called a lot of things. I have read all of your books. Did you learn anything . I learned that humans are complicated. Were emotional. Absentminded. And we make some really bad decisions. My tradeoff analytics can help Companies Make better decisions, but i am still learning what makes people tick. What makes you tick watson . Natural language processing, reasoning algorithms, statistical parsing. Now you are just showing off. Welcome back, everybody. If you are a squawk box avid viewer you know about the animal orchestra. Check this out. We can guarantee you you will not hear these subtle sounds anywhere else. Dozens of people competed in key wests conch shell blowing contest over the weekend. Hundreds of spectators watched contests ranging from preteens to seniors trying to make music with the shells s. They were judged on the quality, and loudness of the shells. Theyve been a symbol of the florida keys for generations and were first used by sailors as signaling devices. Actually this is more soothing. No. Its the battle of the bands. Used to be a tv show. I like it. But humans playing shells is not the same as an animal orchestra. Solo performances. And you need multiple players, right . We know the humans can play instrumen instruments. When animals play instruments its or my favorite thing. I never get sick of this. If you listen to her. John is back there. He is the husband now. He is like, i hope no one recognizes me, but i there is no way i could not do this. If or combination of sounds. She was sick last week. She is better. Okay. [ kofcoverag [. If you verd have you heard the we are water . . She had a couple of songs on his album. They were awful. I mean, experimental. I could listen to that all day long. I just two women who sound much better than that coming up. I wouldnt even try to tie this together at all. Former texas senator Kay Bailey Hutchison and former michigan governor Jennifer Granholm will talk with us about decision 2016 when we return. Hey hows it going, hotcakes . Hotcakes. This place has hotcakes. So why arent they selling like hotcakes . With comcast Business Internet and wifi pro, they could be. Just add a customized message to your wifi pro splash page and youll reach your customers where their eyes are already on their devices. Order up. Its more than just wifi, it can help grow your business. You dont see that every day. Introducing wifi pro, wifi that helps grow your business. Comcast business. Built for business. Welcome back to squawk box. Among the stories front and center, a dispute between at t and univision has kept the Spanish Language network off the air for customers of at ts uverse pay tv service. The disagreement, as usual, is over carriage rates. Univision says it must receive fair compensation for its programming. At t says its hoping to resolve the dispute as soon as possible. Probably explains where we saw ads where univision was crowing about beating everybody, whether spanish or english language news casts in many markets. Employees of sea Gate Technology had exposure. The disc drive making says 2015 w2 forms for some workers were exposed. Chinese officials have set Economic Growth targets at 6. 5 or more annually for the next five years. The government said major job losses were likely in the coal and Steel Industries as they force consolidation in those industries. Time for the latest lundberg survey. Da da da the average price of gasoline jumped seven cents to 1. 84 a gallon over the past two weeks due to growing demand and higher oil prices. The price is still 75 cents cheaper than a year ago. The city with the highest pump price is los angeles. 2. 51 a gallon. Try to get somewhere without a car in l. A. And youll see why they can charge whatever they want for unleaded. Its a deal in tucson, arizona, at 1. 33. Everything there is like four miles away. We are following the campaign trail. Donald trump and Hillary Clinton both gained more ground over the weekend. Joining us now to talk about the race is former michigan governor Jennifer Granholm and former u. S. Senator Kay Bailey Hutchison who is also a cnbc contributor. Governor granholm and senator hutchison, thank you for being with us. Senator, lets start with you and ask you what you think about donald trump as the frontrunner for your partys nomination. Are you talking about oh. Senator . Senator hutchison. Yes. Well, i think he certainly has run an Incredible Campaign that no one would ever have thought, and its troubling, some of the things he said. I think thats why you are seeing such an effort by people like mitt romney and john mccain and others to say, we need to be thinking of a president ial candidate who is president ial, who can deal in foreign policy. I was in south africa last week with a group of international leaders, people who are up on things, and they were aghast at some of the things that had been said. But having said that, he has played by the rules. He is winning. But he has 395 delegates out of 1200. So the race is not over, and i think people are now speaking out and looking at all of the factors that they want in a president , and there may be a different outcome. If he wins the delegates needed to win the nomination, will you support him . Well, i wanted to see what he does. I think its a little too early to tell. He is beginning to think that this is a reality and is that going to make a difference. I dont want to make a commitment right now, but lets just see how this plays out. Were not asking you to endorse him. Were just asking you whether you would support him as the nominee of the Republican Party if he were to become the nominee of the Republican Party. Well, lets see if he becomes the nominee. Senator, the people, the 35 or so of republicans who have come out and passwosupported hi been upset by the movement by some of the party elders who try to say their votes dont matter, that he may not be the best candidate. I think they feel like their votes arent counted and that they dont matter if this is kind of taken away after he could potentially become the nominee. What do you think about that when you think about what it means for the Party Overall . I absolutely think everyone has a right to free speech, including party leaders. And i admire what mitt romney has done. It was very difficult, im sure, for him to jump in and say, are you really thinking this through. I think he has a right to do that, and i respect him for doing it. I think people will listen to many of the people who are not supporting donald trump, and i think theyre also listening to the people who do support him. Thats what a primary is for. Governor granholm, lets talk about whats happening with the democrats. I know you are a supporter of Hillary Clintons. We continue to see Bernie Sanders picking up states. It makes it look like he is going to be in this race for quite a bit longer. What do you think . I think he will be but his path to the nomination gets narrower and narrower. I am here in michigan. We are obviously going to see a big primary here tomorrow, on both sides. The debate last night that im sure some of your viewers saw, saw some real contrasts. For people in michigan and, of course, for the delegate count to continue to rise, people are looking at what are your plans for investment, or creafor crea jobs in america. You just cant say no, no, no, no to wall street and trade. She has a comprehensive plan on her website for attracting job providers to places like flint, to reres recting the new market tax credit, to invest in both carrots and sticks, meaning that, for those who are doing corporate inversions, they should not be rewarded with tax credits but there should be incentives to make sure that Companies Choose to manufacture in the United States. So i think people saw a contrast. They will continue to see that contrast going forward, and i think it is an exciting race on both sides. Sanders has been able to energize young voters, like people had not anticipated. Why do you think Hillary Clintons campaign has had a tougher time with that . She is going to continue to work very hard to get those young voters. And clearly his message about free college, no tuition, et cetera, resonates with especially on Student Loans. But she has a plan too. Her plan is one that is much more likely to get passed. Unfortunately and its wonderful to think big. I completely understand the desire to do that. But in reality, the solutions have to be practicable. They have to be adoptable. Nobody is suggesting, i dont think, on either side, certainly on our side, even senator sanders is not suggesting that the house of representatives will change hands. The math is just too tough to be able to do that. So youre going to have paul ryan probably as speaker of the house no matter what. So how will he get these big plans through . She has put forward plans to be able to make sure that people graduate from college debtfree. To allow students to refinance Student Loans at market rates so theyre not paying ex orby tant loans. She is going to get stuff through and he is sounding really big, but ultimately, in the end. Everybody will come together to support whoever the nominee. Senator hutchison, michelle here. Thoughts on Nancy Reagans passing . Did you know her . You know, i was so touched by all of the things that have been said. Nancy reagan called me personally on the Stem Cell Research, and i she must have been probably 89 when she did that. She never stopped being committed to doing something that she thought was right for our country, and i think the accolades that she is receiving right now are so deserved. Let me also say, the role of first ladies really, in the last 30 or 40 years, they have made such an impact on our country, and most of them are people who never asked to be in the spotlight. But when thrust into the spotlight theyve done so much to represent the best of our country. She certainly did with elegance and grace and intelligence. And she is being remembered as she should be very fondly. Did she sway your position on Stem Cell Research . Well, i was with her from the beginning. I support research and research for alzheimers and other diseases. I think, done right and carefully, it is an avenue that can bring us much. Senator hutchison, thank you very much for joining us. Governor granholm, its great to see you. Thanks. Thank you. Coming up, soggy sales for cereal. Over the past 15 years sales of the onetime morning favorite have slid about 30 . A closer look at the cereal business. Plus, a preview of shake shack earnings. Up next in the eat block. The futures at this hour. Any improvement . Not much. Down about 68 points on the dow. Almost 12 on the s p, 25 on the nasdaq. Squawk box will be right back. At mfs investment management, we believe in the power of active management. By debating our research to find the best investments. By looking at global and local insights to benefit from different points of view. And by consistently breaking apart risk to focus on longterm value. We actively manage with expertise and conviction. So you can invest with more certainty. Mfs. Thats the power of active management. In new york state, we believe tomorrow starts today. All across the state, the economy is growing, with creative new business incentives, and the lowest taxes in decades, attracting the talent and companies of tomorrow. Like in buffalo, where the largest solar gigafactory in the western hemisphere will soon energize the world. And in syracuse, where imagination is in production. Let us help grow your companys tomorrow today at business. Ny. Gov advisor and team who understand where you come from. We didnt really have anything, you know. But, we made do. Vo know you can craft an Investment Plan as strong as your values. Al, how you doing. Hey, mr. Hamilton. Vo know that together you can establish a meaningful legacy. With the guidance and support of your dedicated pnc Wealth Management team. Shake shack set to post Quarterly Results after the bell. The fast casual chain putting burger wars to the test as mcdonalds turns up the heat about the same time its National Cereal day. Sadly, however, it seems the morning staple is losing its snap, crackle, pop. Cereal sales slumping 30 over the past 15 years. Millennials could be to blame because 40 of the Younger Generation said in a recent survey they skip out on the crunchy breakfast because, listen to this, hope youre sitting down, cereal is too inconvenient. Joining us now to talk all things food, joe, cofounder of b b hospitality from the hit show restaurant startup. Lets talk ocereal. In my generation we lived the cereal revolution. We went from wheaties to count chock ula and captain crunch. Coca crispies. It was life changing. The cereals were like having dessert for breakfast. You woke up early to finish the box. It was incredible. Millennials find it inconvenient. People went to cereal because it was far convenient than bacon and eggs. Pour it in the bowl and eat it at any hour of the day. I think you have a bit of globalization. Cereal born in america. People all over the world eat a little bit of cereal but america is starting to eat more like the rest of the world with things like oatmeal and salty breakfasts and things we wouldnt have considered 30 years ago. Sounds like millennials dont want to clean up the bowl afterward. Nothing like a pop tart. No fuss, no mus. Probably the euphoria of the cereal market of the 70s and 80s that i and probably you guys knew will probably be gone forever. Were past the huge anticarb moments. Carbs are back. Pasta is back. Still, there is a tinge of, you want cereal for breakfast . Think about it. Back then the bagel was a regional ethnic specialty that you found in brooklyn and queens. Now bagels are ubiquitous. Even things like that really changed the eating habits of people. And milk is not bad naecanym either . Its fat but fat is good. I dont think its back. My kids dont eat cereal. The cereal in our house is my wifes theory that if you wait long enough to cook dinner everyone will eat cereal and you wont have to. One of my kids eats dry cereal. I go home and find an unfinished bowl of dry fruit loops. No way im not pouring milk in there and finishing that up. Youre like a cleanup batter. Its there. Im not throwing it away. When im opening the door, im like, i wonder if theres any fruit loops. I always ate the not cream of wheat. Shred wheat. The ones with sugar on top. If cereal has been in decline for 15 years, there hasnt been a great evolution from the manufacturers. Youre right there is no cereal innovation going on. Youre right seinfeld would order cereal at the diner. He still eats cereal. How can cereal not be i think they still do that but its mostly truckers and prostitutes who eat cereal at truck stops. You have something against i dont. Im just saying the dietary habits of certain people. Im digressing. Im trying to watch the o. J. Simpson think but i cant because cuba gooding is too short. When they introduce marsha clark, her kids are refusing to eat cereal. Im think, who wrote the script . Im mesmerized by the bronco slow motion chase. They showed clips of the real one in the series. It was an incredible moment. It was hard for me to buy it. Shake shack. What do you think . They started off with a huge multiple. Its a great company. They get such great multiples and response from the Financial Markets because theyre looking for the alternative to mcdonalds. Where is all the fastfood money going to go next. I think there is a huge market in what theyre doing. As the stock price comes down it goes into a more reasonable range. Theyve been growing. You do see them as a competitor of mcdonalds . I think mcdonalds, the dollar menu, driven by qsr. Quickservice restaurants. You drive in, drive out. In theory youre supposed to be out in like two minutes. I think in general people are allocating more dollars to eating more quality food and i think there is a large portion of the mcdonalds clientele who could make a step up. So i think there is a huge market of changing customer habits. I think thats priced into their multiple. I think the product is good. I think its got a really good branding and momentum around it. Well see as earnings continue to grow, hopefully if they can justify the growth pattern in the multiple. Theyre pairing up with delta airlines. Are they . For onplane meals . Yes. Aims to elevate airline food. Delta airline trying to gain an edge with its food. The highest impact ones i see are the ones in the airports. The shake shacks in the airports are packed. A logical step to take it and put it on the plane, right . Given all the choices in the airport, shake shack is by far the best. On a plane, it would be good. Have you seen the choices in the Newark Airport recently . It took over all of those. They have the center euro bar stuff now. That stuff is nice. But the food court. Mcdonalds is gone. You eat these things for breakfast breakfast . Yeah. This is like eating mud. Its hard to gag it down. Its a protein bar, folks. If you cant see it. Then there is an aftertaste from the fake sugar. Its convenient thats what the millennials are eating. This will take me what time is it . 7 49. This will take me until about 9 00. Start chewing now. Cant wait. Great to have you on. We love restaurant startup. When we come back, the stories that have you buzzing this morning. A check on the markets. Check out the futures. Theyre coming back a little bit. But remember, friday we closed at the highest level weve seen in a few months. Dow futures down about 56 point. S p futures off about 10 and the nasdaq down by 21. Oil prices this morning are continuing to climb up another 60 cents to 36. 52 a barrel. The tenyear note. Check out the yield. Its been moving up. Now at 1. 906 . More when you return. Youre watching squawk box. First in business worldwide. At ally bank, no branches equals great rates. Its a fact. Kind of like grandkids equals free tech support. Oh, look at you, so great to see you none of this works. Come on in. When youre on hold, your business is on hold. Thats why comcast business doesnt leave you there. When you call, a Small Business expert will answer you in about 30 seconds. No annoying hold music. Just a real person, real fast. Whenever you need them. Great, thats what i said. So your business can get back to business. Sounds like my rides ready. Dont get stuck on hold. Reach an expert fast. Comcast business. Built for business. Welcome back, everybody. Were talking about some things that have caught our attention. Ray tomlinson, inventor of email, passed away. He invented the first person to person email back in 1971. Before that there was no way to send a message to a specific person at a specific address. Kind of amazing to think this only began in 1971. He said he knew what he was doing when inventing the email but had no notion whatsoever about what the umeltimate impac would be. Only 74. Young man. I dont want to show my ignorance. You needed the internet to do it, right . Seems like it predates the darpa stuff. Thats what i mean. Sending a direct message to someone at a direct it was the early version of the internet. It was all these universities talking to each other. It was direct message and email thats different, isnt it . Yes. You were getting a text. I was not aware that he had been the inventor of the email until reading these stories today. He was apparently the first one to come up with this concept, and obviously it changed pretty drastically. You want trivia for Cocktail Party . How do you say app in spanish . Aroba. [ speaking Foreign Language ] there are six rs . I love the way you roll your tongue. Its really good. Natural. Sad chairs this morning. Robert palindino who influenced a young steve jobs and subsequently the typography of apples mac computers. Age 83 he died. If you saw steve jobs give the commencement speech, he talks about auditing a class at reed college in calligraphy and how important it was for him to learn about calligraphy for many different reasons. He was also a catholic priest, by the way. I did see that. I saw steve jobs talking about that. And how it changed his view its the reason you had multiple fonts in a mac. Exactly. And the elegance of calligraphy and how important he thought design was overall in terms of computers. There will be a ceremony at reed college on friday for him where they have apparently the best calligraphy program in the entire country. Hmm. What . Nothing. Nothing. Do you do the brackets . I dont. My husband does. You dont do them for tv newsroom . I could. Did you get the thing from cbs that said it was ready . They have to do it on i think sunday. Then it starts next week. Tuesday and wednesday they have the weird where the the weird only a couple of games and then it starts on thursday. There are 32 games or whatever on thursday. And then friday. What are you doing this year . Im going to hit the button. Too much fun. Whats that mean . It picks all the favorites. I beat him many times that way. Youre not going to this year. I know the teams now. I looked at the rankings. The big east tournament starts, im going this year. On wednesday. Youre such a huge fan. Xavier has never been ranked number 5. They may move up because they beat creighton over the weekend. I think kansas might be really good. I think Michigan State too. I forgot im wearing blue today because this is National Colorectal awareness month. The month of march. We all have friends. My grandmother was taken by the disease. Just wearing blue for that. Thats a good cause. And xavier. Thats the other reason im wearing it. Its more important for colo rector awareness. Donald trump retaining his lead in the quest for the republican nomination. Well be joined by the former White House Press secretary. And the former senator of pennsylvania to break down the race. Sales event is on. With extraordinary offers on the exhilarating is. The thrilling gs. And the powerful rc coupe. This is the pursuit of perfection. This just got interesting. 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, or adempas for pulmonary hypertension, 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 and a 200 savings card counting down to the opening bell. Reports say opec is targeting 50 as the new oil price equilibrium. Could this boost stocks or is the ecb about to throw cold water on the rally . Well ask former director peter orzag. Celebrating the life and legacy of nancy reagan. The former first lady dies at age 94. Today the world remembers her life from hollywood to the white house. New this morning, Peyton Manning set to hang them up he is retiring offer a super bowl win and a gamechanging 18year career. The final hour of squawk box kicks off right now. Live from the most powerful city in the world, new york, this is squawk box. Welcome back to squawk box here in cnbc. Im joe kernen along with Rebecca Quick and michelle carusocabrera. Andrew is on assignment today. Less than 90 minutes away from the opening bell on wall street. The futures right now continue to trade lower but its better than where we were in the last half hour. Down about 70. Now down about 48 on the dow. Down nine on the s p. Nasdaq down just under 19. European stocks for the session have been about 1 lower. That there has been some improvement there as well. Germany, france and the ftse all down less than 1 . Anywhere from. 75 to 7 8 of a percent. Among the top stories at this hour. Top energy watcher says major opec producers are privately starting to talk about a new oil price equilibrium of 50 a barrel. Consultant gary ross of Consultant Company pira suggests this adds to the signs the markets long deep rout is over. May be Wishful Thinking from opecs perspective but wti is up another 57 cents after gaining more than 8 last week to 36. 48 a barrel. Sea Gate Technology hit by hackers. A phishing email scam resulted in the Data Storage Firm mistakenly releasing employee tax information, salaries to an unauthorized third party. Sea gate tells cnbc the data was sent by an employee who believed the phishing email was a legitimate internal company request. Apple mac users targeted by hackers with ransomware. Its believed the first of its kind in apples operating system. It steals your files, encrypts them and asks for money to get your stocks back. Reuters says starboard will push for control of the board. Talks scheduled for the week. United continental ceo returns to his job on march 14th. Hes been recovering from a heart transplant. Reynolds american may be the target of a takeover attempt by British American tobacco. British american already owns a stake in the tobacco producer. The New York Post reports avago mentioned as a possible buyer for marvel. Jane wells joins us from california with a look at Nancy Reagans legacy. Good morning, jane. Im here at the reagan president ial library. The Library Remains closed today. Details to come. Before she is buried the public will be given a chance to pay their respects here. She will be buried next to her husband here on a hill overlooking the west coast, the Pacific Ocean with beautiful views of the setting california sun. Theirs was a love affair which lasted more than a half a century. Mrs. Reagan put her husband, his career and legacy front and center. She brought a style to the white house perhaps not seen since Jackie Kennedy on a power behind the throne perhaps not seen since Eleanor Roosevelt. She was criticized for both at times. She used her influence to take on drug abuse, urging young people to just say no. In the cause she was joined by many, including the likes of mr. T. Condolences over the last few ca days from all over. Paul ryan ordered flags at the alcohol at half staff. While nancy reagan had her critics no one doubted the bond she had with her husband. Here is a note from Ronald Reagan to his wife for valentines day. Reagan saying he didnt have a valentines day. Quote, i have a valentines life by started on march 4th, 1952, and will continue as long as i have you. Mrs. Reagans family is asking in lieu of flowers donations be made here to the Reagan Library a place where she had so much influence. Its quite a place. Ive been, jane. Just a beautiful hilltop too, even before the library got there. You will be there for when the light comes up . Yes. Youve probably been there before too, anyway, right . I live about five miles away from her. My mother was a volunteer here for 20 years. She loved this place. It is a every president ial library has its special touches, but maybe i am biased. This one is stunning. It is. Jane, thanks. Were going to shift from ronald and nancy reagan to the race for the current white house. Donald trump continues his run to the gop nomination, but the antitrump movement, theyre trying to gain steam. Joining us now Hamilton Place strategies manager director and cnbc contributor tony fratto. Well be joined by United States congressman tom marino hopefully in a moment. The antitrump movement. Are you a charter member of that, tony . I might have been. I feel like i was in the antitrump movement going back to 2012, joe. I never thought this was a guy who was serious and in line with where the party is. I think its bearing itself out in the way hes comported himself in this campaign. What happens when someone says that, in either a republic or a democracy, small d, you go state to state, all the delegates that are there, they decide, you know, what they think should happen, and then they get done and the republican elders and the party says, no, no, no, no. Thats not that doesnt pass muster with us and we know better because look what we did with mitt romney, we did john mccain. We did bob dole. Let us handle this. I dont think there are any republican elders who sort of come in and youre one of the elders right now. Am i becoming an elder . I think. If youre saying that, okay, are all are 34 35 to 40 of the people voting right now, are they just stupid . Are they hillbillies, are they bad people . Bigots . Racists or what . Let me say a couple things, joe. We did attract a lot of people to the party in recent years who had, as a distinguishing feature being antiobama and not necessarily aligned with republican views on lots of issues. Take trade as a great example. When you hear trump talk about trade, which these voters are responsive too, find me the words that are indistinguishable from the way Bernie Sanders talks about trade. This is with a protrade party. So there are very real differences with these voters. I am not saying theyre not smart. They have different views than where the party has been. But the party is not going to go out im not saying the party should go out and play tricks to try to keep trump from getting the nomination or being president. Im telling you very objectively that he has to go out and win if he is going to win and were allowed to fight him until we cant fight him anymore. If we disagree with who he is and how he would lead the country and whether we think he is the best guy to lead the country. There is still a race. We have the next six primaries, i think, will be very telling. Then, just as an observation from my experience, if i am now an elder, that republicans will lose to Hillary Clinton if donald trump is the nominee. I dont even think thats a hard question. Im not convinced of that, tony. You should be. Hold on. Hear me out for a second. The electorate has proven on the democratic and republican side, they are antiestablishment right now. That explains Bernie Sanders and donald trump. Is there anybody more establishment than Hillary Clinton . First of all, i would say its still a minority that are antiestablishment. Its not a majority that are antiestablishment. We havent seen donald trump break into the high 40s or into 50 in any of these races. He has got more than romney had at this point in the nobody has a majority when nobody has a clear majority when youre this early in the contest. Tony. Will you support donald trump if he wins the nomination . No. You wont support him . No. Here is the thing, joe. For me its not a hard thing. Right. I live in washington, d. C. Hillary clinton is going to win washington, d. C. , whether i support him or vote for him or not. Thats a copout. Am i going to help him . No, i will not help him. I could not in good conscience help this man become president of the United States. I have to live with myself, you know, after that. This is not a guy who i think certainly i dont want to be have him representing me. I dont want him representing my children. I dont want him representing this party. So no. I couldnt possibly help him. He will probably lose anyway, with or without my help. So you would vote for Hillary Clinton . No, i wouldnt vote for Hillary Clinton. I was in new york last week, and i saw i caught hamilton again. I was watching hamilton. And i thought, this is the choice that a lot of republicans will have. The choice that hamilton had was to support a Thomas Jefferson he disagreed with over aaron burr from a who he knew for a long time but he knew who had no beliefs. This is the choice that a lot of republicans are going to have, you either support someone who you have fundamental disagreements with over someone you know who has no beliefs and is very dangerous and would be dangerous for the country. I dont think there is any question in that. Look, by the way, there are other candidates out there who have a chance right now. I am not a big cruz guy but this is still a race and cruz is close by. So youre not going to vote if its trump and clinton . Trump versus yeah, ill vote. Ill vote in washington, d. C. , and ill either write in a vote or weve played this game. Every republican i know has played this game. Im playing it with you on tv. If its trump versus clinton, what do you do . Do you vote for her or stay home. Im not voting for trump. Will i vote for Hillary Clinton . I doubt it. I could choose to not vote for either. I am hearing two things from a lot of republican voters. One is they will either sit out the race or, two, they will make the decision to vote for Hillary Clinton because you cannot trust and believe in this guy. As a guy who is running on policies that are anti the views of the majority of identified republicans. I mean, even our own larry kudlow says trumps tax plan is pretty good. If you had to look at the policies of Hillary Clinton or Bernie Sanders versus even the who knows how the rhetoric changes when someone becomes the president. You have seen it apparently with the New York Times off the record, the talks about negotiations and changing positions. Yeah. I mean, in a world of anybody but clinton versus anybody but trump it seems like a republican would have an easy time of it deciding which side to come down on, tony. Look, i would love to argue i would love to debate this with larry too. I love larry. But you know i know larry has been a protrader. Limbaugh said the upside for trump is probably better than the downside. You saw michael good win talking about i dont think so. I think the guy is fundamentally, you know, unstable. I dont think he is someone who you can who anybody who says they think they know what hes going to be, they dont know what theyre talking about because he will change what hes going to be. We actually do pretty much know what first politician that ever did that. Here is a guy we have had a guy whose only private sector experience was as a Community Activist and a oneterm senator and youre worried about a guy who built a pretty Good Business. Really . Yeah, he did build a pretty Good Business . Which one . How many times did he come back from that . Take a look at some of that did you watch the trump doral or watch the Golf Tournament over the weekend . Its beautiful. Its a great golf course that he its a great golf course that he bought. He bought, improved. I dont know. I dont know. Any private sector experience is better than what weve had at this point. Im not i dont know whats going to happen. I love private sector. The people that are getting out and doubling and tripling the attendance at the voting, theyre responding to republicans like you, tony. Thats the problem. I am not saying i am the perfect spokesperson for theyre pointing at you as the establishment that theyre i know they are. The party has a problem. The fissure will be huge at this point. You know what larry says you know what the reality is, joe . The majority of republicans on issue after issue theyre more in line with me than the ones trump espouses. Its not even close. Even trumps voters even trumps voters tony, you used the word dangerous, for example. Larry says at that point, thats what they said about Ronald Reagan. Thats not fair. He says it over and over. Im telling you. We just came from the segment where we talked about nancy reagan. It was occurring to me how different and dignified Ronald Reagan was and respectful of people compared to donald trump. Its going to be a weird transition to go from talking about Ronald Reagan, somebody who was real respectful of people to someone who is so disrespectful of people. Weve been transitioning away from reagan. He wouldnt take his jacket off in the oval office. We know whats been going on in the oval office. Weve been doing downhill for a long time. Why are you laughing . I thought you were referring to the fact that president obama doesnt wear a jacket in there. I dont thanks. Weve had technical difficulties with tony no. With congress marinos camera. That was fun, tony, thank you. Well hope to have him join us soon. When we come back, the dow, s p and nasdaq now on a threeweek winning streak for the first time this year. Can the bulls continue to charge . Well ask bank of america, Merrill Lynchs dan suzuki when squawk box comes right back. At mfs investment management, we believe in the power of active management. By debating our research to find the best investments. By looking at global and local insights to benefit from different points of view. And by consistently breaking apart risk to focus on longterm value. We actively manage with expertise and conviction. So you can invest with more certainty. Mfs. Thats the power of active management. Welcome back, everyone. Oil prices this morning have been picking up ground once again. Last week you saw a big gain. Over a 3 gain over the course of the week. This morning a gain to 36. 38. In our headlines. Gasoline prices jumping 7 cents over the last two weeks. A gallon of regular averages 1. 84. The lundberg survey reports, despite the increase the price is still 70 cents cheaper than a year ago. Elon musks spacex successfully launching its rocket from Cape Canaveral on friday but it was unable to successfully land it on a floating drone ship at sea. This was the companys fourth attempt to land the rocket on the floating ship. It was largely expected. The flight was delayed four times since february 24th and is the second of more than 12 spacex launches planned for this year. It is rocket science, guys. It is. Its rocket surgery. It is. Brain science. Peyton manning ready to hang up his cleats. The story of his 18year career when squawk box comes right back. Can a business have a mind . A subconscious. A knack for predicting the future. Reflexes faster than the speed of thought. Can a business have a spirit . Can a business have a soul . Can a business be. Alive . Frank abagnale. Convicted felon and con man. That was a long time ago. You know, they made a movie about it. You were shown to be quite skilled at fraud. Times change. Now i help catch the bad guys. Me too. I help banks detect fraud by applying cognitive analytics to public financial records and social media. So if somebody said, catch me if you can. . We can. Lets do a sequel. It could be a buddy movie. I would like to have a buddy. In squawk sports news. You know this by now. Peyton manning decided to call it quits. Manning will announce that he is retiring today. Drafted number one by the colts, indianapolis colts, back in 1998. Manning is a fivetime nfl mvp, a twotime super bowl winner with different teams. He leaves as the alltime leader in passing yards and touchdowns. Had to be a nobrainer. I think elway went out after he won, didnt he . He did. He is the only other one who actually went out after a super bowl win. Both with the broncos. Must be tough, right . Yes and no. Did he cry . The last guy cried at the news conference. No crying in football. No, there is. There is crying in normal football. I cry a lot. I was a bengals fan. So believe me. I cried more than i laughed. They have such nice helmets. U. S. Futures pointing lower. The s p 500 logged its first fourday winning streak since october. The dow closed above 70,000 for the First Time Since early january. Joining us is dan suzuki. Senior u. S. Equity strategy to bank of America Merrill lynch. Do i see in here your s p 500 target for 2016 is 2,000 . Thats right. Were there right now at 1999. We were on friday, thats right. Are we flat for the rest of the year . If you think about why we took down the target. If you looked at the data a couple of months ago we were looking at steady deterioration. All the growth indicators out there to use ism as an example. Six consecutive months of declines. Ism hit the lowest for the cycle. The last thing we wanted to do was to sit and watch the data continue to deteriorate and then not react. What we wanted to do is recognize that the risk had increased. If you look at the data thats come out over the last couple months, pretty much every indicator has inflected by stabilizing or improving. The market oversold to the downside, i think, and now the reaction weve seen is justified by how bad sentiment was and how much the data has turned. I think the risks are to the upside here and were going to assess the target over time. I think basically the risks were increased and i think the risks have come down a little bit. You lowered the targets because of energy basically . Not where the averages will be but what the earnings estimates for the entire s p 500 are supposed to be . We lowered our earnings. A lot of it was driven by the fall in Commodity Prices and slower growth. Slower growth is key. If you look across every sector youve seen slowing in the growth rate. Were seeing every sector deteriorate in terms of growth. Health care, one of the stronger areas of the market, has seen the biggest change. Oil price is picking up. Thats led gasoline prices to jump seven cents in two weeks. How quickly does that turn the potential for earnings . Rex told us last week or the week before that it was last week that, look, he doesnt see demand out there on a global perspective, in the United States or around the globe. Yeah. It changes things a lot. I was talking about how the growth indicators have changed. The other big head winds to earnings in the market have been lower Commodity Prices and a stronger dollar. This year youve seen the dollar come off and oil prices have rebounded. What we have been saying for a while, and Warren Buffett was here on the show last week talking about this too. The negative impact of Lower Oil Prices in the near term trumps any benefit to the consumer. Over time for the economy, you know, Lower Oil Prices will turn out to be a greater benefit, but for the s p theyre much more geared toward, you know, positive earnings. Theres a lot of Commodity Exposure in that space. So, if you get oil prices continuing to rebound, that puts a lot of upside to earnings here. Okay. I think, for every 10 per barrel in sustained increase in oil prices, it probably adds a dollar or two to earnings. Thanks, dan. Dan suzuki. When we return. Former budget director peter orszag joins us. Squawk box will be right back. Thereby need to hire fast . Go to ziprecruiter. Com and post your job to over one hundred of the webs leading job boards with a single click. Then simply select the best candidates from one easy to review list. And now you can use zip recruiter for free. Go to ziprecruiter. Com. Here at the Td Ameritrade they work all the time. Sup jj, working hard . Working 24 7 on mobile trader, rated 1 trading app on the app store. It lets you trade stocks, options, futures. Even advanced orders. And it offers more charts than a lot of other competitors do on desktop. You work so late. I guess you dont see your family very much . I see them all the time. Did you finish your derivatives pricing model, honey . Td ameritrade. Hey hows it going, hotcakes . Hotcakes. This place has hotcakes. So why arent they selling like hotcakes . With comcast Business Internet and wifi pro, they could be. Just add a customized message to your wifi pro splash page and youll reach your customers where their eyes are already on their devices. Order up. Its more than just wifi, it can help grow your business. You dont see that every day. Introducing wifi pro, wifi that helps grow your business. Comcast business. Built for business. Welcome back to squawk box. Lets look at stocks in the news. Dupont shares rising following a report from some other place that late friday that basf was considering a takeover bid. It was bloomberg. I didnt feel like saying it. Dupont already has an agreement in place. They never say cnbc. To merge with dow chemical it looks like. Shares of Mentor Graphics falling this morning. Carl icahn has cut his stake. Shares of valeant you want to jerk around the teleprompter operator . Thats death. Getting a boost on news that the drug maker scheduled an Earnings Call for march 15th. Valeant delayed his Earnings Report while the ceo was on medical leave. He returned last week. Its tough to do to see that stock when it does go up, you cant tell because its down so much. We have to have 280 on the y axis. Even when it moves from its up 2 today. Up almost 4 . But you can barely tell because the y axis has to be so big. Its bouncing off some lows. Right . Here is your story again. The email guy. The father of modern email died. Ray tomlinson was 74 before he introduced the First Network persontoperson email in 1971 there was no way to send a message to a specific person at a specific address. At his speech to the internet hall of fame he said he knew what he was doing when he invented email but had no notion about what the ultimate impact would be. He also closed symbol to connect a user name and the destination. That clarifies that he is the guy who invented that. Who is in the internet hall of fame . Al gore . I hope so. He invented it. I have no idea. Ill look it up. I bet google is in it. Thats like pete rose not being in the Baseball Hall of fame if al gore is not in there. Dot org. Its a nonprofit. The Obama Administration says it will begin rating Health Insurance plans based on how many doctors and hospitals they include in their networks. Under the new rules, which are published tomorrow. Insurers will be allowed to sell health plans with a Narrow Network of providers. The rules also detail the maximum out of pocket for consumers under the Affordable Care act will increase. To our market news maker of the morning. Peter orszag joins us from washington. The former onb director. He will be joining lizard as manager director and vice chair of investment banking. Peter, its great to see you this morning. Great to be with you. Always a good way to start the week having joe talk about the y axis scaling. There you go. By the way, congratulations. We havent talked to you since the new job announcement. Congratulations. Thats great news. Thank you so much. Thank you. How big was your raise to go there . I knew it hes going to tell us on national television. Thanks, joe. Nice to see you too. Just say really big youre well compensated but certainly not paid what youre worth in my view, peter. Absolutely. Huge i bet it was huge. Huge peter, lets talk about the economy. This is the issue we have been trying to get our arms around. Sure. The numbers from the jobs report on friday were good numbers. Wage growth was a little weaker than expected. We keep trying to figure out if were on the verge of a recession or if were really pulling out of things. What do you think . It doesnt look like were on the verge of a recession, but were will go not growing, you know, at gangbuster rates. We are where weve been for a while which is a metsa, metsa. Decent, not great growth trajectory. And on the wages, we need to worry a little bit. The survey fell at an unusual time, and that may have been affecting the wage numbers. We have been, over the past few quarters, at least, seeing some wage pickup and i expect that to continue especially if we continue to see these kinds of job numbers. Lets talk about whats happening around the globe. Central bank still playing a very large role in whats happening in the economy. The bank of International Settlements is just out. It says that its very concerned about negative Interest Rates. It doesnt want to see Central Banks continuing to push this. We do have an ecb meeting this week where its widely expected that well see rates move even lower, further below zero. What do you think about negative Interest Rates and what impact does it have on us here in the United States . Well, here is the problem. We have this has been a problem for a few years now. We have stultified kind of stuck fiscal policy. So were putting too much pressure on monetary policy, which is trying but fundamentally cannot do the job. What we should be doing is a much more aggressive fiscal policy. Thats one of the things were talking about here at this conference. The longterm fiscal picture for the United States, for example, has improved dramatically over the past five to seven years, in large part because Health Care Cost growth has come down substantially. There is much more room to be aggressive now than we thought even a few years ago, and yet were not doing any of that. When you look at the political landscape, though, i dont think its very likely that anything gets resolved anytime soon. I agree. But the point is the sub on the merit, look, most recent data we have medicare spending this fiscal year up 1 nominal. I mean, these are unbelievably low numbers. The debt to gdp ratio in 2040 has fallen in half since the projections from 2009. And i agree with you. Political polarization means we are not capitalizing on that opportunity. There is a big opportunity. It is true that that set of facts is coexisting with very bad roads, very bad airports. My 11 00 train just got canceled. Lots of infrastructure problems in the United States. We should be able to fix it now, and that would give a bigger boost to the economy than anything the fed or in other countries the relative relevant Central Banks can do. We are not doing it. Its a political problem. Not an economic one. Well look to the Federal Reserve again. Next week the fed is meeting. If we see the ecb come out this week and lower rates further from what theyve done, what does that do to the fed . Any chance you think theyll possibly raise rates . Well, i think its pretty low chance that the fed will raise at this upcoming meeting. And youre right that an ecb action would just reduce it further. But i dont think its very likely in any case. Well be hearing from stan fisher later this morning at this very conference. Perhaps hell provide more insight into that. I think, given where we are and the risk to the global economy, i think its very unlikely the fed will be raising at the next meeting. All right. In part because we havent really seen the full wage increases, the point you were making earlier, the most recent wage report, even if it is subject to a statistical flaw, was not inspiring. Decline of 0. 1 when the street was looking for a gain of. 2 . One of the topics you wanted to talk about is the growing gap in Life Expectancy and what it means for both Social Security and medicare. This is a great day to talk about it when on the front page of the wall street journal we see the story about European Pensions and the huge pinch theyre facing. It sounds like theyre in more dire straits than the United States is. Where do you think we stand . Well, this is something that i think is going to get a lot more attention. We spent a lot of time talking about income inequality. Life expectancy inequality is exploding. The reason the average is going up is that Life Expectancy is going up for higher earners and its flat to down for lower earners. For Social Security and medicare it makes them less progressive on a lifetime basis because the higher earn es get the benefits over a longer period of time. That will have to play a role in the debate over inequality and over the discussion about entitlement reform. You cant take the typical argument, Life Expectancy has gone up by x years so the retirement age needs to be raised by y years. You cant do that because there is so much dispersion over whats been happening one layer down. You mean the jobs people do and can continue to do . What do you mean by the dispersion . The dispersion in Life Expectancy. Literally at the top Life Expectancy is going up by multiple years per decade, whereas, as the bottom its flat to down. Very dramatic differences. So the gap in Life Expectancy between someone who is at the top of the education or earnings distribution, at the bottom, which was always there, is just exploding. Not to mention that its easier to stay at your job if youre at a desk and you can do the job maybe into your 70s. If youre out doing road construction. Pretty tough to do beyond 68, 70 years old. Theres probably 10 to 20 of the work force that are in physically demanding jobs where its difficult to continue working into your 70s. Peter, thank you for joining us. Always great talking to you. We hope to see you back here in new york very soon. Sounds great. Thanks for having me. Coming up he is. Al gore. He is. He is in the internet hall of fame. Inductee in 2012. One of the first classes. I wrote bills he recognized that to fund. He recognized it before almost any other politician. So he i dont know whether he created the internet like he like he actually invented climate change, but he did very close to it. I give him more contract for inventing climate change. Yeah. Literally. Hes got a lot of imagination. Coming up, celebrating the life and legacy its C Nancy Reagan next. Larry kudlow our special guest next. Opportunities arent always obvious. Sometimes they just drop in. Cme group can help you navigate risks and capture opportunities. We enable you to reach Global Markets and drive forward with broader possibilities. Cme group how the world advances. Former first Lady Nancy Reagan has died at age 94. She was one of the most highprofile and influential first ladies of the 20th century. Joining us now Michael Beschloss president ial historian and larry kudlow. You have seen a lot of coverage, michael. What can you add for us this morning in terms of perspective . Well, i think one way of looking at nancy reagan, joe, is that this is the case of a first lady Ronald Reagan had many great qualities that we all know of, but one of them was not being a terrifically shrewd judge of everyone who was around him. Nancy reagan he knew always had his back. The more we learn about the reagan presidency there were crucial moments in which she said this is someone who is being underused or this is someone, ronny, who will really not do the job for you. She brought a lot to that presidency and that was not the only way. He had a will rogers sort of attitude about, i never met a man i didnt like. And maybe at times he maybe was too trusting and couldnt see someone that didnt have his best interests in mind, and she always had his best interests in mind. I think thats right. And the classic case is donald regan, his chief of staff in 1987 was Ronald Reagan was getting a lot of reports from people around him that regan was what jim baker, the later secretary of state would say he was paddling his own canoe, not necessarily paddling for the president. It was nancy reagan who stepped in and said to the president , youve got to fire him and she essentially did the deed. I always thought that switch where they moved jimmy baker to treasury and don regan to chief of staff it was just i worked in the first term. The switch occurred afterwards. I always thought it was a lousy idea. I just thought it was a lousy idea. I agree with michael that nancy had pretty good intuition about people. Up or down. I just i mean, i was not in her circle at all. But just a quick anecdote for me personally. In the 2000 Republican Convention which was in philadelphia, okay, there was a big reception for mrs. Reagan. The whole reagan crowd was there. My wife judy and i were there. She worked in the white house too. Were on the reception line, you know. We dont know her. We just want to shake her hand and something. And we do. I say, hi. Im larry kudlow. My wife judy. Here is what happens. She is holding my arm and says to me, oh, larry, thank you for defending ronnie on tv all the time. And im like, whoa whoa and then we move on the line, and i turn back to judy and said, did i just hear that right . She says, yes, you did. My point is, apart from the fact that it was a great thrill for me believe me, it was a great thrill she just knew stuff. She knew stuff. A lot of anecdotes like that. She kept track of what was being said on tv, what was being written in the newspapers. And the biographies. My pal craig, a reagan biographer, had a similar experience with her. I just loved it. The other one real quick, the reagan centennial in 2011, his 100th birthday, et cetera. One of the g. E. Officials called me and said, would you be ready. Mrs. Reagan is going to call you. I said, oh really . I thought it was a ruse. A minute later. Larry . It was nancy reagan. Whoa she asked me would i comoderate with Andrea Mitchell the centennial thing . Did you go out to simi . No. I went to simi with g. E. He was a spokesman for g. E. At one point. Exactly right. G. E. Had a relationship with the family through the years. I said, of course. I would be honored. I was honored. It was an amazing event. They asked me to do it with andrea and i had more fun than you can possibly imagine. And i did talk about the reagan program. Beautiful place. Lee greenwood was there. Garysinise. She was there. I think she was frail even at that point. I remember seeing her out looking at i didnt get to meet her but there were shots of her in the wheelchair looked outside at the one plaque. The thing is, joe, that she knew stuff. She kept track of stuff. Really, in her later years, it was all about preserving and enhancing president reagans legacy. Thats really what she did. Phenomenal. Absolutely phenomenal thing. Thats what really what you know, she was the keeper of the flame. Then when they had the new Michael Michael is not there. When they had the new information. Sanderson and anderson and others found all his pads, yellow writing pads in boxes that they hadnt even looked at. When all that information came out that he did his own writing and radio stuff, he did everything, it changed the whole impression of reagan. Up until then, the media, the msn as we like to call them had this, oh, he wasnt very smart. Oh, it was these other people around him. Dunce. Michael is back. Michael, i always thought that nancy, in the last lets say ten years or so, okay, one of her principle, if not the principle things she did was preserve the president s legacy and enhance it, number one. Right. Michael, when they discover the papers in boxes, yellow pads that he was writing on, that was such a huge change in on, that was such a huge change in reagans impression. People looked at him differently. Nancy was a great, great supporter of all that work that the andersons did. She was. She was also really good at it. Larry, the experience you said of her calling you and knowing what she said, almost all of us had experiences like that. She was this good at it in the postp postpresidency, you have to assume she was doing the same during the white house years. You were talking about jim baker earlier. Its like a moment in leadership studies. 1980, president reagan is elected. Theyre looking for chief of staff. Some people say you should choose jim baker. Another person might have said this is the guy the head of george h. W. Bushs campaign to oust my husband. She got information on him. Saw how good she could be. She set all that aside. Jim baker, as you well know, had so much to do with the success of that first term. Okay. Larry, thanks. We have to go. Michael, thank you. Jimmy baker got michaels right, nancy pushed him. Jimmy baker got the job done. People forget, it wasnt so much about ideology. Baker was a conservative guy. I knew him very well. Basically worked for his wing in the first term. He just got stuff done. That job of chief of staff is a brutally difficult job. I think mrs. Reagan had a sixth sense and she was dead right. Larry, thank you. Any time. When we come back, jim cramer joins us from the new york stock exchange. Squawk box will be right back. Okay, so you launched your banks app. Now what . How will you keep up with the new demands of todays Digital Economy . The fact is some believe they wont need a Traditional Bank down the road, so at cognizant, were helping banking and Financial Services Companies Think digital, be untraditional, and reimagine what the bank of the future can be. Our clients can now leverage customer intelligence to predict their financial needs and provide more contextualized products and services. Were creating new platforms across channels so customers can effortlessly invest, borrow, lend, transactwhereverwhenever they choose. And were digitizing the way banks run, driving efficiencies and delivering new value for their customers in return. Digital works for banking and Financial Services. Lets talk about how digital works for your business. Lets get to the new york stock exchange. Jim cramer joins us now. Jim, i guess were all looking at europe again this week. Listen to what happens, were still fixated on whether the fed moves or doesnt move. Its a good jobs report that should carry through. The transportation average looking better. Commodities bouncing a little. Isnt this sort of setting up for a sustained move . You dont think so . No, i do. I think its real. I think its real because a lot of the worries about a credit crunch seem to end. But at the same time wages are not flying up. I like this pullback. Weve seen some choppy stuff. Look at transocean, some of these oil companies, gigantic equity openings, theyre all top heavy to me. The coke colas of the world, the general electrics, they can pull back. Great opportunity to buy them. We had some people earlier, in a world of negative Interest Rates, when the rest of the world is that sort of close to stall speed, can we do it on our own . We used to be able to. I still think we can. I was looking at the ford numbers that came out today, they werent that great for february. Postchinese new year. Still good for the year. I look at gm, that stock seems to have been done going down. A lot of industrials based here and selling overseas are doing well. Im much more positive. If you had to pick your overall winner in the brackets today, who would you tick . If you had do it today before the tournaments . Who would you pick . Geez. I do have to pick unc . Would you really . Yeah, i think so. Theyre peaking. I know. And nova is just there again. Well see this week with the big east. Yes. Hopefully xavier and nova will get to play again in the finals. And georgetown. They cant make the n. I. T. But they still try to be in the ncaa. Stocks on the move when squawk box comes right back. 2 back at the grocery store. And 3 back on gas. Vince of the flying branzinos got a bankamericard cash rewards credit card, because he may earn his living jumping through hoops, but hed rather not earn cash back that way. Thats the spectacle of rewarding connections. Apply online or at a bank of america near you. Aflac. Ohh ah ah aflac aaaaflac tadaa hes not a very good magician. He paid my claim in just one day. One day . shh how does he do it . In just one day, we process, approve and pay. One day pay, only from aflac. Shares of Reynolds American is rising. That does it for us today. Join us tomorrow. Michelle, thanks for being here. Pleasure. Watch 1 00 to 3 00. Am i chopped liver . Good monday morning, im car carl, jim cramer is back. A big weekend in china as they trim their gdp target. An important week for europe as the ecb meets on thursday. Not a lot of macro data this week, watch oil up to 36 after the best week for west texas since august. We begin a big week in politics. Everything you need to know and jo h