Transcripts For CNBC Squawk Box 20170413

Sliding along with the u. S. Dollar. The u. S. Dollar is at a fivemonth low because of the interview President Trump gave setting the dollar is getting too strong, and i like low Interest Rates. Well talk much more about this. The dollar is stronger now against the euro. 1. 06 against the euro. Weaker against the yen. 108 yen for the dollar. On todays mick ageeconomic, look for reports on weekly jobless claims Producer Prices and consumer sentiment. Markets are closed tomorrow for good friday. But its not a federal holiday. So the government will release data on retail sales, Consumer Prices and business inventories. Ill roll up to my office in my house, report the news on my video camera. The banks will officially kick off earnings season this morning with results from jpmorgan, citi group, wells fargo, and pnc financial. Wi Berkshire Hathaway is selling 9 million shares from its stake in wells fargo. Berkshire says the sale is not tied to the banks sales scandal. It is selling the shares to keep its stake at 10 to avoid additional oversight by the fed. It will keep selling to stay below that threshold. This has been a longrunning issue for berkshire, as it has stakes in certain businesses, especially banks. Gets over 10 , then theres potential for more oversight of your own institution. But its special in the banks. Yes. Because they will then become under fed oversight. I will speak with michelle who has to bristle at this notion of government oversight Berkshire Hathaway would face more regulation from banking regulators, simply by owning more than 10 of the bank. Bingo. This goes back to the whole idea that an industrial should be separated by a financial stug. T institution but this is not a 2008 law. Its older. So at 9. 8 theyre not covered, 10 they are . Regulators have to draw the line somewhere. A little bit of tech news this morning. A secret apple operation has been revealed, not so secret anymore. Sources telling cnbc the company has hired a small team of biomedical engineers to work as part of a secret initiative to develop sensors to monitor blood sugar levels to monitor diabetes. The efforts have been going on for the last five years. Tim cook has not made reference to this group but has talked about some of the biotech stuff that hes always thought the watch and other devices could do. Accurately measure glucose levels without piercing the skin is considered the holy grail of life sciences. An update on the pr crisis at United Airlines. Lawyers for the passenger who was drawing dragged off that fl sunday have filed an emergency request to preserve video recordings and other things related to the incident. United said yesterday it would issue refunds to all the passengers on that flagt. President trump commenting yesterday in an interview with the wall street journal saying it was horrible that the passenger was dragged off the flight. He said there should be no upper limit to incentives that carriers can offer passengers in exchange for the seats on overbooked flights. Two mentions. David serroto from International Business times. He has done some work over the past two days looking at all the money that United Airlines has spent over the years lobbying and campaign contributions, effectively to block state and federal rules aimed at protecting passengers. So united has a long history of trying to prevent new rules going into effect that would prevent things like this. Regulatory capture. I know this is yesterdays news. Have we figured out is it really a maximum they were offering or were they free to offer more . My legal read, counselor sorkin, suggests it is a minimum. My legal read or corporate read is thats their excuse to say this is the maximum. But its not really a maximum. Its not even relevant in the story, they never got there. They never got there. The question is why not . Could they have solved this by saying heres another 50067. Heres another 500. Yes. Gordon bethune said youre not allowed to. Youre not permitted. We have mr. Crandall on from american. I want to talk about the interview yesterday in the wall street journal. Before i do that, i want to remind everybody that what is normal here. A quick reality check here. President s rarely if ever talk about Interest Rate levels or the level of the dollar. And then theres donald trump. In an interview just released yesterday, the journal he told the journal the u. S. Dollar is getting too strong and its hard to compete when the dollar is strong. The dollar immediately fell on the news. The decline not that big. 100. 75 down to 100. 25. Definitive. It was sharp enough. Didnt everybody know this was always his policy . Hold on a second. Lets get to the rest of it well come back to the totality of what was said. The president also said he would not label china a currency manipulator. That report is supposed to come out this week. That reverses a significant campaign promise. President trump acknowledged what many have been saying for a long time that china has not recently been manipulating suei currency. He added labeling china a currency manipulator would be a setback. Chuck schumer, according to reuters, responded saying a lack of real tough action on trade with china is what she shows. Trump says he is undecided on renominating fed chair janet yellen. Trump says he likes and respects yellen and its too early to decide. He said shes not toast. Now, lets play for you what the president said on cnbc about janet yellen in september o of 2016. Shes keeping them artificially low to get obama retired. Watch what will happen afterwards, its a serious problem. I think its political. I think shes very political. And to a certain extent i think she should be ashamed of herself. The president said he likes low Interest Rates as well. The tenyear yield fell. Thats a decent move, six basis points. To me the broader story is this broader reversal of Campaign Promises from the president. Yes. Let me finish here. Hes reversing course, as i said, like a captain running from a squall line. As fast as that. But also tacking back to the center on nato, on xm bank, on china being a currency manipulator. How concerned should we be that hes changing course . I dont really care what he says . Syria . Syria reversing course, back to where the establishment really was and what was considered to be the better option here. How much do you care, andrew . I always thought okay. I think this is a president who is learning good. For better or worse what the realities of the world are. That theres one thing you can say on a campaign trail that you may think are possibility. Maybe he genuinely believed those things. The only difference is, every president comes in and reverses course. Very few have such extreme comments in the campaign. So the tact to the center is looks extreme. Much more extreme. The question is, heres the thing that matters for other viewers. Does it matter for tax cuts, does it matter for business deregulation . I would argue that the business groups like him tacking to the center. But what does it say about the future of some of these other things that matter more. You tell me if you think the Freedom Caucus or the altright theyll be upset about the xm bank. Making life that much more difficult. Thats not a huge deal. In the grand scheme of things. It is for the hardcore base. It is absolutely. And if you keep steve bannon in the white house. Keep your enemies close is he an enemy now . If steve bannon gets booted. If hes on your wrong side . If you dont think if he gets booted, then the game becomes much more complicated for you. Are these reversals a sign that bannon is on the wane . Thats the tea leaf reading going on here on squawk box and the newspaper. I think we have somebody who may be able to talk to us. We have somebody who can talk about that. The president also said that nato no longer is obsolete after saying it was obsolete. Welcome kayla tausche, our tea leaf reading expert in washington. We expected the president would express some sort of public support for nato after privately saying to allies that he does support nato. Hes committed to it. Yesterday he made a public aboutface on it. The secretarygeneral and i had a productive discussion about what more nato with do in the fight against terrorism. I complained about that a long time ago. They made a change. Now they do fight terrorism. I said it was obsolete. Its no longer obsolete. Perhaps the clearest and most succinct of trumps recent moves to the center and rebukes of Campaign Promises in order to appease businesses and the International Community, as you guys were just discussing, his 100 day plan says in writing he will lablt label china a currency manipulator, and now wont do that. For the second time this week, hes backing away from steve bannon in that wall street journal interview calling him a guy who works for me. Markets have been focusing on geopolitics. Rex tillerson was in russia this week. Congress has a budget deadline of april 28th. They have to decide to keep paying obamacare subsidies to insurers. Those run out at the end of may. Trump suggested to democrats he could end them to get to the negotiating table that could change where we are in the healthcare discussion. And the Administration Says that will have to combefore tax e be reform. P kayla, what about the idea that democrats actually struggle to criticize the president now along some of the flipflops, meaning they can criticize him on the flipflop itself, but they cant actually criticize him on the merits of the flip. The policy. Because its where they wanted him to go. Right. One of the hardest things both for members of congress and the ceos is the president is far from an ideal loog. You dont know which is right for discussion or which stuff he feels strongly about. It appears everything in tax reform and healthcare is up for discussion. Thats why its been so give cult to get a read on how some of this policy will shake out and why democrats cant necessarily criticize him. Because they support a lot of positions hescally supporting. Can you give a tea leaf insight into bannon. He has had a huge influence over President Trump and the white house, especially when it came to how they approached healthcare policy. There is a view that if he were to leave the white house on friendly terms, that might make the president s life more complicated, in part because i think bannon convinced the president that it was the bannonright, if you will, that helped get him elected. But its causes trouble for him within the west wing. Even though he 5 nol less that acknowledges some of those policies helped him win, he wants to have more wins than just getting neil gorsuch appointed to the supreme court. He doesnt have much to go on right now, though some recent wins geopolitically he could put in his pocket. Theres been a lot of coverage about his frustration that bannon was called president bannon or the mastermind behind his campaign. He wants to own some of that stuff. After this ceo meeting on tuesday, i asked Steve Schwarzman what was bannons role in that discussion. He said it wasnt really about economic nationalism. It was about how companies can run Large Businesses and do so well. Andrew your conversation with kayla helped me answer the question earlier, that is what does this all mean for tax reform and deregulation. The only thing that matters is the power of the president. Right now in terms of polling, the president seems to be weak. Amongst democrats. Over a third of the country is independent. Hes not strong among independents. In terms of the half of the country or twothirds of the country thats democrats and independents, hes weak in that regard. He also is not strong, i dont think, in washington right now as evidenced by the house Freedom Caucuss actions on aca. He is not able to twist arms. When i look at the reversals, my question to kayla is does reversing on nato, on china, have any bearing at all on his ability to put through domestic policy . Steve, on those two issues that you named, theres a collective sigh of relief. Because there was a fear of the unknown. How does the International Community react if, in fact, the president did deliver on those. But i think the Freedom Caucus, the chair has been saying for a few weeks he stel believe he sty can get something negotiated. But the president is identifying those obama care subsidies that would run out on the 22nd, and they would stop making payments to Insurance Companies saying if were going to participate on these exchanges, we need some money back. If that machine runs out, that would be a gut check and a way to get some votes that they say they want. The Freedom Caucus has made it clear they could get a deal done. Kayla, thank you very much. Lets check on the broader markets. Joining us now karen cavanaugh, Senior Market strategist from voya. And also on the dollar, Boris Schlossberg from bk asset management. Boris, im the first go to throw out convention if it looks like a good thing to do. Is there a reason that makes sense as to why a president should not be commenting on the dollar or interest better for the markets or is it okay for the president to make these comments . Convention goes out the window period for a trump presidency. Its always been its always been history that the president is supposed to stay above the fray of the markets what is interesting about donald trump, because hes a businessman hes more in tune with all the markets than the prior president s before him. My question is right. Should we not be talking about it . Is it okay to be talking about it . In the end, i dont think it matters. We had a bump in the dollar, but ultimately its not what he says, its what he does that matters. He acknowledged that in his own trumpian way saying the dollar is stronger. I will tell you one fascinating thing about this. Man, did he clamp down on the japanese. The japanese the dollar yen is below 1. 10. At that level the japanese usually comment its too volatile, but not a peep so far. Everybody is on their tippy toes as far as the rest of the world. Thats very interesting. Karen, what about you and your view about how those comments yesterday affect the outlook. Does the idea of potentially reappointing chair yellen, does the idea that the president says he likes low Interest Rates change your outlook at all . Not really. If anything, i think him meanting about the dollar was just showing that he knows that some of the companies and internationals are struggling and they dont want a strong dollar. I dont think it means anything. I dont think it means anything for earnings or the or if he does reappoint janet yellen, thats good. But i think the economy will move on based whether he does actual policy changes, like tax cuts. Earnings are moving ahead because companies are just moving ahead. I dont think it was that significant. I think it did show he was thinking about what businessmen are thinking about, and there is the fear that the strong dollar will derail earnings. We have not seen that so far, but it shows hes a businessman. Youre okay with him making comments on Interest Rates and the dollar . I am. I think it shows hes thinking about everybody out there doing business internationally. I think that little movement, i think it will be negated. I dont think it will be longterm. It was a kneejerk reaction. He should look more, instead of the dollar, he should be looking at the yields. He should say i want a higher yield. Thats a proxy for growth. Boris guys, if you could go to the intraday on the dollar. Is that a big move . Is that a move that doesnt register . No. When it first happened bring up the twoday or the 24hour chart. Put this in context. The market reacted. Guys, all in all, it was a 1 move. Okay. Its not a huge move. Much more important point, its not a continuous move. The euro coming back. There are factors at work outside of donald trump that make the dollar strong. Namely the French Election. Everybody is on egg shells with the French Election. Its hard to see the dollar really webbingakening against t euro before the French Election. Aside from that, the dollar is actually coming down because of yields. He wants to have low clevelands, its goiyields, its going to be hard. He can influence policy by deciding who will end up in that position. Thank you. Thanks, karen. Thank you, boris. Coming up, how companies ensure theyre providing excellent customer service. An insidelook at secret shoppers. Is that person really a customer or someone spying on you to make sure youre doing a good job . Later, jpmorgan expected to kick off earnings season. Well bring you the results and reaction on wall street when squawk box comes right back. Think again. This is the new new york. We are building new airports all across the state. New roads and bridges. New mass transit. New business friendly environment. New lower taxes. And new University Partnerships to grow the businesses of tomorrow today. Learn more at esd. Ny. Gov [ [ screams ] ] [ shouting ] brace yourself this is crazy [ tires screeching ] whoo boom baby rated pg13. [ screams ] were playing that song for a reason. Welcome back to squawk box. Time for the executive edge. How do major brands like the four seasons and Kimpton Hotels make sure people are getting topnotch service . Secret shoppers. Kate rogers has more. Secret shopping is big business for jim coyle who has been running coyle hos pi ppita group since 1996. They have 30,000 secret shoppers reviewing everything from highend dinners to stays at Kimpton Hotels and celebrity cruises. Heres what hes looking for. Salesmanship, the quality of the welcome, the quality of the goodbye. Did you really feel like you were sincerely thanked for your business. Thats the difference between a really good new york city restaurant and one thats doing okay when guests leave feeling that emotional connection to the brand. Coyles shoppers or evaluators are doing 100 reviews a day making anywhere from 50 for a dinner to 1400 for a cruise. Secret shoppers also is hard work. They have to write detailed reviews, sometimes thousands of words long and are scored. If an evaluator were to say i walked into a restaurant and the hostess was aloof. That aloof is a good term, its descripti descriptive, but not construction or actionable. So the manager cant go back to the hostess and say you were aloof last night, how i do fix this. Coyle said men are far less detail oriented when it comes s to describing servers. How i do become a secret shopper . Seems like a good deal. If i can go to dinner, some fancy dinners fror free. And get paid to do it. I would be happy to write up a little 56r7b8g 5,000 words . He said some of these secret shoppers act like journalists. Sometimes theres thousands of questions you have to answer. You have to take these notes, doing it during the dinner so you remember it later on. What should the person have said instead of aloof . To use new york city as an example, sometimes its by design that the people working the front door are aloof. Cool. It would be better to have said i think exactly what happened during your interaction. Where do they find these people . If im not allowed to do it . Youre allowed to do it. She got his number. Im just saying, its a freelance kind of thing anybody can apply online. You get evaluated yourself on a 20point score card. Basically the people who have done this more, they get the better and better assignments. He said the typical secret shopper is between 30 and 50 dual Household Incomes and someone going on one of these high experiences, going to a nice dinner or a cruise. Because you cant afford these things . Thats why you need these things for free . Cheapness. Im cheap, too. Shouldnt you be talking to the manager . Somebody criticized romney for being cheap. I thought it was one of his best qualities. President trump telling ceos he wants to overhaul the doddfrank rule for banks. Steve stivers will join us to weigh in. Rays always been different. Last year, he said he was going to dig a hole to china. At t is working with farmers to improve irrigation techniques. Remote moisture sensors use a Reliable Network to tell them when and where to water. So that farmers like ray can compete in big ways. China. Oh. He got there. Thats the power of and. Its been over 100 years since the first stock index was created, as a benchmark for average. Yet a lot of people still build portfolios with strategies that just track the benchmarks. But investing isnt about achieving average. Its about achieving goals. And invesco believes doing that today requires the art and expertise of highconviction investing. Translation . Why invest in average . Welcome back. Youre watching squawk box live from the Nasdaq Market site in times square. Good morning. Welcome back to squawk box, live look at times square. A little cart outside, people getting some breakfast. A look at u. S. Equity futures at this hour. Red arrows. The dow looks like it would open down. Close to 54 points down. Nasdaq down about 16 points. S p 500 looking to open down as well. About 7 points off. We talked so much about the tenyear yield. The flattening of the yield curve. Lets show you whats going on. 2. 220 at this moment. President trump telling ceos this week that reform is coming to wall street and the plan to dismantle doddfrank will become reality. Joining us now with some of think thoughts from capitol hill, congressman steve save ti. Thank you for joining us. Good morning. Help us understand what you think the realistic timeline is and what you think the impact will be of whatever the not the repeal and replace but the shifts for doddfrank. Its going to be reform. And the bill is called the choice act. Chairman hensarling of the Financial Services committee will reintroduce the choice act probably in the may time frame. I expect it to move through the summer in the house. And get to the senate. It will take 60 votes in the senate. Well probably see some changes from whatever we pass in the house. Its not 100 prenegotiated with everybody. Its a chance to really get the capital back in the hands of people that want to create jobs. Right now under the doddfrank regime, billions of dollars are spent by middle market and Community Banks to comply with a bunch of regulations that frankly should not pertain to them. Thats billions that could be in the hands of people that want to live their American Dream by buying a house, by starting a business, so it really will make us what is it about the bill, does that mean it excludes the Smaller Banks or is it changing the rules . What is in the choice act . One of the major provisions creates a Capital Requirement that says capital can be a cushion. If you have a certain capital level, last time it was 10 , you can use that to consider yourself complying with a lot of the other regulations. Because, as you know, can tall thats for all banks . Small banks . It would apply to all banks. The bigger banks, as you probably know, probably wont be able to get to that kind of cushion because, you know, 10 capital is a lot. Youll probably see mostly Community Banks get there. And the number may change. But it was 10 last time. Well see how the draft works. Just so i understand, thats in exchange for less regulations. So higher regulations, less regulati regulation. Got it. Thats one of the big pieces. Congressman, what is the fate of the cfpb . So, i expect what we will do on the Consumer Financial Protection Bureau is change the structure so its a Commission Like almost every other financial regulator. And we will put them on appropriations. Today theyre like the worlds most Dangerous College kid, all they have to do is send a letter to the Federal Reserve saying send more money, the Federal Reserve has to send them a check. Theres no accountability. Every other part of government comes through the appropriations process. Its one of the main constitutional checks and balances that our Founding Fathers set up. Congressman, i dont know if you had a chance to think about this morning the interview the president gave to the wall street journal. Do you think its appropriate from your congressional viewpoint for the president to be commenting on Interest Rates and the dollar . Normally the Federal Reserve chair talks about that kind of stuff and the president doesnt, but this is the first time we had a president that is so intimately involved in the markets, probably understands the markets better than any president before him. So i dont think its tradition. Theres nothing that says the president cant talk about it. Obviously we need the president focused on big things. We have big things we need to do. We have a lot of work ahead to reform our tax code, make it competitive with the rest of the world to rightsize regulation, make sure were there for safety, wellness, but not overburdening businesses with a bunch of red tape. Were working on that agenda. Congressman, related to that, the president we were just commenting in the last segment, has flipflopped, if you will, on a number of economic issues, things that he fledged or campaigned on that hes now changing his view on, whether its nato, or manipulation of the yuan in china and elsewhere. Does that impact his influence or change how hes able to influence policy in a good or bad way in washington right now . It shows hes willing to listen. One of the people earlier said republicans dont support the Export Import Bank. I want to set the record straight on that. A majority of the House Republican conference voted to reauthorize the Export Import Bank a couple years ago. So, that its not fair to say republicans dont support the that it is fair to say its controversial, right . It is crony capitalism in their view. Youre allocating taxpayer dollars to something that private industry would not. Why should the taxpayer bear that burden when everybody is so upset about too big to fail, why would you do that with this other stuff . It is controversial among some people. But i will tell you in a trade war, i would never want to disarm 120 countries that have credit export facilities. Ours ma more restrihas more res any across the world. It makes business competitive. Im a proud supporter of the xm bank. Its not crony capitalist. Thats a few of my colleagues letting their vitriol getting ahead of their brain. I completely disagree, because so many people around the world are forced to put their money into questionable products all over the world that dont work out doesnt mean we should be doing the same thing. I believe that we have checks and balances on our Export Import Bank. And frankly, you know, people say that it costs dollars. It actually generates a net profit for the government. Thats not the point. Okay. Maybe its not your point, but its what you said earlier, its generating a profit, and the point is it makes American Business competitive abroad to create jobs here at home. And in a trade war, if you believe we should disarm in a trade war, you can have that opinion. I dont think we should, because my Small Businesses in ohio want to create jobs and want to be competitive, wanted to create things here and export them to the rest of the world. Are we in a trade war right now . Every day Small Businesses are in a trade war for customers all around the world. That is the trade war im talking about. Its a war for customers all around the world. When other countries have export Credit Facilities and we dont, then our companies cannot compete. Whats your view of the border adjustment tax then in that context . My problem i have some concerns about the border adjustment tax. I would love to see us do something to make america more competitive. But when yyou charge i happe to go to the Ohio State University Business School, but you dont have to go to Business School knowing charging a domestic manufacturer 20 of the net and a foreign manufacturer 20 of the gross is not the same number and not w. T. O. Compliant. We have to get to jpmorgan, im sorry. Hold on for one second. Well do the earnings and come back. Since were talking about earnings. Jpmorgan beating, 1. 65, also revenue beating as well. Well get to wilf in a second. Congressman, we should thank you. We have to run. I wanted your views on glasssteagall. Come on back. In the mean tile, wilf has that report. I havent got much more than what you just flashed. Eps, 1. 65, the consensus was for 1. 52. A big beat there. Revenue, 25. 6 billion. The consensus expectation was for 24. 9 billion. Just on the front page, looking at the loan growth number, plus 9 core loans year on year, plus 1 quarteronquarter. Looking more like plus 1 and plus 2 in terms of the youreonyeyour yearonyear number. Well dive through the rest of the numbers and get back to you shortly. Thank you for that well have much more reaction to jpmorgans results still ahead. As we dig through that report, marty mosby will join us at the top of the hour and talk banks and what it means to the economy. Its okay to favor one set of industries with the Export Import Bank but not when it come look to me as your foil this morning. Coming up, the lawyers for the passenger dragged off that flight shocked, he got lawyers. They will hold a News Conference today. Well talk to former American Airlines ceo bob crandall about uniteds pr crisis. And later, susie wel welch interviewed Bill Belichick. Thats coming up on cnbc. Brian, i just need to know if the customer app will be live monday. Can we at least analyze customer traffic . Can we push the offer online . Brian, i just had a quick question. Brian . Brian. Legacy technology can handcuff any company. But yes is here. Youre saying the new app will go live monday . yeah. With help from hpe, we can finally work the way we want to. With the right mix of hybrid it, everything computes. With e trades powerful trading tools, right at your fingertips, you have access to indepth analysis, level 2 data, and a team of experienced traders ready to help you if you need it. Its like having the power of a trading floor, wherever you are. Its your trade. E trade. Start trading today at etrade. Com welcome back to squawk box. Wilfred frost is continuing to dig through the jpmorgan numbers. He will break them down for us. Just to reiterate. Big beat on the eps line, 1. 65, ver versus expectation of 1. 52. Ref knew, 25. 6 billion, versus 4. 9. Core loans up 9 yearonyear. Strong trend for jpmorgan for loan growth. Well continue to push them on how confident they are that that is not increasing their risk profile. 1. 7 billion versus 1. 6 billion, but the bigger beat within the Investment Bank seems to be on fic, fixed income, commodities and currencies, that number plus 17 yearonyear. Thats the big beat. Thats also a bigger part of their trading revenue by proportion, around 4 billion versus equities, around 1. 5 billion. Equities soft, which was also something people are watching out for. Plus 2 . That beat in the higher weighted fixed income part probably the clear reason for this beat. In terms of what jpmorgan chairman and Ceo Jamie Dimon has to say, he says the u. S. Consumers and businesses are healthy overall with pro Growth Initiatives improving between government and business and that the u. S. Economy can continue to improve. Those are the headlines. Decent beat on fixed income, up nearly 2 . Thank you. We will nerd out more on those numbers in the 7 00 hour. The worlds most successful people may have more in common than you may think t comes from going to extremes. Sara robb ohagan is from flywheel sports. One of the hottest things in new york city. Spin classes. Shes also the author of extreme you step up, stand out, kick ass, repeat. Good to have you here. And full disclosure, old friend of mine. I talk about doing the tough mudder. That crazy race where you get muddy. Shes responsible for me doing that. To blame. And it was fun. You didnt want to do it, you loved it. We need to do it again. Im happy about this book. You were against everybody getting a trophy. Im so against everybody getting a trophy. Do you know the trophy industry in this country is a 3 billion industry. 3 billion of trophies who go to kids who got them for just showing up and not actually winning. How do you combat that . Yeah. So the reason i wrote the book actually is because i suddenly realized, when we talk about successful people, executives, whatever, we only talk about the great stuff. We dont talk about the more vulnerable, like, stuff that went wrong on the way up. Im one of these people, yes, i led the turnaround of a 5 billion business when i was, like, 38, but i got fired in my 20s. Nobody knew that. It was time to get out there and talk about it, particularly for young people so they go, okay, i have to take a few more risks. What are some big lessons . You interview a lot of people. Learning from failures i assume is one of them. Definitely. I interviewed 25 of some of the most successful people in the world, condoleezza rice, straight through to a tattoo artist. Different walks of life. What i learned from all of them, yes, you have to take risks. Yes, you will fail. You have to get through it. Then most importantly mst of th them didnt know in their 20s what they would become. We never talked about this before, you getting fired. Its the best part. I want to know who fired you. I got fired i worked at virgin mega stores, somewhere around the corner from here. Used to buy records there. I joined when napster came along. The whole industry was doing this. To be honest, i was the classic 20something. I had been working for virgin atlantic, so doing really well. Then im at this job, i didnt know what was going on. Business was falling apart. I was over my skis. I ended up it wasnt a layoff. One person got fired. Just one. You. How do you pick yourself up after that . Thats horrendous. It is. It destroys your core. Super humiliating. I wrote about it extensively in the book. So many younger people will say how the hell do you have an interview after that . But if you have gone through that, you have processed it, then you know a lot more you kn lot more about yourself. But then you went off to run gatorade. My question is did you tell them you got fired . Yes. Once you got through it, at least you can say here is why i got fired. There was a bunch of the retail busy didnt know really well and its better than when i have young people that come in and thinkth think they have to have this perfect story of failure. What do you think of millennia millennials . Do you think theyre wihiner and they think they have to get paid more when they walk in the door . The reason i wrote this book, i think theres tons of potential, they can see idea and potential that we cant. But they do need to take risks and they need more grittiness. Youre now competing against soul cycle and peloton. Joe kernan, who is not here today, has a peloton. Oh, does he . We are attracting a very competitive rider, people like you, by the way, because the whole business was founded on this technology that tracks you while youre riding. You compete with each other and with yourself. Whats cool about that is we can take that community of hard core athletes and embassy textend it home as well. Joe has the bike but he doesnt have the shoes. We need to get him the shoes. Thank you, sarah. Congratulations. Still to come, lawyers for the passenger who was dragged off that united flight sunday nigh night, theyll hold a press conference later. Wheres jack . Hes on holiday. What do you need . I need the temperature for pipe five. Ask the new guy. The new guy . Jack trained him. Jacks guidance would be to maintain the temperature at negative 160 degrees celsius. That doesnt sound like jack. Actually, jack would say, hey mate, just cool it to minus 160 and were set. Good on ya. Oh yeah. Thats jack. Various shouting heigh ho its off to work we go woman on the gulf coast, new exxonmobil projects are expected to create over 45,000 jobs. And each job created by the Energy Industry supports two others in the community. Altogether, the industry supports over 9 million jobs nationwide. These are jobs that natural gas is helping make happen, all while reducing americas emissions. Energy lives here. Dollar investing is probably the true of all investing strategies. Im curious, does your report have any signals as to whether or not trade will suffer . There is a sentiment out there against globalization. You cannot ignore that. What are some of the geo political trades to consider right now . The japanese yen and gold are both seeing buying, trading at fivemonth highs. The rise in geo Political Uncertainty goes beyond the traditional safety of an asset. Welcome back. Smartphone news. Samsungs mobile chief said preorders for the new galaxy s8 phone have been stronger in the u. S. And korea. They may have persuaded to look past last years galaxy note 7 exploding battery, cant get on the plane fiasco. They will be available in the u. S. And korea next friday. Coming up, we have more reactions to the jpmorgan quart quarterly results. We have still two more banks coming up on the docket this morning, citigroup and wells fargo set to report at 8 a. M. Eastern time. Keep it locked on squawk box for up to the minute earnings and analysis next. With little in alternatives. Yet alternatives can tap opportunities that traditional assets cant. And even though theyre called alternatives, theyre actually designed to help meet very traditional goals. Thats why invesco believes people should look past conventional models and make alternatives a core part of their portfolios. Translation . Goodbye 60 40, hello 50 30 20. Trump says the greenback is too strong. Market reaction straight ahead. And American Airlines losing support. And editor susie welch is sitting down with new England Patriots coach Bill Belichick to talk about his winning ways as the second hour of squawk box begins right now. Announcer live from the beating heart of business, new york city, this is squawk box. Good morning and welcome to squawk box here on cnbc. We are live from the Nasdaq Market site in times square. The futures at this hour are suggesting that we would have a negative open. The dow would open lower by 32, the nasdaq lower by 15. Big news in the Interest Rates and currency markets. 10your yield is lower, this comes after comments from President Trump to the wall street journal saying he likes low Interest Rates, maybe janet yellen gets to keep her job because he likes low Interest Rates and he thinks the dollars got i dont know too stron gotten too strong. Its rebounding against the euro, flat against the yen and weaker against the pound. This is after initial volatility after those comments hit yesterday. 106 for every euro, pounds will cost you a buck 25. Big earnings still to come, jpmorgan is already out beating estimates. Citi and wells fargo are out about an hour from now. Speaking of wells fargo, keep shareholders Berkshire Hathaway has maintained its stake in the bank even after its sales practices scandal. And though Warren Buffett called it egregious, he praised the bank as new ceo tim sloane. Its interesting about them supporting the current board of directors is its been said they shouldnt. And well get weekly jobless claims. And economists are looking for an increase in claims and flat for ppi. Jpmorgan beating estimates on the top and the bottom line. Wilfred frost joins us. The revenue 25. 6 versus 25. 9. There was a small tax gain in that. I think thats largely offset by a legal charge to the foundation. 155 bps to 152. One question mark at the end which well come to in terms of possible negatives, the pure Investment Banking revenue, slightly 1. 7 versus 1. 6 but in the broader Investment Banking space, the trading revenue is the clear beat fixed revenue 1. 2 balance. Thats up 17 year to year and we were looking in the high individual digits and indications that are really roared back in march, the trading revenue. Loans quarter on quarter plus 1 , thats the call on growth. That was in line. Last quarter, quarter on quarter, the growth was 2 . Thats broadly where we expected a little bit of a slowdown. 9 total loans quarter on quarter were flat. Deposit growth was very strong. Thats something theyve been pushing hard and seems to continue into the early part of this year. This is the question mark on credit costs, they are higher, net chargeoffs of 1. 7 billion. Jpmorgan continued to say their superior loan Growth Numbers theyve had in the last three or four quarters havent seen an increase in risk, yet net chargeoffs up 1. 7 billion. On the investor day six weeks ago, jamie dimon said he was being facetious but he said credit was the best it had ever, ever, ever, ever been at that time. Not sure if there was three or four evers. Expenses look to be overall in line so the net effect of this is the stock is up this morning, beat 165 to 152. Well continue to break down those numbers. Marty mosbe, director of bank and equity strategies. Your headline, sir. Yes, its going to be focused on the revenue side. We have better trading and better debt placement, which is as Business Managers are taking advantage in the pullback in rates. Last best chance to get lon longterm funding for their company. The biggest piece in what will be the read through for a sustainable beat is looking at the Net Interest Margin. So the Net Interest Margin came in about 3 basis points better than expected. It was 11 basis points better than it was in the fourth quarter. As you saw, the security and loan yields rounding up with the hike in the fed funds rate and then you had the deposit costs and funding costs lagging that. So, able being able to recreat positives is bleeding through to a positive margin. Were going to hear later how much is indicative of what were going to be hearing in terms of earnings across the board and how much is a jpmorgansonly story. When you look at the Net Interest Margin and Net Interest Income beat, thats going to bleed through to the rest of the industry. How about looking to the future. The yield curve keeps getting flatter. Are you not worried those improvements in Net Interest Margins are going to go away . Im so glad you asked that. Everyone is focused on the tenyear treasury when 60 of the Balance Sheets of large cap banks are driven by what you would look at as shorter term assets. When were getting the hike in the fed funds rate and the push in the short end, weve been through three hikes, usually the first four or five you get the benefit on Net Interest Margin. As youre able to lag deposit rates funding these shortterm assets. The short end matters, the longnd hlong end has been what the market expected. I think i should look at the spread between two and ten and that will tell me how much banks are making. In fact, look between two and five, look between overnight and five or overnight and two. Is that a better way to think about it sm. Much better way to think about it. And think of the level. Think if the level was close to zero, now were moving up above 1 . The positive were in the 10 to 15 basis points, hadnt moved, so assets were repricing to 10 i get it. Marty, how much expectation do you have built into your earnings outlook of reform in doddfrank and other financial reform reform . Another great question. Weve been seeing the discounting of the optionality. We didnt think deregularation or tax reform was going to help earnings in 17 and it will be later in 18 if we see anything from that. What really matters is the recreating of deposit profitability. Thats the last big recovery for big banks and everybody lost sight of that has weve had two rate hikes in two consecutive quarters. So when you see profitability like this from a bank like jpmorgan, does that undermine the case thats being made for the need for doddfrank reform when it comes to the big banks . Well, what we think is, you know, like were already kind of hearing some of this banter back and forth. What we need in the largest banks, lets call it a top eight or ten, is some stability. Theyve spent a lot of money, invested a lot of resources into being able to meet the compliance and the higher standard that we have. What we heard earlier in your program this morning is its really the Community Banks and regional banks that need to have that relief. They just cannot afford the burden that they have on their backs right now. We could easily fix that by just moving the thresholds higher. 10 billion becomes 50 billion and 50 becomes 250 billion and then doddfrank would work for most of the banks that we have. Jpmorgan has been aggressively moving in the credit card space. They say card com and auto revenue is down 5 billion down 3 driven by card origination costs. I dont know if that goes back to the reserve card but set off by higher net income interest on higher low values. What do you make of that . When youre going into promotional periods, youre going to have a lot of heavy marketing costs, which is going to reduce your balances. Theyre saying were growing income, theyve been spending money advertising and developing new products. As you move forward, youll be able to keep what is then the balance in the expenses being a lot less relevant to that revenue. Marty mosby, thanks for being with us. Thanks for having me. And the president has done a uturn on china saying its not a currency manipulator. We discuss those comments and the Market Reaction next. Futures at this hour suggest a negative open. Dow opened lower by 43. Heres europe as well. The dollar now rebounding against the euro. 1. 06 it going to cost. European markets generally lower across the board. Squawk box will be right back. Value investment is probably the truest. What are some. Geo political trades to consider right now . The japanese yen and gold are both seeing trading at fivemonth highs. Finding time to get things done isnt easy. But weve got the Digital Tools to help. Now with xfinitys my account, you can figure things out easily, so you wont even have to call us. Change your wifi password to something you can actually remember, instantly. Add that premium channel, and watch the show everyones talking about, tonight. And the bill you need to pay . Do it in seconds. Because we should fit into your life, not the other way around. Go to xfinity. Com myaccount one thing is sure, that time will tell President Trump hinting that janet yellen may be renominated by the president before her term expires. Lou, thanks for joining us this morning. Good morning. Were you surprised by the comment that yellen is not toast . And he was fed the toast metaphor. Is janet yellen toast . Others might not have used that same language but this is President Trump. Were you surprised . Very much. After everything that was said in the campaign, that well, actually at this point im not surprised by very much. Keeping options open seems to be part of the game plan. I will point out ive come on this show several times and pointed out that the president had not said anything about the fed chair since the election and that there were some who i was talking to who thought, you know what, maybe that silence is telling us something. And then when we think about what the president said as candidate trump and what he may want as president , lou, in your experience is there a president who has wanted higher Interest Rates . Not in my experience. A certain part of the electorate definitely wanted to see higher Interest Rates but one of the things we were seeing in the last segment is the rate hikes are not flowing through to the deposit rate that the Retail Investors get so the benefits are all to the financial markets. Do it is time to get this up, do they ever rise . After 100 points. For a lot of people who live on savings in their deposits, thats a lot of time. If the feds keep raising rat rates, it should do better at least for another one or two rate hikes. Youve been around a long time. It was convention for the president not to talk about the dollar and not to talk about Interest Rates. Convention is convention. Theres no law about it. Is it okay for prum to say he wants rates lower. Lots of president s have made comments indirectly. As long as its not perceived bashing the feds. It was not only the Interest Rate, its also the dollar he spoke about. It depends on how far it goes. This didnt seem extreme. All the rules have changed. When it gets to the point that hes shooting a warning shot across their dow, he said the idea that, may, all were going to say is that a strong dollar is in the u. S. Interest. And thats all he said for the last 25 years or so. Does it matter now that the preside president. It would matter if we still had the same buttondown approach to communication with markets that we used to, but where everything is chaotic, comment like that has much less impact. Can i ask how much influence when the president says that, you are somebody who has clients and you got to tell them where you think the dollar Interest Rates might go. So when President Trump says he prefers lower Interest Rates and he thinks the dollar is too strong, how much does that translate into reality and what you tell your client. It reassures me about what the policy outlook for the next year or two is. Were going to get a raft of new apone yoos was to have this rejection of the easy money policies for the last few years. The hope for staying on a gradual rate path depends on the incoming is it more likely its going to be . Exactly. Ive been thinking about this all morning. Was convention and i ask myself does it matter . The first is it matters if its not part of a strategy. If theres not a broader idea here that we want a weaker dollar or low are rate, and the other thing is you you your strength lets say theres a period of time where the dollar does truly get strong and the president needs to for reasons of market stability to talk it down. Does he weaken his ability to do that through these comments . Not if its clearly perceived to be a problem. Right now can i say in the parlor game of whond up running the fed, we used to talk about john taylor were still talking about john taylor. Kevin warsh. Still talking about hem. Are those names still in play if you want a policy of low Interest Rates, weaker dollar, which are antithetical to so many of the opeds that gentlemen like that have written. It means they have to adjust the rhetoric by the time of the confirmation hearings, if nothing else. The path of rate hikes mapped out to us wont get us to its solution for years. So john taylor would have to come in saying, oh, guess what, i changed my mind. But he has to say that at the outset and. Is it possible that yell i dont know would stay . Well, i think she would be happy to serve another teamoffered otea term if offered so . I would hope so. I hate to Say Something about a certain and, its delicate. I doubt this president would think she was too old for the job. Because he is 70. But her term would be longer, wouldnt it . Barely. It would be four years . Four years. Does it also chang your outlook at all on who the other people who would pick to the board to replace . In other words, are you now thinking this is a president who would put less hawkish people on the board . He would either put less hawkish people on the board or he would put them on the board and theyd be less hawkish. Thats why were seeing lou, thanks for joining us this morning. Oh, thats me. You should read it. Coming up, apple tackles diabetes. And then good leadership leads to big wins. Susie welch sit down with new England Patriots coach Bill Belichick to discuss his winning philosophy and the four things he looks at every day when he walks into gillette stadium. Im looking forward to that. Squawk box coming right back. Oh yeah. No. At cognizant, were helping todays leading manufacturers make things that think and do automatically. Imagine that, a world of new Digital Products and services all working together for you. Can i borrow the car when its back . Get ready, because were helping leading Companies Lead with digital. E trades powerful trading tools, give you access to indepth analysis, and a team of experienced traders ready to help if you need it. Its like having the power of a trading floor, wherever you are. Its your trade. E trade cmohappy birthday i survived a heart attack. Im doing all i can to keep from having another one. And im taking brilinta. For people whove been hospitalized for a heart attack. I take brilinta with a baby aspirin. 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Power your clients portfolio with powershares. Before investing, consider the Funds Investment objectives, risks, charges and expenses. Call 8009830903 for the prospectus containing this information. Read it carefully. Distributed by invesco distributors inc. A secret apple operation has been revealed. Sources telling cnbc the companys hired a small team of biomedical engineers to work as part of a secret initiative to develop sensors to monitor blood sugar levels to better treat diabetes. The team was initially ensignaturesenvisio envisioned by apple cofounder steve jobs. They have been going on for five years. Accurately measuring blood sugar without piercing the skin is considered the holy grail of sciences. And coming up, offering a refund to the passengers on the flight and promising to no longer remove passengers from plane. Is it enough to restore the companys reputation . Well have bob crandall when we return. Futures off about 49 points. Back in a moment. Can we push the offer online . Brian, i just had a quick question. Brian . Brian. Legacy technology can handcuff any company. But yes is here. Youre saying the new app will go live monday . yeah. With help from hpe, we can finally work the way we want to. With the right mix of hybrid it, everything computes. With e trade you see things your way. You have access to the right information at the right moment. And when you filter out the noise, its easy to turn your vision into action. Its your trade. E trade. Good morning. Welcome back to squawk box right here on cnbc, live at the nasdaq. Elon musk having a bit of a dustup with investors. They want him to add two new independent directors who do not have ties to musk. Musk responded on twitter to say those directors should go by stock theyre just bigger than gm now. The grass is always greener. Also a new burger king add taking a unique approach to marketing, the new ad for the whopper designed to activate googles voicecontrolled devices by saying okay, google, what is the whopper burger . Okay, google triggers google devices. How is that going to go over . Does it wake up the kids . Having one in your home . Burger king suddenly talking everybodys a. I. Devices to start talking. We could did it now and say alexa, whats the weather . Unfortunately we may have triggered many homes to get the weather. Apologies to those squawk viewers who have alexa. Finally at t said it has blocked its 1 billion robo calls. Clearly isnt working in my home. At t says its been averaging 12 million blocked calls per weekday 12 million per day . Wow i put my number on the do not call list and you still get calls. I still get calls on my home line. Mobile phones they dont call. Im interested in at ts incentive on this. Im trying to figure out where the economic incentive is for at t to avoid it. Do they make revenue if the call actually happens . Most people are like unlimited stuff now. I think these are wired phones. Not cell phone block . No. We just read about land lines . Im not sure. Do you get calls on your cell phone . I get calls on my cell phone. Like crazy. Its a real problem. More twists and turns in the American Airlines disaster. And President Trump has weighed in. Phil lebeau is back in chicago andy has the story. Phil . More is expected when we hear from the lawyer for the doctor who was forcibly removed from the flight sunday night. His team and i say team because he has two lawyers working on this case, they are preparing a legal case. The lawyer one of the lawyers will be holding a press conference here in chicago a little bit later on today. Were also told there may be a member of dr. Dows family. The court papers yesterday essentially asked they preserve all documents, video, cockpit voice recordings, passenger manifest, anything that happened on that evidence and dks communication preserved and theyre going to be fighting united as well the city of chicago. Meanwhile President Trump weighing in on what happened on sunday night. In an interview yesterday, he said that passengers should be allow or airline, excuse me, should be allowed to overbook flights. However, he believes that the cap on passenger payments for those who are bumped and right now its at 1,350, that should be lifted. He said the airline should lift it. Its not an airline decision, its a d. O. T. Decision. He should have his secretary of transportation work on that if he wants a change. United is reviewing its decision when it comes to overbook be brook and they hope to implement some up in procedures in place. Guys, it been a week where we see the news cycle continue to flow. More headlines. Well get more a little later on today when the attorney for dr. Dow holds that press conference. Theres a massive debate on whether that 1,350 is a floor, a maximum or a minimum . Its not a minimum. It says the airlines are obligated to offer compensation up to 1,350. Theres another formula, four times the price of your ticket, whatever it might be to a particular now if an Airline Comes to you and says wed like to offer you 5,000 to get off this flight, the d. O. T. Doesnt have a problem with that. Thats up to the airline. And one other question which might generate hate male, united is within its rights. Yes. So airlines are within that right to remove that person. So he does not have strictly speaking a legal claim. This is a Public Relations issue im not a lawyer, steve, so i cant get into that question. But lets throw out a hypothetical here. Say youre on a plane and you got a seat and you start making some really kind of nasty comments. Not terroristrelated comments but just some nasty comments. At some point if youre a distraction on that flight, they can remove you. They have that right to remove you from the flight. Its along those lines. On the one hand, pr a p. R. Standpoint on the other hand, if he pushes it too far, there is this notion that united was within its rights and if it went to court, united has a defense here to what it did. You are probably in an area where i think you may have a valid point, steve, but lets be honest, i dont think anybody expected this to go to court. Michelle made the mention yesterday, i think she said, look, they will settle this as wookly. Do they want to see this video played over and over and over again . No. They want to get past it as quickly as possible. People will play it but not the same as if there is a court case and then you start to see executives brought up on et cetera. Dont move. Joining us on phone for more on the united fallout is bob crandall, the former ceo of American Airlines. Bob, thanks for joining us this morning. Weve seen oscar munoz do the big policy, theyve refund the all of passengers. In well, i think oscar did the right thing when he stood up and said mea culpa, we made a mistake and were going to go back through all the processes and procedures and make sure this never happens again. I dont think at this stage of the game that theres much more than he can do. Of course in the beginning, as you know, he did. He did so the next day and that was the right thing to do. I think at this point what we need to do is we need to be sure that we dont that we dont go in and make a bunch of rules which will have an adverse effect on flyers rather than on airlines. And what do you mean by that . The whole overbooking process, although it is probably time to look at it go but the whole process is to use seats more effectively. What it amounts to, as a practical matter, is whether you call for a seat, rather than being told, no, you cant go, the reality is a great many times youll say, sure, theres a reservation available and you can go. That is a consequence of effectively overlooking to when i want to go on a particular flight, want to be on that particular flight. Bob, would there be any competitive advantage given the competitive or lack of Competitive Dynamics within the Airline Industry for an airline to announce we will not pursue any involuntary bumps. If somebody came out with that ad tomorrow, would that give them a true competitive advantage economically or is the city such an oligopoly that in terms of your choice it wouldnt really matter . Well, no, i think it would matter. I think has a practical matter, however, the airlines that are doing the best job are doing Everything Possible to move towards zero involuntary denied boardings. And in fact theyre getting very close. Over this last weekend, for example, as im sure and delta indecembered a did to get off voluntarily. And they did so by offering very generous rewards in the form of vouchers that could be used not for Airline Travel but for other things. So effect i they did a very good job of reaccommodating people and doing it on a voluntary basis. And thats where i think the the airlines that want to compete on a Service Basis and hopefully they all will. But this do they need to . Thats the question. Do they need to . Well, they should. Do they need to . There has been, as you know, a lot of consolidation and competition is somewhat less has there been too much consolidation . Yes. I said at the time that the last several consolidations occurred that if i had been the king of spain, i wouldnt have allowed them. So, yes, i think theres been too much consolidation. But now that consolidation has occurred, competition in effect is reigniting itself. Youre seeing more lowercost Airlines Come into the business. So competition will undoubtedly rebuild. The the smallarylines are going to come o o o, united done want to see this thing play over and over again and no other airline. Thank you very much for coming on. Thank you very much. Former ceo of American Airlines. Coming susie welch joins us with her exclusive interview of Bill Belichick. Ove irrigatio. Remote moisture sensors use a Reliable Network to tell them when and where to water. So that farmers like ray can compete in big ways. China. Oh. He got there. Thats the power of and. Its been over 100 years since the first stock index was created, as a benchmark for average. Yet a lot of people still build portfolios with strategies that just track the benchmarks. But investing isnt about achieving average. Its about achieving goals. And invesco believes doing that today requires the art and expertise of highconviction investing. Translation . Why invest in average . You totanobodys hurt, new car. But there will still be pain. It comes when your Insurance Company says theyll only pay threequarters of what it takes to replace it. What are you supposed to do . Drive threequarters of a car . Now if you had Liberty Mutual new car replacement™, youd get your whole car back. I guess they dont want you driving around on three wheels. Smart. With Liberty Mutual new car replacement™, well replace the full value of your car. Liberty stands with you™. Liberty mutual insurance. Thithis is the new new york. E . Think again. We are building new airports all across the state. New roads and bridges. New mass transit. New business friendly environment. New lower taxes. And new University Partnerships to grow the businesses of tomorrow today. Learn more at esd. Ny. Gov welcome back to squawk box. Head coach of the new England Patriots, Bill Belichick, set an nfl record when he led the team to their fifth super bowl victory. Susie welch sat down for an interview with the legend. They talked about football, the game, and leadership. If you had to describe the tenets or principles of your leadership stoul yle or approac what would they sfb. Four things we look at every day when we walk in, do your job, be attentive, we dont talk about last year, we dont talk about next year, we talk about today and we talk about the next game. Thats all we can really control. The rest of it will take care of itself. That was just a little tease. You can see a lot more of sus susies interview today on power lunch. Susie joins us today. How did this happen . Ive been lucky to know bill for a couple of years. Over the years weve heard him say interesting, provocative, insightful things about leadership and management and careers. One day after the super bowl i said to him almost on a lark, hey, bill, would you be interested in sitting down and one time having an interview with me about leadership and life and careers and he said, yeah, that sounds fun. Without giving too much away, whats the Biggest Surprise . There were so many surprises. I think one of the big surprises is how cohesive and cogent his philosophy of leadership and management and careers is. He has given a gigantic amount of thought to. He talked about how important it is to depend on your most reliable loobl and making sure youre taking care of your people off the field so they can perform on the field. And i was surprised at how important it was making sure peoples lives were good off the field so they could perform on the field. A lot of what he says translates immediately to business. Anything you disagreed with . There was one thing we disagreed with. For years we said to people when you have a victory at work, celebrate, celebrate, take time, stop and celebrate and exorting people to celebrate in both of the books weve written. But Bill Belichick says dont celebrate too much. Its almost painful for him to celebrate. I like your idea about celebrating more. So do i. I dont know Bill Belichick, but in that clip he looks like a quiet, thoughtful, evenkeeled guy. Yes. My impress is hes insane and out of his mind. Whats the reality . Hes not out of his mind. He is a contained, thoughtful, philosophical person. He is who he is. Theres this impression, people see him on it. V a he looks very serious and very shut down. Ive known him personally so i know thats not how he is. Hes not going to throw back his head and laugh and crack jokes with you but during the interviews i asked him what do you do with the rings . Theyre all in a safe. I said dont you ever take them ot and put them on and parade around the house with them . He said, yeah, im not a jewelry guy. How does he compare with all the other ceos . Right up there with the top of them, in terms of having a cohesive im sorry, but he has got rid of people and brought in others that were world class. What is about him that he picks them . Ive heard my husband yelling he cant get rid of that guy, he cant trade that guy. Bill looks for not the person that is flashy, but the really reliable and dependable because hes believes theyre going to turn into stars . Not really. He said tom brady is not that good of a march athlete. Its very encourage. Hes not looking for people to turn into stars. He wants them to be dependable. Thats cool. Can we turn to united. Up saw the munoz apology on National Television and refunding everybodys tickets. Theyve done such serious damage. Its going to take a really long time to undo it. I think this is an epic case write tlers have a heyday with it. I think they did everything wrong and yet the stock krpd if i could play the market, id buy the stocks. I think it impacts the business and then impack the people temperature what you are to worry about is people who dont want to be associated with the brand. Its going to be very hard to recruit now. Ive avoided this airline before this. To me when a company like this gets so big, they start. Calling the government and calling the dmv was not a whole lot different to me. Im so pleased to hear how you feel about the government, steve. Im all about economic incentive. 12 months from now, well be talking to him. Ive been surprised in how the ceos have made it. In. Be sure to catch more of that interview with Bill Belichick on power lunch today. You can watch the full interview on cnbc. Com. We now play with a Second Screen in life. Go get it right now. Still ahead, stocks ahead of the opening bell on wall street. A and. At fidelity, trades are now just 4. 95. We cut the price of trades to give investors even more value. And at 4. 95, you can trade with a clear advantage. Fidelity, where smarter investors will always be. Lets take a look at stocks. Guggenheim thinks the company can continue to outperform expectations from the market. It updated adobe. The stock is up 27 . Look at that from a year ago youre talking about. Yeah. Im saying way back when i was using dotcom. Hostess brand said a secondary offering was priced below yesterdays Closing Price of 16. 55. The snack maker will not receive any of the proceeds. Haynes brand increased First Quarter Financial Guidance saying 2017 was off to a strong start. Separately they announced chief finance officer richard moss will at the and the stock was up after being down 18. 5 in the last year. Wow. And look for a report on weekly jobless claims. The marks are closed tomorrow for good friday but it not a federal holiday so the government will repleas deail n on. Berkshire hathaway selling a steak in its business. They said its not related to the scandal. Its selling the shares for regulatory reasons, to keep its stake below 10 to avoid additional oversight by the fed. And it will keep selling as needed to stay below that threshold after talking to fed officials, berkshire said it would main continue and buffalo personally owns about 2 million shares. The journal reporting that are likely to vote in support of the board of directors at the companys annual meeting at the end of this month. In the meantime, coming up, two major banks ready to report at the top of the hour. Citis and wells fargo. We have the numbers. Check out the futures right now. You see the dow off about 38 points. Back in a moment. The dollars coming back. The power of a low volatility investing approach. The power of smart beta. Power your clients portfolio with powershares. Before investing, consider the Funds Investment objectives, risks, charges and expenses. Call 8009830903 for the prospectus containing this information. Read it carefully. Distributed by invesco distributors inc. Containing this information. Read it carefully. Is happening before our eyes. Shift in Human History sixty to seventy Million People are moving to cities every year. At pgim we help investors see the implications of long term megatrends like the prime time of urban expansion, pinpointing opportunities to capture alpha in real estate, infrastructure and emerging markets. Partner with pgim the Global Investment management businesses of prudential. Weve done well in life, with help from our advisor, we made it through many market swings. Sure we could travel, take it easy. But weve never been the type to just sit back. Not when weve got so much more to give when you have the right financial advisor, life can be brilliant. Ameriprise earnings alert. Citi and wells fargo rolling out number. And former cea chairman jason furman joins. And the woman behind the iconic wall street bull is taking on the fearless girl statue. Squawk box begins right now. Live from the most powerful city in the world, new york, this is squawk box. Good morning. Welcome back to squawk box right here on cnbc, live at the Nasdaq Market site in times square. Hanging out with Michelle Carusocabrera and joe liesman. The dow is down 40 point lower, nasdaq about 13 points down and s p opening off about 5. 5 points. The 10 year, we keep talking about it. 2. 239. Weve talked about just how flat the yield curve has been and then the dollar this was because of donald trump and his comments. And also, by the way, the dollar, were going to talk about Donald Trumps comments. Its been weaker this morning. It got back about half of what it lost or more. He spoke in an interview to the journal where he said the dollar is too strong, janet yellen could keep her job and i like low Interest Rates. And we have to get back, we have results of citigroup out. Eps 135 versus forecast 124. A nice beat by them. Both consumer and institutional businesses growing well, they say. Markets in invensment banking helped the strong performance. They did oosreturn 2. 2 balancil shareholders during the course of the First Quarter. Wells fargo is coming in at 22 billion versus a forecast of 22. 3. So a fraction light on the revenue line. A fraction beat on the eps line, one buck per share. I dont have time to dive into most of those numbers. Well have a look at that shortly. Its also just worth that came on. They were first up 2 or so and now up less than 1 . I think people are focusing on credit costs up 1. 4 million and they put it to a writedown in their student Loan Portfolio and higher credit card chargeoff. Its probably why shares were up 2 or sonessly when the eps beat hit and t hit. Lets bring in the chairman. We havent had you here in quite some time. Its good to be back. What are you seeing this morning . Its cost cutting revenues, revenues are flat. Were seeing the maturation of the credit cycle. Janet yellen boosted asset prices, created bubbles in commercial real estate and other asset classes. Investors and nothing going on in equities. So this is the legacy of yellen. I think the banks are going to see higher credit costs going forward. From an equities perspective, is there a bank that you like . Absolutely. Anything below u. S. Bank corp. Its my favorite bank. It tells its own story. Wells is next, 1. 5 and citiand b. A. Of below book value. Thats it. What for year on this network weve talked about the issue. How much big beau the finance issue and Reputational Risk issue. What weve done with Student Loans in this country is really wrong. The fact that theyre not dischargeable in bankruptcy i dont agree with any of that. Is this another ceo problem . No. Think about it as the same size as all an all poe, they weve had a very benign credit environment. This is about getting back to normal. Thats what low Interest Rates does. It makes it easy to borrow and then as cost goes up, you start seeing the credit. How do you game out the implications of its not going to be a full repeal but a shift in what dodd but already baked in at this point, whatever benefit you think exist . It not aweve seen a threefold increase in costs for mortgage companies. We could see failures in the gin ginniemae this year. Aqua is coming out of the penalty box. But theres a capacity issue in that market. The Trump Administration let ted tozer leave and he was awesome, provided nobody there now. So let me get this right, chris. Your expectation for doddfrank relief when it comes to the big banks, are you pencilling up up side to earnings for that roo lease . Its a combination of doddfrank and basel. Those two are tied together. You have to have both. Are you counting on the idea that capital ratio will be capital would be the last thing to chang. The whol plet call class, ak dm being can be. So where does the relief come from . From the operating side, things like stress tests and all of the costs piled on to banks. Stress test a fung of dodd. What im saying is it may not have to be a legislative policy that shifts so much as the individual who are just thats right. The biggest benefit just the fact that we have new people in washington. The tenors of the conversation has changed. But there are lots of things th that, that he why we dont have any single familiar off. Cni commercial and industrial. But you have a situation whe where. Theyve beaten on trading and cost cutting. How do you argue theyve reduced the ability to lend when theyre, hay, ge. Being the thing thats hit their backs theyre not making risky loans. The credit box is very tight. If youre entrepreneur or a small business, you dont go to, thats a hundred years old, that comment. No, because the guidance, the stuff you dont see in the Public Domain from the regulator on a daytoday basis has been very quickly. Can you explain why you disagree with consensus, beside the obvious tradeoff so the crisis was about prouch. We have no idea what lieam and brothers leeblt are. The amount capital so thats why everybodys come and says, on, tap and. Thanks, chris. Thank you. Big hour ahead here on squawk box. President trump says fed chair janet yellen is not toast. Well get reaction from jason furman. Plus the market reacts to President Trumps call on currency. He a and later, if you think today is busy for earnings. Wait until next week. Were going to get you set to the the earnings parade. Stay tuned, youre watching squawk on the stree squawk on the street. But yes is here. Youre saying the new app will go live monday . yeah. With help from hpe, we can finally work the way we want to. With the right mix of hybrid it, everything computes. The power of a low volatility investing approach. The power of smart beta. Power your clients portfolio with powershares. Before investing, consider the Funds Investment objectives, risks, charges and expenses. Call 8009830903 for the prospectus containing this information. Read it carefully. Distributed by invesco distributors inc. Containing this information. Read it carefully. At crowne plaza we know Business Travel isnt just business. Theres this. a bit of this. Why not . Your hotel should make it easy to do all the things you do. Which is what we do. Crowne plaza. Were all business, mostly. I want to fly like an eagle to the sea like like an eagle, let my spirit carry me welcome back to squawk box this morning. We have for fallout on the American Airlines story. Lawyers for the passenger dragged off that flight has filed an emergency request to require united and Ohare Airport to preserve video recordings and other its yelems related to the settle. They expect a quick settlement. Also President Trump weighing in on the p. R. Crisis. In an interview with the wall street journal, he said it was horrible the passenger was dragged off the flight. He said there should be no upper limit to incentives airlines can ask passengers for seats. Its not a limit but its sort of a minimum is using it limit, 1,350 is the top price theyre required to pay out. I think required is strong. I think its how much youre able to demand. If theres an involuntary push off the plane, if they say michelle, you have to go thats even before you get on. Thats the normal procedure. An involuntary situation, they have to pay you four times the ticket price or but 1,350 is the top price they have to pay. If the ticket price is a 500 ticket, they dont have to pay you, 2,000 ism g is guess that. I just want to know how often they pay it, if theyre required to. President trump calling the dollar too strong and pulling back on his criticism of janet yellen. And joining us is the senior fellow at the institute of economics. Jason, youve been in the room talking about economics. Is it possible, do you think, that President Trump to reappoint chair yellen . Id be thrilled to see him do that. Shes done a fantastic job. And at some level when he goes out every month and talks about how great the jobs numbers are, hes talking about her more than hes talking about himself. So if you were counseling President Trump, which i dont think is something that happens, im going to go out there and say i like low Interest Rates and that the dollar is too strong. What would you say to President Trump before he said that stuff . Id say, first of all, one of the strengths of the u. S. Economy has been the independence of the Federal Reserve. I dont think anyone in the executive branch has business commenting on monetary policy. President clinton didnt do it, president bush didnt do it, president obama didnt do it. Undermining that independence takes away the cred eblt thibil allows them to anchor the inflation rate and do better in the employment and economy in keeping that anchored. Heres one thing thats so interesting, hes saying he likes janet yellen and likes Interest Rates. He criticized her on the trail for keeping them low for president obama. Now shes raising rates. Does he fall out of love with her as she continues to do that, right . You know, her job is to have maximum employment and price stability, not to be loved by the president of the United States or any other politician. The central bangers aroukers an world who orient themselves being loved by politicians tend to give us big bouts of inflation as they overheat the economy. We dont do that here in the United States and were better for it. One of of the things about donald trump i think is interesting is just because everybody else has done it doesnt make it right. I think its a good process. Every now and then we start to think weve always done. He talked about the dollar weakening that has come back up. He talked about Interest Rates. Interest rates came down a bit. Mean that was wrong. Maybe its okay for. In terms of the dollar, by the way, i have a little bit more sympathy for his comments there. I think the economics are that is the dollar is a function we want to drop different policies and may even want to push china, for, to encourage more consumption that would help the Exchange Rate as well. But on Interest Rates, we have a lot of evidence from a lot of countries for, that the more politicized Interest Rate decisions are, the more you are get these political cycles where you get a sugar high before the election and its not in the long run interest of the country. What he said yesterday was harmless. If it, you know, gets to the level that hes criticizing the fed, that hes complaining about their decision, that hes calling up the fed chair, telling them what to do, thats when id start worrying. Its a little bit of a slope on the way to that. As someone who spent a long time in washington and reads the tea leaves opinion were trying to figure out what is possible a and, timetable, infrastructure, whether you put thosing to or not. Theres talk that the white house wants to put health care back on the table before they get to tax policy. How do you read it . Its baffling. Every president for decades had put forward an economic plan by the end of february of their first year. This president hasnt put one forward. Steve, maybe this is the type of new and allowed ronald reagan, george bush and barack obama to actually pass plans in their first year, something that this president at least right now is not on track to doing. I think its a shame. I think theres lot we can get out of tax reform, in investment. I think we should be putting those ahead of health care. Health care is not what we need to do to help our economic growth, i think it would harm people. It not a key things for growth. Business tax reform, fraub fra, those should be the priorities. Jason, one of the things that seems to have happened here is the president has gone back pretty substantially on some Campaign Promises yet in doing so hes hes now in favor of the xm bank. Are those pos i developments as far as youre concerned in. And so far as theyre doing anything, theyre doing opposite of currency manipulation. Theyre selling an awful lot of dollars. On xm, they recognized what was the policy of the administration and before that with, which is wed like to have them scale back on the other hand, taking the transpacific partnership, shelving it and instead pursuing renegotiating nafta and doing an update with japan, that may have been an awful lot harder to be fair, jason, Hillary Clinton also did not support nafta. Absolutely. And i think she was wrong on trade as well. All right. Jason, thanks for joining us this morning. Thank you. Jason furman. You dont think there a lot of growth inhibitors in Health Care Reform . All the taxes in, there all the regulations, Everything Else . I think there were tradeoffs. And were they worth it . Um, perhaps. The idea that we somehow wait, hold on. If its your insurance and you now had it and didnt have it i think its critical to zero. They didnt have it 2rks 1 Million People. Coming up, there is a war brewing on wall street between two statues. Why the artist behind the eye think again. This is the new new york. We are building new airports all across the state. New roads and bridges. New mass transit. New business friendly environment. New lower taxes. And new University Partnerships to grow the businesses of tomorrow today. Learn more at esd. Ny. Gov hey, folks. Wem kp welcome back and good morning to squawk box. Apple hired a small team of p biomedical engineers as part of a secret initiative to monitor blood levels. The efforts have been going on for at least five years. Not so secret now, andrew. Not so secret now. The artist behind wall streets charging bull statue has a few word for the fearless girl get out of the way. Sculptors arturo dominga said it violated their agreement when he put the girl there without his permission. What weve left out of this reader is that the bull was created in the wake of the big decline on wall street back in 1987. It was meant to be about the resilience of the American Economy and the resilience of the American People and it was supposed to be something that we were all proud of and speaks to the American Heritage and culture and this i think hes completely right, completely takes away from all that and totally i think its total p. C. Ism. If they did it for a year, thats one thing. If they did it forever, thats different. I would agree if it was forever. This is art. Were going to raise awareness and more girls are going to work on wall street. Up know thats not how it works. Come on. Will we return, breaking economic news, jobless claims about to hit the table. And maybe more news about the girl and the bull. Back in a moment. This is the new guy . Hello, my name is watson. You know wine, huh . I know that you should check vineyard block 12. Block 12 . My analysis of satellite imagery shows it would benefit from decreased irrigation. I was wondering about that. Easy boy. Nice doggy. What do you think . Not bad. Will your business be ready when growth presents itself . American express open cards can help you take on a new job, or fill a big order or expand your office and take on whatever comes next. Find out how American Express cards and services can help prepare you for growth at open. Com. The first days are the hardest days, dont you worry anymore the first days are the hardest days. Were seconds away from jobless claims in march. Lets show you the futures this morning. They were negative. Dow lower by about 5, s p lower by about 11 1 2. The big news is on the treasuries because of currents by donald trump. Rick in chicago, what are the numbers . Goose egg. These are definitely on the cooler side. Up 1 10 on the exxon energy trade month over month. 2. 3. Yes, its on the lofty side and food and energy year over year, up 1. 6. So these numbers are a bit cooler. Jobless claims move from 235,000 down to a whopping 234,000. So minus 1,000. In actuality, 234 was the original number last week before the 1,000 revision. And finally continuing claims move from 2. 035 to a whisker under 2. 03. Of course everybodys paying attention to whats going on in Interest Rates. Hugely important. We we closed at 227 at the end of 15, 11 months later in 16, we put a crown on it and never tested it. Should we continue to trade at these level and close underneath it, it may have substantial meaning for the market. The dollar index, wow, you cant make this stuff up where did it hold . Pretty much exactly at intra day. We may have a president that should study jb a will bet more, it back to you. Rick, thanks very much. Lets get right to willfred frost, who has the media call highlights. Jamie dimon said the dollar fluctuates for lots of reasons. I dont worry about whether its a strong or weak dollar. Lake did admit that people have been reducing risk this week. She cited the shortened holiday week and geo political concerns. I asked jamie dimon if he was nervous ahead of the French Election. He said, no, im not nervous ahead of the French Election. He did say he had a personal view on it but wasnt going to share it. Then he reiterated a point he made, separated it from the French Election to say if someone did leave the economic and monitoring union,orio, it would be a very, very complicated and dangerous this evening. He separated from specifically the French Election. In terms of the wells farg report, maggie lake said theyve been going through it and briefing people accordingly and will internalal ease all the results of that wells fargo review. Jamie dimon was asked if he had a response of kashkaris criticism and he said no comment on that. Interesting to hear january was strong, february was relatively weak, which was why their guidance was softer, hence they beat it when march came through stronger. A little bit of a seesaw session in the quarter for Investment Bank. Debt call tap was particularly strong in march. That does explain some of the weaks in in corporate loan growth, raising funds from a bombed. Economic data says growing economy, over time this will be supportive in the corporate space. Its a concern people have had coming into this quarter. In in terms of credit quality more broadly, they were very keen to express any historic perspective still near all time lows. Even though that picked up a little bit, they said credit is very benign still and the drive is overall for that very slight pickup that they have successful growth in that space being, be it credit cards or others. Lets get back to the market now. And gentlemen, weve had a lot. Weve had the pbi data and weekly unemployment numbers. But weve also gotten bank results this morning with shows loan growth is slowing. Whats the state of the economy right now . Well, the state of the economy is what it has always been through the expansion in terms of growth, which is groving around grov growing around 2 . Weve had week quarter growth for several years now. I think thats a statistical quirk. The growth has been slow because productivity has been slow. I think jobs numbers as you can see in the jobless claims data, theyre very reluctant to let go about a hundred thousand last night. Its an economy constrained by labor moving on to the fed. President trump said he likes low Interest Rates. Does that influence anything or do the numbers . Isnt it surprised that someone who has a background in real estate likes low Interest Rates . The question is will he lead the fed to be independent and to pursue its full employment and we are at the feds inflation target in february data, 2 hadnt 1 , slightly above it and allow the fed to renormalize rates to sustain the recovery. And hes got a lot of decisions to make because theres three open spots and if he doesnt reappoint janet yellen, it will be five. Youre a big currency watcher. Saw what happened to the dollar yesterday we heard President Trumps comments when he thinks its too strong. Very volatile all night. Give us context of what youre seeing this morning. Michelle, the dollar got quite weak as the president spoke and all through the evening and especially into the last hour or so, the dollar has come back strongly against the japanese yen. Here we are wearly above above 10 of. We traded at 106. 70 the euro. I think the president made a terrible mistake by barging into the dollar. Ive been at this for some 40 years and thats always been the precept of the treasury to make statements regarding the dollar and its always been that a strong dollar has been to the benefit of the United States economy. I wish the president had not sad anything. When i do find and congratulate him in is finally he has underthe chinese have not been manipulating the concern to allow the chinese yen to be strong. Is it a new calculus, if youre going to be trader you have to wonder if the president is going to keep talking about these things . You have to worry about that every im. When i get up at 1 a. M. To write my newsletter, i want to see what kind of new tweet has come out relative to the economy and the dollar. I think probably after what he said last night, hell probably refrain from making statements about the dollar. I dont know. If we trade dollar euro did you change your outlook for Interest Rates at all based on what the president said . Its a new oddson bet compared to yesterday. You just dont know. I mean, i think theres a possibility, which seemed perhaps inconceivable a couple of weeks ago. But the problem is that we need the Administration Needs to focus on details so it may say it left health care alone and is moving on to taxes, essential. Now it seems to be pivoting back to health care, the tax plan gets pushed out. So there are lots of things flowing around. I wouldnt make an oddson bet on anything right now. Thanks, guys. I hear you chuckling, dennis. Coming up, can President Trump make the stealing ep itg by making every dollar count. Thats why i have the spark cash card from capital one. With it, i earn unlimited 2 cash back on all of my purchasing. And that unlimited 2 cash back from spark means thousands of dollars each year going back into my business. Which adds fuel to my bottom line. Whats in your wallet . Flexshares etfs are built around the Way Investors think. With objectives like building capital for the future, managing Portfolio Risk and liquidity and generating income. Thats real etf innovation. Flexshares. Built by investors, for investors. Before investing consider the Funds Investment objectives, risks, charges and expenses. Go to flexshares. Com for a prospectus containing this information. Read it carefully. I want the pipe to be manufactured with United States steel. We want them to use american steel. Steel made in think country and pipelines made in this country. That was President Trump earlier this year. The president wants steel for u. S. Project made at home and Companies Like u. S. Steel are playing ball. Jackie joins us from minoriount, minnesota. Great shot, jackie. Reporter this mine is where they blast the iron ore and later process it to make products as small as appliances to as large as these massive caterpillar trucks. Take a look at them. The Steel Industry has been part of the back bone of American Manufacturing for many general rations. Us steel and others have faced their share of challenges, and importing steel of course has been a trend. Mean team u. S. Steel says that it, the company, its workers, Industry Experts think that the tide is turning because of the Trump Administration. We have all the necessary highcost materials that would go into cost effectively making steel but weve got to have a level Playing Field to compete. Thats what were excited with the administrations push right now. Reporter now, the key here is core resources, iron ore turned into pellets like these. Im trying to pick them up so can i show you here. Its plentiful but weve got to the get are the manufacturers to buy the steel here at home. Right now theres a love optimism. Everybody here in minnesota is bullish on donald trump. Thank you, jackie, with that. We appreciate it. In the meantime, well talk about the earnings parade kicking into high gear next week. Joining us right now is the partner partner overseeing 16 billion with a b. What do you expect with the companies youre looking out for with highlights . Highlights include Companies Like samsung and fox. Samsung prereleased their earnings, theyre pretty close to record earnings. Thats pretty remarkable considering theyre sort of in between phones root now. Were seeing pretty got strength in the lot of individual businesses. In the overall marketplace, youve had very high Profit Margins and a lot of other companies in the overall market. I think well struggle to really satisfy people given where evaluations are. Do you think evaluations are too high, therefore earnings are not going to come in where you think and therefore youre doing what about it . We have positioning where were always about longterm investing and about the individual securities that we can own. Our portfolio is made up of some very cheap stocks like fox, samsung, pepsi, proctor and gamble and we still sit with continued excess cash as we wait for better opportunities. Youre waiting for what . Better individual opportunities. Cash is never a market call. Its about finding individual stocks at the right price. Do you ever have a market call . No, nothing . We have opinions but its about founding individual securities. Given all the policy overlay that does not factor into any of your thinking. Its not a material factor. Weve seen in the previous weeks its hard to predict the changes. When you think with the banks to , how do you think that and a lot of the banks have some high trading revenues from just the fact that the markets been pretty robust in the last few months. Its always just a topdown look at company by company or are there sectors you prefer . Its very bottom up company by company. Bottom up, excuse me. We prefer companies with how do you narrow it down . You look at everything . We do. We believe flexibility is one of the keys for strong performance. One of our big positions now is sam p sunin korea. It sounds like youre a value player. Were a total val plaer . Samsung is one of the cheapest stocks youll ever see. It trade less than five times earnings net of cash. Right now their business is just really firing on all cylinders. Their semiconductor business, their display business could double their earnings. But apple says also its an incredible valuation play, it doesnt tray at a very high multiple ever. Samsung send at about 70 less than apple did . What if sam. Theyre actually really important partners. I tell you why i loved my samsung for a long time. There was one before it exploded. My company stopped supporting it essentially. Youd call up and have a problem, everybody had the iphone. So theres a critical mask here. Is samsung iebl to get that back . To me the samsung was much more of a work phone than an iphone. And blackberry lost u. S. Apple succeeds here where samsung succeeds elsewhere. Am i wrong . But is it possible to get it back . Its the cya of the purchasing manager guy. Its absolutely theyre very able to get that back. And really samsung from a stock standpoint is about semicon dubordu ductors, about the display. More importantly, their new phone, the s8, theyre having huge preorders in rio, good orders in the u. S. They have i think really the most attractive phone. Fox. Why do you like fox . Fox is really cheap and it has some really important businesses that nobody really cares about today that will drive earnings in the future. Like what . Like star in india. Theyre the largest content company in india. And on top of that, they dwarf Companies Like netflix and amazon. Theyre depressing their own earnings. Over the years few years you see growth in endia. What about fox news . Fox news lab really strong brand. Should bill oreilly come back from vacation . I have no opinion on that. You have no opinion on that. Its a strong franchise and more powerful than any individual. When we come back, jim cramer will join us. Did you know slow internet can actually hold your business back . Say goodbye to slow downloads, slow backups, slow everything. Comcast business offers blazing fast and reliable internet thats over 6 times faster than slow internet from the phone company. Say hello to internet speeds up to 250 mbps. And add phone and tv for only 34. 90 more a month. Call today. Comcast business. Built for business. The power of 100 of the worlds top companies. The power of a proven 15year track record. The power of an etf. The power of qqq. The thinking we put in, clients get out. Power your clients portfolio at powershares. Com qqq. Before investing, consider the Funds Investment objectives, risks, charges and expenses. Call 8009830903 for the prospectus containing this information. Read it carefully. Distributed by invesco distributors inc. Containing this information. Read it carefully. Deartheres no other way to say this. Its over. Ive found a permanent escape from monotony. Together, we are perfectly balanced, our senses awake, our hearts racing as one. I know this is sudden, but they say if you love something. Set it free. See you around, giulia welcome back to squawk box. Lets get down to the New York Stock Exchange and jim cramer joins us now. Looking at the banks this morning, how are you feeling . How i feel is different from what the action is in the trading. These are pretty good. Wells fargo, Customer Satisfaction coming back. That does matter. Jpmorgan, again, the usual fortunate Balance Sheet and very good growth. Citi, unbelievable tangible book value. But you can buy back 9 at of the stock this year. It doesnt matter. The market doesnt like them and the market wants to go lower. And i think that you have to let them come in but i do think that a wells fargo if you buy it at 51, citi buy it here, i think youll really well. You cant do well in the next 48 hours well, tomorrow is closed. Because i think the market is set up poorly. I think its set up poorly because of a lot of things going on in washington. I dont know if you saw the last guest. He liked a number of stocks. He liked fox and pepsi co. But importantly he liked samsung. What do you think of samsung these days can . Its an up stock that it look up to me. You know what, it has to come back. People are going want to be in that since they miss the 7. It doesnt have a huge install base and its not a bad company. I think its off the radar screen. Like taiwanese is off the radar screen. A lot of people who feel like where you know, like the iron industry. The iron industry got sold out people think by trump over north korea. The aluminum industry sold out by trump over the north korea. The semis is the say way. Carl quintanilla just put this up, the semis let them come down. Dont be a hero. These are bargains in the banks but you cant expect them to react positively tomorrow. Too early. Jim, we appreciate it. Thank you, sir. See you im loving the show this morning. Have a great extended weekend. See you on monday. You too. At least ill see you on monday. As we head to a break, we showed you a clip earlier. You want to catch this because its a great interview. Suzy welchs interview with new England Patriots head coach Bill Belichick on power lunch at 1 00. I happen to know one of the anchors of that show. Right here. Michelle carusocabrera. Dont miss it. Fees . What did you have in mind . I dont know. 4. 95 per trade . Uhhh. And i was wondering if your brokerage offers some sort of guarantee . Guarantee . Where we can get our fees and commissions back if were not happy. So can you offer me what schwab is offering . Whats with all the questions . Ask your broker if theyre offering 4. 95 online equity trades and a satisfaction guarantee. If you dont like their answer, ask again at schwab. I did active duty 11 years. My in july of 98. And two in the reserves. Our 18 year old was in an accident. When i call usaa it was that voice asking me, is your daughter ok . Thats where i felt relief. It actually helped to know that somebody else cared and wanted make sure that i was okay. That was really great. Were the rivera family, and we will be with usaa for life. Usaa. We know what it means to serve. Call today to talk about your insurance needs. Im vern, the orange money retirement rabbit, from voya. Im the money you save for retirement. Whos he . Hes green money, for spending today. Makes it easy to tell you apart. That, and i am better looking. I heard that. When its time to get organized for retirement, its time to get voya. Welcome back. The leader of syria, bashar al assad, has given an interview this morning to Agency French press, afp is their twitter handle. They put out two tweets saying that ehas told them that the he has told them that the chemical weapons attack was a 100 fabrication. That the alleged according to him, that we saw on videotape last week, that led President Trump to bomb syria. He also says that the syrian army gave up all chemical weapons. So we are waiting for the actual video of that interview to come through, but so far according to two tweets, he says that the chemical weapons attack is 100 a fabrication and that his army gave up all those weapons. In the meantime a couple of headlines to bring you. Uber conducted a secret operation to track lyft drivers. This is the latest in a string of scandalous news to some degree. According to the tech site, it was called hell, it was literally called hell. It created fake passenger accounts to see lyft driver locations and figure out which ones were driving for both uber and lyft. Uber then targeted dual drivers to get them to shift more time to ubers platform and funnel them riders so they would stay busy and not pick up lyft passengers. Im not a lawyer, but let me just suggest that theres going to be litigation. And not civil litigation. I think were now total cyber warfare here, right . Cyber warfare, but there are laws against doing things of this nature. I know. But, you know, when i heard that interview that the ceo of uber that secret tape or whatever when he was caught on camera arguing with the driver, remember this . Right. And his whole explanation is like, dont you understand . I live paranoid. If i hadnt done those things we wouldnt survive. This guy is he wants to win. In a really big way. He wants to win in a very, very big way. The question is whether they have cut corners or done other things along the way and what that ultimately means. In the meantime, have great weekend, everybody. You too. Long weekend. Have a great long weekend. Join us on monday. In the meantime, squawk on the street begins right now. Good thursday morning. Welcome to squawk on the street. Im Carl Quintanilla with jim cramer, david faber at the New York Stock Exchange. Last trading day of the holiday shortened week, it will be a busy one. Three big banks launch earnings season and the stocks will react to the president s comments on the