Transcripts For CNBC Squawk On The Street 20170413

Europe is pretty weak. Ten year yield 223, now the lowest since mid november and gold came close to 1290. Our road map begins with a eye on the financials. Jpmorgan, wells and citi all reporting better earnings than expected. Plus, the new centrist president and about face from President Trump on several key Economic Policy positions. And apples big health bet. Sources tell cnbc that the company has a secret Group Developing a new glucose monitor to treat diabetes. But first up, earnings season is here with a bang. Jpmorgan and wells fargo and citi group out this morning. Citi earnings and revenue came in well above the estimates. Mortgages though remain a trouble spot. Pretty good in trading. Equity yeah. Very quickly, jpmorgan is pretty much what im going to say pretty much perfect. But the stock was up very big. People are looking at the futures versus the stocks and just hit them down. That is three basis points better. I love the delinquencies here. Theyre, very very good and commercial real estate is really extraordinary. They had more deposits and more customers so you can look at the numbers and say how much did they really increase versus the number of people that they added. But holy cow, do they have a lot of assets under management. Now citi, i thought it was stellar. Nobody cares. The problem here which is city, 1. 35 but the actual number is 1. 38. The mortgages theyre not a player. Like that mexico is up 4. 4. They can buy back 9 and still do well because the tangible book value is 65 bucks. I have to tell you wells fargo i know its hated. The only number i care, Customer Loyalty has gotten better versus the previous month. You know, the Noninterest Income is very good. But look, what can i say . Wells is hated so this was you know, fine. Wow. Some mornings its just really nice to have you here i got up at 3 15. To spend so much time on those things. The jpmorgan at 11 i know. Its a fortuitous bounce. I know its in here about a balance sheet. There was a time when none of us thought that we would regularly see double digit return on equity again from the big banks. Thats clearly no longer the case. As you say, return of capital, very significant. Citi. But you know as for the stocks themselves 223, on the ten year. But you youll be fighting from. 223 does not matter that much for citi. Maybe not for citi, but for the group it does. I think it i think what really matters is that if its 223 and the fed doesnt raise again, i think people are thinking that the economy is too weak for the raise, people say wait a second. Not much upside here. I would say citi is selling at nine times earnings. They can buy back if they can buy back 9 of the company, remember theyre allowed to. And the fed has no problem with that. Would you have expected a bigger bump after how they have already been repriced . The financials going negative for the year yesterday. No, because the market hates it. You put up good charts today about on twitter about semiconductors and banks and how they have become pariahs. Semis overnight for a lot of different reasons. Having to do with apple. Goldman downgrades. Yeah. But the banks have gotten out of favor and i think a lot of reasons is we do not have great strength in the economy. Even though you have to admit jpmorgan loans were very strong. They were. Im reading it back and forth, i wanted to get through with glenn shore and jamie dimon in the call. I lost it on the prompter, but dimon talked about the economy being healthy overall. You mentioned wells, consumer satisfaction, new customer checking accounts in february down 43 . Well, i mean, you know, the fact is that they had some new ones. I mean, i hate to be that cynical. But they did have some new ones. And i look at the core loan growth. Actually, i see i think things are a little better than i thought there because i think that in they have such great Noninterest Income. Then its margin it wasnt that good. Checking up on a Point Mortgage its down 49 . That was very bad. Then you have a ten year problem. But in the end, wells fargo has come down a great deal. Its a true pariah. But my Charitable Trust owns wells and citi. Citi is cheap and wells is nomansla nomansland. Until people forget. Right. Its the chipotle of banks. The same kind of time line as chipotle . 18 months. 18 months regardless of whether youre poisoning your customers or committing fraud, about the same. I think theyre the same, unfortunately. Can we go over for a second that credit cards very good for citi. But costco doesnt kick in until the second half. Look, these companies are just dirt cheap. But this market doesnt like dirt cheap right now. Look, the market is completely confused because trump everything that trump said was to the journal was very different from what we thought. So were all kind of little confused about what he believes in and the idea that once again were back with china to try to solve north korea. Thats a democratic problem. Were pro nato. We were like antinato. Relevance not a currency manipulator, but its down with mcer inmy, he like yellen is no longer toast. Shes now i guess like, i dont know not toast. Shes fairly shes stroman shes popped out of the toaster. Were confused because the man is a little unexpected, unpredictable. The president did talk to the journal, 70 minute interview. He says quote our dollar is getting too strong and thats partially my part because people have confidence in me but thats hurting that will hurt ultimately. He said he would not label china as a currency manipulator, he respects yellen, shes not toast and he prefers a low interest environment. Jeff immelt applauded the president he as a globalist. I love the fact that the reason we like the border tax, were supposed to like border tax which is a higher dollar. Obviously, you have the Koch Brothers against the border tax and then you have trump against the border tax. Well, trump is against its not clear what hes against or what hes for when it comes to the tax tax at the border because hes talked about a reciprocal tax. He would like the power from conversations that people have had with him about it to be able to tax to use that tariff when necessary. Right. Thats different. That is different. Although you could lump it in sort of with the idea of the reciprocal tax of some kind. I think the largest issue is what we found out yesterday, and what seems to be now the new rallying cry, health care again before tax reform. Look so everybodys calendar is getting lengthened here in terms of when well see the tax reform theres the struggle of the trump trade. And even if question get into if we get into the reform. Reform with the huge changes to the tax code, whether it be the deductibility of the interest, state and local taxes no longer being written off. And of course most importantly perhaps is the revenue raising part of it. Whether it would have a component that taxes incoming goods at the border. The Founding Fathers they put that checks and balances thing in you cant get it done. Theres immelts tweet. And kudlow people lose confidence, process broken. He wanted the white house to tackle taxes first and now the added wrinkle if he would use payments to insurers over democrats to get them to agree on the reformed health care bill. You need a Rocket Scientist to do this stuff. The idea look at the steel stocks yesterday, and the aluminum stocks. If anybody thought this president was not going to call china a currency manipulator, and two, we have a lot of soldiers in south korea, we have to defend, south korea against the north korea. This is the bill clinton rap. This is every democrat president s rap and now were back to the rap. But this guy is a republican. He was nominally a republican. Started out i mean, listen korea sells us millions of cars and what do we sell, five cars . It depends on the issue, far right or central. Like boeing, Jim Mcnearney goes down there. This was always ge and boeings thing, the xm bank. Subsidy for those so the larger if youre running a Large Business and youre making decisions and youre making long term Strategic Decisions or you want to, does this kind of environment where youre getting mixed messages to say the least make you step away a little bit . Are we going to hear that dreaded word uncertainty start to surface again . Yeah, if youre alcoa, you thought the companies would benefit, nucor, youre thinking this is the traditional globalist president , go back to Procter Gamble we want to sell a lot of prell, right . Back in if sell prell to china mode. Nothing wrong with selling prell in china. No, but were supposed er otide. Or tide. Were supposed to be tough on china. We scratch their back its not bad thing. Global trade, all the tariff worries. Long before trump i thought i felt that the chinese were unfair traders and i dont want to see him back slide. Long before trump i have always felt that theres no fairness between south korea you have been a big critic of nafta. Nafta . And that also hes wavering on nafta. 41 when they put in nafta and now its 181. They have the big currency advantage. No pollution controls. They have no health care benefits. And how do we compete . But i guess thats okay too. Well, i thought there were supposed to be parts of nafta that actually addressed some of the things. Just the currencies, when we passed im sorry to be such a fair trader. I just thought that the president there was kind of simpatico to that view. America, what third . Seventh . Wheres america on the list now . Youre more than navarro. I know. Lyndon johnson democrat, exwar, pro labor. All right . I hear you. No globalist thats for sure. Lbj all the way. Except for the war. A lot to get to this morning. You have to hear about the new note out of rbc saying that apple could or should buy disney and how much theyd pay for that. Also ahead, former American Airlines ceo don carty, well talk more about united as we expect to hear from the passengers attorney. You probably know that the dow and s p closed below the 50 Day Moving Average for the First Time Since election day. 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 you are the most fearsome warriors on the planet. Well, not you roman. You just missed the cut. [ hip hop music playing ] yeah, missed my ass. Why are you always yelling . Rated pg13. Experience it in imax. Interesting new note out of rbc which goes through the possible apple disney tieup. An acquisition can allow apple to gain scale in media content and they assume that apple would pay about a 40 premium to disneys current price yielding a theoretical number of 157, a share they say you could spend 200 billion in cash. Do debt for the rest. Well, i think the crucial line in that research now they have a piece out by apple and on disney, its called cash of the titans by the way. Part one and two. We see a confluence of events that make an acquisition of disney greater than zero. The odds. Wow. Okay. Greater than zero. About one. Yeah. Yeah. Lets go over to london right now and bet on the whole new world. They use a lot of great disney lines. Limitless opportunities. My favorite was Hakuna Matata firing on all cylinders. Theres no doubt theres a strategic rationale for the idea smoke fire. For the idea. I think there are plenty of bankers in fact i know there are plenty of bankers who tried to encourage the idea that disney would benefit from doing this deal. Do you think the bankers excuse me, apple would benefit from from doing the deal and disney would be wise from looking at a sale. We deal with iger, it would give apple this huge heft of course in content beefing up the businesses you talked so often about. But the Service Revenue it is going to happen or that it has any real chance is a far cry from the hopes and the dreams of the bankers who might be dreaming about it or an analyst who might be wanting to write about it because well sit here and talk about it. Why not, thats fun. This was written for squawk on the street. Squawk on the street says it was like asterisk. You remember malone a few months back, i think in november when i sat down with him. Yeah. He initially floated this idea. He said espn would go the distributor, namely a Cable Company and then the rest of disney made sense for apple. Take a listen. Somebody went after disney, my guess is apple would have to finally make a decision. Yeah. Because theyre very close with, you know, disney. Iger is on the board of apple. Correct. If i had to guess, what you will see is a split of disney with espn spun off and probably espn could be owned and protected by a distributor in the u. S. And apple would be more interested they would have a lot more in common in terms of international branding because fundamentally tim cooks a global player. All right. So no stranger are we to this idea. Fun to talk about and isnt it . I have a feeling that would be about it. Would they ever do a large deal at apple . Something bigger than beats theyre like, yeah, sure. But better than this is the worst scale than netflix, youtube. 29 of the company would be services. I can tell you this is a huge amount of fun and i think that we you know what this was done, this was done to stop the ual the story is not over. Part of the argument they used tim cooks words in which he said that the deal size is not an inhibitor. M a. We watch for his comments on large acquisitions because hes asked about it and he does answer. He typically says the same thing, but the words are watched very closely. Right. Because there is a hope somehow that apple will pull the trigger on something enormous. Whether its a netflix or whether i think the scoop about coming in on blood sugars is more relevant. They do see the deal accretive by 15 or 20 out of the box. They can take 20 back in repatriation. They could pay for this like that. By the way, on the glucose sensors, a report which is online, well talk to chrissy farr maybe later this morning. Something that jobs originally envisioned. Yeah. This is the dexcom killer so to speak. Dexcom you had to insert something into the body. This is the one, no nothing in the body. Now, remember the holy grail is really Blood Pressure which they cant seem to get. Too many false positives but this would be very good i admit. Disney by the way, you could have the glucose monitor while youre in the theme park. I mean, the synergy is here. Not just Hakuna Matata. I mean its finding nemo, i dont know. Dory. What else . Jungle cruise. You know, the e rides. Remember the e rides . Ill give you time to come up with a lot more. Come up with a lot more i mean, on the same on both boards there. Star wars . Can you imagine apple streaming star wars and four marvels. Next year, vr Artificial Intelligence machine learning. Keep saying words. Machine learning, ai, something. This is it. You didnt mention keep saying those things. Yeah. Cash is yeah. Its just painful. It was written for us. We took the bait, didnt we . It worked. It worked. The hook they got me on the line. Can you cut the line, i want to go free. Well get cramers mad dash. Count down to the opening bell in a few moments. Look at the futures. Wells looks to open down about 2 . But jpmorgan is going to open up half a percent. Back in a minute. So what else is new . Hows your mother . Umm. Shes doing good. She needs more care though. She wants to stay in her house. I dont know even where to start with that. First, lets take a look at your Financial Plan and see what we can do. Ok, so weve got. Well listen. Well talk. Well plan. Baird. 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. All right. Mad dash for a thursday. Little more than six minutes before the opening bell. We havent talked about amazon yet so were required to do so. Yes. Yes, we are. Thats wild. You killed me on that. I did. Sorry. You did. I think barclays put out a cogent note. When the company does report it will be a mixed bag. They do think that if the guidance in line versus weaker, this is important because the quarter shouldnt matter that much. In other words, like remember, they have a grand vision. And what happened last time is when the quarter wasnt so gr t great, you got you cant even see this anymore but it went down to 804. People said i have to get out of it, we have some downgrades. All theyre doing is when they prep you, its not what youre looking for. Its a longer term secular theme. Theres a drum beat, that the quarter may not beat expectations and i said, so what . Right. You see what happens when it reports, people panic. What you have to do is you have to buy the panic. The panic ensues after the close or a days worth of panic . Usually a days worth of panic because someone someone who didnt watch squawk on the street, then chooses to do the wrong thing. By the way, disney and apple, david, if they got together, they would have no impact on amazon. It wouldnt . No. I just feel we should mention that. Amazon is its own story. Not bound by earnings. It is bound by vision. And bezos vision. What matters is people should not flip out when they dont report the number that the street does because they dont care about the street. They have grander ambitions. Yes, they do. They have and they have been rewarded for them. As buzz light year would say. Right . Read carefully people will say stupid things it will go down. People will say its the end of amazon and then you have to go buy it. All right. Well talk about what else is being bought and sold when we get the opening bell about four minutes from now. I love how usaa gives me the peace of mind and the security just like the marines did. At one point, i did change to a Different Company with car insurance, and i was not happy with the customer service. We have switched back over and we feel like were back home now. 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, and that they can be protected. Were the williams family, and were usaa members for life. Call usaa today to talk about your insurance needs. Their leadership is instinctive. Theyre experts in things you havent heard of researchers of technologies that one day, you will. Some call them the best of the best. Some call them veterans. We call them our team. Youre watching cnbc squawk on the street live from the Financial Capital of the world. The opening bell in just under 90 seconds. Busy morning obviously as the banks essentially give us liftoff on earnings. Our friend doug kass calls it judgment day. He hates the banks, not a new view. My view of the banks they have come down a great deal. When you look at citi, it can buy back 9 i mean, youre buying citi, youre buying back citi. Wells fargo, much do about nothing. When Warren Buffett had a sale. I went over 10 once, you have to sell, boom. Sold. I didnt want to get in trouble. No. Im sure buffett keeps his stake well under 10 . Well talk about implications for autos as the lending standards are getting tighter. Wells fargo obviously cutting that. I mean citi on the mortgages they have a 720 fico. Not like people are going nuts. But the narrative is that these banks are all bad. And thats you cant change the narrative overnight. I mean wells fargo is down [ indiscernible ]. [ opening bell ] theres the opening bell. The ceo of yext will join us on squawk alley. And then on the nasdaq davis advisers. One of the busiest weeks seven deals as bob pisani has chronicled so well. Yext realtime management, and look, this is the end of the q here. I want to caution people that when you have this many deals, you really have to bear down really you have to look at wh what whats your merchandise, what to buy. Wells is the second biggest loser. Pnc is the single biggest gainer. Yeah. I mean, Everybody Loves pnc. Everyone is scrutinizing it. Wells is so overscrutinized its so crayzy. My Charitable Trust has owned it forever. And people again, you want to sell wells fargo. Of course youre going to 49. Then you have to buy it back. Fine. Yes. Yes. Is that mets, mets, mets because of last night . It might as well be, but its not. Phillies were eeliminated last night. Season over for you . Move on to football. You have been itching to get it back to football. I get to announce the fourth draft pick for the eagles on saturday. Thats true . Yeah. Mr. Lurie and howie rosen, thank you very much. Very nice. I want to talk metals with you. Because iron ore is down 17 . Unbelievable. Copper yesterday the chinese are full of copper support. And then with President Trump basically not talking tough about maybe extending some of the steel tariffs, remember, obama thought that china was very unfair on steel. If you if you cut back steel production, you obviously dont need as much iron. Iron is backed up all over the world right now. So ive got to tell you, i worry about that sector because that sector was the trump trade. Were running out of the trump trade. We have the pipeline because thats deregulation. The trump trade has turned into gold. Right. And owning the treasury bond now apparently. Trump trade. Suddenly. Was the other way. Now its owning it. If you keep talking like that youll be in the ad . What . Trump trade ads. Oh, no, i never thought of that. Steel is not a trump trade anymore. Trump trade treasuries and gold. You have the buttons on the show, on mad money. Trump stock. And then trump free zone. Its Procter Gamble. Right after the election as we know, many people thought that trump trade included the banks. Right. Since the beginning of this year, they have not performed particularly well. No. And jpmorgan is down again. Even though that was a strong quarter. All right 11 . Well, the charts are bad. Performance of fixed income currency and commodities. Asked a few questions on the call of course. Jamie dimon seemed kind of to take a little bit of umbrage at glenn shores question. Glenn shore about the exposure to the declining retail environment and asked a few questions and heres what dimons response was. Youre way out of line. I mean, the retail exposure were very careful. Retail business has always been violent and volatile. You can look back throughout our history and half of them are gone after ten years. That was a normal course. Were usually senior. Were careful like that. Then go to real estate, most of the real estate has nothing to do with retail. So we have we have some Shopping Centers and malls and stuff like that. But those are generally high end and not relying on single retailers, et cetera. Dont worry about the Loan Portfolio in general. And in particular in terms of exposure. To what is a volatile and declining area namely retail bricks and mortar. Dimon said, come on. Jamie cant go out there and start buying stuff at sears. No. But you know what . When you look at the stocks, jim, they havent outperformed the s p for i dont know how long. Theyre terrible. Citi is trading at nine times earnings but nobody cares about that. They want Pinnacle Foods with 0 growth because Pinnacle Foods can use selfhelp. Birdseye. Birdseye. Trump trade. Birdseye. Can you imagine whats happened here . From steel and the dollar to frozen food. China is a natural stock and now Pinnacle Foods is loved. Because treehouse, because they make organic. I had International Flavors and fragrance on last night. This is all good for the bunker. Canned foods. You are so right. But hormel has been trading badly because people thought wed get out of the bunker. Now thats the trump trade. If we solve the north korea problem, it all goes down. That is true. If you are more interested in terms of leadership in seeing the stocks, kbe, maybe its something in tech what needs to we need to see we needed to okay. The key to the market is the Company Broadcom which was down eight points in the idea they might be buying some of toshiba. I think theyd only buy jpmorgan and broadcom being down 8 to me said look out. We have applied opto which showed you the preannouncement. Preannouncement and thats cable, broadband, fiber, the Home Internet data center. Put up qualcomm. Qualcomm is job. Ever study job in the bible . Im somewhat familiar with the story. Job knocked the labor report, but job the actual biblical figure. Right. Youre struggling. Whats the point, struggling on all fronts . Do they have a friend . Theyre the most friendless company i have ever seen. Who is qualcomms friends . Im thinking through that. Dont know. Come up with something . Im sure ill come up with some. Thank you. Take your time. This is a market where the semis must rally. Its got to be not just in intel. I did last night a report about ymd and nvidia is going down. It switched to skyworks and apple is going to cut off skyworks which they are not. Apples so busy consumed by what . Apples consumed by what . Apple is consumed by what . Kicking the tires on disney oh geez. Disney is up. One of its a tenth biggest gainer on the s p. Dont even jest about that. People empires strikes back . Its the biggest dow component. Oh, geez, oh, man, pluto. I got my picture once on pluto. Really, of all the characters . He put his arm around my sister and it was unseemly. One debate on the banks to the degree we get continued regulatory relief, does that result in earnings right away . Kevin oleary said there was a cost associated with unwinding all they have already done in compliance. I love kevin oleary. Daniel tra rule low is out. He was like a czar, not like a drug czar but put your feet up on the desk of major bankers and he said, i will do what i want and trujillo is gone and thats great for bankers. I think the trump trade on deregulation will be back in a couple of days. Jpmorgan was a great quarter. I mean, what are we going to do . Putting the money under the the auto delinquencies is down, credit loss is down. Oil and gas doesnt look bad. I mean, what do you want, market . Well, the market wants this is to me its like charlie the tuna. We dont want tuna with good taste, we want tuna that tastes good. The tuna that tastes good is the ten year. Sorry charlie. Sorry charlie, on the ten year. Why do we have to talk about, besides United Airlines . What do they like . Makeup. They like makeup. We havent shown the video today. No. We havent. Selfie generation. Were going to see it though when daos lawyer makes a statement. Okay, the millennial they dont want to see any chemicals from the labels. The millennials hate deodorant. They do . Unless its pure. Really . Like you have been around a millennial to know that. Fortunately they like fragrances. Why would you just pointing it out. He is really so out to lunch. I mean, i bet he couldnt name five couldnt name one commercial i know that. Name a commercial. Name a product. Just name a product. Any product. Name something. Dont challenge him like that. How much is a gallon of milk . How much is a gallon of milk . If youre buying the organic stuff how much is 2 . 6. What . 6 bucks thats impossible. For half a gallon. Were going to get to bob pisani, the dow is down 22 on a crowded day on the floor, bob. Good morning. Yes. Three ipos here. Carl, im disappointed at the open because we have the mentality sell the reflation trade. This has been going on all week. Look at sectors, banks are down. I hope you listen to jimmy, great numbers from the banks. But theyre still down as a group. Industrials, materials. The reflation trade. Energy, disappointing. All week for oil and oil stocks have gone absolutely nowhere. No rally at all. The only thing that keeps moving every single day there it is. Gold on the upside. You heard a lot about Bank Earnings. Pnc is one of the big super Regional Banks. You care about a few things. You care about the credit conditions, earnings beat average loan growth was up 1 . Its slowing but better than people thought it was. Credit trends were in line. Net interest margins were better than forecast. The numbers that were reported are better than people were anticipating. Jpmorgans Conference Call just finished up here. Well give you more later on. Credit is still benign. Mary ann lake said the credit card losses very, very low level. They asked dimon repeatedly hows the loan growth, its slow, but okay. Im condensing the comments here. On the economy, dimon right at the end the American Economy is getting stronger. By and large, a fairly upbeat Conference Call. What are the banks doing here . Not that much. Pnc and jpmorgan opened on the upside. Wells fargo beat revenues they were on the light side. But we have very special issues with wells fargo. Modest moves to the upside. Pnc is where you want to watch the Regional Banks. My attitude is if the trends hold up, the banks may be oversold right now. Lets move on. Where are we . Where are we at in the stock market right know . Earnings very early, but the signs are very promising. Geopolitical risks obviously have moved to the forefront as a risk that wasnt there two weeks ago. Of course on the north korean issues. Everyone is debating the trump comments about he wants low rates. In the past we love low rates but people would like the rates to slowly and predictably rise. Im not sure this is a head wind or not, but it is being debated. Meantime, ipos, three down here. One over at the nasdaq today. Were waiting for the the coals to open. Dont have an indication yet. But the important thing is a coal company believe it or not, becoming metallurgical coal, 16 19. Thats at the high end of the price talk. Well be speaking with the ceo of yext, they do Digital Management in the cloud, that priced above expectations. Price talk 8 to 10. A couple of others trading out there. One on the nasdaq. A cancer ipo. Toke ageneral, that pricing at 10, thats the lower end. We have a bank company. Were waiting for that. Cadence bank, houston based bank. Thats priced at the middle of the range at 20. Yext, 11 to 12, pricing at 11. Busy week. This is six ipos that we have had this week. This is a tie for the because quest busiest week of the year. Right now the dow is down 22 points. Back to you. All right. Bob, ill take it. Send it over to Rick Santelli at the c e group in chicago. Wow, what a difference 24 hours makes. You know, we have talked many times its always important to know what youre trading, how much of the Current Administration figured into the big rally post election verb us is the administration that didnt get in. One thing i can tell you for sure, yesterday was this administrations trade. We have done some damage. We violated a very significant level, some would ground it to 2. 25. I keep it at 2. 27. Lets go to the scene of the crime. To december, early december 2015 so you can get some context on where we closed which was 227. How that figures in and keep in mind, it isnt just us. Although theres a scaling issue. But patterns are similar. Lets look at a two day of boons. There 227 was 20 basis points. We violated it, now lets open it up to mid december of last year. You can see how significant that level is. Of course now they are trading at the low yields of the year. Dollar index, you know, is there really a difference when you talk about china and say theyre manipulator versus his comments about massaging the dollar. How much daylight is between those semantics . Thats an important question. Remember, these guys are free marketers, whether its janet yellen or currencies its about where people want rates. Its about where the market wants rates, isnt it . Feds supposed to nudge. Theyre not supposed to be the gorilla in any room really. If we talk about just on the face of it, the common sense or lack therein of a currency, and its equity markets just to pick something at random, lets look at a long term chart of the dow on top of the dollar index since that fatal bottom. The hanes bottom. I dont know. They swerve a little bit and the dollar looks like its aiming north in the equity markets, tighten it up around the beginning of 2014. A better way to look at currencies versus growth or stock markets is to consider the currency situation with japan and the amount of success they have had in waging a weak currency battle. Jim, carl and david, back to you. Thank you Rick Santelli. When we come back the united story continues. Former american ceo ron carty will join us. And a pair of ipos for the capital markets. The dow down 24. Led by jpm. Back after a break. Think again. This is the new new york. We are building new airports all across the state. New roads and bridges. New mass transit. New business friendly environment. New lower taxes. And new University Partnerships to grow the businesses of tomorrow today. Learn more at esd. Ny. Gov listen up, heart disease. you too, unnecessary er visits. And hey, unmanaged depression, dont get too comfortable. Were talking to you, cost inefficiencies and data without insights. And fragmented care stop getting in the way of patient recovery and pay attention. Every single one of you is on our list. For those who wont rest until the world is healthier, neither will we. Optum. How well gets done. With e trade you see things your way. You have access to the right information at the right moment. And when you filter out the noise, its easy to turn your vision into action. Its your trade. E trade. Start trading today at etrade. Com were awaiting a News Conference from the lawyer and Family Member of that united passenger. In the meantime, number of Airlines Taking the opportunity to tweak united. Heres an ad from emirates with the slogan fly the friendly skies. This time for real. Qatar airways as well. An update for the iphone app says i doesnt support drag and drop. We take care of customers as we unite them with their destinations. Stock continues to be buffeted around the 70 level. Yeah. The rest of the group is really flying here. You know, i just think that that one is not going to away that fast because it is replayed, replayed. You like to talk about 18 month patterns of forgiveness. Yeah. But look, obviously these are all duopolies, but it will be 18 months before that one is completely out of our minds. But at the same time, have you tried i mean, you cant i mean, im trying to fly i tried to like think about not flying them on a particular flight that im taking this weekend. No. But theres no hope. Theres no competition. Theres nothing. But you talked many times about the Justice Department being the best friend the airlines ever had. They have been unbelievable. The Justice Department, frankly makes it so its ludicrous and futile not to take them. Obviously united one of the big beneficiaries. United and continental. Try to fly out newark and use somebody else. Go to san miguel. No, you have to use continental for them. When i covered northwest, its cold and dark but its ours referring to their Route Network because there was so little competition in the cities they flew to. Well, its you can rhyme it all you want, but i think in the end try switching. I mean some people are saying i can get a cheap flight. Yeah. Well get stop trading with jim in a moment. Dont go away. 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. Stay with me, mr. Parker. When a critical patient is far from the hospital, the hospital must come to the patient. Stay with me, mr. Parker. The at t network is helping First Responders connect with medical teams in near real time. Stay with me, mr. Parker. Saving time when it matters most. Stay with me, mrs. Parker. Thats the power of and. So yourhow nice. A party . Ill be right there. And the butchery begins. What am i gonna wear . This party is super fancy. Lets go. Im ready. Are you my uber . [ horn honks ] hold on. Dont wait for watchathon week to return. [ doorbell rings ] whos that . Show me netflix. Sign up for netflix on x1 today and keep watching all year long. Time for cramer and stop trading. Now that the bank sector has come back to its senses, obviously with jpmorgan doing the right thing and citi doing the right thing and wells fargo the washed out quarter lets turn our attention to facebook. 1. 2 billion now messenger can you imagine that product . That was used to be a big laugh. And piper, a lot of surveys. Facebooks winning the war against snap. Price target goes from 150 to 160. Talking about the new instagram and all the things that zuckerberg tried to destroy snap. But its not as good as we thought. Nobody scrutinizes pnc, they get the pass at all all times. Total pass. Smart timing. Snap earnings may 10th. Sheryl sandberg on the cover of time. Talking about grief. I think snap, remember, they have all the ad buys. Consumer Product Companies are still testing snap. But, you know, facebook is zuckerberg hes a titan. You know, he likes to compete more than anybody and he actually doesnt look like it. He kind of fools people when he goes to kauai. He does the cool stuff. No. No. Hes he wants to monopolize. Snap would do better if they called the Justice Department. They have a lot on their plate as it is. Whats on mad tonight . America 7th. Just kidding. Coupa, they do savings, how to do savings if you go to the cloud, they did a gigantic secondary and the stock moved up big. And then bryan jordan, find out how the Regional Banks are doing, other than pnc which is sainted. My father banked at pnc all his life. There. Okay . To say. I mean, i have to take my business to a because of the way that jpmorgan didnt talk about the sapphire card like i thought they would. Mad money tonight, 6 00 p. M. Eastern time. When we come back, on the other side of this break, breaking data on consumer sentiment. Then well have some fun with this apple disney note. One of the authors of that will join us in a few moments. Jpmorgan shaved the losses to two. 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. 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. Good thursday morning. Welcome back to squawk on the street. Ill carl quintanilla, sara eisen is back at post 9. We are grateful for that. And david faber as well. Markets acting interestingly after the Bank Earnings launched earnings season. Vix and gold are off the high. And the ten year is off the lows and the equities. The road map begins with the banks. Jpmorgan, citi, wells fargo all out. And uniteds pr nightmare continues. The passenger dragged from the plane hiring top aviation attorneys. Theyre set to make a statement. Don carty will be with us. Is disney really a takeover target for apple . Well be joined by the analysts discussing the possibilities of that. Busy day for data. Time for Rick Santelli. Well, this is the april preliminary read on the university of michigan and its fascinating. 98 98, were expecting the number in the 96 handle that follows the number, a whisker under 97 at 96. 9. The second best read of the year. January was the best at 98. 5. But remember, folks, this one will get tossed in a couple of weeks for the final read. Lets go through all of the rest of it. If we look at the one year inflation expectations, so one year out. Thats 2. 5 unchanged from our last look. If we kind of go five to ten years out. 2. 4 also same as the last look. Markets dont seem to be having a big response. Remember, confidence was king for a while in terms of the biggest data points with regard to the change in power in november after the election. Sara, back to you. The socalled soft data turning up. Rick, thank you. The big banks kicked off earnings season this morning and wilfred frost, what are the takes aways . Well, jpmorgan picked up more in march than expected and thus beat guidance given in february. They did see the credit costs increase but jamie dimon was keen to press that absolute levels are low on any historic time line and it wasnt because of the quality drtdation but higher volumes of business. Across all the banks the credit environment seems benign. Citi delivered a beat on the eps line. Trading was strong, unlike jpmorgan there was a contraction in the net interest market and hence shares are underperforming. Wells fargo, the most disappointing. It was well above target of a 55 to 59 . The investors made a preoccupation with the sales scandal. The bottom line they couldnt make up for soft retail performance with a stronger Investment Banking performance which is what citi and jpmorgan did. Analysts have asked management on the calls about possible reintroduction of glass steagall. The cfo Mary Ann Lake said it was contrary to other words coming out of the administration and it was questioned if it would be consistent with driving growth. As for short term determines jamie dimon was not concerned about President Trumps comments about the dollar this week. Nor about the upcoming French Election. But did reiterate his past point that for even if the French Election aside, if a country did leave the single currency it would be a disaster. Not linking the two though. What did he say about the u. S. Economy . Hes usually pretty rosy and optimistic. Did you get that same level of optimism from dimon . Yes, i think overall the same level of optimism. He was fielding questions about the credit cards, and the one clear take away in terms of encouragement in the face of slightly lower corporate loan growth was that their debt issuance to companies was very high. So that again highlights the difference with wells fargo who dont have that part of the business they can off set lower corporate loan growth with. And the jpmorgan cfo said you shouldnt draw that theyre not optimisting, they are, but it showed up with high bond issuance in this quarter than in corporate loan growth. Got it. Thank you. For more on this mornings Bank Earnings which ones you should own, lets bring in george cassidy, banking analyst. And what signal did you get and are you surprised to see the shares soft Price Performance here amid some pretty good news. Yes, no, in fact youre right. The opening for the bank stocks was very soft. They have turned mostly green and i think investors are recognizing one of big positives in the quarter was the Net Interest Margin was higher for some of the banks that reported today. Like a jpmorgan. And a pnc. This shows that the fed funds rate increase in december performed what we thought what it was going to do which is increase revenues. As you guys have heard, the capitals market business was very strong for citi and jpmorgan and we expect that to be true for the other investment banks who report later in the month. When it comes to the Net Interest Margin numbers, does it tell you anything about the way that the banks are trading almost in lock step with treasury yields lower. Versus what we saw right after the election. I think the steepness of the curve as well as the rise in the short end of the curve is very important. And youre absolutely right. Thats how they traded bank of america, its traded up the most because they will benefit the most from the rise in short term rates. When you look at jpmorgans numbers today and pnc showing very good Net Interest Margin growth we should expect that for bank of america when they report next week. Hey, gerard, lets tackle confidence i mean retail confidence at wells. We see sharp dropoff in february year on year in terms of customers creating new checking accounts but the bank argues theyre making progress in rebuilding trust and some of the metrics bear that out. Whats your view . I think youre right, it takes time. This is not a problem that will be fixed overnight. The company is working diligently to fix this issue that came up last fall. That being said, its still as you saw the efficiency ratio that was mentioned a moment ago the expenses to solve these problems are high and thats affecting their profitability. Wells has still a road to go down. We expect them to succeed but its just going to take time. So are you looking at regionals over the big caps or looking at investment banks over the commercials . I think what were focused on is banks are the most asset sensitive. Bank of america is one of the Big Money Center banks who will benefit and then comerca a Regional Bank will benefit from rising rates. So the banks that will see better margins because of rising short term rates and we expect rates to be increased again as you know the fed has pointed out theyll do it at least two more times this year. Probably june and december. Thats going to benefit those banks that are asset sensitive. We are seeing that recovery in some of the shares. Financials now the best performing group up half a percent. Well leave it there on the banks. Thank you. Speaking of the banks, well talk to former s. E. C. Commissioner paul atkins later on. Get his take on doddfrank, yellen, deregulation. A busy day for ipos here. Then well talk to don carty formerly of american about the united passenger as his attorney is set to make a statement. Back in a moment. Customer traffic . Can we push the offer online . Brian, i just had a quick question. Brian . Brian. Legacy technology can handcuff any company. But yes is here. Youre saying the new app will go live monday . yeah. With help from hpe, we can finally work the way we want to. With the right mix of hybrid it, everything computes. 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. So yourhow nice. A party . Ation. Read it carefully. Ill be right there. And the butchery begins. What am i gonna wear . This party is super fancy. Lets go. Im ready. Are you my uber . [ horn honks ] hold on. Dont wait for watchathon week to return. [ doorbell rings ] whos that . Show me netflix. Sign up for netflix on x1 today and keep watching all year long. Keeping our eye on cadence. Cade, a banking concern, up 10 . Back here at the exchange at post 8 we have yext with the opening trade about up about 28 . In one is one of the busiest weeks this year for ipos. Meanwhile attorneys representing the passenger who was dragged from the flight is getting ready to hold a News Conference in the next hour. Phil lebeau has more on what we can expect. Carl, here in an hour well hear from the two attorneys representing dr. David dao. This is the reason were here today and the attorneys are representing him. Well be hearing from the daughter of dr. David dao. Well get some update as to whether or not hes still in the hospital, his thoughts on whats happened over the last week. Remember, this is all about them preparing a possible legal case against United Airlines and to that end, they filed a motion yesterday in court to preserve all legal documents, passenger manife manifests, video, cockpit voice recordings, anything to do with what happened when he was forcibly removed. They have filed that against united and the city of chicago. Remember the three officers who removed him from the plane, those were Aviation Police officers employed by the city of chicago. And as you take a look at shares of united this press conference will begin in about an hour. Well let you know what the attorneys have to say and im interested to hear what dr. Daos daughter has to say about, a, his condition right now. And what his thoughts are after whats been a very wild week. Guys, back to you. All right, phil, thanks for that. Well come back to you later on. Joining us this morning former American Airlines ceo don carty, former chairman of virgin america. Good morning. Good morning, carl, thanks for having me. We talked to crandall earlier in the morning. He i was interested he said that the overbooking policy as its written right now for the industry maybe could be looked at again because theres fewer numbers of no shows than back in the old days. What do you think . Well, i think it could. I think aef air i think every airline needs to be thoughtful about overbooking and an airline never wants a situation that developed sunday night. An involuntary overbooking is a terrible thing. When we overbook as airlines its incumbent on us to convince the passengers to get off the airplane. Can you envision a model where you do empower gate agents to offer incentives to make these situations not happen and yet, keep your margins within some reasonable guidelines . Absolutely. Thats our challenge and as crandall outlined every airline needs to be really thoughtful about how far they overbook. But having overbooked, we need to empower our front line people to convince individuals to get off the airplane when there arent enough no shows and we end up overbooked. Thats simply good common sense. Don, just to be clear here, on this specific case, on united, do you see this as a communication failure or an operational failure . Well, i dont know enough specifically about what uniteds policies are but i think mr. Munoz acknowledged that there was a policy failure. And i took that to mean that the company did not provide enough flexibility to their agents. I think another policy failure was the thought to use Police Authorities to remove people from the airplanes. Those seem to me to be just bad policy. On behalf of united. I am sure today not just united, but every airline in the industry is busy looking at their policies. Well, he also said right after this that it was it was an apology to reaccommodate the passenger which isnt what happened there. Federal lawmakers are pushing for hearings, they want the airline to explain what went wrong. Can you see any substantive action from congress on this . I think congress shining a light on this is not a bad thing. I do think, however, that what tends to happen in washington today, we have some kind of incident and washington is reactive. And we end up with either a law or a regulation that may or may not be required. I can tell you, you dont need to tell United Airlines they never want this to happen again. Theyre taking care of that. I think the market is a great regulator in itself. And i think it as americans we ought to have more confidence that the market will cause us to do the right thing. In this instance as i said, i believe every airline right now is looking very, very carefully at how they handle these situations. It was amazing, don, as you know this industry has been through so much. And after really weathering storm after storm for years, they finally found some ways to go vertical on energy. They have managed their capacity in ways that keep load factor pretty consistent. Youve got guys long term skeptics like buffett finally interested in the sector again and yet were carrying around the phones and that throws a wrinkle into a logistical nightmare. I think every consumer business has to face the technology. We are highly visible. Our service is highly visible. How we treat our customers is highly visible. To me thats a great regulator right there. Do regulators need to get involved in this particular situation or is this just a way for congress to score some easy points . I think its a little more of the latter. I dont think it hurts at all for congress to shine the spotlight on this. My own thought, we dont need any more regulation here. That the airlines will certainly make sure these kinds of situations never happen again. So the company that youre a board member of, hawaiian air, has the best record when it comes to bumping people for overbooked flights. Is it because you dont do as many flights or are there best practices that you offer . I think its a combination of things. I think hawaiian is a wonderful customer focused airline which is why im associated with them and hawaiian serves a lot of leisure destinations. You must be very careful in leisure destinations about assuming that people will volunteer to get off the airplane because frequently, people to and from leisure destinations are on a pretty rigorous time line. They have to be back for work that next day and theyre not likely to volunteer. So i think leisure oriented airlines are a little more sensitive to this and more understanding of what happens when you get an overbooked situation. So i think hawaiian is just very careful about overbooking. Yeah. They say everybodys got their price. Thats right. The problem is sometimes its higher than you think. I guarantee you i gain tee guarantee you there was a price for united that is less than theyll pay for this deal. Thank you, don. Don carty. When we come back, is disney a possible takeover target for apple . Well lay out the possibilities. Everybody talking about this report today. Both stocks on the move. Well be right back. Yes . Please repeat the objective. Thrivent mutual funds. Managed by humans, not robots. Before investing, carefully read and consider fund objectives, risks, charges and expenses in the prospectus at thriventfunds. Com. Rbc has a note this morning that speculates on a potential cash of the titans. The possibility of apple buying disney. Joining us now the lead analyst behind, rbc capitals steven cahall. Nice to have you here. Thank you. Its not an idea that i have to say is completely foreign to those of us who speak to a lot of Investment Bankers who also like to dream big. But its probably a dream thats never going to be realized. You know that, right . I think we do. I think we wrote this morning that the probability is now above 0 . But really the impetus for our note is i speak to Institutional Investors all the time. And its increasingly coming up in those conversations. Probably more than 50 of conversations we have include this thesis to some extent. So we feel like whether we think its high probability or not its increasingly in the narrative. If its in the narrative its in the stock and we might as well put pen to paper and its a fun concept to explore. Frankly, we have talked about it in the past and in reference to the interview with john malone where he brought the idea up and people paid attention. You do talk about it being accretive, clearly apple has the ability to do it, but they have never embraced the big deal. The largest deal they have done is beats is something along those lines. What could force the change . To me whats changing dramatically in the whole space we are seeing the convergence, between internet, tech, distribution and content. We have seen it with at t and time warner moving into the content business. We are seeing google now move into the live Cable Television streaming business. We are seeing amazon not only do what it does with original scripted content but moving into thursday night football and of course, netflix is going down the content path aggressively for a long, long time. We think the convergent of services between cell phone, wireless, broadband creates impetus for them to vertically integrate. If apple wants to be a leader, disney is the biggest one out there. Do you expect apple to have a different strategy when it comes to acquisitions, whether its this or not . If we do see the repatriation, lower taxes. I mean, they havent what was the last big deal, beats, 2 billion . Yeah. I dont want to comment too much on apple because i cover the disney side, not the apple side. But for disney investors the thing theyre looking for to make this narrative pick up a bit more steam is exactly what happens on Corporate Tax legislation and does it increase the likelihood of this because of the cash that could be coming back and used for the deal. People who have read your note like to draw lines. Board members in common. Investors in common. And jobs widow. How much of that matters . You know, certainly i think people like to talk about it. You know, if it came to that, it would seem to me likely that theyd probably need to be some legalese around where conflict of interests lie. I dont think thats probably a direct driver but it certainly adds to the investor interest in the theory. You really think iger i dont feel as though hes under any pressure to ever consider selling at this point. Perhaps the board has succession issues. That pay be the that may be the case. He continues to stay on longer and longer and espn remains sort of this concern. But none of thats going to move them to actually consider ever putting this thing up for sale. No. I think thats right. I think this would be a friendly offer, not a proactive putting the company in play type of transaction. I dont think its a coincidence that the investors i speak to have started to go down this path further after the extension of bob igers contract. The fact there isnt a new successor yet is feeding this fire yet. At 113, i dont think hes doing anything wrong. We have an outperform on disney that has nothing to do with the bid premium. Well fun to talk about. Im sure investors and bankers are happy to have it out there at least as an idea. Thank you for joining us. Thank you for having me. When we come back, former s. E. C. Commissioner paul atkins is here with us after attending the president s ceo meeting on tuesday. Well talk about the comments on the fed from President Trump and more. Stay with us. The dow is up about six points. E trades powerful trading tools, give you access to indepth analysis, and a team of experienced traders ready to help if you need it. Its like having the power of a trading floor, wherever you are. Its your trade. E trade im courtney reagan. Heres your cnbc news update. Secretary of state Rex Tillerson departing russia after tense meetings with Vladimir Putin and sergey lavrov. He reported no main progress to get the kremlin to back down from its support of the assad regime in syria. German prosecutors issuing an arrest warrant for 26yearold iraqi man who was detained in connection with the attack on the bus carrying one of germanys top soccer teams. A police van believed to be carrying the suspect arriving at the federal prosecutors office. North korean leading king jong un attending a completion ceremony, he cut the ribbon on the stage amid applause from the stage. He left after 20 minutes without delivering a speech. And the latest Samsung Galaxy smartphone had the unveiling in south korea. The s8 is the First Company phone launched since the fire prone 7. It goes on sale in south korea, the United States and canada next friday, april 21st. Thats our cnbc news update. Back over to you. All right, thank you very much, courtney. On to Economic Policy. There are signs that a more centrist President Trump is emerging. During a wide ranging interview with wall street journal, the president reversed several Common Campaign themes. He is saying that china is not a currency manipulator, hes embracing the import and export bank. When asked if Janet Yellens nomination was toast, he said, no, not toast. You know i like her, i respect her. Earlier this week the president seemed to reverse course on the previous calls for a full repeal of dodd frank. Take a listen. Were really doing a major streamlining and replacing it with Something Else. But that will be the minimum. But were doing a major elimination of the horrendous dodd frank regulations. Keeping some, obviously. But getting rid of many. And were going to put many millions of people back to work. Joining us now former s. E. C. Commissioner paul atkins. Hes now the ceo of potomac global partners. Nice to have you. What do you make of all the reversals or seeming reversals . Yeah, i dont take them as reversals. I think its youre dealing with a situation at hand, and i think hes consistent when hes been talking about dodd frank for example the last clip that you just played there. Dodd frank is 2,319 pages long. Thats just the statute and then tens of thousands of pages of regulations that the various regulatory bodies have put out and those that hold weight of regulation is the problem that i think the president was addressing in that clip as well as hes done in the past. So i really view that as being very consistent. Yeah. Well, people may agree. Now, of course that would take legislation. Its not clear exactly where we are on the ability of this white house so far to be able to execute. What are your expectations . Well, i mean, sure. Legislations necessary to change the statute. But a lot of the real egregious, costly regulations have been put into place being put into place by the s. E. C. , bank regulators, the cftc, all of the alphabet soup of regulatory agencies. So a real concerted effort by new appointees to address those problems. I think that will be huge for the economy and to create jobs. Thats what the president s all about, jobs, jobs, jobs. Paul, if you read into some of these comments, the dollars too strong, chinas not going to be labeled a currency manipulator. Fed chair janet yellen is doing a good job, i respect her. A lot of people are saying theyre major reversals. To me what it says is that President Trump is really listening to the ceos, the advisers that come and meet with him just like the meeting you had and that you guys were there for on tuesday. Is that the right interpretation . I think hes a great listener and he is you know, hes learning about various aspects of the economy as it goes. Because remember, the economy is not just some immutable object. Its constantly changing. You know, with billions of transactions every day and people interacting with each other in the marketplace. And so, you know, one has to be flexible with respect to, you know, views of different things. So, you know, i dont view any of this as really changing his fundamental mindsets. You know, he had made remarks about china, in fact a year or so ago. Maybe this situation is a bit different now after hes met with them. After janet yellen theres still another year or so to go of her term. And, you know, i think you have to take things a step at a time and look at it in the broad view broad continue numb of things. To say his world views a bit different sort of collides with what people are looking at on reversals on xm bank. On whether nato is obsolete. On currency manipulation. Not to mention yellen as you mentioned. So you dont see any evolution really it sounds like. Well, i dont know. Evolution, you know, could be a part of it. But i think ultimately, you know, when you look at the main fundamental aspect of of what the administration is talking about thats regulatory reform. Thats tax reform. Health care reform. Those are the real important things for the American People and for the economy. And so the other things i think, you know, theyll develop and well see where they go. But i really view everything as, you know, driving forward in a very good way. You may term it flexibility. Others though would say its kind of incoherent frankly because theres not been a level of consistency that youd like to see. Whether its on International Relations at this point and granted its been 100 days or not even. But its International Relations or whether it is on Economic Policy, paul, wouldnt you agree there does need to be a unified approach by members of the administration. I mean, even yesterday we had the president talking about well lead with health care again and Mick Mulvaney said well do them at the same time. That can lead to mixed signals for the business community. I dont know. When you look at what they have been saying, obviously, the folks at omb and elsewhere have to work on various things at the same time. Otherwise, you cant stop on one thing and then, you know, go full throttle on Something Else. Maybe thats what the director was talking about. And the president has to take a general overview of, you know, what where things are going and how to sequence things. So, you know, hes the ultimate boss with all of this. So and everybody else has to be prepared to pivot and go you have to deal with 535 members of congress and the administration. But i think the main thing right now is to look forward as to, you know, the general direction of i think thats been very consistent as to what theyre talking about. And i think thats really good for the business sector and for the economy. So what do you predict well see in terms of changes at the fed . There are a number of vacancies and what we learned, President Trump doesnt like a strong dollar, he likes a low interest rates. To accomplish both of those things you dont go to the hawks which are the traditional conservative economists that hed choose for the fed. Well, well see. As you said there are three positions open at the fed. And so i think, you know, that will be key to try to remake that body. And then well see with respect to the other appointees for the administration. I think, you know, they have come out with some very good announcements with respect to treasury. So im optimistically looking forward to other good appointees for the various regulatory agencies because thats really where the rubber meets the road. That is theyre the workhorses to really try to address the overregulation that we have seen come out of the last eight years and i think thats the real path forward. All right. Mr. Atkins, appreciate you joining us. Thank you. Thank you very much. Paul atkins former s. E. C. Commissioner and a member of the President Trump strategic forum. The leader of Syria Bashar Al Assad is speaking out this morning against the United States. Michelle carusocabrera has some details on this news making interview. Hi, sara. Bashar al assad sitting down with Agency French press and he said that the notion that the government conducted last wee s weekweeks chemical weapons attack in syria is quote 100 fabrication. There was no order to make any attack. We dont have any chemical weapons. We gave up our arsenals a few years ago. Even if we had them we wouldnt use them and we never used our chemical arsenal in our history. Our impression that though its mainly the United States is with the terrorists they fabricated the whole story in order to have a pretext for the attack. The u. S. Does believe that chemical weapons attack was conducted by the Syrian Government and its what led u. S. President donald trump to fire 59 tomahawk missiles at a Syrian Air Base and theres another air strike that the u. S. Conducted on behalf of the isis rebels, well that mistakenly killed 18 members friendly to the u. S. And the pentagon says quote the strike was requested by the partnered forces who had identified the target location as an isis fighting position. The target location was actually a forward Syrian Democratic forces fighting position. Sara . All right, michelle, thank you for staying on top of it. When we come back, cadence Bank Corporation going public at the nyse today. Up 9 . The first bank to go public in 2017. Well talk to the ceo right after this break. Cmon in, pop pop happy birthday i survived a heart attack. Im doing all i can to keep from having another one. And im taking brilinta. For people whove been hospitalized for a heart attack. I take brilinta with a baby aspirin. No more than one hundred milligrams as it affects how well it works. Brilinta helps keep my platelets from sticking together and forming a clot. Brilinta reduced the chance of another heart attack. Or dying from one. It worked better than plavix. 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. Tell your doctor about bleeding, new or unexpected shortness of breath, any planned surgery, and all medicines you take. Talk to your doctor about brilinta. Im doing all i can. That includes brilinta. If you cant afford your medication, astra zeneca may be able to help. The key level of the market isnt on the s p 500. Its all about the yen. Find out why. More squawk on the street. 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. Cadence bank public today as major banks like citi, wells and jpmorgan reported early this morning. The ceo paul murphy will talk about the bank, the ipo. Congratulations. Thank you. Talk about the timing of the ipo. Why now . Yeah. Well, capital is productive and having a currency is always an advantage. Wed like to be active in the m a world. We have good growth. So were increasing the capital ratios is a prudent thing. Trying to make sense of the layout of reports we got earlier today. Whether its trading for some of these banks, mortgage and loans. People wonder whats happening with loans and why they seem to be rolling over if its a classic late cycle phenomenon or Something Else going on . I noticed that in the data that it seems like things are slowing down a little bit. Fortunately for us, our experience has been different. We have a great team and our loan volume was good in the first quarter. I think more of your loans, 50 come from texas, correct . You operate in other Southern States like in florida. How exposed are you to energy loans and what does that look like these days . Right. We have about 13 of our portfolio is energy loans. Obviously, we have seen a lot of stress with that portfolio. But im happy to report that of the roughly 100 borrowers we have, really one sort of major disappointment. But the rest of the group is Holding Together well. A lot of stress in the ep portfolio, but midstream is great. Taking its toll on the texas economy. How much has that come back and where does it stand right now . You know, i often see people had that concern and just what were seeing on a day to day in houston is its not been as bad as people think. We actually added jobs in each of the last two years. And so theres some soft spots clearly. Multifamily and office and the energy corridor. But overall the city is doing just fine. You mentioned m a. You picked up a number of banks during a stressed period. We did. No longer the case. Are there still any number of Smaller Banks that you can start to use this currency you have established today to pick up or are things getting a bit pricey . Its a good question. I think there are a number of good prospects for us to join forces with. What i observe is most of the deals these days are mostly private, not a lot of auctions. It makes sense to find somebody to affiliate with and own stock with. I think that over time well be able to find some good groups to partner with. Whats your average loan size . Its small because we have 65,000 households who bank with us, but more representative would be a commercial relationship in the 10 to 15 million would be a comfortable relationship for us. Which do go larger. What about the criticism we hear constantsdly that banks have not been lending . That its difficult to get ahold of capital if youre looking for something along the lines of the businesses youre lending to. Is that criticism well founded . I think its not. I mean, i see good loans are very competitive. A lot of good banks do a nice job. I put our team at the stop of the stack there and were responsive to good borrowers lending requests. Do you think theres a long line of banks in your situation whod like to be public in the near future . I think theyre on the bubble. Whether they want to be public or whether they want to affiliate with someone who is public. I think theres a fair amount of concern about the the Regulatory Environment. On the Regulatory Environment President Trumps administration has made deregulation a core theme and mission. When it comes to the bank, what sort of specifics are you looking for . Well, in terms of the regulating. Yeah, well, the dodd frank stress test, if we get relief there it would be appropriate. There are some positive comments around that. That would be the main thing. I know theres talk about the durbin amendment being removed and that would help too. Just dollars and cents. But for us the Regulatory Environment is stable and we can survive what we have today and if it gets better then that would be nice. Overall economic environment, do you have guesses on gdp or do you get into that . Im an optimist. I see things shaping up not only in the u. S. But globally. Better numbers. So im encouraged. Congratulations. Thank you. Ipo day. Nice opening trade. Good to have you with us. Cadence. Yeah, imagine that, a bank going public. Now over to jon fortt to see whats coming up up squawk alley. We have that press conference for passenger dr. Dao. Well continue to watch that. Yext has the ipo. Theyre doing Something Like Search Engine optimization for the mobile and the voice era. Well talk with them first on cnbc. Apple has a secret diabetes project. You might have heard about it on cnbc. Com. Well give you more coming up on squawk alley. Brian, i just need to know if the customer app will be live monday. Can we at least analyze customer traffic . Can we push the offer online . Brian, i just had a quick question. Brian . Brian. Legacy technology can handcuff any company. But yes is here. Youre saying the new app will go live monday . yeah. With help from hpe, we can finally work the way we want to. With the right mix of hybrid it, everything computes. 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. Im val. The orange money retirement squirrel from voya. I represent the money you save for the future. Whos he . Hes the green money you can spend now. Whats up . Gonna pay some bills, maybe buy a new tennis racket. Hes got a killer backhand. When its time to get organized for retirement, its time to get voya. New England Patriots head coach Bill Belichick set a nfl record when he led the team to the fifth super bowl victory. Suzy welch had an exclusive interview and they talked about leadership and the mistakes hes made along the way. Lets talk about mistakes okay. Leadership mistakes. Your career mistakes. Any stick out . After every game i look at the mistakes that were made in the game by me, by the coaching staff. Need to address those and correct those. Good players cant overcome bad coaching. Its impossible. On a personal level, lets say the one thing that i definitely learned is youve got to count on the most dependable people. Might not be your most talented person, but you count on the most dependable people. So there are times when i have put i would say too much responsibility on people that werent dependable. That weren and they didnt come through and so whose fault is that . Sometimes i was too detail orientated on the task i was on and didnt give enough leadership in other areas. Every team has Young Players and they have wives and girlfriends and babies and parents that are sick. All of that it runs in together. The more you can handle those, the more that you can help take care of those, as an organization, as a head coach, then, you know, the smoother the ship runs on the football end. Susie welsh joins us more to talk about that interview. Great to have you. For a coach that was so famously unwilling or unable to open up to the press, i mean, what is the secret . How did you unpack all of that . You know, i have been lucky enough to know bill for a couple of years. Over the years and over dinner conversations or lunches or playing golf, weve heard him say some incredible things about leadership and management and his life and his career and one day i just asked him, hey, bill, would you be willing to sit down and talk about these things . He said, yeah, that sounds like fun. Nobody was more surprised than i was. He did actually do that. For 90 minutes he talked about his very cohesive approach to leadership and mistakes hes made and defining moments and how he came to be the person that he is. It was incredibly insightful and reflective and he went pretty deep. I was amazed. You spent a lot of time talking about leadership with some of the biggest leaders in the world. I wonder how much of belichicks philosophy runs counter to classic schools of management or fits right in it. He said things that were surprising to me. When i came home i said to jack everything i learned at business Harvard School is wrong. He talked about dependence on reliable, consistent people. Youre taught and part of what happens in real life with management is you focus on your stars and he says get rid of those people. Focus on people you can count on. He says himself he learned that the hard way. He also made a point thats not in the clip but in the full interview about celebration and actually jack and i have written in books celebrate a lot. Celebrate your wins. Bill belichick is not about celebrating. Its about getting off your laurels. Its painful for him to think about victories. Hes to the next thing. Hes onto cincinnati. The next thing immediately. A lot of what he said was really provocative and not exactly what youre used to hearing from leaders. Im no expert on this on football. What stands out to me, and i just wondered if you could comment on it and whether you picked up anything in the interview, patriots always seem to be good no matter what. A lot of that does go credit to him for leadership. The other thing is he seems sort of immune to public criticism. Is that true . Lets take those in two parts. The first about them always being good, they are so exhaustively prepared. You are prepared for every scenario before you go on the field so when you have to adjust as do you in any strategic situation, you can do it wordlessly. The thing about being immune to public opinion, he just doesnt care. He calls it snap face and insta run and mocks social media. Nobody hates social media more than i do. He doesnt listen to it. He is who he is. He has no apology yiz fies for. You mentioned the the last word with lawrence odonnelllessly mentioned the word wordlessly. Do you get the sense that hes articulate and willing to talk to a lot of them . Hes amazingly articulate. Ive known him personally. Thats why i asked him for the interview. I heard him speak fills so philosophically. He has three millennial children. I think he must be the same way. Ive never in the locker room. He must be this way with his players. They know what he wants from them. He does say what hes thinking. You dont have to do a lot of guessing when you Start Talking to him. One last thing. We did see bob kraft when they won the super bowl. With a bit of a knock toward goodell and the way they believe theyve been treated by the league. Did belichick echo that . He did mention it. I did a Word Association game with him and i mentioned the word football. He said its a game but its also a business. Then he obleakwas referring to l there. Fascinating insight. Very hard to get. Congratulations to you, suzy. You can catch more on power lunch today. Full interview on cnbc. Com. As we go to break, a press conference about to get under way with the attorneys and daughter of the passenger pulled from the united flight. Well monitor that and take you there when that happens. Dow in the meantime up three points on this day with the banks kick off earning season. Cdw brought i. T. Orchestration to printing, dramatically increasing print security with enterprise printers by hp. Which is great, unless youre a corporate spy. Unsecured printing makes your network vulnerable. 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We have two attorneys who are representing dr. David dao and his family as well as dr. David daos daughter, crystal dao pepper. They are expected to take the podium behind me in a couple minutes. Whats interesting here is not only not what they can tell us about what legal action the family has already initiated or is considering but also from crystal dao pepper some update regarding the condition of dr. David dao. Remember, he was taken to the hospital. Our last update we had was he was in the hospital as of yesterday morning. Is that still the case . Is he out of the hospital . What comments, if any, can they share with us in terms of his thoughts about whats happened in the last week. Were going to have the attorneys holding this press conference in a couple minutes. Interesting to see what kind of update they give us in terms of legally what happens next for dr. David dao and his family. Phil, theres been a lot of debate over the past 24 hours after