Bell. Our road map begins with trump policy reset. Whos who of ceos head i by Steve Schwartzman returning to the white house with Infrastructure Spending and tax reform topping the agenda. United doubles down after dragging a passenger off an air flight. The can. Is facing a big pr bash backlash. Pricing Political Risk, Rex Tillerson makes his first diplomatic visit to russia. All in attendance for a strategic and policy meeting with the president and senior ple members of the administration. President trump will make remarks which well get later on this morning, well see about arrivals and departures, whether or not we can talk to them once on one. Infrastructure, tax policy, going to have a business will have a seat at that table. This is heavyweight group. I hope Doug Mcmillan talks about the notion of technology and what it means for walmart and the border tax means. The reason because walmart hired, huge employer now were talking about the big. Biggest employees over 2 million employees. I know that walmart say theyll tell you onethird is all they import but i know that a lot of the things they buy are sourced in america but actually have origins overseas. Wool mart may become a new voice when it comes to rationality. A sear es of meetings between the president and ceo and constant parade. Im start to hear from Corporate America more uncertainty in terms of their view of what to expect. And it comes up a lot of course as you might imagine in conversations i have with people about potential merger and acquisition activity, certainly if youre a foreign company, think being a cross border deal youre thinking long and hard and may not very well do it. Even in the conversations ive been having lately with people who are here, there is a sense after the failure to repeal and replace obamacare that you cant necessarily bank on anything including tax reform. We continue to hear a drumbeat of expectations on what it will look like when we get some proposal from the white house, but these ceos may keep marching in there and talking about things but im starting to hear now that theres a little less certainty about what to really expect. I dont think thats wrong. I think one of the reasons march was tepid there is a sense, wait a second. We were going full blast here but we may not have that money coming in from overseas, maybe our tax rate is not going down. Maybe the government is not united the way we thought, and theres a kind of an anui. We can have the meetings but in the end theres some sense the swamp is not going down, its business as usual look at nfib, Small Business at least still elevated levels of that survey but down slightly from march, down on business seeing inventory going up, down on businesses seeing real sales going up. 1 decline on paces. Not the torrid pace we saw during the first couple months of the administration. It was fine, but its cooled and this is small and medium sized business that does a lot of the hiring. Oil patch still good in terms of hiring. Pipelines as we heard, but no, theres a feeling of well, that was a great honeymoon, but i think if youre running a Large Organization or even not that large an organization, you want to know, you want consistency in terms of understanding what the rules of the road are, and you dont have that yet. Youve got different reports about different people saying different things, and you have an administration that already is known as not necessarily being on point, when it comes to one point of view, whether it be on economics or foreign policy, and so i think its worth monitoring. Maybe it will even come up today in the meetings that the president has with the ceos. I went over the top ten industrials in the country and the ones that have equal to more than 50 of international are doing much better than the ones that are domestic. I think thats important, because we have kind of felt that the domestic was going to be turbo charged. Thats not happening. The journal asks if everybodys so confident, why are bank loans up 3. 8 year on year, while they were up 7. 6 in october. You look at jamie dimons letter and looks good and looks like the banks are not as much demand as we thought. Well get some mortgage numbers. I think when we hear the bank numbers this quarter, what well be surprised at, theres not a continuation of people asking for money. And you know, while theres always a drumbeat when it comes to geopolitics and oftentimes it doesnt seem to have much impact on our markets, or even on the thinking of a ceo, north korea seems to be some things going on there. You cant dismiss it entirely geopolitical not great. When we looked at at sales number, not great. Aerospace still very strong, very strong. Major driver of business, trucks, much better, what we want to hear about is construction loans. Those had been interestisk in the fourth quarter. Those seem to have cooled but we have to find out. Wells fargo, the same old, same old, clawbacks. Wells fargo, giant american company, we like to hear that business is booming. Instead we hear they may make some money but its from clawbacks although its substantial. It is. Millions of loans being well, millions of accounts open given the fact they were open with very little lets get to the united story. New developments in the growing outrage over the airlines treatment of that passenger on sunday. Ceo oscar munoz defended the action claiming employees followed established procedures and called the passenger disruptive and belligerent. Stock was up yesterday, down 3 in the premarket. Obviously torn apart by social media, the morning shows today, late night comedians last night. Starting to get more details of how exactly you get these people on the plane, when they probably should have been denied boarding. Suboptimal situation developing the last line of oscars letter is, chicago Aviation Security officers were unable to gain his cooperation, fally removed him from the plane. You read the note, the note is very, its great for the employees, but with that customer is always right is missing from it. Thats missing. Do you think . I think mr. Munoz got award for the communicator of the year yesterday in terms of, very welltimed. Their communicating has been poor. Yesterday the story around the same time and we were reading a statement from the night before that was truly lacking in any sort of interest in the wellbeing of of that passenger. They came out with another statement later yesterday morning or maybe towards midday, which still and then i mean they dont seem to really be saying what people would like to hear no. You know what this is like, when i read this, and oscar is from the railroad business, but this is prereddit. What . Reddit. I know reddit. Theres a generation that looks at very different, im not saying its fake news, its very real news but my daughters say have you watched the way reddit covered this . You no longer can just look at what abc, nbc, cbs, fox, whatever the major, because the younger persons media is the web. Theyre not looking at what people are saying on the nightly news. What theyre looking at is basically we should be protesting united the cyou nig continental. March traffic up three, adding capacity in q1. Lot of people wonder if theyll need it. American was strict on capacity. This Airline Group would have been up big, what does it matter . You cant jim, is there any chance we get congressional action of some kind based on outrage nationally here that says you cant overbook flights anymore. I think theyd say there is a new process now and you can no longer, that will impinge on the airlines ability. Also impinge on the trump make money. Thats difficult because if you made it so that okay 1,000, do i have 1500, do i have 2,000. You got to stop them before they get on the plane but yes congressional action. This is the thing congress can look good on. Who is going to come out and say you know what . I want to be careful, i favor people who are being dragged down thats, they have every right to drag people down and have their belly answer get hurt. No. Thats kind of a lot of congresspeople are against that. Who is for that . I mean there is a congressperson from united . Just has an unpleasant, who put the hand over it, like some sort of, like indictment process and hes trying to cover it up. Times has a nice tick tock they asked other people to get off the flight and they did. Three did. When they came to this gentleman, who shouted after employees says were going to remove you shouted after her apparently according to one eyewitness account complained he was being single the out because she was chinese. Now we have boycott petitions in china going viral. This was i think theres just a misunderstanding of how news is communicated in 2017. It is not communicated in a way that, its communicated in the way where younger people are saying i wont fly united. They dont tend to realize the way the industry broke down was you dont get to pair airlines against another. They wont fly you nighted. The next time its the cheapest way to get from a to b. Meantime this one is too juicy. Multiple times. This is the video of the year right now. Another thing oscar munoz didnt understand. There we go. To your point. Wells, chipotle, volkswagen never had a picture like this. But pepsico has to be thrilled, wells has got to be thrilled. Wells right now, this is like theyre probably sitting around saying, woo, thank heavens united dragged this guy because we would be focused on clawbacks. Give me video of clawbacks. No video. Doesnt exist. When we come back the founder of azul, david nleman as his Company Makes its debut at the nyse. Look at the premarket, more squawk on the street continues after a short break. So youre having a party . How nice. 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. Jana partners is taking an 8. 8 stake in whole foods. Three possible additions to the board including glenn murphy. They previously forced Board Changes at business toi Bristol Tiffany and safeway and supervalue, at least some overlap in terms of operations there. They havent spoken with current whole foods ceo john mackey. Shares up almost 10 on the news. It did have the impact, jim, of moving the stock. There is generally seeming a belief that this is an undermanaged company that might benefit from some of the focus that at least jana is looking for, instore execution, stocking practices, product layout, instore signage, they can go on and on. It has historically been run as if it was kind of our stuffs the best. They have different regional managers, different regions, some of its duplication. They are also very Community Oriented. If you decide to scrap Community Oriented youd save a lot of money. They have not done a lot of Customer Relations work that say a panera has. Well get to that later. Far more important is come on, you got wegmans and fresh market and cost co and target and walmart and amazon and trader joes. These all happened since the stock was at 65 a couple years ago. Guys are coming in. Reputation as being high priced, they couldnt get 65 o, 365 off the ground. Everybody realized this was great. The final straw when treehouse which does all of the private label decided to go natural and organic. There are some things that you can do that are important to be able to make it so that theres fewer people working there, and more technology, but what are you going to do about a trader joes where they line up to get in or a costco which decided to go natural and organic in the last few years of gjim senegal reign or walmart i asked for rice cakes eight years ago they send me to Rice Krispies cakes. Now they have a whole aisle. They have some experience, glenn murphy of course chairman and ceo of the gap, also talking as well about tad dickson, ceo of Harris Teeter and Merrill Adler wellknown in the sector also. Can we say glenn murphy had turned around gap, i dont know, i look at gap, it aint so good. Harris teeter, that was the advantage kroger bought Harris Teeter, there was undermappi undermanagement there. Safeway, they should learn from whole foods about marketing. Meredith adler, john mackey could have called him any time and a food critic. Get the guy on the phone, what should we make . This is the no the stuff of a superdeeduper group. Glenn just added to the cochair of lulu. You did a show when 365 was launched. You were pretty high on it then. Well walter robb was i think a great businessman and walter robb is out. What i liked about whole foods was they were going to triple the stores and talk about profitability. Instead they took down debt and walked back a lot of stock. Stock is now 28 down over the last five years, versus the s p bag up almost 90 . The Balance Sheet is not as good as it was. I totally appreciated 365 the millenials low cost and they havent been able to get it off the ground but the most important thing is that everybody decided they want that space. You had to stay one step ahead of everybody else and they didnt an they didnt use the technology. They talk about the affinity plan. Think about what starbucks has done and panera. Unbelievable. Sometimes the activist may have some ideas that are worthwhile, oftentimes the company has already considered many of the ideas particular he will within it comes to capital structure. Here, daytoday operations theyre talking about. You can also have good ideas and go against the tide that will overwhelm you, starboard and macys and these guys in qualco qualcomm. John mackey is not a guy who will take your call and say im switching direction. Hes going to take the call and say well, its going to use kind of you know lets run the united clip again. John mackey is a tough guy, okay . Hes one of the walter robb is a very sweet guy, i loved to talk to walter, okay . John is different. Barry rosenstein is not going to be removed from his own plane. True. John mackey is not going to say im rolling over and playing dead. Maybe they have a european bar, right . Everyone always has a european bar these days. European buyers, im going to buy something and cut jobs . Not going to work. You got to add jobs. Stay under the radar, under. You got a good point. Look if you want to make another point or two in whole foods they better have a buyer. John mackey is not going to take, he listens to all shareholders, yes. Listen is one thing. If walter were there it may be something. Countdown to the opening bell. Still have to get to big calls on disney, on western dig, golds up 11 bucks, talk about that in a moment. 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. Thithis is the new new york. E . Think again. We are building new airports all across the state. New roads and bridges. New mass transit. New business friendly environment. New lower taxes. And new University Partnerships to grow the businesses of tomorrow today. Learn more at esd. Ny. Gov someone did say disney and unfortunately i was going through my notes, i was going to talk twinkie but disney is a little bigger. Goldman goes from buy to conviction buy with a 23 return. The key things two star wars four marvel, and accelerating Profit Growth at espn talking about the different ott services and the normalization of the nba costs. Really . Positive things about espn and its ability to get on all of the over the top services. Yes. Or even the smaller bundles. That is interesting. Thats kind of a contrary call. It is. Talking about its not that expensive. Reflecting 19 1 2 times. I think the movie schedule has been underrated because what happens is youre in a situation where you have the franchises and marvel will come out and its going to sell. Beauty and the beast will sell, star wars will sell. People factor in the idea the movie business is what were going to put out a brand new tie, people will find that. Cant be amazon. I laugh a bit at buy and conviction buy. We have a buy on it. A buy is someone buy earlier, you know. Buy it maybe, now its really buy it. Is a buy someone who can be pulled off the plane and conviction buy someone who stays on the plane . Yes, conviction buy. Everything goes back to the united flight. You are stuck in your seat. What are the seats called at the back of the plane . Fight club. We have the opening bell and other things to talk about, dont worry, lots, interesting things, when we come back. Wheres jack . Hes on holiday. What do you need . I need the temperature for pipe five. Ask the new guy. The neguy . Jack traed him. The temperature atld negative 160 degrees celsius. That doesnt sound like jack. Actually, jack would say, hey mate, just cool it to minus 160 and were set. Good on ya. Oh yeah. Thats jack. 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Putins on the tape saying the syria strike reminds him of wmd claims during iraq. Is that why golds up 12 bucks . I think the north korean situation has got people in t t tentten tent tent tenterhooks. North korea is such a wild card people feel hey it could be this ti