He has a near perfect record. At 7 30 eastern time, Marathon Asset ManagementBruce Richards is betting big on europe. Coming up at 8 00 eastern time, well get political with former obama chief of staff bill daley. Hes now working for a swiss hedge fund. A lot of them will be talking to what weve been talking about this morning. First, lets get you up to speed on todays headlines. Are you ready for this . Im gary owens. Ive got one of these things on. Its like youre madonna, only i need yes. That wont look at good on me. You already hear some of the buzz . I realize again why we have these on. Theres a huge thing going on behind us. Not yet because its early. But today, tech is the dominant. That was the dominant theme of this mornings stocks to watch. Lets start with apple and ibm. The two teaming up on a Partnership Starting this fall. Ibm will sell iphones and ipads loaded with applications geared at business users. Shares of both companies did rise after hours. I took a look last night. Ive already talked about it with andrew. I immediately said ibm, apple, apple has to be getting the better side of the deal. To lend the right now, ibm needs apple sort of mojo. And i just i dont know if im going to get a deal. People want apps and iphones to be more business friendly. Is that how you do it, though . Cloud. It is interesting because this could have never happened 10, 20, 30 years ago. I dont think it could have happened five years ago. It was such a rivalry and we know kind of when somebody did more or less displace the other, at least in common culture. I think you have to give ibm some credit for being around at all. I think ibm gets a lot of credit for the business side of things, when it comes to consumers, yeah. Shares of blackberry are under pressure, again, as the once dominant player in enterprise mobile faces more competition. Josh lipton sat down with the ceos of apple and ibm yesterday. Hell join us with some of that exclusive information in a minute. Intel shares getting a boost after earnings and revenue beat the street. And the company offered, wow, 33. Upbeat guidance. That should be, if i recall, a new multi year high. Intel says the worst is over for the battered pc industry and just when you thought pcs were going away and it was going to take intel along with it, it finally breaks out from that 22 to 25 range and suddenly were back to 33. That makes one of the analysts were talking to very nervous. The one thats coming up at 6 20 eastern time. Did you read about what the guy has to say . Yes, i did. Hes nervous about where it is that hes happy with what theyve seen and who gave you this information . Our producers. Theres a packet that has all of this . Theres a packet with information in it. That would be a big help. And then theres yahoo earnings missed by a penny in its Current Quarter revenue. Guidance fell short of consensus. Yahoo says its going to pay shareholders at least half the proceeds coming from the allibaa ceo. And it plans to keep a larger stake in the china Ecommerce Company than first expected. Are you squared away . I am. Do you like the madonna thing . The mike . Its okay. You both have your jackets on today. We do. I dont know how long its going to last. Im warping you right now. Its hot in here. I feel kind of formal. Getting an itch . Yeah. This is formal news, my favorite topic. A letter that treasury secretary jack lew has sent to the leaders of the congressional tax writing committee. In it, he call owes lawmakers to enact legislation immediately to shut down this abuse of our tax system. He writes, what we need as a nation is a new sense of economic patriotism where we all rise or fall together. We should not be providing support for corporations that seek to shift their profits overseas to avoid paying their fair share of taxes. In the letter, the Obama Administration backs making inversion rules retroactivity and that would do that starting in may. When they say abuse or whats abusive, is the territorial system in the prohibitively hard rates. Obama and his friends dont want to do the hard work, actually have to compromise, talk on the other side to get Corporate Tax reform done, so theyre going to treat the symptoms which is not going to help. Jack lew is advocating complete tax hes advocating that, but he wants this temporary measure. But weve got two years left and no one in their right mind things its going to happen. I dont disagree with you that we need tax reform. But the more i think about it, im a taxpayer, youre a taxpayer. Wire paying medicare and medica medicaid. People in the other countries are if you want to move to the netherlands, you can sell your drugs to us at the same price you sell your drugs to the netherlands. Theres all sorts of things that we do in the United States that these Companies Benefit from and i do think there has to be some level of economic i think this word patriotism does make some sense. But do you then close the gates on other companies . Can Companies Based in the netherlands no longer do business at the same time . So when druggen miller today proposes zero as a Corporate Tax rate, does that mean no company can ever be patriotic again . No. How could it be patriotic if it doesnt pay any taxes at all . If we decide as a country that we want to have companies in this country and we dont want taxes, thats a rule, thats fine. But the idea that somehow by the way, if you want to tell me the ceo has to move to the netherlands and hold their headquarters there, fine. But the idea is that you can sit here in this country, take advantage of every rule and thats it. You just said if you want to have a rule where we go to zero the rule right now is that its territorial and that you can move it to avoid this prohibitively high tax rate and do better as a business, compete better globally. Reward shareholders. I want everybody to compete globally. You want to change the rules and say no, you cant do it any more, were going to stop the flow of capital, stop the flow of i think theres a true danger that were going to see not just this little trickle, but youll see a dozen, two dozen, Major Companies that that is going to happen in this cup. Why cant you look at that as a leverage point to make politicians change the tax code . Instead of just saying no, you cant do it, thats like treating and once theyre gone, theyre never coming back. Thats like packing someone in ice that has a 106 temperature and not treating the underlying cause. Its not going to pep do you think the patriotism and taxation i dont think theyre synonymous at all. And whether you say pay their fair share, isnt they didnt build the companies themselves, so you need to live in the netherlands. If youre headquartered here, too, and you get then have them move there. Force the ceos and boards to move to the other countries. I dont understand. I agree we should change the law. But im saying in the meantime, when whole thing seems crazy. Have you seen a movement in the white house to put this on the front burner . Yeah. Just happened. Jack lew is saying he wont protect the firms. Then we wont need to do that. So youre fine with 20 , no more territorial, no more tax in both places . Correct. On the 20 , so his operates at 28 and nonmanufacturing 25 . Thats too high. Were not going to split up manufacturing versus the other problem, though, you look at a mylan, theres a large question whether 20 gets you where you want to go. And be the way, youll see what happens with that this summer. Its a chicagobusinessed company. Well see what happens. Competing it globally, can we tax shape holders . I agree with you on revenue. The job creation you could do it. You could do it. But i dont think it would free up the private sector. I dont agree with going to taxes to zero. Why not . Because i think corporations should pay something. Because they drive around on roads . They are people. They are people. They are composed of people. I also think its unreasonable to think year going to get from 35 to zero. I think if you can bring it down to 24 , sure. Its not about these desks and these computers, its about you, andrew. Wed better go on. I think im going to have to take this off. It is warm. It is hot in here. Now back to the big tech story of the morning, oh, did i catch my brazier . Mr. Rogers over here. Yeah, thats right. Im not going to wear a sweater. The big tech story of the morning. Dominating business, josh lipton sat down with the ceos of both companies. He joins us from our silicone valley bureau. Hes not even wearing a tie. Anyway, josh, how was that . Was there a lot of rapport . Well, joe, as you mentioned earlier, becoming friends, apple and ibm used to be great competitors. Now theyre allies. Apple and ibm announcing a partnership to create new business apps. Bring ibms Data Analytics to apples tablets. It is a shot across the bow in the Corporate Market that could have a big impact on other players such as blackberry. I did speak with apples ceo tim cook and ibms jenny remetti. And hes clearly excited to have an impact in the commercial market as it does in the consumer market. We started investing back in 02 in the enterprise features. Through that period of time, from where we are today, were in over 90 of the fortune 500. But the reality is that the penetration in these businesses and in commercial in general from ability is still low. So where we are very good market share, the penetration suggested a huge opportunity here. And i think if we can bring the transformation weve argued that brought to consumers, to enterprise, i think theres a huge opportunity here. I am so happy we did. Now, apple is already expanding into the Business Market by giving away productivity software, ramping up its devices. Apple will have access to boots on the ground. Analysts say this partnership is also a win for ibm. Its one more solution that big blue can offer its clients. Ibm searching for growth opportunities. The companys revenues declined for eight consecutive quarters. Apple and ibm are the winners of this partnership, who is the potential loser . More competition in the enterprise global space certainly some matter. The blackberry, its the only pure play less for investors in this space. They reacted sending blackberry stocks down after the apple ibm news broke. Becky. Josh, thank you very much for. Right now, lets bring in an analyst that covers both apple and ibm. Brian, first of all, what do you think about the deal . I think its a great deal for both companies because they compliment each other in a great way. We call it a yin yang relationship. Is this almost a story about the death of the pc . People arent going to be buying those, they can tie these two together . Yeah. Theres no really really no overlap. And you think about ibm with the great analytics and great cloud and Great Security that they have. And then you think of apple with the software and the hardware. We dont completely trust apple. I think this will away field of approval on how they penetrate the market. I think its Something Like 96 or 98 of fortune 500 companies are using apple information. Is that because people have come in and demanded that they be allowed to do their corporate email on their iphone . Yeah. So the penetration might be low per company, but its essentially most companies allow someone to use an iphone somewhere is in the organization. How is this going to change things . What will happen as a result . You know, number one, at least with most companies today, youre still given a device. And its not the greatest experience. So i think the efficiency improves significantly. We can use an iphone or an ipad. We said, look, 25 of the Smartphone Market is an enormous opportunity. That could be 250, 300 units a year. What you think about ibm overall . Its interesting. We like ibm. Because . Well, number one, we believe in the longterm strategy. Number two, the profit cycle has bottomed or is bottoming. Some of it on the street has the lowest in ten years. 15 have buy ratings. And i think theres a lot under the hood here. Unlike other companies, in the i. T. World, theres a lot under the hood. Its going the take them a little while to realize it. This will help. Who is the big winner in that . In terms of how you think this will happen who is getting in bed with the other person . Who feels like theyre marrying way above their means . I guess thats sort of obvious. I think its politically correct. I see the way youre starting. They both benefit, for sure. This enterprise is another leg to the story. I think its another leg to the story. If 250 to 300 million business smoeps out there and they have a small percentage whats the halo value to ibm, then . Its significant. Ibm is kind of an old world company. They definitely struggle with revenue. So being attached to the core pm on campus is if you change your rating for either company as a result of this deal . We have buy ratings on both. But i think it provides some new opportunities for those companies. And i think thats whats exciting about this. Sorkin, thank you. So you stopped the inversion, right . But with your Law Companies still build plants over there, they still invest, they still are domiciled here, but they still are induced to move operations over there and hire foreigners and build plants over there. Why not fix the whole thing . Im trying to fix the whole thing. No, youre not. It doesnt nothing to it needs to be in the larger contexts of if you do that, youre most solving any of the expansion overseas. It is still going to be happening. Now you make another loss to let them do that. If you fix it, facilities get built here, jobs get added here. I want everything added here. Why this patchwork . My anxiety is nothing is going happen and well lose these fortune 500 companies and its like 110 . But the problem of Corporate Tax reform. But the problem is going to become so acute and i almost think you should let the problem because it puts pressure on lawmakers to deal with the underlying the problem with green jobs here all the expansion here. I would do it. Thats the patriotic effort president. Paying taxes and taking it out of the incorporate cofferes and out of shareholders doesnt help anyone by putting it in a lessificive place where capital is treated. Its not good to take money out of the private sector and put it in it seems backward and somewhat unpatriotic for a u. S. Company thats benefited from you didnt read hands. To then all of a sudden its your patriotic duty. The Supreme Court says its your patriotic duty to pay as low as tax rate as you can to look at our forefathers. Their entire mentality its to leave the country. Its not Encouraging Companies to leave the country. But thats what weve done. We are. And i would agree with that. But youre arguing for a piecemeal fix, hes arguing for a broader one. No, im arguing for a broader fix, but a shortterm deal, too, until and you cant even sell stuff abroad. If youre going to leave the profits over there and or dont even sell anything over there. That will solve all your problem down there in texas. Brian, thank you for coming in. Coming up, writing big checks to uncle sam. When is the last time you wrote one . Just recently, as it happened. Dragging and screaming. Meet the Pension Fund Manager that every hedge funds wants as their investor. But before we do that, tech giants with different game plans. Theyre rolling out Quarterly Results. Yahoo and intel, how many is alibaba helping yahoo s fortunes. And is this worst over for the pc industry . Thats next here on cnbc. Were doing it all from new york city, delivering alpha, the big conference coming up today. Developers are all about speeds and feeds. Its all about latency. Its all about how fast does it run. I often sit with enterprises who ask me about how Mission Critical and hows the performance of the cloud. And i tell them, if you can make gamers happy, you can make anybody happy. Speed is made with the ibm cloud. The ibm cloud is the cloud for business. Welcome back to squawk box. A number of tech stories out this morning, it has been two years since Marissa Mayer took over yahoo . She says shes not happy with the companys latest results. Jon fortt is joining us on set to discuss these earnings. Lets talk about yahoo and intel because we have these cool mikes on. I feel like were in a boy band except becky, obviously is it in sync . What kind of boy band are we talking about . Yeah. I think so. I said madonna. Why didnt you think of the guy that changed your life . M. J. Well figure out who is the best dancer later, but yahoo bad results with an asterisk. Intel, good results with an asterisk. Starting off with yahoo . They had a penny short on eps. A little light on revenue. Two things that Marissa Mayer pointed out that didnt go right for them. One was premium advertising. They werent selling it. The other was the ad manager platform which is supposed to help them get advertisers borrowing in a big way. And in a way, yahoo is wanting to stand still. Theres a pc display ad situation isnt looking good because overall, pcs are still eroding, particularly consumer. This as pcs are doing okay. But those arent the people who are really using yahoo . The amount of advertisement was up 24 , but the money they brought in from that advertising was down 24 . What happened . Theyre selling more ads, but people arent clicking on them or they cant get the same prices they were . Thats a big part of it. Theres a couple different types of advertising, generally speaking theres programmatic, which is the machine selling the ads and those prices get driven lower and lower. The premium ads are what really bring in the high margin dollars. Those are what yahoo isnt selling, as well. You need strong relationship toes fail. They need a failed leader who is a little more established. Those are some of the areas where they need some strength, not just machines. Shares were up, though, because of what they said about alibaba . Yeah, shares are up. They were going to have to sell 208 million shares. Operationally, how long does Marissa Mayer have in the Actual Company . How long do you think she has