Transcripts For CNBC Squawk Box 20170424

Left candidate the only two options. Two candidates who wanted to take france out of the European Union. We do have Marine Le Pen. And centrist frenchelected macron. Because of those results, you can see the market is picking up a little bit of ground. Again, this is not unanticipated. This is what most people expected would happen here. There is one candidate that would keep france in the eu. Dow futures indicated up by 219 points. S p futures indicated up by about 29. And the nasdaq up by 58. Friday was a down day for the market. But it was still the best week the dow had seen since the beginning of the march. The s p 500 and nasdaq best in two months. Overnight in asia, take a look, japan up 1. 3 . Hang seng higher, 0. 4 . Shanghai composite was down by 1. 3 . In europe, early trading, again, based on what were seeing in the election, we do see stocks across the continent. In france, markets are up by 4. 3 . The dax is up higher. Ftse up in europe and spain also higher. Taking a look at the euro. Euro versus the dollar at 1. 0871 right now. If you take a look at the tenyear note in the united states, treasury back by 2. 3 . And nate silver, his point was, okay, with clinton yeah, with Hillary Clinton and donald trump, she was supposed to be up by 2 or 3. With brexit, le pen was supposed to be up by 2 or 3, macron is up by 30 points. A surprise in this regard. Especially since he actually won a mru plurality. She is an investment banker . Yeah, but hes a former socialist. Isnt that redundant . Marine le pen may not be. Yeah, but shes her economic policies are way to the left. The only thing shes only right in all of the crazy things that, you know taking them out of the euro. Taking them out of the eu. Yeah. Right, but the most conservative person in france, nelson rockefeller, remember he was a republican, thats about as conservative. Whats interesting both of these candidates have no representation. Theres 500 people in the french assembly. Two of them are in marine le n pens and zero in macron. It just started in august. Its like new. Theyve got something off the wall. I know a guy who knows the answer. Were going across the pond. Wilfred frost is in paris, hes standing in front of the arch de triaee jaap wild celebration at the headquarters a devastating result for the two main parties here in france. Coming third and fifth respectively. The first time in 60 years that Neither Party will contest the second round rundoff of a president ial election. Of course, due on the 7th of may. But this is a wakeup call for political elites across europe regardless of what happens on the 7th of may. And last night was close three, fillon and Jeanluc Melenchon coming in at 20 . By the way, markets are rallying. Here are the main reasons why the polls got round one right. And round two, theyre predicting a very strong victory for macron. And the third is that Marine Le Pen did not win the first round, she only came second. But could these expectations are wrong . Its worth noting that Jeanluc Melenchon, far left candidate who won 20 of the vote has not endorsed emmanuel macron. And this is how le pen is trying to position herself overnight. Shes calling on, quote, all patriots to free france from the arrogant political elite. She is labeling mr. Macron as heir to the current up popular Francois Hollande. And she is framing this coming vote as a referendum on globalization, which she says is threatening french civilization. Those comments late last night. But her job, as user already said, is incredibly tough, highlighted by the pretty severe and immediate protests that broke out over france against her. So quickly last night. Heres some video. Those protests here all it be in metropolitan paris which is of course another region that supported her. But it highlights how tough her job will be to build a coalition from here. And the markets are focusing on that rallying significantly, the euro, of course, up about 1. 3 . French banks up significantly. Up nearly 10 , guys. Appreciate it. Thank you for helping us with that. Joining us for more on the French Election, the u. S. Managing editor at the Financial Times. In the meantime, one the things that wilfred was just commenting on was whether or not this is a referendum, if you will, on globalization . And given all of the columns youve written about globalization, im curious about your answer. In part, its a referendum against globalization, on globalization. Its also also that the establishment in the system isnt that the whole idea for globalization . Well, not entirely. But the key point is this, right now, markets are celebrating the fact that macron is in the lead. They also note the fact that twothirds of candidates twothirds of the vote of candidates were outside of the mainstream. Were outside of the establishment. This is a howl of rage against the establishment right now. I was in paris recently, and people being frustrated with the status quo is very significant. But it represents much more of a stabilized version of no . Absolutely. And the reason why the establishment is trying to get voters to rally around him right now i thought you said hes antiestablishment . Hes not establishment and is establishment . Well, hes trying to be antiestablishment in a catful way. Hes trying to rally around that and does appear to be the acceptable version of antiestablishment. Hes antiestablishment like if you like. Because he doesnt come from a private system. As joe says he has his own system, enmarch. Does that mean march on . It means march on. For the brexit campaign, take that control. Its not about movement or the sense of verve, motion, activity, its not about the status quo. So macron, is, if you like, antiestablishment vote. But that anger hasnt gone away and it wont go away. And the question of whether hes going to satisfy the frustration is going to be interesting. It includes lower corporate taxes and markets rally around the world. Does that work in europe, too . Is there any language if we do isnt that thats not whats happening . It is isnt a way. In some ways, these no different from macron to donald trump. Donald trump came in on the antiestablishment vote and hes not that actually antiestablishment. But with lower taxes and the supply side, reforms and almost are keynesian structure. Last week, we talked a little bit about how this message is being heard at the eu. And the former ambassador to the eu, are they doing anything as a result . Because the policies in brussels are what led to what weve seen around europe. And in britain, just the frustration. Are they doing anything to loosen things up so that people maybe would look at them not as the evil empire . If you want to be in this, theyre not rolling them out fast enough. If you want to be optimistic, look at the rest of europe, its all what i call cliff dancing. Europe goes to the edge of the cliff, looks over the edge and then pulls back. And whats happening right now, especially you have a sense of political crisis thats fullest for europe to recognize theres a problem. And maybe just maybe that will galvanize them into some kind of action reform. It seems a little late at this point and still not be time and again, with a bleak crisis, every single crisis that europe has faced, theyve gone to the edge of the cliff, theyve once panicked. Theres been headlines saying crisis, crisis, crisis. And the last minute, the sense of crisis actually forces them to work to consensus. Well have the italian Prime Minister on later on this morning. What does it say . It says if youd like to be optimistic, but right now, the sense is just about holding. Remember, we had the vote in netherlands. Again, the centrist candidate, he defied the people worried about it coming through. But you can actually argue that maybe just maybe what we saw with donald trump was actually the High Water Mark of populism. And were seeing that reaction right now. I think its a very unnerving year in europe right now. 6139 is the latest for macron. Youve got your own accent that youre good at. I also live in new york now. I just heard do the macron for me. She did it earlier. Macron. Macron. Can i just say one tiny thing, though. A french friend of ours telling me these days, the french schools are out every other day because of what they wall le peace. Teen age kids especially campaigning against le pen against all kinds of things. Thats the kind of political atmosphere that is not going away anytime soon. The march. Like an antitrump march. People galvanized. I remember it, though. You know, in the 60s. Look, everybody goes through college where you get rowdy. Right. Rebels without a clue cause rebels without a clue cause. Anyway, we bring in market guests here managing director of fx. And also allison deans, founder of a. A. Deanes advisory. A friend of bill. A. A. Advisory. So strosberg huh . When i hear that song, doesnt everyone think of casablanca. I know you love france just like i do. Whats that . I know you love france just like i do. I do, we stayed buddha bar, right . Hotels are a lot cheaper in paris. You liked that, too . Yeah. So this gets you more excited about Global Markets now . I dont see how this is different than what are the consensus is. Im surprised with your response to that. Well, theres consensus and i think people are worried. I keep reading just dont be in europe. Dont inrest in europe right now because theres so much political uncertainty. The consensus for le pen would win, what i was seeing was, i was reading the market pundits saying the insight was keep away from that. I think thats why youre seeing a bit of a rally. People were choosing to stand on the side shrine. A sideline. Now were going towards centralism. And i just wonder dealing with mentioning, maybe the bureaucrats are seeing its a wakeup call . I mean, it would be nice to get a fiscal authority, nice to do things that united entities do, right . They dont do that now. Its still a long way away. Yeah. Why does this make it any closer . It makes it closer, especially what you have, macron and le pen, a clear fork in the road. Macron is for a lot more europe. He wants to work closely with germany. Hes the kind of person that may does that fit the structure of the eu . Why is that good . I think its almost a negative. It takes time. You got to give them time. I think one interesting sign out of all of this, this makes brexebrex brexet harder. I think an interesting side note for all of this britain suffers. And macron could coordinate negotiating position, its going to be very hard for the uk to actually get what it wants out of europe. There you go. I dont know nonech these things will i mean, we knew all of this on friday. Well, i think the key thing is she didnt beat her polls. That was the big takeaway. If she doesnt beat her polls that means shes not able to compete in the second round or a 20 lead. Thats the market bet right now. Id like to say one thing, maybe you should be 100 complacent for a win. There are two things that could happen. One is scandals in france, exactly. And another thing is the paris attack. I was actually near the champselysees when the attack took place. Were you . Yes, ive been impressed with the paris attacks, theres been so many over the last year, and yet if it was devastating it would affect the vote. And in germany, theres an important german election coming up. The thing that merkel and advisers are concerned about is a big german attack which could galvanize to be antimerkel. So the question to provide these unexpected surprises cannot be ignored by investors. A Government Shutdown on friday . Hope not. My sense is just along the lines what youre saying, the eu will get right to the brink and it wont happen. But i think there will be a lot of gamesmanship up until then. All right. Ive been seeing people using bri brinksmanship. People have been using it properly without the s. Alison, thank you. I thought you would be like with the 90 tax rate how much money do you think we need . 15 of the vote its actually 100 of the tax vote. I thought it was 90. 90. My hero. Come on. How many yachts can you really ride behind . You can only water ski behind one yacht at the time. Right. They dont need thats a wealth tax. Not an income tax. You dont get the people that already have it. You got to get them with ail wealth tax. 30 30 on the wealth . 40. Thats amazing. All that. Bernie was watching from his lakefront Vacation Home up in vermont. He has two houses. Coming up, guys, we have a busy week in washington. President trump promise something details on tax reform. We will see what that looks like later this week. And urging action on health care. Plus, congress has some friday to strike a deal or risk a shutdown. Well tell you what to expect whether its brinkmanship or brinksmanship. Take a look at this. For decades, investors have used a 60 40 stock and bond model, 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. I cant wait for her to have that College Experience that i had. The classes, the friends, the independence. And since we planned for it, that student debt is the one experience, im glad shell miss when you have the right financial advisor, life can be brilliant. Ameriprise if you want to stay on top of your health, one simple thing to do is take the pledge to go and get screened for the cancers that might affect you. So stand up to cancer and take the pledge at getscreenednow. Org it only takes a minute to take care of yourself, and nothing rhymes with org. Welcome back to squawk box, everyone. Take a look at the u. S. Futures this morning. Riding high after the results of the French Election came in as expected. With the results weve seen lately in the election, that itself is a surprise. Dow futures indicated up by 244 points. S p indicated up by 32. Nasdaq futures indicated up by 63. If we open at those levels, this will be a new record for the nasdaq. In washington news, Vice President mike pence is cutting his asia trip short. He originally planned on spend two nights in honolulu after the trip to australia and japan but hell return to washington Tuesday Morning where the Trump Administration faces a critical week on tax reform and funding plan to try to avoid a Government Shutdown on friday. We are approaching the end of President Trumps first 100 days in office. Lets get to eamon javers in washington. Hell have more. All week, well be taking a look at the president s first 100 days as we head into that deadline. On saturday, symbolic time to assess the presidency. How its going so far. Its clear so far, that the big winner in the Trump Administration has been the stock market. Take a look at the stock Market Performance just as the president was sworn in the dow up 4. 3 . S p 500 up 3. 9 . Nasdaq, you guys can explain miss bett this better than i can, 6. 7 first, not clear to me why its outperforming the others so many. Thats dramatic performance. The other thing that were seeing about this administration their willingness to be overcheerleaders. Donald trump has been cheering the stock market all the way. Take a look at comments from the president at different stages throughout the rally. First one january 25th. The president said the first time in history that the dow crossed 20,000 for the first time ever. Ive very proud of that. Now we have to go up, up, up. The next one on february 16th, mr. President said the stock market hits new high with the longest winning streak in decades. Great level of confidence and optimism. Even before the tax plan rollout, that was as the dow was six days into a 12day winning streak. And march 2nd. That was one day after the dow crossed 21,000 for for the first time ever. President said since november 8, the stock market has posted 3. 2 trillion in gains and confidence, 15year high in jobs. Thats different from other president s who. Reporter who are reluctant to comment on the stock market. Not so from donald trump and his team. Theyre very enthused about the rally. They ink its a barometer. Thats one big difference. And this week, we got a whole lot of stuff on the plate before we hit that 100day agenda so well be looking at that throughout the week. Do you think the january 20th date is better than the february 8th date, eamon . Yeah. Its very muted gains to me. The markets are forwardlooking. I mean, unless you wanted us to look like it wasnt very much, i would use november 8th. Yeah, theres no question theres a huge rally after the election. You said to pick a start date, if you take november 8, thats runoff. If you take when the president was sworn in thats traditional. 12 to 4 . Sure. Look, its a big rally either way. No question about it. Eamon, thank you. Thank you. When we come back, the final round of the French Election in mayological serve as a referendum on the future of the eu. Italys finance minister will join us next on the set. 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If you dont like their answer, ask again at schwab. Im dr. Kelsey mcneely and some day you might be calling me an energy farmer. Energy lives here. You never got the brakes looked at . E girl. 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. Welcome back. Youre watching Worldwide Exchange live from the Nasdaq Market site in times square. Good morning. U. S. Equity futures surging this hour. Up a couple hundred points on the 0 dodow. 235, up 31. S p up on the nasdaq. Great things around the globe. Because the consensus outcome is achieved in the French Election. And i guess i guess if le pen all day long she was ahead until paris came in, and then she went ahead the urban areas were later. The results out today on polls for the twoway election. Up by over 20 points at this point. Some deals to tell you about medical supply manufacturer Becton Dickinson announcing it will acquire c. C. Bard for 24 billion in a cash and stock deal. Acquisition valued bard at 317 a share. Thats more than a 25 premium to bards Closing Price on friday. Becton says the deal will help to improve its market position in infection prevent and medication. Bek becton expects the action to increase earnings. And result in cost savings of 300 million a year by 2020. Both shares of becton and bard a little change in trading on the day. The transaction expected to close in the fall of you got to watch every small device out there, if you miss abbott lab is buying, st. Jude, this whole space of m and a talking about m a, jimmy choo putting it up for sale. To maximize share sholder value. The company has discussed the process with j. A. B. Luxury. They cone krispy kreme i was putting up a list the other day. Bali. Peets coffee, the europe People Company that just bought up all sorts of entities. We just talked about it, the panera. And shares of jimmy choo up sharply. Stock up 40 over the last year. The french president ial election is now down to two candidates, Marine Le Pen and emmanuel macron. Joining us now for what this means from the European Union, is italian finance minister pier padoan. What do you think of the results . First, its great for europe and number two, lets wait for the second round. Exactly. Anyone betting on this, the reason the markets are higher is because ma ren rine le pen did take more of the votes. Its good news that macron has gained the first round also because he has a very strong proeuropean and promarket program so this is really good news for everybody. Have we been pinning too much on it a while, were been saying this will decide the fate of the European Union. If the vote didnt go this way, what would happen to the European Union . Well, the European Union would be facing the option of disintergration. Because this would appeal not just to france but other countrying saying enough with the European Union. Macrons victory means that people can appreciate and can endorse europe with a proeuropean program which needs to be implemented, by the way. Its not just stay still and do nothing. I guess weve been trying to figure out if this is a High Water Mark or soon to be antiestablishment votes that are out there . Or if this is something look, he may win the centrist. But its going to be something thats continually decided at every election to come. What do you think of that . Well, i think we need to look strongly at why the populist idea, such a strong appeal, irrespective of the peak. The fact that these people are worried about their jobs, about the future opportunities, about their kids. So it is the duty of the european politics to give a concrete answer to those challenges. This is what we need to do, irrespective of what kind of vote the parties get. From the outside it looks like its also very much a vote about whether or not countries can maintain their own borders. Theres been a lot of talk about immigration policies being decided from brussels. And that certainly seems like it is in britain as well. Is that an issue . Well, certainly, it an issue in italy where i would say its the other way around. Italy is taking care of european borders because we are receiving a very large and growing amount of refugees with our own resources. And we still dont have a true european strategy to face the emergency and the people. What would you like to see . Id like brussels to be more active in strongly support not just in terms of Emergency Management but opportunities to offer these people in the north and african and middle east so they have an option to stay home rather than flee to europe. What are the politics in your own country, we heard about italy and that vote as well . What are the politics at home for you . Well, if you add up the percentages of parties that have said in some extent that they would like to, for instance, launch a referendum in membership, that say worrying sign. However, we have yet to see if that happens. Im still confident that the program that the government has been implementing will gain some so the risk is avoided. Whether or not the numbers that is used are mainstream, but they dwarf the ability to cover a lot of the you know, but whats available to help the italian banks doesnt cover the amount of help that they need . From what you say i havent seen those numbers. From what youre saying, to me, those numbers are a bit overblown. There is a number of specific case which is is being dealt with appropriately. Including with new instruments put forward by the government in agreement with the European Commission which is the key point. And then there is a number of banks which have above average npls, their Balance Sheets which are basically being taken care of. I would agree with anybody saying the problem is there and we need to accelerate the adjustment. This is what the government has been doing. Do you think italian banks can afford to have higher Capital Requirements and do you think they should . I think they should. I think theyre doing it. Lets not former get that we have introduced over the past three years a number of structural adjustment programs which are strongly guiding banks, the popular banks, the corporate banks to merge. So that they eventually get their capital on the markets to strengthen themselves. Of course, this is happening in the aftermath of a very deep recession which has left Balance Sheets very damaged. But this is getting more capital is exactly what theyre doing. And theyre succeeding at it. There mutt be somst be some t in all parts of Southern Europe about germany and france. They benefitted from the euro, obviously. I mean, youve got nice weather, obviously. But is there any, you know, lingering sort of resentment that youve seen and have had to sacrifice much more than Northern Europe to make this thing work . Nice weather is not not yet controlled by the European Commission. Yeah. There is resentment about rules that sometimes fail as being overimposed on the population. But as i said, the real issue is that people want jobs, opportunities, want to be more reassured about the future for their kids. And they blame europe for that. Right. The promise of that isnt guaranteed in the guarantee of the structure of the eu. This is exactly why macrons victory is good news. But its also a challenge. Because the followup to that is that europe needs to accelerate job and growth creating measures. This is what the Italian Government has been advocating in europe for over the past three years. Italys gdp in the rest of europe, why is that and how do you change that . That goes back to a couple decades ago. This was a problem already standing in the early 2000. Because of structural impediments. And growth . The big recession, the big financial crisis, consequences builds negatively on that. Now, the program of the government is on the one hand to deal with the legacy of the crisis to the Banking Sector adjust. Also to inject structure measures that boost growth. If i may, id like to underline that this is very much part of the program macron has adopted for his campaign. And this bodes well for europe. Can you start a business if youre an entrepreneur in italy . Of course, you can start a business . How hard is it . The problem is it takes much too long yet. And where weve been introducing measures to accelerate that. Let me tell you Something Else in that vein, its not so much starting a business that bothers entrepreneurs. Its also that if theres a problem in terms of bankruptcy or Civil Justice, they have, in the past, taken huge too much time too deal with those problems. Now, Civil Justice reform is under way. And were cutting down dramatically the time needed to do it out of court, by the way. As an outofcourt settlement to deal with settlements which of course, benefits npl managers as well. Its a great place. You cant screw up the tourism. Theres just no way. Who doesnt want to go to italy every year, right . We dont screw up the measured yards but we need to invest in these sectors as well. Ive seen some of the infrastructure. The colosseum, i mean, that thing is falling apart. Only half of it is there at this point. But that dates back to the romans, though. Its been neglected for a long time. Actually, they did fix it up again. The millions how much did that cost, a lot of the holes . Thats split between the municipality and the central government. But i think the roman forum which is the greater structure where the colosseum is, its the largest in the world, so it needs a lot of money just to maintain it. But that has been happening. We are also we are also investing a lot in local townshi townships which are beautiful jewels. And i think that maybe, you seem to know it quite well. I believe there are still places you havent seen. There are. There are. And i want to. Well, you can go back hes taking your colosseum question seriously. Thank you. People carve their name idiots you know theyve been screwing up very much of those. Good. Nice to see you. Appreciate it. Thank you. Coming up, congress is back in session, they have until friday night to negotiate and greece, how about the infrastructure there. Pillars standing up the risk of a Government Shutdown. Congressman Patrick Meehan will tell us what it takes to get a deal by the end of the week. Plus, youve seen the video dozens of time by now. Were going to talk to the attorney for dr. David dao. The passenger who was violently dragged you have a united flight. Stay with us. Youre watching squawk box on cnbc. Were bound to get together lets go, shes a dog. [ whimpers ] find pingpong. Find your awesome with the xfinity x1 voice remote. Thats amazing oh, my god oh, my god ive driven by if four times and havent seen it yet. Is that photo see, i dont come that way. Have you seen it . No, i havent seen it. Other people have seen it and told me. I keep forgetting to look im so caught up getting ready. Im listening to things. Right above the fairway, too. Right above the fairway. Thats not photoshopped, thats us, is that true . It is us. Im going out can you get on the highway and take pictures. You can go from above and take pictures from there. Welcome back to squawk box. Thats a look at our new billboard on the west side highway. Time for executive edge. Well start with a look at this weeks agenda on wall street. This is the busiest week with a dozen dow components and over 100 s ps. 3m, boeing, coke, pepsico, mcdonalds, ford, proctor gamble, exxonmobil. Alphabet, amazon and microsoft. On the economic front tomorrow caseshiller home price index. New home sales and consumer confidence. Thursday, jobless claims, goods, and pending home sales. Friday, First Quarter gpdz. Not the second report on Second Quarter. It will be the fourth report on First Quarter. Before the second, the gdp on First Quarter which comes before the First Quarter and then the Second Quarter. And the Second Quarter of the same quarter. And then chicago pm movemei and consumer centesentiment. This morning, 207 points on its dow. Finally a poll that was right. Its been a while. That said that macron would probably win. And in the second round it shows the more mainstream is he mainstream or of course, hes mainstream. Much more establishment hes not establishment. Well, on a relative basis antiestablishment. His party is a year olde. Hes 39 years old. Hes an investment banker wants to lower taxes. And he was a former socialist. You remember Austin Golding was here saying who is this trump guy putting a 32yearold in charge of something, jarod cuk b curbecurb jarod curb demurreku jared. Look what you accomplished at 39 . Right, i do. Crazy. Coming up byron scott former head coach of the l. A. Lakers and the new jersey nets, he wrote a book on leadership. Not the martial arts legend both joining us after the break. A quick check on whats happening on the european markets oh, it is charles. 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. 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Were facing 20 billion security events every day. Ddos campaigns, ransomware, malware attacks. Actually, we just handled all the priority threats. You did that . We did that. Really. We analyzed millions of articles and reports. We can identify threats 50 faster. You can do that . We can do that. Then do that. Can we do that . We can do that. 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 the treasury secretary sending markets higher with the promise of sweeping tax reform, being implemented before the end of the year. Theres a lot of good things about the tax reform bill. However shall the way that theyre trying to fund it with this border adjustment tax is just wrong. We can have good regulations but dont want overbearing regulations. Taking actions which remove the changes that were made to strengthen the structure of the Financial System is very dangerous. Welcome back to squawk box this morning. An nba coach and a ceo become fast friends teaming up to write a guide book for winning in sports and business called slam dunk success. We want to bring in byron scott and charlie norris. Hes also chamber of the board of fresh pet. Good morning to both of you. Good morning. Good morning. We want to do the equinox thing first. You guys are hanging out at the gym together . We kind of met through a mutual friend who introduced us and we fast became really good friends, started working out together. One day we were laying on the mat and charlie said we should write a book, how to work out when youre 50 years and older. That has turned into what you see today. It was one of those relationships that just continued to evolve. We became not just great workout partners but great friends. The crazy thing was every time we were together, literally ten or 15 people would say what do you have in common. Byron, youre going to kill that old man, how are you going to work out together. And i almost did. And finally one day i said nobody asks the second question, which is what do you really have in common. They just make a joke of it and go off. And i said to b. , theres a book here. And are you spotting him or are you spotting him at this point. Absolutely. What are you guys talking about . Everything but basketball. Were talking about life, were talking about friendship, were talking about problems that i might have in business. We actually spend very little oh, the other thing, im a bostonian so were talking about the relationship between l. A. And boston and all its vestiges. Youre not helping us. What do you have in common . We have a few things that we dont have in common. Obviously he was a bostonian so it took me a little while to allow him to really get in, because after i got to know him and he told me he was a bostonian i was already entrenched into knowing him so i kind of let that slide. But just our competitive nature is what we have in common. So what lessons did he teach you and did you teach him that are in this book now . I taught him how to shoot a jump shot a little bit better than when i first met him, thats for sure. Thats why im holding the basketball, by the way. Im shooting better than him right now. But he taught me a lot about business. He would take me on business trips with him. As i would do in basketball, i would bring him in the locker room, i would bring him in film sessions, so thats how we really started to find out that we had a lot in common. There was a lot of similarities running a Basketball Team as there is running a business. And that competitive nature is what serves you both well . Absolutely. And what are your biggest lessons from him that are applicable in the board room or the Corner Office . Well, one of the things that most impressed me with byron is that hes a people person. And to be successful as a leader, you have to get to the head and heart of people. It didnt matter who it was, if it was the person picking up the towels in the gym or the person handing out the smoothie, he knew their names, he knew if they were taking night courses. He was really about the person. Can i ask you a question about that real quick. Is that a natural thing for you . There are certain people who predispose towards knowing peoples names and then there are people that have to try. Do you know what im saying . I know exactly what youre saying. No, its natural for me. I used to have my basketball camps every year, every summer. I would have 200 kids. By the end of the camp, i would probably know 170 of them by name. Its something that comes natural to me and something i take a lot of pride in because i do want to know what youre all about, i do want to know what makes you tick. When charlie and i got together and he was talking about that second and third question of really getting to know people, thats something that really resonated with me. We had at mckesson water what we called an upside down organizational chart. And the front line people were at the top, i was at the very bottom of the chart. The point was that the front line people were the most important people in the organization because theyre dealing with the end customer every day. Byron had exactly the same sense the people in the laker organization. And at the end of the day, if you can get those people to tell you what theyre really thinking, youre going to have a better company. Charlie and byron, thank you guys for coming in this morning. Appreciate it. Thank you for having us. The book is called slambduk success. Much more from the French Election. Markets here are up sharply. Stick around, squawk box will be right back. Bp uses flir cameras a new thermal imagining technology to inspect difficulttoreach pipelines, so we can detect leaks before humans can see them. Because safety is never being satisfied. And always working to be better. Good morning, everybody. Breaking news. It is official, macron and le pen will face off in a race that will determine the future of the European Union. We have an update from paris straight ahead. Stocks soar higher. The latest on that. Plus Facebooks Sheryl Sandberg has a new book. The second hour of squawk box begins right now. Live from the beating heart of business, new york city, this is squawk box. Good morning, welcome back to squawk box right here on cnbc. Were live at the Nasdaq Market site in times square. Take a look at the futures this morning. They are surging following the French Election results. Youre seeing the dow looks like it would open up about 230 points higher, s p 500 up over 30 points and the nasdaq up to 60 points higher. Well have a lot more on all of this in just a moment. Take a quick look at europe adds well. Germanys dax up over 3 . The italian ftse up over 4 , spain over 3 , so all in the green in a big way. French voters have shut out the mainstream for the first time in the countrys history and on may 7th there will be a runoff between the populist Marine Le Pen and centrist emmanuel macron. Will has more. Reporter yes, indeed. So the market is rallying based on the belief voters will unite against Marine Le Pen in the second round. For that to happen theres a key question mark over what the voters for the far left and the center right will do in the second round but not everyone is convinced that they will both break to the center. I dont see anybody of the extreme left voting for an international banker, a globalist, so these guys will not vote for le pen. The programs between them were not that different. When it comes to fillon, its an interesting question. But once again, i dont see the christian right voting for macron. The idea is that people will vote mr. Macron because they hate mrs. Le pen. They may hate mr. Macron much more than they hate mrs. Le pen. Reporter worth noting mr. Fillon was out loud and clear to back mr. Macron but mr. Mell mellenchon has not. So far he has not backed mr. Macron this time. Wow. He wont do that badly but thats not totally irrelevant when there was a senior le pen against a more conventional candidate, right . Reporter we can look at that quickly, joe. That was 2002. This is a reason why markets are so confident right now. In 2002 the father of current le pen, Jean Marie Le pen lost 8218 so clearly people are confident that something of that ilk will happen again. But there are differences. In the first round the difference then was turnout was lower and Jean Marie Le pen only got 16 . This mime Marine Le Pen has over 20 and a higher turnout so a more conventiincing first round performance. Jack chirac was a fellow rightleaning politician and easier for him to get the Center Ground and a member of the Republican Party with a big base of support. Mr. Macron doesnt really have that. Clearly theres confidence off the back of these historic uniting against the national front, but there are differences too. Clearly the markets focusing on the former rather than the latter this morning. Who framed your shot . I mean youre right in the thing. I mean theres its like its unbelievable. You love that, dont you . You are feeling so cosmo right now. Look at that. Have you been up to the top . Theres a big line to get to the top of that thing. Have you done that . Reporter im feeling so lucky, joe. Its a great job. Very lucky to be here. And youre on squawk box. You should be feeling lucky. Where are we putting you up in paris just out of curiosity . No, you know what, the place will get mobbed with young ladies if we do that. Dont tell me. Reporter i wont tell you, but i will also be on the plane back later today. Theres a big wells fargo story to cover tomorrow. Hes always working. Bob michael, director of jpmorgan asset management, felipe truche, thanks for being here. Is convention a. M. Wal wisdom g prevail, unlike some of the other surprises in the last year . You know, they have been consistently right during the polling before the first round so its fair to assume that the 20 Percentage Points lead by macron even if a little bit wrong, its a good assumption that he will be the next president. Is that the way you see it, it would have to be some external, god forbid, event that could maybe swing it at this point . I was in france last week and there was the event. There was the shooting and it didnt do enough. I think as a market investor wed be a bit more concerned if le pen had taken 30 , 35 of the vote but i agree for once its a relief that the outcome actually was in line in the polls. I think thats now yesterdays news and the market can look to other things to price in. Weve talked about this is the first time that its not one of your sarkozy or someone from the political establishment. Is there a reason to think looking at the Market Reaction that this sort of outsider could actually do some pro business or pro private sector things that would help france . Absolutely. Let me first say that le pen is not an outsider. Shes been around forever. Macron is the outsider. He is new, he has never been elected. But he has a proeu business friendly platform. When the parliamentary elections take place in june, midjune, to get a majority to support his plan. Hes not from a political party. He has no political party. His movement is a year old, and therefore hes going to have to rely on the traditional right and center right parties to help him carry out his agenda. I wonder how closely hes watching and observing President Trump. Right. Because theyre in the same kind of position. They dont have a party. Theyre independents. And i know trump has won the republican, but certainly it would be hard to say that he had the establishment support. And macron was to get in there and he has to Start Building a coalition, forming alliances and be ready to compromise to push policy through. Right. Weve seen the economic sort of legacy of the eu already. Europe is coming around, finally, we hope. But i sometimes wonder if the status quo is maintained and thats what this election proves. Is that great . Is there reason to be optimistic that the eu can get its act together and be a vibrant economy and get rid of the structural problems that all the individual countries have . Its easier to move forward when the economic environment is improving. And it is . Definitely. Hes definitely pro eu. I think maybe the old momentum driven by france and germany will drive the eu construct again. Because the eu right now is like a building without a roof. Right. There are some people that think that the eu was sort of a failed experiment to start with and that now youre just trying to keep it together at all costs. I mean the strongest economy in europe has been britain since they decided to brexit. Well, yes, but the strongest economy absolute in europe is germany. Good reason. If i were germany, id want to stay in the eu. But germany seems like they didnt need to have another arm conflict, they conquered europe with the eu. But if macron wins the next round, then core europe remains in place. And you think thats a good thing for Southern Europe . I think thats a good thing for the eu. I think macron has some progressive policies that he wants to push through, particularly on tax. I think those things are good for wait a minute. You said progressive policies on tax. He wants to cut taxes. Youre using progressive in a different way than its used here. Theres going to be a tradeoff, right . He may cut taxes and then there may be widespread taxes elsewhere within, so i think its positive. I think its healthy that core europe is kept together. We can deal with brexit separately and deal with you had the italian finance minister on. Deal the italian Banking System next. All right. Well see. Theres a i just have some sympathy for the other viewpoint that the that when you try to put together all these countries with different languages, different culture, without a fiscal authority, its difficult. And does it finally pay off . Its paid off for the germans, but has it paid for up everybody else . It has, it has. Theres often the misperception people are missing the political angle of the eu construct. Europe has not had a wall for over 60 years. Europe has never known a period of prosperity and peace as we have since the eu started in 1957. Since the roman times. And people are aware of that in europe. Yeah, but i dont know if theres a cause and effect here. Were in a different in the modern era. Im not necessarily if there was no eu, you think there would have been a war . I dont know if you can make that its difficult to say, but if you look at the past history, yeah, probably. Okay. All right. Gentlemen, thank you. Lets get you caught up on some of the other big headlines. A sizeable takeover deal in the medical supplies industry. Becton dickinson is buying c. R. Barred. About 25 above its friday close. Were seeing a lot in this space. We were talking about abbott and st. Jude and medtronics. Also a takeover battle with two paint makers. Ppg raising its offer for akzo nobel. Thats higher than the march 2nd proposal. Akzo has rejected two offers. Gas prices up three cents over the past two weeks which puts the average price of unleaded regular gasoline at 2. 46. Its about 28 cents higher than a year ago. When we return, congressman Patrick Meehan on the issues that matter most to your country. A lot of things coming up and a possible Government Shutdown. And adam grant on the book he coauthored with Sheryl Sandberg. And dr. David daos lawyer will speak to squawk box about his clients case against united. Stay tuned, you are watching squawk box on cnbc. For decades, investors have used a 60 40 stock and bond model, 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. 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. 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. Welcome back to squawk box. Take a look at the futures right now. They are ripping in a good way earlier this morning. Youre looking at the dow looking like it would open higher at 222 points higher, s p 500, 30 points higher and the nasdaq 60 points higher. Congress back on the hill with a full agenda. President trump promising more to come on his tax reform plan. Plus talks about another Health Care Bill and all of this is happening with the threat of a Government Shutdown looming on friday. Joining us right now is congressman Patrick Meehan. He serves on the ways and Means Committee which oversees health care and tax reform. Congressman, thanks for being here today. Great to be back with you. Thanks for having me. Before we get to health care and tax reform, whats going on with the Government Shutdown. Will that happen . You said shutdown and thats going to relate to whether or not the president will insist on funding for his border wall. So the question ties back to whether the democrats are going to participate on health care. Most specifically whether there will be a deal border wall for payments to supplement obamacare so its going to be an interesting dialogue. Does not have to get figured out before we continue deciding funding the government on friday . Its like any deal, whos going to insist on what and is there a down payment on the wall that could get people on board. I think thats where youre going to find the sweet spot. Your best guess as to whether this actually happens, and if it does what it reflects on your party, the republicans. Well, it would all depend on how it would be spun, but i think people want to get this done because theres other heavy lifts that were involved in, most looking forward to what the president is going to say on tax reform, which is a big and important issue. They may take another whack at health care. So you dont want to mess that kind of an opportunity by tying up something that we should be able to get through. You heard durbin. I mean durbin talking about that its just its outlandish to even think about securing the southern border. And if he tries to pull this stuff, of course the democrats are not going to theyll have to be their conscience will require them to shut down the government to stop the idea of building this wall, because its i think Mainstream Media can sell that. I think they would blame the republicans for him following through on what he got elected. That was a big part of how he got elected, talking about securing the southern border. But they can turn it into this almost immoral, horrific, you know, development to build the wall. Theyll do it. It doesnt seem that outlandish to me. Barack obama talked about securing the southern border at one point. I think its a political calculation. I think they could win more on that kind of a thing if they can make it a battle. The democrats. Yeah, yeah, sure. Everybody should get in and walk across. Do you think the wall is a rationale, good idea . Theres aspects of it. We call it the virtual piece. You know what the Biggest Issue is . The virtual piece of the wall . Theres elements of. It securing the border. I dont think anybody disagrees with securing the border. The question is whether were con flagt it with physically building a wall. Is physically building a wall a rationale act to you . Theres things that you can do that dont require a physical wall. Im asking you whether building a physical wall, which is what the president has campaigned and pledged to do makes sense to you . I dont think it makes sense in its entirety. Theres ways to secure the border and thats what we should really be talking about. As i said, the biggest threat is not the individuals, its the heroin and fentanyl, which are changing way were confronting problems right now in society. This is a huge problem, as they would say, and that could be something that could be impacted. Thats where the real danger is on the border. Lets talk about the tax reform bill because that is certainly something that the market is kind of rising and falling every time it looks like its going to go through or not. Where do we stand on that and what do you need to hear at this point in terms of details. I think the most important thing is were going to have the Administration Speak for the first time about what they want to see in that. Thats going to allow the ways and Means Committee to have some direction and probably some direct negotiations. Theres going to be important questions about whether theres something we do at the border with adjustability, were going to see what the president wants to do with interest, which is going to be a big aspect of it. Where he wants to go with rates and those factors may all play into where we think we can get in terms of a bottom line and of course the question of health care is related as well because theyre looking at the baseline. What do you have that you can begin with whether or not we get health care. The border adjustment tax, weve had kevin brady tell us he thinks thats going to get done. Weve had other people say its dead on arrival, its not going to happen. If the white house comes back with a plan that does not include border adjustment, how will the ways and Means Committee handle that . Well, two out of three isnt good. When you have the senate and white house not behind it, if the white house is firmly not behind it, i think it will send some kind of a signal. But theres also going to be a question about what kind of a tax bill do we have. If youre looking for some form of neutrality in revenue, you have to have something to generate it. Is there some other mechanism at the border the president will stock about. The stock market moved about the pledge and our treasury secretary that we were going to hear about a tax plan. Over the weekend it seemed to me that Mick Mulvaney said not that he was walking it back but suggesting theres going to be an idea of principles. Well give you some tax rates and ideas but this isnt going to be the plan. How do you see it . Im not troubled by that. We have a pretty thorough plan put out on the house and done a lot of work. What youre looking for is the president to come back and tweak that. Say heres where i see what i want to see different or where i think were in common form. Its like negotiating any document. Anybody starts from the first draft. I think we have that first draft, were just looking for the president to fill out what he wants. If the boardarder adjustment not something the president stands behind, weve spoken with Steven Mnuchin and he suggested that you might get there by dynamic scoring. Would you go along with a plan that did not include a trillion dollars in savings but instead said we think well get there because well boost gdp with this plan . I think you can use dynamic scoring to get part of the way there. Where you may start to get affected is permanence on it. You may see Something Like middle class tax relief that will be done in that way. I think what were going to see is probably not as expansive tax relief for the wealthy, at least in terms of direct income. Theyll probably work Capital Gains and things of that nature for investment that a lot of people would shift into, but i think the president wants to wants to get a bill and he wants to send middle class tax relief. Very quickly, what comes first, health care or tax reform as the committee that has to deal with both. Budget and tax reform. Health care will be whether the votes are there or not. Thank you, sir. Okay. Still to come, is it time to rethink the value trade . Plus more on the macron le pen runoff and what it could mean for the Global Markets. The futures at this hour continue to trade sharply higher. Squawk box will be right back. Im dr. Kelsey mcneely and some day you might be calling me an energy farmer. Energy lives here. Still to come this morning, is it time to rethink the value trade . Mike san tolly has a special report after the break. And later Sheryl Sandbergs new book inspired by the sudden death of her husband hits bookstores today. We will hear from the coauthor, adam grant. Right now as we head to a break, take a look at u. S. Equity futures. They have been sharply higher after the French Election went as the polls predicted. The dow futures is up by 222 points, s p up by 28, the nasdaq up by 58. 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 good morning, everyone. Welcome back to squawk box here on cnbc. We are live from the Nasdaq Market site in times square. Among the stories that are front and center today, heres a sign that selfdriving Car Technology is advancing. It is winding up at the center of legal battles, googles wamo unit has accused uber of hiding a project from a federal court. It says examination of that project will show uber copied its design for a laser sensor used in selfdriving cars. American airlines has issued an apology to a passenger after a individual joe showvideo showt over a baby stroller. All of this of course comes on the heels of that controversy over uniteds forcible removal of a passenger on an overbooked flight. Well have more on this when we interview the lawyer for dr. David dao. Does kaylee have a stroller . Yeah, but you check it at the gate. This is a smaller stroller, and she claims, the passenger claims that another Flight Attendant on the runway said go on inside and see if you can fit it inside. If you can, you can leave it there. Ive figured out ways to get strollers on before. There are some that fold up very small. Such a hypocrite. So you dont want any infants in first class. No. But you found a way to get a stroller onboard. When you have a baby its okay. No, no, no. You can get it down to the size of a bag. They have these strollers, they make them. They do. You have a real double standard. No double standard, no double standard. When im sitting in the middle seat how old is your baby now . Were about three and a half months in. Are you going to bring her on first class . When . If you ever go. When shes 21 years old, she will sit in first class. Im watching you. Its to see if shes an entrepreneur at 15 and can figure it out, by all means she should buy the ticket herself. If you take her to europe when shes 2. Yes. Shes not flying in first class . Coach with a nanny. Kidding, kidding. Im sitting in coach. To europe . Yes. I havent taken the kids to europe yet. Until they get older. They have to graduate to these things. I didnt get to do these things when i was a kid. I hear what you say, but just know that i dont believe you. Ill be watching you. You dont believe me. Okay. Value stocks have mounted a huge comeback against Growth Stocks starting a year ago but have faltered in recent weeks. Mega cap tech stocks have carried the nasdaq to a new high sparking a fresh debate over what style is the best fit for the rest of the year. The cheaper industrial and financial stocks . Mike santoli joins us now with more. Thank you very much. That whole dynamic where Growth Stocks have been outperform, by 6. 5 Percentage Points if you look at the russell value versus growth, comes as a surprise. The consensus was that value would continue its resurgence mainly because its more cyclical. Theres cheaper stocks, perhaps youll get some policy help too on the growth front. Well, as we know, weve had a lot of resizing of Economic Expectations in the First Quarter. Treasury yield is down. That has also had value stocks suffering as its come off the boil. Now the question is are we now given the opportunity to reload because fang stocks have been the only thing performing really well recently. I think the conditions are there. You basically have growing gdp supposed to be accelerating, also Earnings Growth. Those things tend to be good for value stocks. Also, the overall market is obviously above average valuations. Value stocks will do better. You have treasury yields up today, banks follow through, they are 31 of the value index so it seems as if the banks can work, this trade can basically have another shot at it, guys. Mike, will you stay with us . Stick around . Joining us now, paul hickey, cofounder of the spoke investment group. The underpinnings of what were seeing. Another upswing today. I guess the s p didnt quite test 2316, didnt really didnt really test that bottom. Are we onward and upward with europe . This does put the worst Case Scenario on the back burner. The polls were finally right, thats a big sigh of relief here. I think this is just a continuation of this stairstep pattern weve been in where we get a rally and then some consolidation here. But so much of the narrative is that investors are maybe looking for excuses to sell, but you look at the results today, an expected result granted there was uncertainty around it but i think you have to frame the question are investors looking for excuses to buy here and coming in. The narrative was it was a trump rally but here we have the European Election driving the market up 1 . Well, the tax reform, if that actually well know soon whether thats got a chance. That could set up another leg. Last week there was a Merrill Lynch fund manager survey. Only 5 of Fund Managers expect there to be tax reform in place by the end of summer. So for all of this talk everything is priced in already, i think thats a metric that things arent necessarily priced in. We dont know whats going to be in this tax legislation that theyre going to bring out but taxes arent going up, so i think thats a positive. If we get anything good in this tax reform and theres signs that it could get passed sooner, thats just gravy. I think thats probably the best thing you can say is that expectations for whatever the story line had to be to get stocks up in terms of policy progress, i think thats kind of been set aside. You wouldnt have the fang group, those four stocks, equal weighted up more than 17 year to date. You want to add adobe in there, visa in there, these are defensive Growth Stocks so they have been holding the market together while the policy and economic stuff has kind of slipped back a little bit. Whats really unique to mikes point earlier about value stocks is during this rally that weve seen since the end of last year, weve seen a lot more dispersion where its not a tide lifting all boats. We track something called all or nothing days where the ad line is 400 or more issues going up or down on a given day. On a day like today, normally in the past eight years this would be an all or nothing day. But many of these 1 days weve had since the election, havent had that quite so were seeing certain parts of the market rallying but its not everything going up at once. So what if theres a total disappointment this week . Tax reform gets bogged down by like obamacare repeal. I dont know, we argue about keeping the government open. So if we have bad news on the tax front, i think you could see a shortterm disappointment. Its two steps forward, one step back here. So the market got excited about the tax reform last week, but i mean the futures are up more today on the European Election than they were rallying or theyre rallying as much as they were on the tax news last week. So its not i think its not the end of the world by any stretch if we have disappointment on the tax this week. Santoli, you look young but youve got the crows feet and have watched this for a long time. Doesnt it just seem like things are half full now instead of half empty . Im not going to say anything about the last administration, but even if you dont do anything, even if tax reform does get bogged down, theres certain regulations that have been eased. Theres Interest Rates are still low, corporate profits are still coming. It just seems like you better be long or yes. I do think thats the case. Youre at a pretty good spot in the cycle to start with and then, yes, i do think if you look at the range of whats going to happen on the policy front, i think literally your worst Case Scenario is status quo with deregulation and your best case is maybe you do get some help. I think thats true but the most bullish thing that could possibly happen to make you really stand up and say wow, is no tax reform at all, the market goes up another 10 and people say why did that happen . Well, why did it go up 30 in 2013 . It wasnt policy. Youre like dick clark, you just look the same. Lets hope im not going where he is any time soon. He looked like he was 30 when he was, you know americas favorite teenager youre saying i am . Kinda saying that. Ill take it. Thanks, guys. What happened to joanie . Im the spokesperson for all squandered youth now, is that what it is . Squandered youth. Thats horrible. 56 years old and a trailer park. She was a huge cultural icon. What happened . You watch what was tweeted out by some of her coworkers, ron howard its sad. Yes. Its not good when you start out sometimes very young. She started out as a 10yearold actor. Up next, psychologist and Wharton School professor adam grant coauthored a new book with Sheryl Sandberg inspired by the sudden death of her husband. Well hear from him after the break. The power of the Nasdaq Market. The power of 100 of the worlds top companies. 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. Lets[ whimpers ] dog. Find pingpong. Find your awesome with the xfinity x1 voice remote. Thats amazing welcome back. When facebook coo Sheryl Sandberg lost her husband unexpectedly two years ago, her specio experience of grief was something even the most forwardlooking Business Leaders werent ready for. Adam grant is the coauthor of option b written with sandberg on facing adversity and building resil resilience. We kel hum welcome him. Thanks, andrew. Good morning. You wrote this book together coming out of the death of dave goldberg. Lets go back, how did this even happen . It started actually when dave read the first book that i wrote on generosity and introduced me to sheryl and said the two of you should get to know each other. She started grilling me on gender differences in my data so i freaked out, reanalyzed my data, found these differences between women and men and she said we should write about this. When dave died, we were all devastated. After the funeral there were family and friends staying at her house and she said what can i do to get my kids through this . With my psychologist hat on i made a list of things that helped kids build resilience and we had a book to write so here we are. Lets talk about kids and resilience first because that is a fascinating chapter in the book. What do you put at the top of the list . I think the most important thing for kids is they have to know that they matter. This is something thats true whether kids are facing small challenges or major adversity. Mattering is just the answer to the question do i have significance in the world. And when kids feel that they matter, they believe that other people notice them, care about them and rely on them. And when kids are going through crisis, its really hard to reinforce those feelings. But its important to consult them, ask for their advice and go out of your way to show that youre really looking out for their best interests. One of the other things thats fascinating to me is what other people are supposed to say to people who are grieving, which is always a struggle for everybody. Yeah. Ive screwed this up for years. My instinct was always to say let me know if theres anything that i can do. And this is just a terrible offer it turns out because it shifts the burden to the person whos suffering to know what they need and to ask, which most people are not comfortable doing. Its much more effective instead of offering anything to just do something. To go and bring like dinner over to the person, to show up with toys for their kids, just take some action. Just to do it. Totally. But dont ask. Dont ask, just act. And are you supposed to say because you guys go over this. You say im sorry, i know what youre going through. Dont do that. Well, i think that too often we try to offer reassurance. Were like, andrew, i know youll be okay. Really . How do i know youll be okay. Its much more meaningful to say, look, i acknowledge that youre in pain. Not only am i here for you, im here with you, were in this together. And then the other piece of this, and what i thought was so interesting about what happened at facebook, is how the policies that they had changed and how a company should deal with this kind of thing. Yeah, its staggering that after an employee loses a child on average, they get three days of leave after that. What . Yeah, can you imagine . No. So i think facebook had already taken pretty unusual strides. Now their policies are even more generous, giving people 20 days off. I think thats a starting point for how you support people when theyre grieving. We need support programs for all kinds of hardships. This book to me is as much about grieving over a death as it is about all sorts of hardships and stresses in life. And how we need to change or not. Yeah. If you look at what companies do, there are a bunch of fortune 500 organizations that say were going to run a support program so if you face an illness or theres a Natural Disaster that destroys your house, well have finances and Resources Available for you. Ive found that when these programs exist, people are more loyal to their companies. Theyre proud to work for a place with a heart. Its not just the right thing to do, its the smart thing to do. Does it translate down to the bottom line . So many businesses look at this as great support and loyalty. What does that mean beyond . Yeah. Just if you look at grief alone, the productivity losses from employees who are grieving are in the billions of dollars a year. When you look at peoples attachment to the company, if they feel a stronger sense of commitment, they end up working harder, longer, smarter and more productively. This is not just a book and story about dave goldberg, we should say, because you have other stories of people who have grieved or had other loss. Yeah. I think we didnt want to write a book about grief, we wanted to write a book about all the adversity we face in life and how do we build resilience in ourselves, in each other, in our work places and in our communities. And whats the longterm goal . Lean in became not just a book but a project both in the online and real world. Same with this . Sheryl has launched optionb. Org, which is a website that has support groups and lots of educational an inspirational content, for people whoever hardship they might be facing in life to gain the insight and community that they need. Its amazing how isolating tragedy and adversity can be. A lot of times what we need is to connect with other people who have shared experiences, so thats the goal. Adam grant, option b is the book. Its out today. Thank you, appreciate it. When we come back, weve got stocks to watch ahead of the opening bell. At the top of the hour, dr. David daos lawyer will join us to talk about his case against united. By the way, hes also representing the passenger who had a confrontation over a stroller on an american flight just over the last few days. Hell be joining us shortly. Squawk box will be right back. If you want to stay on top of your health, one simple thing to do is take the pledge to go and get screened for the cancers that might affect you. So stand up to cancer and take the pledge at getscreenednow. Org it only takes a minute to take care of yourself, and nothing rhymes with org. But weve got the get tDigital 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 take a look at some stocks to watch this morning. Halliburton reported a profit of 4 cents a share. That was involve estimates beating by a penny. Revenue was also above expectations, helped by increased drilling activity in north korea. European bank stocks, the trade in the u. S. Are surging following the results of the French Election including shares of deutsche bank, credit swiss and barclays. Oreilly was a good value and worries about amazons growing move into the auto parts area. Analysts feel oreilly is better positioned to fend off amazon. Medical supplier Becton Dickinson will acquire c. R. Bard. They value bard a premium over the Closing Price on friday. It will help improve its market position and becton expects the transaction to increase its earnings share and a cost saifgds of 300 million per year by 2020. Both shares are unchanged in early trading this morning. The transaction is expected to close in the fall of 2017. And luxury retailer jimmy choo is putting himself up for sale. He is seeking offers for the company was part of a review of its Strategic Options to maximize shareholder value. They have discussed the process with their Majority Shareholder which holds 68 of jimmy choo. Jab luxury says it is supportive of the plan. Shares of jimmy choo are up sharply in early trading. That stock is up 40 over the last year, a gain of 9. 5 this morning. A wisconsin woman said she sustained secondgrdegree burns after her fitbit fitness tracker exploded on her wrist. Mitchell said her doctor had to pick pieces of plastic out of the wound. She said that she only owned this device that was a fitbit flex 2 for two weeks. She was reading a book when it exploded. Fitbit issuing a statement saying the company is investigating the incident and isnt aware of any similar complaint. Fitbit is down 60 in the last six months. Long before this, but this is always the issue when you have batteries. Batteries are chemicals and they can explode. Weve had situations with batteries exploding on airplanes. The Samsung Phone situation. Right. And more and more if were going to be living with batteries physically on us in some way or another, right, they all have to be powered somehow. Right. Maybe things like this will happen. Im not saying its an acceptable thing to happen. The person charging the phone who was sleeping and had something happen. Everyone has their phone next to their phone using it as an alarm these days. Arianna huffington says keep the phone out of the bedroom. Maybe thats a good idea for lots of reasons. Vice president mike pence is cutting his trip to asia short. She planned to spend two nights in honolulu at the end of the trip to south korea, japan, indonesia but hell spend one night there and return to washington on Tuesday Morning. Thats when the Trump Administration is facing a pretty critical week on tax reform and a funding plan to avoid a Government Shutdown on friday. Now back to wall street. Heres whats on tap. It is the busiest week of earnings season. 190 S P Companies reporting. Among the names to watch, 3m, boeing, coke, pepsico. Tomorrow we get the new home price index. Thursday we get jobless games, durable goods and pending home sales. Check out friday. We have the first report on q1 gdp as well as chicago pmi and consumer sentiment. The fate of the furious holds on steady at the top of the box office. The eighth installment in the fast and furious franchise earned 39 million over the weekend. Boss baby commanded second place and beauty and beast was in the third spot. Weve all seen the video of dr. David dao being dragged off the united flight causing a corporate pr crisis. His attorney will join us in just a couple of minutes to talk about it. Later, the president s plan for infrastructure. The ceo of cgla infrastructure will join us. The company one of the nations leading infrastructure consulting firms. Squawk returns in just a moment. Right now . W . Right now . W . Were facing 20 billion security events every day. Ddos campaigns, ransomware, malware attacks. Actually, we just handled all the priority threats. You did that . We did that. Really. We analyzed millions of articles and reports. We can identify threats 50 faster. You can do that . We can do that. Then do that. Can we do that . We can do that. She cant become a guitar legend just by playing air guitar. The babys room wont build itself. And her paw wont heal on its own. Were all working forward to something. Synchrony financial can help your customers make it happen sooner. So she can plug into her dreams. And theyll have a new addition for their new addition. Whatever youre working forward to, even if its chasing squirrels, Synchrony Financial can help you get there. Even if its chasing squirrels, we rbut we are not victims. Ack. We are survivors. We are survivors. We are survivors. And now we take brilinta. For people whove been hospitalized for a heart attack. We take brilinta with a baby aspirin. No more than one hundred milligrams. As it affects how well brilinta works. Brilinta helps keep platelets from sticking together and forming a clot. In a Clinical Study brilinta worked better than plavix®. Brilinta reduced the chance of another heart attack. Or dying from one. Dont stop taking brilinta without talking to your doctor,. Since stopping it too soon increases your risk of clots in your stent,. Heart attack, stroke, and even death. Brilinta may cause bruising or bleeding more easily,. Or serious, sometimes fatal bleeding. Dont take brilinta if you have bleeding, like stomach ulcers,. A history of bleeding in the brain, or severe liver problems. Slow heart rhythm has been reported. Tell your doctor about bleeding,. New or unexpected shortness of breath, any planned surgery, and all medicines you take. If you recently had a heart attack, ask your doctor about brilinta. My heart is worth brilinta. If you cant afford your medication, astrazeneca. May be able to help. He promised he was going to bring jobs back to this country. People want to see if hes going to keep true to his promise. Global market alert. Stocks surge after polls predict centrist candidate macron will be the next president of france. The first 100 days, Congress Gets back to work with a busy week ahead from tax reform to a showdown over a Government Shutdown. Well tell you what to expect on the hill. Plus another bump in the road for uber. Details that head to a heated meeting with apple ceo tim cook as the final hour of squawk box begins right now. Live from the most powerful city in the world, new york, this is squawk box. Good morning and welcome back to squawk box here on cnbc live from the Nasdaq Market site in times square. Im joe kernan. If you cant beat them, join them. Its called times square for a reason. Times square stands on its own. You dont have to think about the Financial Times every time to know that it was named after the l. A. Times, the chicago anyway. Here with becky quick and the New York Times and cnbcs andrew ross sorkin. Fu futures are up 230 points. Thats even less than a percentage gain than were seeing in europe. Some of those are up as much as 4 . Weve had five, six out of seven days that were down recently so weve been in a little bit of a hiatus of the bullish move but were back on track today but it has nothing to do with whats happening here. It has everything to do with what happened. Emmanuel macron and Marine Le Pen will face off in the final round of the french president ial election. Its only like two weeks away, i think. Wilfred frost coming home today but youre going back ill bet in less than two weeks, arent you . Reporter may the 7th exactly is the next round. You just read out the head line. Lets look at some of the subheadings in this vote and the social categories, how they turned out their vote. The first one expected, macron, very strong in cities le pen weak, very weak. Paris, macron 35 , le pen just 5 of that vote. The second category, the working class, how they voted. The trend to be expected, the extent of the vote, though, a bit of a surprise. Le pen the big winner, 37 . Macron 16 of the working class. Worth point out melenchon getting 24 . Le pen is, quote, far right on immigration but not on economic issues. Now, so far that breakdown sort of to be expected and sort of similar as well to how the vote broke down for brexit and for donald trump, but heres something thats different and could work in le pens favor. The young vote. 18 to 34yearolds, its close, but le pen comes out on top. That will surprise some people in the u. S. And the uk, 26 of the 18 to 34yearold vote for le pen, 22 for macron. Now, clearly markets this morning fear that le pen or think that le pen will struggle to build a coalition of voters to get her from the low 20 to the 50 . But macrons route is not simple either. Despite being the independent, despite being the youngest ever president ial candidate in france, hes got a lot of work to do to shake off the image of being a former banker and a former government insider and to become the man of the people that clearly markets think he will be seen as. Wilf, i think thats really strange about the youth vote, thats very strange. Are very negatively affected by immigration . Is that it . Well, no, theres a crucial factor here and thats what youth unemployment is because overall employment in france is about 10 . It peaked three years ago at 11. 5 . Youth unemployment 23. 5 , peaked two years ago at 25 so very little improvement on the youth Unemployment Rate and that has been a big factor. But what has been fascinating here is how close that youth vote is with melenchon because he was the far left working class person that championes tho those unemployed but in fact the split between the young very close between them and raises the question of what melenchon supporters will do in the second round. She is seen as in this country i cant imagine anyone young would vote for someone that has been, you know, sort of stereotyped in a negative way as being far right. I understand the Bernie Sanders guy, but then i would have thought that macron would have, you know, young and i dont know, i think thats really strange that le pen has the youth vote. Reporter the point there for mr. Macron is, yes, hes an independent but he works for Francois Hollande for four years, two years of which as economy minister. Clearly he has to do a bit more to really prove hes an independent. Just on that point, francois hol lands party got only 6 of the vote. That was very similar to the dutch elections and if the polls are correct at the moment, pretty similar to how the uk election could play out with the labor party and how the democrats fared because they were beaten on various levels of governments last year. Yeah, yep, youre right, they were. All right. Thanks, wilf. Now lets check on those markets we alluded to in europe. Some are up 3 , 4 . Big gains, big gains. You can see there germany. France up almost 5 . Big move. The ftse up, and spain up 3. 33 . Ftse is up but the point has been if you did see macron win and then you had germany and france kind of team up, it would potentially put the uk at a disadvantage. Make it tougher to negotiate brexit. But still up. Its not down. All right. Lets talk more about the exact of the French Election. Joining us right now is christopher dickey, world news editor at the daily beast. He was the paris bureau chief for newsweek magazine. Chris, thank you for being here today. My pleasure. What do you think is the most likely outcome in the second goround . The most likely outcome is that macron will win and by a fairly substantial margin. But this is his race to lose at this point. Hes really not a very good debater. In the two debates that took place in the runup to the elections yesterday, he really did not come across strongly. Actually in the second one people didnt even talk about him. Marine le pen is a very strong debater. She knows very much what she stands for. She has radical positions but theyre easy for the french to understand. Macron tends to get kind of wonky and kind of emotional. The debate is going to take place on the 3rd, may 3rd, four days before the election. So if he does himself a lot of damage in that debate, its going to be hard for him to recover. We were just talking, trying to figure out who melenchons voters would go for. Is it more likely that they go for a centrist candidate like macron or more likely they have more in common with le pens voters . Both melenchon and le pen, there were a lot of elements in their platforms that were similar. One of the similarities was that the government is going to take care of you just like it used to 30 or 40 years ago. Youre going to get jobs for life. Youre not going to be fired. Were going to tax the rich to fund the poor. Were going to do all these kinds of things that sound terrific, very hard to execute and very hard to stay solvent if you execute them, but its the kind of thing that appeals to young french voters. Macron is telling them, no, were not going to do much of that. What we want to do is prepare you to live in the 21st century. We want to make it easier for entrepreneurs to work, we want to reduce social charges on employment, particularly on selfemployment and small and medium enterprises. All those kinds of things that i think most of us understand are relevant to a dynamic economy. But french young people dont necessarily agree with that and every time theres been an effort to reform labor laws in this country, young french people have turned out by the thousands in the streets to fight against it. Melenchon and le pen both capitalized on that sentiment. It sounds to me like you think this is not a done deal, that weve been writing it off and conventional wisdom would say this is an easy one for macron to win. But it sounds like you think there are theres a significant possibility that it could go the other way . Im saying lets not pop the champagne corks yet. I think that its not a done deal. Its very probable macron will be elected, but it is possible that le pen will be elected. And i think then we would be europe and france would be in deep trouble. Chris, thank you for your time today. Thank you. It has been a rough few weeks for airlines were another confrontation going viral. American airlines apologizing after this video was posted on facebook capturing the moments after a Flight Attendant allegedly hit a woman with a stroller, just missing the baby in her arms. American has suspended the employee pending an investigation. Joining us right now is thomas demetrio, the attorney representing dr. David dao in the united case and is now representing the woman in that American Airlines video. We thank you for joining us this morning. Pleasure. So lets talk about dr. Dao and that case first in terms of where you think all of this goes. We understand that united over the next week or two will probably come out with new policies, but is there any effort going on right now to try to settle this case . Well, settlement hasnt really been discussed. I know april 30th i think is the day mr. Munoz said the new guidelines, rules, standards are going to be put in place for sure. United has already started assuring the public that the Chicago Police department or agents of the Chicago Police department will no longer be used to take off nonviolent, nonterroristtype people, passengers, like all of us, so thats a good start. So the whole overbooking issue is going to have to be revamped, i believe. And how employees get from point a to point b. They no longer can really take a seated, ticketed passenger and either violently or candidly nonviolently take them off the airplane. Do you hold united accountable for this or do you hold the Chicago Police accountable for this, given that they were the ones who physically dragged your client off the plane . Yeah, united at the end of the day is totally responsible for what occurred here. Maybe not totally, but they united is the captain of the ship. United chose to use Chicago Police, three officers, who mayor emanuel has said that will never happen again. So united watched how dr. Dao was dragged like a sack of potatoes from this plane and did nothing to stop it. This is a private Forprofit Corporation i mean a public Forprofit Corporation. And the fact of the matter is its responsible at the end of the day, all airlines are. So yeah, united is it. Thomas, you took on this new client given this video that weve seen on American Airlines. What went into your thinking of whether to take the client on or not, given, and youve already seen some skepticism and accusations online. People saying that you have become an ambulance chaser. I just sit in my office. I dont go after people in argentina. You have to believe that. I dont go after anybody. The fact of the matter is she contacted us. Her tale is compelling. The video is a microcosm of whats wrong with the Airline Industry today because youve got in that video, you capture a haggard mother with a backpack, a stroller, two children, 16 months old, twins. Youve got an out of control Flight Attendant. Youve got a passenger who wants to protect this woman and protect presumably everybody on that plane from this guy. And then youve got a captain we can see in the video who is very concerned and hes pacing and hes dealing with the passenger, hes dealing with the Flight Attendant. At this point in the flight, we want a captain whos up in the cockpit doing, you know, what hes supposed to be doing to have a safe and secure flight for all the passengers. And then in the background finally youve got other passengers who are upset. And the same in dr. Daos video. Youve got other passengers who are upset. We dont need any more stress in our daily flying lives. So these airlines i think have to work on customer negotiations, they have to treat their passengers with respect, with dignity, with fairness, and not, not the conduct that we saw from this Flight Attendant. So thats why i got involved with this case because its compelling and it sums up the entire problem. Thomas, i have to say i think this is something broader than just one airline. Air rage is pretty common these days. Why do you think we got to that point . We got to the point because the Airline Industry is favored. The Airline Industry is the only one that i know of that has been allowed to overbook. I dont go to my dentist and be told that im sorry, but we cant fix that root canal today, we overbooked people at 4 00 or a reservation at a restaurant. The fact is, they have been favored and theyre favored in congress and theyre favored wherever they go, and were helpless. We get to that airport, were going through lines, were going through metal detectors, were just doing what were told. A lot of time its in a very rude manner. Its a bullying that takes place. And it culminated with dr. Daos physical situation. And lets be candid. If there was not the age of cell phone video taking place right now and these two latest incidents caught on video, we wouldnt be having this discussion. Thomas, how much would you and your clients is about legitimately changing the policies and approach that airlines take, meaning that is your ultimate goal, or its about reaching a fair settlement on behalf of these clients in terms of the number that they get . Well, the fairness of the settlement or verdict is my job. But the fact of the matter is, and dr. Dao has made this very, very clear, that he wants to unfortunately he had to live through this. But he wants to, because no one else is standing up, no one is standing up for passengers these days. The closest is senator blumenthal from connecticut, god bless him, because hes trying to come up with a passenger bill of rights. But the fact of the matter is but for these videos i wouldnt be on your show and nobody would even know about what happened to dr. Dao or this beautiful young mother, schoolteacher from argentina. Thomas, we very much appreciate you joining us this morning and we hope to keep up with you and discuss this as the cases move forward. Thank you. All right. Still ahead on squawk box rebuilding america. Budget chief Mick Mulvaney says President Trumps plans to spend 2 billion on taxpayers for upgrades, norm anderson weighs in. Hes got the 50 most important projects and google projects and hell weigh in next when we return. Hey, the future, whats her problem . Apparently, i kept her up all night. She said the future freaks her out. How come no one likes me, jim . Intel does just think of everything intels doing right now with artificial intelligence. And pretty soon ai is going to help executives like her see trends to stay ahead of her competition. No more sleepless nights. Were going to be friends im sorry about this. Dont be embarrassed of me, jim. Im getting excited about this we know the future. Were going to be friends because were building it. 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. President trump has committed to an America First agenda, planning to bolster our economy and the American Workforce with a 1 trillion infrastructure plan. Joining us now, Norman Anderson president and ceo of cg la infrastructure. I didnt know Something Like cg la existed. Its your business to know everything that needs done. To know everybody that knows what needs to be done about infrastructure. You cant know everything about infrastructure but you can be a good curator of expertise. And youre going to get to tell the administration and the president what the most important projects and the most doable projects are. Theres 50 of them, right . Theres 50 of them, yeah. Were actually releasing this week a report with Boston Consulting Group showing that if you pick projects focused on maximizing job creation, you either you take 50 projects, you can either generate investing a trillion dollars, 1. 5 million up to 5 million jobs, depending on how you prioritize your projects. A lot of these are already funded . What do you mean already funded . Whats interesting about this, because you get this super controversy. Shovel ready. Right. Brain ready, permit ready. But what you really focusing on are a whole series of projects. Look at the texas clean line project from oklahoma to georgia and alabama. Provide two cent power. They have spent ten years getting that permitted and about 140 million. Theyre right there at the very edge. Look at the highspeed rail project between houston and dallas. Its a land Value Capture project so its not funded by the Public Sector and it allows 15 billion, california is over 100 billion not going anywhere. Private sector project is going someplace. So youve got to focus on the regulatory piece of this, addressing that issue. Thats what we think the Trump Administration ought to do. I heard you talk about the omb director mulvaney who said the conversation last week in public is just in its early phases on infrastructure, which i think was a surprise to everybody. He looked at the 200 billion figure, said were going to leverage it up to a trillion dollars but theres another way to go. Were the country in the world that allows the private sector least room to invest in infrastructure so asking congress for the trillion dollar check never made any sense. What makes sense is to clear out the regulatory problem and allow the private sector to invest. I didnt know that was the yeah. Thats the bottleneck . Weve got to talk to its already funded and all we need to do is remove the yeah, 100 . And it brings the stuff in on time and under budget. And also makes our Companies Much more competitive. One of the things the other point i wanted to make to you guys is that were at a break point in terms of technology. Think of all the technology that you guys talk befry d yabout ev. Sensors, driverless vehicles, wheres the conversation about what we should invest in infrastructure. Every time you hear a congressman talk about this, they talk about old roads and old bridges. Who cares . No offense, but youve got to figure out where the future is going, right . These are assets that were investing in for the next 30 to 40 years. Whats the world going to look like in 30 to 40 years . How do we prioritize where we put our money . I think the private sector is way better at that than the Public Sector. So youre talking about this this week . We have a big event on thursday at the reagan building in washington. Its an allday event and weve got some pretty interesting participants from congress and from the private sector. Where are most of the projects based . Theyre based all over the country. And if you look at the bcg report, whats really interesting because youve got to get people to support what youre doing. If you say 50 projects, you look at 50 dots on a map. But if you say indirect jobs that go into those projects, 50 projects light up more than 50 of congressional districts in terms of the inputs. And then if you look at the other piece of this, which is the longterm operationis and maintenance, thats seven times the initial capital cost of a project. If you really want to think about how youd bring manufacturing back in the country, think about getting private investment quickly into projects. Norman, thank you. Thank you very much, appreciate it. When we return, a heated encounter between two tech ceos in silicon valley. Apples tim cook and the uber chief. Well tell you why the ridesharing giant almost got kicked off of the app store, next. Predictable. The comfort in knowing where things are headed. Because as we live longer. And markets continue to rise and fall. Predictable is one thing you need in retirement to help protect what youve earned and ensure it lasts. Introducing brighthouse financial. A new company established by metlife to specialize in annuities life insurance. Talk to your advisor about a brighter financial future. Coming up, we are just days away from President Trumps 100day benchmark and he has a busy week ahead, from tax reform to avoiding a Government Shutdown. Well talk about what it means for your money, next. Youre here to buy a good morning, everyone. Welcome back to squawk box here on cnbc. We are live from the Nasdaq Market site in times square. Among the stories that are front and center this morning, gasoline prices are on the rise. The latest lundberg survey shows that the average gasoline price rose three cents over the last three weeks and up 28 cents from a year ago. United airlines Ceo Oscar Munoz will not become chairman next year as originally planned. United is also revising executive compensation policies to make them more closely related to customer satisfaction. All of this follows the incident in which passenger david dao was forcibly dragged off a united flight. And the World Markets are rallying this morning, if youve been watching, just about everywhere with one exception. China stocks suffered their biggest oneday fall of the year on signs that the government there is growing increasingly tolerant of market volatility. There had been hopes that china regulators would step in to help halt a market slide as it did back in the selloff of 2015. While that would normally be good news to have the government out of the game, here it did cause the speculators a little concern. The market having the biggest decline of the year last week. Theyre not manipulating the market . Oh, no how will we make sure we make money. Now to ppolitics. President trump will mark his 100th day in office on saturday. Right now Kayla Tausche has a look at what the president s two dozen executive orders have in common. Ive got to guess, they were all executive orders . That is one thread that they have in common, joe. But as of friday, President Trump has signed 26 executive orders. That compares to 19 signed by president obama in a comparable period, but whats similar about all of the ones that President Trump has signed is most of them delegate the work to agencies to conduct indepth reviews and then report back to the white house. For instance, on deregulation, the president has ordered all agencies to appoint a Regulatory Reform officer by tomorrow. A treasury report on how to right trade deficits is due. We did back of the envelope math from when the e. O. S were signed and when they set their deadlines but in all there are 46 deadlines the white house has set before years end. The market is focused on two. First a report by the Treasury Department expected in the first week of june that will recommend how to change doddfrank. That will inform the ultimate bill that congress passes. The second is an informal deadline. It wasnt set by e. O. But it is a plan with china to unwind decades of trade issues by midjuly. Gary cohn said full trade reform with china would take much longer. The 100day plan is a kickstart plan for things that had been sort of in the hopper, some of them for four to six years, that have just sort of been stalling around the edges where we have to show each other that we can walk together, then we can start running. The 100day plan is just a start. Executive orders are typical, especially early in first terms, but the way President Trump is using them, hes leaving it up to agencies to do these indepth studies and decide whether they should produce the results that would echo the sweeping changes that he described on the campaign trail. Joe, because these deadlines are set so many months in advance, it really gives them time to think about the state of the world, the state of our relationships with other countries and decide whether they should pursue what the president said on the campaign trail, but that leaves a little unpredictability for the markets so well see what the agencies end up coming up with. All right, kayla, thanks for that report. Im glad youre down there, kayla. I mean i liked when you were here, but its nice to have you down there. You dont miss me in new york, joe . I do, but were in a different place now most of the time. I dont see anyone from cnbc really much anymore unless you sit in. Its good to get to see you. Are we going to hang on thursday . Are you going to come over and see us. Ill roll out the red carpet for you guys. Youll be on set thursday with us, wont you . Sure. Okay. Well see you thursday. You should be at the white house hanging with the pres. That was like a sure, like see you soon. Id take the half full viewpoint. I think shes kpiexcited. Well see kayla and a lot of other people on thursday. From tax reform to health care to a potential Government Shutdown, it will be a busy week in washington. Joining us right now with how it could impact the markets is charles campbell, executive director at mkm partners and james lu the founder and head of research at clearnomics. Lets start out with what happened at france. The polls were right for once. Good morning, thank you for having me. Good morning. It is fascinating. Le pen and macron in effect represent part of the same issue. In macrons case a neophyte whos never participated in an election before. Le pen represents what had been considered an extreme political position, leave the you are yeu readopt the swiss franc. Voters are discontent, unhappy with the economic situation, not unlike what weve seen in other countries, the uk, even the united states. So why is that cause for the markets to rally . There is a relief rally that the melenchon le pen scenario will not take place. And macron, who is market friendly and a bit of a conservative, if you will, friendly to private sector, will prevail by more than 20 Percentage Points in the final round. Thats why european peripherals are outperforming and the french sovereigns are, european banks are outperforming. Gold weaken, all consistent with risk on behavior. James, we go from that very quickly to a jampacked week here in washington. A potential Government Shutdown looming on friday. Do you think that well see past all of that, that there will be deals worked out . I do think the markets are right to be relieved today because of what happened in france but two weeks can be a long time. The u. S. Election shifted completely in the last two weeks. Theres still german elections coming up, you had the italian referendum and no one is talking about greece. Its not that markets cant get past this and see past the events happening in the u. S. Including the debt ceiling issue but its a question of whether youre rewarded for that risk. European equities are at fair value. Markets are expecting 15 Earnings Growth this year, which we dont think is going to happen. You look at the u. S. And markets look quite expensive. So we would be underweight equities in europe still. We like the u. S. But we would be neutral and we still think that the better tradeoff is emerging markets at this point. Because you dont have any of the volatility there or just because of how far they have been down . Because the fundamentals just look better there. Its great that we got past this big event risk in europe but more is coming up. In the u. S. , were so much further along. From an Asset Allocation standpoint for most investor, you should still be overweight equities broadly but shifting that toward where things are cheap and thats emerging markets. Charles, do you agree with that . The situation with europe, you have a relief rally today, probably continues for a couple of days. Behind that theres a major issue which remains unresolved and that is first and foremost the challenge of the generation is youth unemployment. Its in the united states, its in europe, its in france. Frances youth unemployment is 24 , italys is 28 . Spains is 44 . Thats going to be a major issue. Credit markets are saying italy is something to watch. The spread on the italian tenyear versus the bund has doubled in just a year, and the referendum that resulted in renzi resigning in december, he tried to say let the government have more power to reform. So youre skeptical on the eu. What about the u. S. . Were still early in this administration. One question is did the Administration Learn anything from the failure of the first round of the repeal and replace of obamacare. You can only govern so much by executive order. You need to be able to reach across the aisle to the democrats and even within your own party to get things passed. Whether you think they are competent, whether you respect them, whether you like them is irrelevant. You need them. James, what would change your mind about u. S. Stocks . Well, the biggest thing that would happen is that clearly we see the policy on paper, especially tax reform, because a lot of what had trimmed the markets especially financials was predicated on what tax reform specifically would look like. The other thing that would change my mind if we see a passable tax strategy, youd say theres more room to run here . Potentially right. And thats a longterm structural trade. I dont think well get up to 3 or 4 real growth like the administration would like to but it does help support longterm growth. If Commodity Prices continue to rise, if the dollar continues to weaken here, which will boost overall earnings, then we could see an acceleration of Earnings Growth. But at this point the 9 to 10 Earnings Growth that the market expects is more or less priced in so it would have to be a further acceleration in order to make the market more attractive. James, charles, thank you both. Thank you. Thanks. Up next, ceo call. In session the chief of Regional Bank washington federal will join us on set. Well talk to him about President Trumps recent executive orders. I thought brad goode was ceo. Oh, hes the marketing so its really brent. All right. All right. Either way. Stay tuned, squawk box will be right back. Usaa gives me the peace of mind and the security just like the marines did. The process through usaa is so effortless, that you feel like youre a part of the family. I love that i can pass the membership to my children. Were the williams family, and were usaa members for life. What we do every night is like something out of a strange dream. Except that the next morning it all makes sense. To power global ecommerce Fedex Networks are massive, farreaching and, yes. A little magical. Fedex. Com slash dream we, the entertainmentloving people, want all our rooms to be tv rooms. Because those are the best rooms. Because they have tvs in them. And when were not in those rooms . We want our shows to go with us. Anywhere . You got that right, kid show thing. Get a directv all included package in four rooms and on your favorite devices for 25 a month when you have the new at t unlimited plus plan. Welcome back to squawk box. Washington federal ringing the opening bell celebrating 100 years in business and the recent acquisition of anchor bank corp. Lets bring in Brent Beardall, the ceo of washington federal. Good morning. Good morning, andrew. So 100 years. Can you believe that . You havent been there the whole time, though . I dont look a day over 90. Lets talk about the world of banking, small banks these days. Whats going on in washington, how its relating to you, which is to say how do you think the changes in doddfrank are going to impact the smaller and medium sized banks in the country . You know, everybody thinks doddsfrank, lets roll back and get rid of it. Were not in favor of that. We need regulation, we need good regulation, we need effective regulation. The problem with doddfrank is you have arbitrary limits so its based on arbitrary thresholds. So we think it should be based on risk. What is it that you cant do what you want to do . Clients that come in or potential clients you wish you could lend to or do Something Else for that you say, you know what, im really sorry, were not in a position to do it . Frankly, were pretty conservative. Thats whats allowed us to make it 100 years in business. Theres not a lot that we cant do. But what wed like to do is be able to take more of the resources, rededicate the stress testing for example, and put those towards our investors and our clients. How much does it cost to run the stress test for a bank your size . A couple Million Dollars . A couple Million Dollars a year . Oh, yes. You were at 15 billion which means youre above the 10 billion threshold for stress tests in our history, weve been around for 100 years today, april 24th, 1917 was our inception in ballard, washington. Weve done 20 acquisitions since going public in 1982. Acquisitions can be a great thing but also a terrible thing. So you have to be very disciplined in what you do. So if it were up to us, our preference would be to grow organically and not do more acquisitions. How do you think about the big banks today . They have basically been out of the m a game for a very long time, basically since the financial crisis. Yes. Do you think they should be able to buy up banks like yours . There was a period for several decades where a smaller bank would the Business Model was for bank of america to buy you. You know, i think the 10 certificate of deposit cap was put in for a reason, which was a good reason. We all looked the other way as some of the big banks went beyond that. I think too big to fail is a real thing and i think we need to do more about it. So, no, i dont think the big banks should be able to acquire institutions at this point. And when you think about the other piece of this in terms of lending, youve heard President Trump make the argument that theres not enough money getting out to people who need it. Small businesses arent getting the money, theres individuals who cant get the money. Is that your experience or no . You know, our experience is that people are out there looking for the money, but theres so much regulation to get the loans. If you look at mortgage loans, for example, and we are a portfolio lender, meaning every loan we make we keep on our books. But if you get a mortgage loan, you have an inch of paperwork and people are saying, wait, what am i signing, they dont understand it. Every new regulation that cfpb puts out there is trying to make the regulation better or easier for people to understand but more is not better. In this instance we think less would be better. So Washington Mutual is already taken . You washingtbigger washington fs better . We have 100 years of history behind us and we have served our clients so well in the Pacific Northwest federal sounds like maybe youll be okay because its not well, the other thing too, if you think about our capital position, we are one of the strongest banks in the country. There you go. So you golf, right . I try to golf. Someone gave me this. Hes desperate to take you off message. No. Do you play at aldara . Yes. This says lost by Brent Beardall. Do you have balls that say the weird thing is this was found before the ladies tee on number 6. Is that possible . You know, i can neither confirm nor deny that is one of my golf balls, but in all likelihood, yes. So its another Brent Beardall but before the ladies it was in the rough. Did you have a mulligan . Maybe it was from it might have been from another hole. It might have been from another hole. You hit it so far i do have a slice, theres no doubt about that. Breakfast ball, breakfast ball. Brent, thank you. Thank you very much. Happy 100 years. You pay good for stuff like this. Thanks for having us on this morning. When we come back, jim cramer will join us live from the New York Stock Exchange and well get his take on todays top stories, next. Check out the futures, they are up sharply after the French Election went as expected. Dow futures up by 236 points, s p up 30 points and the nasdaq set to open at a new record, up 65 points. 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. The end of President Trumps 100 days in office is approaching. Since 1993, the Top Performing sectors are energy, financ to the New York Stock Exchange, and jim cramer joins us now. Of all the weeks, jim, really important companies, with earnings in and then we have Everything Else going on in d. C. Too. Yeah, look, i mean, i think that last week we had some pretty good ones. Just a couple of weak ones. They did set a good tone. I do believe that the numbers are going to be pretty good this week. I like the fact by the way that the euro is stronger. I mean, you have a decent story coming out of europe that i think may be a highlight for a lot of these companies, particularly international ones. So look its good. I do notice that oil cant hold and oil has been important for the market. The bonds, you know, Interest Rates are still too low. I know people want to pile into the banks and oil has controlled the action so the s p may not be up as much as you think it should be off of europe. So as jim cramer, mr. Mad money, thinking about your shows this week, which earnings which companies do you think youre going to be saying, this is something that is part of a bigger story . What do you think we need to really Pay Attention to . Mcdonalds, boeing, what . I think that 3m and caterpillar. 3m because of the traditional core holding. The rest of the world is doing better and caterpillar, because that stock has been stalled for a long time. If they call a bottom in mining and minerals and oil, then i think that you could be able to say you know what, a better second half. Those are the two. 3m is opening at a high, but i do think that one has the best story to tell. Yeah. Mcdonalds just traded another high, right . All time high. Easterbrook has delivered. People dont understand that its not just breakfast all day. Its about technology and the franchisees buying into the model has really mattered. They added additional shifts. They clean the places more. Put more money behind it. Thats whats driving this thing. People dont understand, this is a guy who is reignited the troops, who really determine whether the numbers are good. Its not just about what we see in terms of what they serve. Its about the franchises and they love this guy. They love him. It goes back to when they got rid of the trans fats but took them a year to get the french fries right. Easterbrook is trying to change the food chain around the world. In fact, i think they still do have trans maybe they dont. They taste great. They do. But that wasnt supposed to happen. No. Anyway thanks, jim. See you in a couple of minutes. Fries. This job is about hair. All gets distilled down to the very simple things. Up next, tim cooks strong words for kalanick. Well have the details. Squawk box look right back. 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. Its some more bad news for uber. The New York Times reporting that the ride sharing giant secretly tracked iphone users even after they deleted the app from their phone. Its call fingerprinting. Tim cook learned about it and he threatened to ban uber from the store. They said that the tracking is common industry practice used to prevent account fraud. Indeed i should say, there was fraud going on in china. A lot of drivers were trying to use fake phones so they were trying to protect themselves against that. Knowing what they were doing was not allowed it did something called geofence. Apples headquarters in cupertino, so any phone they thought that was owned by the apple employee, they werent fingerprinting. Hoping that the engineers wouldnt figure it out. Of course, apple has engineers all over the world and they figured it out. It was a dicey thing for tim cook because normally he might want to kick them off completely you didnt comply with the rules, youre out. But uber is a big deal. You dont want people buying android if they want to use this and do you go public and shame uber but then youre shaming yourself, giving the security flaw which allows app makers to take advantage of this. So anyway, its a complicated situation. But Pretty Amazing story. So do you think that travis sat with his engineers and said, do it, and said dont it to cupertino . I dont know if he knew it himself but the culture at uber as we have learned over the past couple of months is dare i say so toxic that they have now done they have been using geofencing to avoid regulators, to avoid the police. They have put up fake apps to evade uber competitive to say it nicely. Being very competitive, yes. I think hes a genius for what he created in many ways but clearly how competitive he is, i get that, but theres lines. In terms of what you can cross. I get it. Winning. What you can cross is a Small Company as a big company its a different story. Are you going to be a publicly traded company . Right. Be sure to join us tomorrow. Right now, time for squawk on the street. Good monday morning. Welcome to squawk on the street. Im Carl Quintanilla with jim cramer and macron and le pen advance to the second round of the French Elections. Couple that with the merger monday. Congress returns to work this week. And one of the busiest weeks in years for corporate earnings. Kax at a nine year high, gold is selling off. Our road map begins with the french