Transcripts For CNBC Squawk On The Street 20160309

Europes higher. Shorts may be coming ahead of draghis meeting tomorrow. Oil is father. Inventories in about five minutes from now. Stocks in the midst of the third longest bull market ever. Well look at what the plays are leading the way. Three new directs have been appointed at valiant. What it means for its company and the struggling shareholders. Another illness youts brake at chipotle causing a store in massachusetts to close. Stock is falling on that market. First the bull market is turning seven. The dows up 159 . S p up 193 . Nasdaq up 266 , not included dividends. It would be the next day, our coanchor, mark haines, sat here at the exchange and said this was it, the worst was truly over in his view. Take a listening. However, im going to step out on a limb here. This is the big hold on, weve been waiting for this. I think were at the bottom, i really do. That morning futures were at the bottom. It was real. He was looking at the dow, 200 Day Moving Average. At the time dow was sitting at 67 of it. I used to i first met mark because we used to email back and forth and fight about stocks and finally he said, listen, i want you to come on. He said, listen, theres no room for a fat bald guy to come on. Thank god i lost weight. And you had hair. To a degree. Kind of a combover with a sun stan. What mark was really after at all times is what he called the crescendo. He wanted to see the selling. He always loved 91. He wanted to see 91 and just see the great flush where there would be no one left. This is it. Theyre done selling. It wasnt so much buying as theyre done selling. It was a classic case of mark saying the crescendo is here, whoerch wants s whoever wants go is gone. I loved the about mark. Mark did not make ten calls and seven of them work. He made like three calls and he was like three for three. I always loved him. I would go, come on, mark. This is it. This is it. He would always say no crescendo, no crescendo. I remember speaking to him that day. A lot of people were down. He said, no, theyre done. Selling is done. Its hard to remember. You go back how scary it was. We already were through much of the crisis so to speak and the events, of course, with that previous fall in 08. But in 09 with the s p, 666 was the low . Yeah. I was the sign of the devil. It was a very scary time. Ge, i remember having him on the show one of those mornings when the stock was below. I know. I put money in the treasury. I didnt have it in the bank. A dollar, remember . 99 cents. Bank of americas stock i mean incredible moment. Some other names that have done well since, general growth, 38 cents. Now the biggest gainer since that time, 7000 gain was 3084 , under armour, 2514 . Wyndham. You dont have to get a shot in your eye. You can do it once and its effective. Im going to take nike. Are you kidding me . David versus goliath. Turned out he had a slingshot. Wi wyndham was krindable. That was a company that decided theyre going to buy caterpillar stuff and rent it to you and then hanesbrands. Is that not incredible . Wow. Look at that. Cbs also right up there. Some were trading like they were about to go bankrupt when, in fact, their Balance Sheets were fine. That was really the issue. These were not these did not have cbs. Some of those prices netflix at 5. Starbucks at 4. Then it seems like a different world. Starbucks, what was it doing at 4. You cant figure it. L brands. Heres the greatest retailer ever and it was way down. Proxy holdings. Its doing quite well now. Yes. No. Theres i mean, no. Look, this is not of american air. Oh, im sorry. Yeah. I was distracted looking at Las Vegas Sands because i remember that also as one of the names, do you remember, almost on the brink. Oh, yes. It had incredible moves. Some of these i remember speaking to kevin plank during that period. I remember him saying, tell you what ive about got. Jim, since the end of qe, s p hasnt done anything, right . Bummeroony. Look, theres some stocks that have done okay. F. A. N. G. Has done okay. These are largely Domestic Companies when you look at them. I think the u. S. Is strong and the rest of the world got weak and thats really the problem. A lot of the stocks that were strong going into the top were, you know, off the natural, you know. Cliffs resources, cole companies, steel companies. Letter x used to go up every day. It was nutty. China. You know, signatures. Every kiss begins with nothing. I was still having a triple i know. Its hard given the passage of time how scared everyone was. You remember the conversations. What is the value of paper money, what should i put in my backyard, what should i be burying back there, i wanted out of the bangks. Those were all the conversations. I remember going on the nightly news and saying i hope my atm is working. There was a possibility that the banks although, frankly the worst had already passed. The night ge was rolling its commercial paper that fall and was this close in october of 08 lets call it, somewhere in there, that was the moment. That was the moment when it all could have come. Not a great time. Ge was like, whoa, were going to be able to sell this stuff . Its a real credit crisis. Its a reminder of what happened february 10, february 11 this year, they were saying, hey, deutsche bank, that was a credit crisis. This is a credit crisis. Caterpillar could not sell its a great machinery. So lets remember this was a systematic credit crisis. Well, were still living obviously with the ancillary effects of the crisis in politics. Four states went to the polls last night. Decisive victories winning michigan, hawaii, cruz winning idaho. Polling had shown a big advantage firefighter clinton. Clinton did win mississippi. Now we look ahead to tuesday, of course. Ohio, florida, north carolina, missouri, but that the trends of globalization, of flat wageses, jim, that is resonating everywhere in these states. Its interesting. To be able to promote jobs and sell principle shampoo to china under attack. Nafta under attack. Trump resonating with a view that, look, no ones playing fair and everyone knows if you work at a union, at gm or ford, that they are paid too much versus where you can 3,000 miles south make 5 an hour to make cars. Does resonate. Does that continue to be part of the process and do you expect that whoever the next candidate or president may be that theyre going to be tougher on trade as a result of what seems to be the publics desire for that, least to the support of candidates and what will that mean . When you talk to guys in europe, i was on the phones this morning. Thats all they do. Trump . What . Huh . Yeah. When i was over there. When i was in london last week, they were like, hes not going to be elected. What do i know. I will say this is the epicenter of michigan. Thats where the big jobs are taken away. Its one for one over there. They really think toyota took the all right. If free trade is under attack, you would think you would not want to own multinational stocks. True. But i would come back and say this is a place where uniquely nafta did take away the jobs and youre not taking away look. Could there be a backlash against some international companies. Walmarts got them. No. But in this particular venue it is very clear that mark fields said on air on the show on mad money, hey, listen, we cant beat the japanese. So i mean maybe what happens is we just do steel. Put tariffs on steel. Look. It hasnt been fair. Its very difficult. No. Theres a train that runs by my house in mexico three times a day, and it is filled with cars that cost very little and theyre german and theyre japanese, and it is so simple. The towns that i go to are filled with german and japanese people making cars and its a windfall. Its where your car is made if you buy one of these foreign cars. Despite we made some progress in South Carolina and some of the germans came to build in tennessee, but not enough. In the time ive been there, 500,000 cars a year. Its where harmon is and ppg. Its where they all are. You hear the trains. Its like, geez, its just as easy to make a car in these cities in mexico thant is. I say, the train just goes up rather than eastwest. Its an amazing thing. Not if theres a wall. If theres a wall, i imagine look. That walls going to be so well built. Have you ever seen the trump plaza . Thats good structurally. The structure work is incredible there. Were going to be having this talk a lot over the next few months. When we come back, more signs of a shift in digital sports. What disney and facebook are saying. And up next, alan joyce, talking field prices and the growth in asia and the industry. Take a look at the premarket. We had the first drop in s p in nine sessions, longest in the year. More squawk on the street from post 9 in a minute. Facebook confirming to vary ity it is in talks with the nfl to stream live games and is looking at boosting i efforts in other live streaming. Meanwhile disney says they need to improve on the digital front and selling from espn to the direct consumer is a possibility. Take a look yesterday. By and large its not an issue. Distribution in some cases are not that they limit us in terms of our ability do it but they limit it in terms of how we take it out to the consumer and i dont want to get into any details. It can be done. There are issues we have to face in doing it. Price is an issue, by the way. They also talk about rogue, the movie coming out. Theres a continuous concern about cord cutting and the dissipation of subscribers in this ecosystem. Its happening. It will continue to happen, and it will continue to be the focus of invest ters. Theres no doubt. Espn has been an incredible product, we know that. It has an enormous audience. Not just the channel but all platforms so it is a big business, but will it be one about programming as they start to proliferate orren to bundles. Right now there cease still so little going on there. You have sling tv from dish, which he referred to as saying, it seems its done pretty well, but what iger has heard. But there arent many out there. At t introduce something, but its a big bundle. Its not smaller. Its not at a level thats going to attract many people. If apple can get into this big. So far by the way on pricing they havent figured it out either to come at a price level that the American Consumer really want. When that happens, were going to be talking more and more about that and, okay, can you slift your mod toll direct and what do people have to pay for it for you the make up the loss of subscribers thats taking place over time slowly but surely. And that drove the stock down just back in the conversation. I think the facebook announcement was very interesting. Yahoo got very little traction, i felt, or they didnt play it up. What matters here is if facebook wanted to get in on this or if Google Alphabet wanted to get in on this, they can pay almost anything. In terms of for sports rights. Yes. And start competing. I know. And we know that while the big issue is whether espn can extract its worth. Right. Because they paid big numbers. When you get somebody like facebook in. They can skin a cat in so many different ways. Why would we believe the roi for facebook is better than espn . Ill tell you. You know, my thinking with facebook and the nfl is the International Rights are going to be up and facebook is an international company. And if you put on london, if you put on the game in london at the right time, you could have china prime time. I think china prime time for the nfl is the biggest thing out there, and i think facebook wants it. I know that when i speak with people from them, its a killer. It was clear from the comments at the conference yesterday theyre thinking great deal about this and strategizing about it in great detail. He didnt share necessarily everything but he mentioned creating new products for subscribers that include not all of espn but parts of it so you get away from this one size fits all. You can customize. Were at the beginning of this transformation. Its happening. I thought lowell mcadam, when i was ott in san francisco, hes the ceo of verizon, he says, hey, sure, i dont think we violated any contract at all. In the interim, ive got that skinny package. Ive got the espn that i want. I dont want channel 7, that crucial game between springfield high and wastch wissahickon. Well take another look at the premarket. Weve got interesting calls on ross stores, fire i and others. Well be back in just a moment. Oh hey allison. Im val, the orange money retirement squirrel from voya. Val from voya . Yeah, val from voya. Quick question, what are voya retirement squirrels doing in my house . Were putting away acorns. You know, to show the importance of saving for the future. So youre sort of like a Spokes Person . No, im more like a metaphor. Okay, a spokesmetaphor. No, im. Youre a spokesmetaphor. Yeah. Ok. See how voya can help you get organized at voya. Com. All right. Its that time with 6 1 2 minutes go before we get to that opening bell do. You want to talk a bit about chipotle and their latest issue. Yes, david. There was a group harold mel vip and the blue notes and they had a song called bad luck. Thats what theyve got, bad luck. This is a stores that to be closed because some of the employees are sick. Now, i wonder who knows. Maybe one person catches it from another. But this could put front and center this whole idea that its not better yet. Now, the e. Coli, the zarnds that theyre using, shipping all the stuff to chicago, washing it, sending it vacuum packed made me feel lights should be the standard for all. I dont know if you got the free coupon. This is a situation where i think that people will overlook it. Now, guys like us are now talking about it so people may be thinking, oh, i cant believe it. But i think these guys are out of the woods. This is obviously a bad [. Remember, they bought a lot of stock right here. Theyll be in. They can do it again. This Company Earned Peoples Trust and im going to minimize it. I myself am going to say if the stock goes below 500, i think it should be a 5. Every time somebody gets sick do we think other restaurants havent had issues . Do you think this place isnt just hypersensitive . Now, they closed it. Other people would keep serving. They closed it. But it is a company that is responsible, that is doing the right thing and trying to get ahead of it, but its got bad luck. If it werent for bad luck, you wouldnt have any luck at all. We have the opening bell coming up. We have valiant coming up anld pfizer shares. So many other things to come here on squawk on the street. At mfs investment management, we believe in the power of active management. By debating our research to find the best investments. By looking at global and local insights to benefit from different points of view. And by consistently breaking apart risk to focus on longterm value. We actively manage with expertise and conviction. So you can invest with more certainty. Mfs. Thats the power of active management. Youre watching cnbcs squawk on the street. The opening bell in a few minutes. We mentioned ro eed ross stores yesterday. The stock has moved so much. Its such a good company. When you nail a company like that, youve got it right. Sometimes you take a victory lap. That was a good search. My hats off to them. I dont blame them one bit. They should sometimes go high bier thats what you do sometimes as an analyst. I made a good call. Congratulations. At the same time some downgrades for names that have not done well, groupon, yelp, this morning cut by ups. I think groupon is okay. Yelp has been hurt by google, by the change in algorithms. Also this whole thing about rating people, like i could rate david. I mean i give david a one star one star . Im sorry. I mean five stars. If you give me five stars, ill give you five stars. There you go. The opening bell and the look at the s p at the bottom of your screen. Its the new York City Football Club and qantas doing the honors. Ceo is going to join us later on squawk on the street. Earningswise well get square and jack dorsey tonight on closing bell. I think jack dorsey is at the epicenter of some companies. Yeah. Theres that. Theres twitter and square. Two companies. Twitter will ever be defined as your interview with dick and yours with jack dorsey. They geesht to change that perception. Do you remember that interview with jack dorsey . Yeah. Can you come up with an analogue, you know, of another interview that was like that . The Marissa Mayer interview was interesting. That too. Of richard nixon. That stock is still down 20 this year. Others in that sector have rallied. When i created f. A. N. G. , i never meant to create f. A. N. G. Ed. Southwestern, murphy, cabot interesting. Looking at Energy Companies with the lowest longterm deficit. They raised its dividend a couple of earring ago. Thats kind of family company. They said, listen, we understand, we can do this unless it all goes down really, realreally far. Thats great. That thats a great Balance Sheet. I think were separating the good from the bad here. A lot of Companies Need their stocks higher here. Southwest bought their series of properties from chesapeake, Gas Properties that were not well timed. That was not aubrey. But these Companies Need it. Every Company Still needs to raise equity. 35 oil nobody needs to make money. Theyre just, wow, really bad. Dont forget, 1. 77 for natgas. Nother make money and the Coal Companies really dont make money, holy cow. Just the shipping costs alone. Did you see the bankruptcy judge allowed one of these Mystery Companies to walk away . Yeah. Thats big. I dont know how that affects access midstream partners. All of those things are being watched. Some are in llps and theres a lot of concern that youre going see a wave of downgrades yet to come. Have to. Have to. Whether its days or weeks, it will have an impact. Its thought to be coming. They got killed yesterday afternoon. Theres one called azure. This is not where you want to be. Theres way too much pipe. Now, theres not enough natural gas pipe. You still need natural gas to get to certain places. Darden making some news with a guide. 1. 18 to 1. 21. Streets at 1. 06. Clarence otis, previous ceo came on mad money years and years ago. Just watch gasoline. That determines the people who go there. Well, its happening now. Its a new ceo. Theyve done a remarkable job. Theyve gotten rid of red lobster, the seafood lover in you. You get the unlimited salad bowl at olive garden and rolls. What do i tell you to wear . Cargo pants. Go to target and get cargo pants and stuff your pants with rolls. Youve got food for weeks. Did your parents ever steal the sweet n low . Maybe my parents did. Do you remember what time you ate din were your family . 5 00. What was that place in miami, you had rat. This isnt the year that people forget, but this is the year of value. I went through with value. My father was a depression guy. Were seeing it again. Thats why i dont want to get off ross stores. Value matters. Speaking of values, valiant. Valiant. Value act. I need to mention valiant pharmaceuticals. They added three Board Members effect active immediately taking the side of its board to 14. One person stepped down. They have 12 independent directors now. He had been a senior partner there. Hes been at perching for a little while now. Valeant. Of course, were going get new guidance from the company next week. Ceo mike pearson has now been back in the job for a little over a week after being out for a couple of months with serious illness, but you wonder mr. Ackman whos the second largest shareholder does himself any fabors when hes quoted in the bloomberg stories as he was yesterday either management will restore confidence in the reputation of the company with the public and investment of the community or they wont. If they cant, then one of two things will happen. New management will be brought in or the business will be sold. I dont know that thats helpful when youre when your influential share holder says Something Like that in public. They say, no way. You could sell some stuff. You may be able to find some buyer, but youre not selling this whole company. No. Youve got 30 billion in debt on it still. Youve got real questions about how much they can push in terms of price. Youve got the failure of the. There was kirkland. I was a Summer Associate and i got an assignment for him and right around that time, i i had buttons, right, and i would take a nap and i fell down and i had the three buttons on my forehead. I never heard this story. He was like, whoa, how are you doing. So that was my that wasnt right for steve. It was for someone else. But i remember steve was a great great partner. Hes a jumbo as well like me. A university graduate. He was a mover and shaker and ilove him. If hes involved, thats a great. Hes fabulous. Hes on the board. By the way, Pershing Square is the Third Largest holder after 28. 6 . Fraden will tolerate nothing. That is a very strong choice. When i saw that, i said, wow, okay, thats an uptick, but in terms of takeover, who knew. Could you talk galalaxo into it . The former judge who was a University President , he was the other guy appointed. So itserle marngs friday and, and thomas w. Ross sr. And there you go. Now what does it mean in terms of being able to sell stock . Hes not necessarily locked up, but youve got be careful. Butter time this Company Announces anything, this stock goes hard. Every time. And then faw days later it kind of drifts down. Especially if hillary is on the warpath. Shes on the warpacket fth for theres a video going around about a carrier plant being closed. Trump has been talking about that. This is the antinafta thing thats going on. No doubt. Thats why i ask those questions when he talks about a 45 tariff and the possibility of a trade war or significant settlement. Before we move on, we should mention fooizer. Th pfizer. Ion shares to be be received tomorrow. Goad man sax doing that for them. They got the stock up a little bit. How do they do that at the same time theyre buying another . They can to do it. They can do it. Its fine. Pfizer helping to lead it. Lets get to bob pisani on the floor. Hey, bob. Hi, there. The important thing, oils up, energys leading. Take a look. Of course, we know whats happened. Ener energys leading today. I call them big beta energy names. Chesapeake, southwest, murphy. These the are ones that move a lot as oils move. Theyre all moving up 2 , 3 , 4 . Some of the drillers like enskoe are moving to the upside right now. We talk about the driller, deep sea drillers. If youre like rowan. There are a lot of companies who have done round trips. Rowan was 7, the bottom line is we have no idea how to value any of these companies because we dont noah their Business Model is going to be like. Theyre contracted to do deep sea drilling and we dont know whether theres going to be demand. Thats when you get these crazy moves. Lets look elsewhere. Europe has moved. Its encouraging to see european financials hold up reasonably well. No big selloff. Here you also had this round trip phenomenon going on. Look. Im just picking one of them. Put up year to date. That was 35 in midjanuary and then it sort of drops down again at the bottom. You can see its recovered but not entirely ushaped. Its recovered. Its certainly very encouraging. Most of this is very tentative. A lot of people are expecting him to dramatically increase the qe that theyre doing and extend the duration of the qe and there may be a move down if we dont get that kind of performance from mr. Draghi tomorrow. Elsewhere a lot of other indicys still very tentative. If you look at japan for example, japan was down again today. Its almost 10 off its lows. It did come off the lows but its still down 12 1 2 year to date. A lot of sideways movement in the last few days. Same thing with china. Chinas not doing much. Remember, they hit a 52week low. Thats a 52week low at the end of january and you can see theyre up 4 , 5 or so. A lot of sideways. And maybe thats the best we can expect in this environment. Maybe here in the u. S. , 2,000 right now which is roughly where were sitting could be the best we can possibly expect. So, guys, i think right now until we get clarity on what the Central Banks are doing. Sideways consolidation would be the best thats happening to the markets. Right now, the dow. 68 points. Lets get over to chicago and check in with Rick Santelli this morning. Good morning, rick. Good morning, carl. Fin and wile. Thats the only phrase i can think of. When i start showing you these charts, youll know exactly what i mean. Think about it. Weve had fails, tenyear on special. There are shortages. Theres huge demand. The treasury has almost 2 trillion in lockdown. It isnt only our markets. Look at two days of tens. Were at 190, 180, back at 1 0, back down. We have plenty to auction off. Look at twoday of tenyear boons. They were 23 back down at 16, back up at 23. Now were really going to see a thin wild market. They really trade by apoundment and thats a little nerve raking in and of itself when you start thinking about how much of this is out there, how much debt they have. We know that supposedly all the demographics hold the paper. Its pretty old but look at this. Heres the tenure, minus 5, minus 10, minus 12. They had a 30year auction. The there was a small hog for a whiechl look at this. They were 72. They drop dound 46. In absolute terms that isnt a record drop but its one of the biggies but in percentage terms that i dont like to use when you get to these smaller numbers, it was a record. Record low yield, by the way, back up to 72. Thin, thin, thin. Is this auger well . Is Central Banks and policy contagion wrapping around the Central Banks meeting . You want to Pay Attention to that. All of you would think it would lead to a euro rally our euro bank of significance, but its drifting lower. I move this one back to october of last year so you can see the importance of some of these bans, whether its 96 to 98. The 99 9 si9 resistance. Fixed income is giving you lots of clues. Hold onto the rails. Back to you. Were going to be doing that tomorrow morning, rick. Third quarters so much. When we come back, attorney general Loretta Lynch testifying in front of the senate judiciary. Wheel bring you the headlines as she addresses potentially apple and the fbi. Later Walt Mossberg takes on the new samsung phone. Dows up 60 points. Square is expected to report its earnings. Shares had dipped below that ipo price of 9 but has since come bachlk well sit down with jack dorsey tonight on closing bell for an exclusive interview. A lot of discussion about that its richly valued at this point. Its a very crowded space. Yep. I mean ive had showman on. It was bad before. Visa, now, visas a partner with square, so you have to theres partnerships, theres a lot of frenemies. But in the end ive always questioned how hard it is. I talk about recruiting. How you do do it . Send them over to square no, twitter. That conversation fascinated me. Who do you favor . I know. I mean i understand your point. This is all weve got. This is it. Lets say youre the general manager of the eagles and the redskins. Hold it. Hes a really good player. Lets give him the redskins. I want the redskins to win. Theres a not so great player. Give him the eagles. If its bradford making that kind of money, id going to the eagles. We fire someone every single day. Maybe those are the guys going to twitter. Maxwell goes to twitter. Nolo went there. Yes, he did. They could not have matched that. I wonder if hes happy about that. Everyones happy. Well get stock trade in a minute. Dows up 49 points. Dont go away. Time for crimer and stock trading. Sometimes you want to be early like at the wolfys house. Thats when we got the early special. I want to show you the chinese freight. This is a couple week chart. Its kind of an actual fundamental reason. Thats very paz tish. A lot of people think we didnt talk about it but thats an indicator that maybe you may think its a short recovery rally. Thats to send goods from one place to another and i regard that as heartening. Thank you, matt, for giving that to me. I do not think its on theory. If they can get offering donees as weve seen, whether its marathon oil or newfield, they work. Just be careful. If they pull back, caterpillar pulls back to the 60s, i think its going to get an adherence. We had a great interview with chevron yesterday. Chevrons doing pretty well. So lets not give up on some of these bigger oils. That was fantastic. Tech data. This is a company that tells you exactly how techs really doing. Think theyre unsure how theyre doing. Tech data. The great supermarket of tech. Before we close out the how, hour, we want to wish a happy birthday to our producer, todd. Not only is he the architect of the show but so much of what works and is smart, its due to him, more than you can possibly know. So happy birthday. So true. A great guy, great dad, great son, great husband. Hes a child. He is a child. 50, turns out i thought was old. Not anymore. 60 is old. Theres no way around it. Youre not even middle age. I think hes giving us a wrap right now. When we come back, google rolling out. Google destinations. An exclusive with the executive in charge and what that might mean for priceline and expedia. Dont go away. Good wednesday morning. Welcome back to squawk on the street. Im Carl Quintanilla along with sara eisen, simon hobbs, and david faber. Oil up more than 2 is helping wchlll get inventories in 30 minutes. Lets get to Rick Santelli. Ill tell you what. Normally this is a january set of numbers, but this is important especially when you see the direction. All right. We see inventories. Were expecting a small drop. Remember, both inventories and sales have three negatives on a monthovermonth running. How about the fourth . Not for inventories. It was up last month. Youve wiped out the negatives there. This is the best number since june of last year which was up 0. 7. Sales on the other hand, huge miss. We ended down 1. 3. Its the fourth negative in a row. We had three. This is the fourth negative in a row minus 1. 3. You have to go back to january of last year. January of last year to see a bigger negative, which was minus 3. 4. And last months minus 0. 3 to 0. 6. Not the economic outcome one would hope for looking for growth. Carl and the gang, back to you. Thank you, rick. We should note that stocks, yields and the data remain higher. Donald trump won in michigan, mississippi, and hawaii and clinton leads over Bernie Sanders. John harwood has the details. Sara, we had a surprising night in the primaries. First of all, lets start on the democratic side where Hillary Clinton was stunned in michigan. Defeated Bernie Sanders even though preelection polls showed her way ahead. They show her ahead in states like ohio and illinois. Now t good news for Hillary Clinton was in mississippi she won overwhelmingly against sanders as she has in other Southern States with large africanamerican voters. She extended her lead. On the republican side, donald trump came through despite the attacks from the establishment, won michigan comfortably over ted cruz who finished second, john kasich disappointed to finish third. Donald trump won in mississippi. He bead ted cruz. Marco rubio had a poor showing. Ted cruz had break through in the state of idaho. Hes done better in the smaller caucus states. Finally overnight donald trump won in hawaii. This is one marco rubio had hoped to win. He was disappointed. Overall it was a good night for donald trump, decent night for Hillary Clinton, not good in terms of the race and the momentum. In terms of the contest goifoor both marco rubio and john kasich weakened. They need to grab a block of delegates if the delegate forces who are trying to stop trum can keep him from getting a convention majority. This race has got a lot of twists and turns to go. Is the trump path to the nomination all but certain . Were joined by a partner at america affairs. Welcome. A great to be with you. On sanders and the trump front, weve got trump, northern republican sweeping the deep south. If they can win michigan, whats to say they both cant win ohio . I think youre absolutely right. Quite aside from who i want to win, i think both donald trump and Bernie Sanders have tapped into this deep dissatisfaction affecting the working class across the midwest and i include in that my home state of minnesota on the edge of the industrial midwest and theres no reason they boenlt cant win. Even though they come from different places, theyre talking about some of the same places, particularly the trade issue. That resonates across the midwest. Do you believe that carries . The hope that donald trump doesnt get it is john kasich who has a better claim in the midwest and will come through and win in ohio and carry that on and win in other places in the midwest, but ive got to say, you know, trump has shown resilience and strength everywhere. Its almost impossible today to imagine anyone actually going into the convention with a majority of delegates other than donald trump. So the question is can he be slowed down just enough so that you go into a convention, have an open convention and then who knows what happens. Well, if that happens, the republican establishment will try to rally around one of the candidates. Who is it at this point . Is it marco rubio whose momentum is declining or john kasich . It depends. I must say i found in the last few days of discussing this with people f you come from a state that duh not choose candidates through conventions, this is all mystifying and somewhat nefarious. My state, minnesota, picks their candidates through conventions. Also has. People who have experience with conventions are not frightened by this prospect and i dont use the term brokered convention because there arent any brokers. But its who challenges trump at that point who tries to put together a majority of an antitrump majority. In the meantime trump could win before we actually get there. Yes, yes. The editorial in the journal today talks about the cause. Thats opening up in the gop and how its quite unusual for half of the party not to want the nominee thats way out in front. Thats where you obviously find yourself. This is the important point here, that both the michigan exit polls and two National Surveys show that whenever you put trump head to head with any of the other three he loses. So that really begs the question. If trump wins, is that because the current other three gop candidates are too self interested to get together door the decent thing, and pair themselves down to one. According to the polls, if there was one other, trump would be out of this. That could well become the case. The only qualifier i put on what you said, up to now as you know, weve been choosing through proportional representation delegate allocations meaning you can lose a state and still get delegates. So i dont think theres been a powerful argument up to now to try to narrow the field down to one or two candidates, but as we get past this weekend to winner take all, then your question, i think, is absolutely appropriate. Then only one person can win the state and if you as you point out, trump is vulnerable to a single opponent. But up to now, thats not been the case, but that is the case going forward. Vin, on the sanders side, he takes a slew of independents in michigan, but clinton is halfway to the delegate count. How confident has he made her path . My view is Bernie Sanders got into this race initially as part of this lifelong skaus to move the Democratic Party to the left and establish democratic socialism. He talks about those terms. Somewhere along the way he talks about it. I have great appeal. Maybe i can win the nomination. Its looking now given the delicate contest to winning the nomination, so i think hes reverting or going to revert to plan a which is not going to be the nominee but im going to with tin gult. The Democratic Party is going to move substantially to the left on trade and attitude and hes winning that argument. Yes, and were already, mr. Web eric beginning weber, beginning to see that. Fooechb sanders doesnt win, the implications longer term for this country are substantial, arent they . Yeah. Hes winning the policy arguments. For those who remember when bill clinton ran for president he won because the Democratic Party needed to reposition itself toward the center. Now we have mrs. Clinton running, likely to be the democratic nominee being to whatever extent you want to do forcing Bernie Sanders do the exact opposite, moving to the left on all the big issues. Thats the opposite of what bill clinton did back in the 90s. We dont know if its what the country as a whole wants. Congressman there was a similarity between trumps decision particularly when it comes to trade and what sanders is saying or even things like Prescription Drug price. In a way i would note there are parallel paths here between the frontrunner and mr. Sanders. There are a great parallels and thats what troubles so many in the movement. Im not talking necessarily about the party in government but the conservative thinkers really see this as the trump candidacy of the repudiation. Ronald reagan stood for sensitive immigration policies, liberal trade policies as well as a Strong National defense and you look at what trump is saying and youre right. Hes closer to Bernie Sanders. And hes certainly repudiationing what Ronald Reagan built. Were going the see what happens on tuesday and beyond. Congressman, good to have you. Thanks so much. Good to be with you guys, thanks a lot. Up next on the program, the new tool from google thats available now that you can plan your whole vacation from without leaving the search engine. Googles managing director will join us live at post 9 for an exclusive interview next on squawk on the street. The lexus command performance sales event is on. With extraordinary offers on the visionary ls, the generously appointed es and the new, eightpassenger lx. This is the pursuit of perfection. Ithere was 14 of us in a four bedroom apartment. To be the first kid to buy a house. Its a very proud moment. Whatever home means to you, well help you find it. Zillow. Google has announced a major upgrade graid on how to browse and plan vacations. Its called google destinations. Here in an exclusive ivg the intervi interview. Good morning. Good morning, simon, thank you. How does google destinations work . Really its a search problem that weve been able to take what youre doing when youre searching for travel and we combine it with what youre looking at with hotels and flight information and really preparing a really wonderful experience for the traveler who doesnt know what they want to do or where they want to go. So i put in european destinations or ohio destiny ty nations and i put it in the search bar. Its first developed on mobile only. More and more people are searching on their mobile device. In fact, up to 60 of folks who travel do it on their mobile device. As you know, planning is very, very difficult to do. Whats going to come up is the best destinations. Air prices, hotel prices. You can take a look at if you like london or paris. If not, you can see more destinations that we find are very, very important to people who are travelering today. Go ahead. So once you click on that, you can explore more information, you can look at when is the best time to go. You can look at itineraries of folks who have taken those vacations from travels who have actually been to those locations. Its very, very helpful in that you may not know where you want to go or when you want go but we can show you in the next six months what prices are available. Low prices, high prices, and if you dont care when you go, this is going to hope you make a better decision. You can cap the cost of it and browse within your budget. Here at this time or all on one mobile device and with a slide your finger back and forth you can look at different prices. Its a wonderful way to see if there are high price in july, maybe i can go in june. There were huge decisions back in 2010 that gave you data fee. How does it compare . Im thinking specifically of expedia and trivago along with priceline. Think what it does is were ak agree ga aggregating. At the same time you can compare pricing. We have it through our Google Flights and hotel ads product and thats all incorporated. The reality is a lot of folks dont know where they want go. This is helping them discover as well as compare prices. There are many people who watch this show that are inevitably chasing it who would be uniquely exposed to what youre announcing here. Where does that leave them if youre going to expand further and further in this area . We look at them as great, great partners and we think this is an opportunity to provide them with more qualified leads because if we get more people exposed to wanting to travel because we made it ee f easier for them to want to travel. Were actually going to get more people with that are interested with these leads that we will send over to priceline and expedia. As i said, theyre very good for the partners. Where do you go as an organization moving forward . What is google within the travel space . You and i have spoken previously. We say, look, were not involved. Went dont roy to have people reorganizing their travel bookings. Its not what google is. Would you down that path . Would you buy . Do you entertain purr chags them . Google could easily afford to do that. Yes. Never say never but the realities were in the information system. Youre trying to provide good travel information as quickly as possible d possible to do that. You do a great job of it. They do that well. They have Great Customer service. We want to expose more people to travel up front and work with these partners to do that. I think last Year Priceline spent thr 3 billion. Do you inevitably buffer up against that . We continue to want to grow the pie in terms of we want to grow the overall folks that are able to travel and we think this is one real way to do it. Destinations on google will open up that scope and well expose them to opportunities and areas they might want to go in the future. If that happens, well create a bigger opportunity for everyone. Its nice to have you on the television. Oftentimes thee are kind of soft launches, you never say anything. Its a great great to have you here. Its wonderful to be here. Were excited to be here. We think were solving a problem. Im sure you tried the plant travel where you have to go from one link to another back and forth. Here you do it all in one spot. Thats going to make it much, much easier for folks. Were excited about it. Good to see you. Bob torres. Back to you. When we come back, its the sevenyear anniversary of the market bottom. If you were brave enough to get back in in 509ing you would have serious gains on your hands. The stocks that led the way after the break. No. Its all about understanding patterns. Like the mail guy at 3 12pm every day or jerry getting dumped every third tuesday. Jerry every third tuesday. We have Pattern Recognition Technology on any chart plus over 300 customizable studies to help you anticipate potential price movement. Theres no way to predict that. Td ameritrade. Welcome back to squawk on the street. Blue buffalo up. It posted better than expected Fourth Quarter sales boosted by demand for its dry foods. Blue buffalo also expanded a threeyear 2 Million Investment plan to build two new facilities as well as a research and development center. The trades are huge. Back over to you, sara. Thank you. Looking at the broad market, it is the third longest bull market since the history. The dow is up 159 . The s p up 193 and the nasdaq up a whopping 266 . It would be the next day, march 10th, that the late mark haines sat here at the exchange and called the bottom. However, im going to step out on a limb here. This is the big hold on, everybody. Weve been waiting for this. I think were at the bottom. I really do. Good call. What day was that . It was the morning after when it looks like buying went in. He goes on to talk about the 200 Day Moving Average of the dow. We were at 67 . He said, look, we were lower, in the 30s. For him, this was his moment. And people now reflecting over the course of the bull market. How tremendous it has been for the longevity of it. Its the third longest in history, but maybe not as impressive for the size of it, that 193 . Only the fifth biggest in history and the bull is getting tired. I mean the stockmarket is down for 2016. So i guess, simon, the question is how much longer is there left . Can it continue . Were not in the bear market because were not down off the 27 highs for the index. I think whats interesting knowing mark very well is the guy who was able to call the bottom also had a view of life that was presumably relatively accurate for that period. If you asked him what he would buy for his retiemt and i did, he said, oh, id invest in commodity thes, of course, during that time, oil is down 22 during that, so the degree to which peoples view of the market and what asset class will work best changes even that period of time, even that huge stimulation that you had initially of the market by Central Banks as all the other a set classes found. More importantly. More of the others, under armour, 3 bucks, starbucks 4rks bucks. It was that Consumer Discretionary sector that stood out. Sure. With good reason. Even the Energy Sector still up 40 since the lows. And if you look at the correlation which we pay close attention to today, simon, you mentioned wti down 22 since the bull market. Gold is up 37 . Copper up 33 . This is really a stock story and a return of profits and margins. Also point out to the people that are probably screaming at the television, were aware if you frame it differently and you were already sitting on massive losses a that point, the bull market doesnt appear as attractive. Nobody was sitting there 100 in cash and saying, boom, lets go now. We mention the tremendous stimulation by banks. Zero Interest Rate policy and the question of whether it can continue maybe rests on that with us about to tern another week here of central bank decisions. As one central bankers told us, you had that. Or if they have the same power. If they ka k pack that punch like they used to, ecb. Dont hold your breath. Straight ahead, the ceo of qantas air joins us and the state of the consumer. Well be right back. Whats going on here . Im val, the orange money retirement squirrel from voya. Were putting away acorns. You know, to show the importance of saving for the future. So youre sort of like a Spokes Person . More of a spokes metaphor. Get organized at voya. Com. Hey kevin. Hey, fancy seeing you here. Uh, i live right over there actually. Youve been to my place. No, i wasnt. Oh look, you dropped something. Its your resume with a 20 dollar bill taped to it. Thats weird. You want to work for ge too. Hahaha, what . Well were always looking for developers who are up for big world changing challenges like making planes, trains and hospitals run better. Why dont you check your new watch and tell me what time i should be there. Oh, i dont hire people. Im a developer. Im gonna need monday off. Again, not my call. Good morning, everyone. Im sue herera. Here is your cnbc update this hour. Vice President Joe Biden meeting with benjamin netanyahu. He condemned a stabbing spree that killed an american student and military official. Iranian News Agency Says iran has test fired a missile with the phrase israel must be wiped out in quotes written on them. This. Cos a day after the iranians launched several missiles across the country. An explosion rocked a seattle neighborhood earlier today injuring nine firefighters. Evacuating several buildings. This is after a natural gas leak. George martin who guided the beatles to stratospheric heights has died. He was described as the fifth beatle. I almost said bagel. In a statement Paul Mccartney said he was like a second father to him. He was 90 years old. That is cnbc for this hour. Er of the jackie deangelis. Weve got to a building crude inventories of 9. 2 million barrels. This is a little bit higher than expected. Its a big build but less than we saw last week. The reason prices are spiking here, we were trading about 3724. Now about a buck. Gasoline trading. It has been building but this decline here is in line with the seasonal patterns you would expect at this time heading into the summer driving season. I think that this is whats sending crude oil a little bit higher. Meantime i do want to highly the fact that theres income coming from the reuters headlines. It looks like its about 6 billion to 8 billion. Were looking at specific banks here. People are interpreting this to mean the saudis are expensing the pain and the pain will lead to action. Its hard to say whether it will or not. But, again, 6 to 8 billion really a small amount for the saudis to be borrowing at this time. Saudis are trading. Were up a buck 2010. Back to you on squawk on the street. Thanks, jack kichlt chinas stockmarket mean tooil has been a source of worry if investors recently but now chinas vice finance minister is speak out about the state of the countrys economy. Eunice spoke with them. Eunice. Thats right, sara. He wanted to change. Hes hoping to reassure investors that china should no longer be a source of anxiety for the global market. Hes very confident that theyll be able to manage an economic slowdown and that the government is very committed to carrying out and following through on their pledge to adheres to an economic target of around 6. 5 to 7 . At the same time he said the leaders recognize that there is a need for economic reforms. In fact, he said the authorities were appointed to the fact as evidence that they are tackling industrial over capacity. Now, one of the main messages he did want to send to Global Investors is beijing recognizes it needs to communicate better and he said the fact that Senior Leaders like him got a director from on high. This is what he had to say. Very, very clear instruction to chinese officials. Theres the policy. The outside market also important. We still have many things should be continue improvement. We also talked about a whole host of issues that are plaguing the economy including rising debt but many estimates, chinas debt to gdp is at 250 and i asked him if that was a concern and he said that the leadership really recognizes that debt is a challenge and that they are monitoring the mpl levels and they theyre going to do Everything Possible in order to prevent any Systemic Risk here. Guys . Eunice yoon from beijing. Thank you very much, eunice. In the manetime bitter control over this countrys Third Largest airline. New hedge funds demanding new leadership. Joining us now is an Airline Executive completing his own reconstruction. Alan joyce of qantas. He shed a couple of years ago 5,000 staff. He joins us from nasdaq where he rang the opening bell. Good morning. Good to hear from you. Good morning. I guess thats important for you. But inevitably those investors are going to talk about the difference between the Airline Industry here and where youre from. I mean are you at an advantage when you restructure because you have, i think, is it 65 share of your home market . Does that make it easier . It does. I mean we have 65 share of the domestic market but we also have the best premium airline, the best low cost carrier. So its the equivalent of the United States. Its a unique structural advantage. We have an amazing frequent Flyer Program that has 11 million members, basically half of the population and theres nothing like that in the rest of globe. What do you make of what ee going on in this Airline Industry here . I think the u. S. Airline industry has really gone through a major restructuring with the mergers of a lot of different carriers and the capacity that has seen the carriers perform exceptionally well. Its something that the rest of the world has looked to when australia in the oil market were seeing a similar type of dynamics with two players fan as the group and the virgin group having 93 of the domestic market there. What we think is really good what we see from the u. S. Is how the restructuring can curb the Airline Industry around. As you said, it went through a big transformation program. Its a big 2 million transformation. Whats different about what we managed to achieve is our Customer Service ratings are at a season high and the engagement is at a record high. We have very good cost performance rng very good revenue performance, but Major Customer engagement as a consequence of those changes. How do you as a leader tackle that . What is the best strategy . I mean youre not the only irish man out there restructuring other peoples operations. We were talking to golden ba soon on yesterdays show. Hes the man that hedge funds wand to put in charge. He talked about it kind of as you did then but then he went on to suggest actually that the board was far too close. Its got a country club atmosphere. Hasnt been paying attention. Quite frankly hasnt followed Good Governance process and procedure. You know, you went through the wringer, yourself, alan joyce, there were wide sweeping calling for your resignation. They did ask for my resignation at the time. They are focused the plan for our future and i had the complete support or them. We have an amazing board, an amazing chairman. A big miner, rio tinto and an adverse board of airline and a lot of different experience from different industries. Our focus was really on making sure we communicated to our people. Communicated to our commerce. We spent a lot of time on communications and getting that right, but we had the right strategy. We had the right vision. We had the right support and it was making sure we got it implementnd and didnt get distracted. We did that successfully thanks to that great support from the board. Alan, i did want to ask you about china because i know you have some capacity between australia, hong kong with the chinese airlines. How much of a slowdown are you seeing in terms of grouk and the Chinese Consumer . Well, amazing growth. I mean the Chinese Market has gone through amazing growth spirits. Australia gets around 1 million of them. It griens by 22 in the last year. Were the big beneficiary both internationally with people coming into the country but also given the fact that we have the vast majority of the domestic market they usually taketwo to toledo mess tick trips. This is bound to quadruple in the next decade. So were bound to grow. We have two carriers arc premium carrier and a low cost carrier that are participating in it. Weve got him starting in vietnam. There are others also potus pating in this huge growth. So we think were well settled for the future what will be, i think, the bivest profitable. I want to ask you very quickly about the price of oil. Not the price of oil as it might obviously cut costs for you but the price of oil as it might affect the middle east airlines. The big guys here were out suggesting that the likeness of others were about 4. They thought it was brutally unfair for them to basically cut their own business with these subsidies. What do you see, and as a result of the price of oil falling for those middle east countries dwrourks think that those subsidies will be less for those airlines. Well, look. We have a great relationship with emirates and a partnership that operates with our european hoechltd weve a great relationship with American Airlines and a joint venture here in the United States. Both are very important partners. What were seeing with emirates, theyre continuing grow, theyre continuing nowish. They operate themarkets. Not a lot were focused in on it in the past and we make good money from them. Were doing exemption skpepgsally well and similarly with American Airlines, this new airline we started in december, means we have more than we ever have. We flew the worlds longest route from sydney. Youre master of diplomacy. What did i expect . Nice to see you. Enjoy your time in new york. When we come back, do online markets prefer to advertise on facebook or twitter and what does it mean for stocks . Well talk about that. Dow is up 73 points. Well be right back. At mfs investment management, we believe in the power of active management. By debating our research to find the best investments. By looking at global and local insights to benefit from different points of view. And by consistently breaking apart risk to focus on longterm value. We actively manage with expertise and conviction. So you can invest with more certainty. Mfs. Thats the power of active management. Do you dare try to make money off the stock . We give you more information on cnbc. Com. More squawk on the street coming up. Seven years since the lows of the financial crisis. A lot of discussion on the role of the qe and federal bull market since then. Weve got the perfect guest, richard fish e. Richard, you were there. I was there. Are you taking credit for this nearly 200 rally in the s s p . Its actually 200. 6. It had cut rates to zero but doubles its footing. That was in the first round of qe. That was the beginning of the takeoff. I think the congratulations should go to ben bernanke. It has united a rally thats continued to this day with some toing and froing to the very end. Really it hasnt been quite as robust. I know youve warned about the efficacy of the qe. Right. I voted against qe3. Do you think Central Banks still has the power behind the stockmarket . I think the power is running its course. Id like to say we injectored cocaine and heroine into the system and now were maintaining on ritalin. Hows that . You know how do you come back to that one . But seriously, Central Banks did more than enough. Unfortunately fiscal policy never followed through, and thats what everybody is waiting for. But this has been a helluva rally, and companies have taken advantage of it to reposition themselves and buck up their bottom lines, their returns on shareholders, and but are you surprised . It hasnt worked. Part of the aim of the economy was to stimulate it. Go down in income categories. It hasnt worked as effectively and it took locker. In the sevenyear cycle its got on the a point where unemployment has come down, were seeing some increase in wage prices. Good, not bad. Its now 1. 7 . The last number was 1. So were getting closer to the 2 category. It took longer and it took longer because we have feckless fiscal authorities, the congress and president of the United States. How is that for an opinion . We can always count on you for that, richard. You say in word as what the Federal Reserve was doing. Right. When you say we injected cocaine and heroin into the system right, right. Did you within those conversations say lets inflate the stockmarket explicitly . There was a discussion about cost benefits of qe, and the major point was wealth effect. If you flatten it to the lowest yields, 239 years with history. When you do that, you change the way you discount future cass floeshs and future earnings. The market took off the first week of march 2009. We had made it clear we doubled the size of our Balance Sheet and we had done more. That was the true choir or admission is to introduce the fact that the rate had been cut to zero the year before. By the way, i did vote for her despite what people like to say. At that time the markets were falling and i asked you then whether the markets fell heavily, whether you would take responsibility for that or wherever the fed should take responsibility for that. Now that youve had a couple of months to think about it hourks do you feel . Is there a sense of responsibility to that . I think theres a disconnection between what markets are doing and the real economy. The real economy is dole quite well this late in the psych this is the second disconnect. You connected in the first and now its happened again. Thats right. I think were going have a p payback with all levels. In my book, i was the only one. Im not a ph. D. Economist. Im very proud of that, by the way. I come from a different background. Money market background. But theres always going to be a payback. Where does it lie . Where does it lie . Give us some idea . I have no idea. But i will say does it impact the real economy when it occurs or does it not like it didnt in 1962 and 1987. Once you created the wealth effect if youre concerned about where the economy might be going what do you do with that wealth effect. Do you have to protect the market. How do you think they think . Will financial instability if you juan to call it that effect the economy or will it be a passing phenomenon like in 1987 or 62. And do you ultimately have to underwrite that . Do you have to say thats enough now. I think thats a reckless thing to do. What about negative Interest Rates. Never going to happen in the United States. Are you surprised to see the reaction in japan. Your return on saves i is. 0001. I dont know why they put the 1 there. I think the insurance industry, the money market funds, Community Banks stressed on interest margins, regional banks, the big banks, and very importantly i think the politicians, you can just imagine trump saying you want to take money away from the people to finance this government. I dont see this happening in the United States and then theres one last thing. Theres a real question about the efficacy of how this works. We havent seen it work in japan. Theres a question mark about europe and i think youll just be going further up with questionable results. So you would favor more qe over negative rates. I think all the bullets have been shot. You can give rates back. I would favor a couple of more move bfrs you get into the heat of the election season and if we slip backwards you have something to give. Its a pleasure having you. Especially on a day like today. Markets heading back to the flat line. Just up 20 on the dow. All right. Lets check out our sector so far. What youre looking at is the s p 500 Energy Sector standing out as the best performing sector after breaking the five day win streak yesterday. This is Wti Crude Oil nears its best levels so far today. Following this Inventory Data that just came out. A draw town in gasoline and inventories. Among the names leading the sector higher, tesoro, valero, marathon petroleum. One of the few positive sectors this year up just a percent in trading but so far in trading today its the best performing sector. Back to you guys. Thanks, were going to stick with energy in a way here. Oil prices are climbing which should be good news for the recycling industry. They have been getting hit hard by the volatility in commodities prices and joining us to discuss more first on cnbc is jim fish. Good to see you here. Thank you. A lot of people dont tuns relationship between commodities prices and recycling prices. Can you talk about that . I wish i could be a little more optimistic about Commodity Prices. Both have been down over the last couple of years but Commodity Prices for recycling have been down four years running now. Another 8 this year so at least as we look at it on the recycling side were having to address it on the cost side of the business. When we think about oil and gas we do have a couple of touch points there. Our fleet of course is diesel and natural gas. We have the biggest natural gas fleet out there in north america but were not really were kind of agnostic with respect to fuel prices because we have a fuel surcharge that acts as a hedge. Its more the recycling. It snchts why is your stock trading at multiyear highs right now . Yeah. Its close to an all time high. If you think about us as a 12 cylinder engine were hitting on 10 of 12 with the two were not hitting on being recycling and Energy Services business. Our Energy Services business has been hit hard by the downturn in oil and gas. Its a small business. On a base of 13 billion. The recycling side were having to address it on the cost side of our business to try to fix that. Closing facilities, laying off workers. Isnt there more of that thats going to come. Were not pretty on the front or back end of the recycle facilities. Back end we have commodity risk. Front end we have operating cost opportunity. When you look at whats coming into the plants, its a big pile of trash there. Theres engine blocks and bowling balls and deer carcasses so were talking to our municipalities about lets educate the consumer on whats repsychable an what is not and the guy that puts the deer caucus in the recycle bin, thats not an education problem. What dividend are you paying at the moment . Look at the share price it almost says were a dividend payer. Our shareholders have been happen by the dividend and a lot are in the stock for the dividend and have been pleased with the stock price appreciation as well. I assume despite how you just described the business its relatively steady. Thats the attractiveness of it. The other 10 are hitting on full force right now. Just quick question about Climate Change because we have been hearing more and more folks in business and politicians talking about the urgent need to address it. Does recycling help Climate Change . Whats the truth about that . It does on some of the commodities. So we say look, recycle plastics, metals, all you can. Cardboards but glass is one that really needs to be both economically and environmentally sustainable and i would tell you that glass doesnt meet that on the economic side. We actually pay to get rid of glass at the back end of our plants. We gotten get paid a dime and environmentally theres no shortage of the Raw Materials there to use to produce glass. Theres certain commodities that are good environmentally. Glass is not necessarily one of them. Thanks for coming in. Still trying to workout what that means for beer bottles. But in the meantime lets send it up to john and a look at squawk alley up next on cnbc. Were probably going to talk a little markets. We have a rally going here but just lost all of a sudden traders talking about that if youre on the floor. Loretta lynch is going to talk about apple versus fbi. Well tune into that. Kayla is going to have jack dorsey so well talk about that. How does this change the tenor of the president ial race. All that and more coming up on squawk alley. Good morning, it is 8 00 a. M. At disney headquaters in california and 11 00 a. M. On wall street and squawk alley is live