Here the dow fell 300 points on word of the attack, but we are modulating slightly. Treasury yields and crude as well oil prices in just a moment. Tenyear note at 4. 58 the expected run to safety. The question is is this performative to show we are retaliating. The reaction in the commodities market the initial reaction was steep and then we pared the gains. Crude is 82. 57 the story is in brent which surged above 90 a barrel. Were back below the level right now. As for gold, 2 2,395 that is unchanged. Bitcoin had the same reaction as we saw over the weekend with the initial strikes from iran. We had bitcoin now higher at 2. 4 64,882 as we await the halving which is expected over the weekend. Lets get a live report from raf sanchez in tel aviv. Raf, good morning. Reporter melissa, andrew, good morning for a week, the world has been waiting to see how israel would respond to the barrage of the iranian drones and missiles. We have an answer this morning and it doesnt appear at this moment that we are hurdling toward further escalation a source familiar with the situation tells me israel carried out a limited strike inside of iran in response to that attack. Israeli officials reviewed the damage the target was the military base near isfahan that is a couple of hours south of tehran. It is not clear if the attack was carried out with Fighter Aircraft with missiles and drones the u. S. Did get at least a generalized heads up from the israelis that the strike was coming according to the source familiar with the situation. The u. S. Making clear it was not dir directly involved in the attack. Source s across the middle east were on alert in case the proxies were picking up action in the region. Officials down playing the attack this morning with the iranian president speaking in last hour and made no mention of this whatsoever. Iranian state media says the situation in isfahan is calm the Iranian Military said explosions people heard in the early hours this morning were Iranian Air Defense missiles the they are not pointing blame at the moment israel is not claiming responsibility or denying the at attack this is a measured diplomat ick approach they are giving space. That is what the u. S. And other countries had hoped would happen it is worth noting the Israel Military is not imposing restrictions on the residents here they are not bracing for retaliation. In the next hour, we are expecting to hear from secretary of state Antony Blinken who is speaking at a g7 meeting in it italy. That is the first time we will hear from the Biden Administration since the attack. Guys raf sanchez in tel aviv thank you. At home, we are watching former president trumps criminal trial five alternates remain to be picked trump blasting the case after the court adjourned saying the world is watching this new york scam shares of trump media jumping 26 in yesterdays session 17. 3 million shares changing hands with the market cap at 4. 5 billion after the 15 jump of stock on wednesday. Tumbled and tumbled and regained some ground. Obviously, not where it was at the beginning. Not nearly. Unclear whats moving it the other way. Right it was unclear what was moving it at all. It has been unclear the whole time. President bidens top economic adviser will make sure gas prices remain an ffffafforde Lael Brainard was asked about it she said there are things which have been done in the past and the white house would monitor gas prices would remain af affordability for the summer driving season. Hyundai confirming to nubc news it paused advertising from elon musks x platform the carmaker is speaking to x about brand safety to ensure the safety is addressed. The Business Operations confirmed the pause to nbc news and said the account that made the posts has been suspended because it violated xs policy against abusive profiles. When we come back, more here on squawk box. The response on the attack by israel on iran. And we will have the blowout stock report on netflix and what happens next. Plus, the journal report saying beijing has ordered apple to remove messaging apps from the app store. Thsomg rhtftat cinupig aer this announcer this cnbc program is sponsored by baird. Visit bairddifference. Com. Th. Like your Workplace Benefits and retirement savings. Voya helps you choose the right amounts without over or under investing. Across all your benefits and savings options. So you can feel confident in your financial choices. They really know how to put two and two together. 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Rowe price we let curiosity light the way. Asking Smart Questions about opportunities like clean water. And what promising new treatment advances can make a new tomorrow possible. Better questions. Better outcomes. Business. Its not a ninetofive proposition. Its all day and into the night. Its all the things that keep this world turning. The gotos that keep us going. The places we cheer. And check in. They all choose the advanced Network Solutions and round the clock partnership from comcast business. See why comcast business powers more Small Businesses than anyone else. Get started for 49. 99 a month plus ask how to get up to an 800 prepaid card. Dont wait call today. Welcome back netflixruscrushed estimates in e First Quarter. The company said it will stop reporting the subscriber numbers in 2025. That is the biggest headline here is greg peters last night on the call. Each incremental member has a different business impact. All of that means is that h historical simple math is increasingly less accurate and capturing the state of the business this change is motivated by wanting to focus on what we see are the key metrics that matter most to the business joining us now is jessica from boa okay, they beat the numbers. Thats the great news. The market on the stock price goes down on the back of something about this exactly exactly. What do you think is happening here by them saying they will not give the sub numbers or arpo is the key metric the key kpi. Not surprising the stock reacted negatively having said that, it doesnt change one thing about the growth trajectory or the Growth Drivers ahead. This is like the cable industry ten years ago. It is a very predictable and stable business with margin improvement. The benefit of advertising, which is the high margin business, is going to kick in. Why immediately move this way . You think people thought this was a bad sign a cover up or something declining . 270 million subs, not that they cant grow, they can. They are not hitting a limit right now. The growth will come from lower arpo markets L Latin America or other markets greg said the themix of subs ist equal. There is something to it because they dont want to show the average revenue per user they want you to look at it holistically exactly to the extent that advertising should continue next year as they scale with the 65 of subs which are going to the ad tier means they are pricing it that way. To scale up the platform means they have what advertisers want. One of the things they have been working on in the past year which created the subs is the idea of the password sharing piece. How much more of that do they have to mind again, it is hard to tell. Was that the lowhanging fruit and now they are done . What percentage of the subscribers do we think are new subscribers or subscribers paying does it matter we dont know the option for password sharing crackdown is you become your own sub or extra member of the house which is driving revenue it is mixing the sub number. You see the revenue Growth Drivers. They have Pricing Power and advertising coming in. They have sub growth around the globe. Is there a time period where you will say these subscriber whose are paying subscribers are going to stick who knows if the newly paying subscribe ares are actually using the app and continue to pay for it right anyone who came in with password sharing, you dont have to market to them they he know the service they know what they are getting. The focus last night on the call was about engagement whether we know the shows we are watching also, they are adding live the boxing event this summer im sure they will add more sports games. They are also you are sure they will add more sports. They have been receipt not adding sports. Wwe and that programming. Sports or entertainment sports there is a lot of chatter they will bid for nba and the inseason tournament which is moved to the beginning of wwe. I would not be surprised if golf or Something Else with a longterm rights lets go into the future for a second how many of the services do you feel in the end the American Family is going to subscribe two . Three . Four one . I would say threetofive. Three to five threetofive broadcast networks then fox came. It was free you didnt have to pay for it. Groups. It was consoleidated to threetofive groups there will be bundles. You turn on your tv or device or whatever and netflix is the whole pay tv bundle and Everything Else is an addon. Right now, your three are what my ten. I get everything. You get everything. If you have to get it down to three. I would say netflix thats a given probably the disney bundle with hulu yes and espn plus and then i believe max will look different in a year max warner bros. Has the deepest library. Max will be there. I know people say apple and amazon amazon, apple, peacock, paramount plus headline that sony may team up with apollo to get in on that. Good luck with that well see. Good luck because sony is a japaneseowned entity. They cannot own cbs or cbs tv stations you have to split it up you have to break it up as you look at the chess pieces and we are sitting here 12 months from now, i dont know who the president is of the United States or the Regulatory Environment. Do you think that all of these companies will still be independent . No. No you hit the nail on the head should nbc u and warner bros. Discovery be one company it would be amaze ing if they were there is a lot of focus on that. That would be the powerhouse paramount will look different. Is that your bet a year from now . You said you thought max was going to be the absolute number three. Are they the absolute number three as an independent player or absolute number three with an accommodation with somebody else independent player. They are ramping up dc universe. Loo a lot is coming on max to say this in a year without the Regulatory Environment is really hard. I ask hard questions. As always jessica, thank you for coming on this morning. I appreciate it. That stock is up a little bit this morning i dont think that has anything to do with the other news. Thanks. Coming up, ill show you what is moving in the markets and the attack on iran. And pga is set to report at the top of the hour. Will have the interview with jon moeller when squawk box comes back im tasting it or a night person. Or a. People person. But he is an i can solve this in 4 different ways person. And that person. Is impossible to replace. You need clem. Clem needs benefits. Work with principal so we can help you help clem with a retirement and benefits plan thats right for him. Im short but im. Im confident. You know . Let our expertise round out yours. Welcome back to squawk box. If you are just waking up, the market is now down 143 points. We saw the dow off 300 points. Nasdaq is 116 points ill show you the treasury markets after the european markets as well. They have been live and you are looking at everything off. 50 sometimes more this morning. It seems to be modulating at the moment lets flip the board and show treasury yields. Tenyear note at 4. 578 . Oil here with wti crude at 82. 50 gold and bitcoin as well gold at 2,396 bitcoin has moved up despite moving down when the attack went the other way. 64,831. A little over 2 this morning. Time for the executive edge. The amount of offices have surged with trillions in wealth deployed robert frank will tell us where the wealthy families are putting their money to work. Melissa, the number of Family Offices in the world has triple theed since the pandemic there are 4,500 offices in the world. That is up from 1,300 in 2019. The Family Offices are inhouse firms for wealthy families worth 100 million or more total assets tops 6 trillion. Family offices now accounts for a larger share of Capital Markets of hedge funds or private equity or hefunds. They are moving away from public equities the favorite allocation for this year is private question and real estate and equity they are replacing those in many big deals. Michael dells family helped take endeavor private which was a 13 billion deal Family Offices replacing private equity in the oil and gas sector as investors are leaving that sector an number of them bought purewest for 1. 8 billion. The favorite sectors are biotech, a. I. And health care this used to be a sleepy corner of finance which is now replacing a lot of traditional investors because it is patient capital. Right now, it is available capital when banks are not lending and it is so expensive the Regulatory Burden is less than if you are a hedge fund thats the push here a lot of hedge funds became Family Offices and part of that is the below a certain amount, you dont have to disclose the holdings there is a push for more of that especially as it is more important in the market. This is not a systemic risk, but important source of capital. All of wall street is trying to tap this with private equity and new Family Office groups you have to wonder, the more they move in equities and if that time comes and they become more of a force. Hedge funds are a force. This corner of the market is bigger than hedge funds. Thats right. You would think regular tors could look to require more disclosure of Family Offices the corporate transparent act requires them for the first time to register with the federal authorities their true Beneficial Owner thats a mild requirement, but it was a big burden for many Family Offices because they think it is a slippery slope you start with the true owner and we want to know what you are holding and trading. Especially after archegos, there was a push for transparency in the market especially with the big Family Offices which are 10 billion or 20 billion. Robert, thank you thank you coming up on the other side of the break, foreign aid for israel front and center for congress after the strikes in iran overnight as we head to break, here is a look at yesterdays s p 500 winners and losers announcer executive edge is sponsored by at t business next level moments need the next level network. Its a pillow with a speaker in it thats right craig. A team thats highly competent. Im just here for the internets. At t its superfast. Reliable. You locked us out . arrggghh ahhhh solutionoriented. [jenna screams] and most importantly. Is the internet out . Dont worry, we have at t internet backup. The next level network. I sold a pillow vo a law partner rediscovers her grandmothers artistry and establishes a Charitable Trust to keep the craft alive for generations to come. From preserving a cultural tradition to leaving a legacy, a Raymond JamesFinancial Advisor gets to know you, your passions, and the way you enrich your community. Thats life well planned. Good morning welcome back to squawk box. Were live at the Nasdaq Market site at times square Global Markets are responding on the limited attack by israel on iran the markets are modulating from where they were originally down 300 points on the dow originally now down 123 points. The nasdaq off 109 points. S p 500 is off 20 points lets get to washington, d. C. Where Emily Wilkins is right now. Foreign aid to israel is front and center for u. S. Congress and House Speaker mike johnson making a push ahead of that before the weekend Emily Wilkins, good morning. Andrew, Congress Working late last night we have a lot of news. The 95 billion foreign aid package and potential tiktok ban is set for a critical vote today in the house the package has faced stiff opposition from the group of hard lined republicans you had a group of democrats on the panel joining the mainstream republicans to move this legislation forward overriding the objectives of hardline conservatives. This is extremely rare although democrats will vote for it in the end, but they never help with the process votes like the one we wi