Transcripts For CNBC Squawk Box 20160418 : vimarsana.com

8 . S p futures are down by 5 points below fair value. Dow futures are down 36. The nasdaq off by 7. Also take a look at what is happening in the early trading in europe right now. Red arrows there as well but these are a modest decline at this point. The cac is down by. 25 and that is the biggest decliner among the latest averages there. Overnight in asia, the nikkei dropping by more than 3 . Looks like shanghai and hang seng were down 1. 4 . Some of the reasons for japans biggest decline, the major exporters there suspending production after two earthquakes on kyus huru killing at least 4 people and rescue efforts are still underway. 246 people were killed and more than 2500 injured after an earthquake rocked Ecuadors Pacific coast on saturday. Hundreds of buildings were destroyed. Officials say there have been more than 160 aftershocks just since saturday night. In other global news, the lower house of Brazils Congress voting last night to impeach the countrys president , dilma rousseff. This set off a wild celebration outside the legislative buildings. Rousseff is accused of accounting tricks to maintain spending and shore up support. The measure now going to the senate. All of these questions of just whats been going on with petrov and beyond, there are dual trains moving right now. The big majority, apparently, of the voters want to impeach. They have the same thing here now and have to go through the senate. But they are calling it a major they called it a repudiation, but ever since sarah palin refuteuation. It is more succinct. Just like strategery. What got me is, the journal sometimes how old are most of the writers . Do you know what the worst job in the world is . I think i sent it to you. I can think of a lot of worst jobs. I sent it to you. The worst job in the world is a print reporter in the paper. No, that is not the worst job in the world. Look it up. I have had way worse jobs. Trust me. I dont know who the two people are, but the dow is nearing a record rally or high after a recent rally. But the failure in doha could mean that thats not going to continue. Now, okay, so i go okay, that is on c1. Let me go find their rational for this decision that our rally and stocks will be hurt by the end of the doha not getting the doha heres what they say. If oil goes to 28, right . I know, but it says in the past year when oil prices have gone down, sometimes stocks have gone thats all they got. We understand that. But connect the dots to why cheaper oil and not being they said the last couple of weeks the link is broken. And you see the futures today are down like 40 in the United States. Im still focused on being a print journalist. Trust me, i have had way worse jobs. It was something called career cast that did a poll of the 200 jobs in the world. The one ranks at the bottom because the methodology comes down to how much money you make in the role and how much stress you have and what your Work Environment is like. Have they ever tried b bartending, waitressing, i have had way worse jobs. Lumber jack. That is hard work. And enlisted military person. That is really stressful, yeah. Thats gratifying. I think that the stress in the newspaper reporter is, lets say your conscious doesnt want you to spin everything left yet youre expected to. Everything you say is supposed to benefit progressives and the left. Editors are always telling you to write that differently. It would be very stressful for you. It would be stressful for me to be forced to right everything far, far left. They need to watch you for a week. What about a job next to somebody who wants to be very, very right. That would never happen. Asking for a friend. That would never happen in the print journalist arena, i dont think. It just happened in the tv world. Cramer used to work with maybe ask him about it. I said asking for a friend. In corporate news, today is a deadline for potential bidders to submit preliminary offers for yahoo s core business in asian assets. Verizon didnt they buy aol . They did. They did. I think they are doing okay with it, by the way. Armstrong, bravo to him. Wall street journal report that is verizon is among the potential suitors. Alphabet, comcast, at t have decided not to bid. They are negative. They are throwing shade. If my daughter tried to use those words she has not used on fleet in years. She said, you just sound really stupid. I said, bye, felicia. I didnt know what i was talking about there. You didnt do the whole she was criticizing me and i said, thirsty . Craving attention . She did throw some shade on that. Were done. By the time i hear something, its like why does my may myspace account come up i try to do something over the weekend, is there Something Better . It didnt come up, is there Something Better to try . No, i just met somebody who has an aol. Com email address. It is retro cool. Right. When i was trying to get on myspace, the dialup i couldnt get through. Verizons noise. Yes. Verizons competition looks to be from private equity firms. Can they pay as much . No. The journal says yahoo s core business could attract 4 billion to 8 billion. They should keep lowering that top price. Well talk to a yahoo analyst later this hour. And we have a pretty busy agenda today in terms of things that were going to report on at cnbc. For example, the National Association of Home Builders will release the results of the april Housing Market index at 10 00 a. M. Eastern. And then as every day, this is not dont stop the presses on this, well hear from all the fed guys. Because they are the most important part of our life, the fed. Well hear from the president s of new york, minneapolis and boston. And then on the earnings front, Morgan Stanley, pepsico, hasbro all report before the opening bell. And ibm and netflix will release after the close. And the only thing i saw, sore k sorkin, they said amazon would have a streaming service. They already do. But they are undercutting netflix by a dollar. How come that cant keep happening . Somebody else has eightminute abs and then somebody else does sevenminute abs. Here we are. But i just dont understand, the bearer to enter for netflix doesnt seem that great. And we also have Mark Randolph. You know what happens when there is little varied competition lots. Thats what i mean. Why suddenly is netflix at 300 billion unlike everybody else. And another big story, is this me . It is. The big story in the energy i wont say that, im earthing to never say space again. Thousands of oil the reason Going Forward is because youre always were always talk about the future. I know. I was making up the tease and going through and thinking of all the guests i wanted to tease. So it is a crutch i would using to give myself a couple of seconds. But you are talking about the earnings projections Going Forward. We always know what they are. I know. And you have beat that into my head over the last 12 years. Going forward, i tell you what, summarize what it has done what you think it should are have done. Anyway, thousands of kuwait workers are going on strike after crude production was cut in half yesterday. The doha meeting is the ultimate buy the rumor sell the news event. John is here with us, based on the reaction of the markets you were right on this. We knew we didnt expect too much, but this may have been the worst Case Scenario where things completely fell apart. They didnt have a framework for what they were talking about. The broader thing to be watching here Going Forward thank you. Sunshi is the new big plays name is mohammed bin saleh alsada. He was on the wire saturday night, telling iran, no deal. He called me, a familiar name to watchers of this opec group that got undercut. He was ready to make the deal. He got the call and said, youre not doing that and it fell apart. So a hot head in charge or someone more forceful of being in charge in saudi arabia, what does that mean for oil markets Going Forward . Its going to mean its going to mean a much more muscular saudi arabia. What we have already seen with them intervening in places like yemen and iraq and syria already, youre going to see a lot more of that. Is that good or bad for oil prices . I guess it depends on perspective of the producer. I think it will make for a lot more volatility. And does he act out in both ways . So right now his main priority is to keep iran in a box and keep him down by flooding the market. He threatened to up production by 1 Million Barrels a day and said they will sell at every opportunity they can. But they are not going to lose market share. No, theyre not. And they are going to talk about netflix and cutting prices. They will start to have a battle with discounting between themselves and iran Going Forward as well. Stop it that was not he didnt even do it. That was a slip. I know it was. Its the thing for people. I use it as a crutch. When i try to figure out what to say next, because my tongue is going faster we kick you off the show. We banned it but then it has crept back into every Single Person that uses it. So i i cringed when i said it by accident. Oh that was my other favorite. Someone asks you a question, any guess, they start with absolutely. Every toss from anchor to reporter. It makes us feel very smart. Thats a good question. That one, too. I always feel better. I do ask good questions. Thats a good way to do it. That will let you off easy. Where were we, john . I completely lost my train of thought. We were talking about the implications now for this situation. The downward pressure from oversupply is going to remain intense in this market. Iran has already ramped up their output by 600,000 barrels with more tocome. The cartel is in disarray and there will be one more beatdown for price that is will really inflict the kind of pain the saudis really want to to the rest of the highcost producers to see more downward output in the u. S. To finally get a bottom in this market. But i dont think we have seen it yet. I think it makes my 18 target a little harder to reach. But the last key to the downward pressure, becky, will be the weird warnings from the imf about the global economy, which i dont necessarily understand. And there is also some warning sides from recent production numbers and other things, there are nuggets out there that some of my economist friends in particular keep highlighting today. On the demand side. Yeah, there are issues for the global economy. But my problem is given our strong u. S. Employment data with the weekly initial jobless claims being so low, the lowest since 1973, it is hard to see it. But sometimes its the periods where it is so hard to see it that you run into trouble in not too long. John, just to clarify, you said this last week and just mentioned again, you think we have not seen the lows. The lows are 27 and change. We would be a lot lower if kuwait hadnt lost 2 Million Barrels per day per strike. It would be a cascade lower. This will get resolved. Once the oil comes back, you will see the downward pressure resume. There will be an agreement. What could potentially change your call on this . What would potential will i change your call on this, the demand picture . Because were looking at the First Quarter gdp here in the United States of some people saying 0. 50 or less. We got a similar sort of pattern. If we have a strong comeback at 3. 5 gdp, does that throw this out the window . Not entirely but it would make me reconsider. The other thing is just how much oil in terms of oil projects do come off. Do we really see Global Production come down the way some of the my colleagues are arguing that it will. It has come down here a lot. It has, about 600,000 barrels. Is that a lot of rigs . A lot of rigs are down. Offsetting that, joe, has been the big long in the making offshore products. The saudis, the method to their madness is working. The high cost they are hurting. Well have to see if that continues. I dont know how much longer it will go down. Theres been some hedging going on. I think theres installed capacity that wont go. With these guys on the run, why would the saudis stop now . Thats been my argument. They are not done fixing our wagon yet. Thats been my point. John, thank you. Great to see you. Same here. Thank you very much. Its like a dan rather thing. John wayne. Those kind of phrases, yeah. Thats classic dan rather. Look who is not on a doorknob. Coming up, stocks to watch this morning including some big calls from something called barrons. I dont know what that is. And over the weekend, well talk Market Strategy with mohamed elerian. We havent seen him in person. Hell be a guest host for an hour. Squawk box will be right back. Great time for a shiny floor wax, no . Not if you just put the finishing touches on your latest masterpiece. Timings important. Comcast business knows that. Thats why you can schedule an installation at a time that works for you. Even late at night, or on the weekend, if thats what you need. Because you have enough to worry about. I did not see that coming. Dont deal with disruptions. Get Better Internet installed on your schedule. Comcast business. Built for business. Welcome back to squawk box. It is monday morning, well check on the markets. Theres a little bit of a pullback for stock futures. This comes after the dow and the nasdaq were up by 1. 8 last week. You can see the s p futures down by 3 and oil prices are down by just over 3. Oil prices have been hit hard by the lack of decision in doha down by a dollar. Thats a decline of 2. 7 . Wti back below 30 at 29. 76. In terms of the dollar, take a look, youre going to see right now in the Foreign Exchange markets that the dollar is down against the euro. Its down against the yen as well. Right now the euro is trading at 1. 1289. And gold prices this morning they are up by 4. 60. 1,290 an ounce. For more on the economy, we are joined by seth masters. I would use that as a last name. Is that your last name . It really is. Im pretty attached to it. Im sure you are. We are going to listen to you closely, chief investment offic officer. So north and south america, basically . The americas. What other ones are there . Central america. That, too, north and south. And central, okay. And you are is this new . The author of inside the crystal ball how to make and use forecasts. Right here, baby. He brought us a copy. How many copies, just one . Im giving away free copies. Everybody else for 25 can get a pretty good deal. That is a really good deal with the amount of money you can make by reading that, probably, is what youre saying. I hope you can make more than 25. Depends on what you sell it for. What if you sell it for a dollar . We just heard, you said that, start with half a percent this quarter, can you do 4 next quart her . I dont think so. What do we do with the Second Quarter this time around . The Second Quarter will be almost a replay of the First Quarter. I still think it will be a soft quarter. We think First Quarter was up half a percent on gdp, which is very slow. Second quarter we have 1. 3 . I think that by the time you get to the second half of the year, some of the problems that we have now wont be so serious. For that to happen, you need the dollar to stay down for a while. You need the oil prices to stay up above the trough. And i think those things will probably happen. What problems do we have now . I dont see why were its been eight years, what problems do we have now . I mean, we have zero Interest Rates, we have no inflation. Everythings great. Why what problems do we have . Well, the problem youve had is that up until recently youve had a very strong dollar. That has wreaked havoc on a number of industries. The other thing that has turned out to be a problem that forecasters generally didnt see as a problem is lower oil prices. Janet yellin keeps telling people this is a plus for the economy that oil prices go down. Try telling that to people in texas and oklahoma. In fact, what we found is that when the oil prices go down, consumers dont spend all the money that they save on gasoline. And at the same time you get the big cutbacks here in the United States in energy exploration. Im hearing that the entire developed world is dependent on commodities that when commodities are weak, they have financial problems, they cant buy as much, we cant export to the entire globe when economies are unable to participate in the global economy. That sounds like a i guess there is some truth to that. Most of the economies are economy importers. So we would disagree with that. So then what is the problem with cheaper oil . Why do we keep hoping Oil Goes Back up for our economy and stock market . Well, i would sort of disagree that cheaper oil is such a big problem. I think its a big problem for the oil patch and for some companies that are very dependent on oil prices as part of their output. But actually for most companies that are seeing oil as an input, some Chemical Companies eventually its good, right . Yes. There are a lot of structural uncertainties in this environment that are actually exerting like what . Selfinflicted by the Obama Administration . Some. But mostly you have, for example, people are uncertain right now about energy. Which is in the news a lot today. You said thats good. But the uncertainty is actually a problem if people dont know where oil will be, whether it will be at 30 or 60 makes a lot of numbers look different on peoples pmls. Also, china, will it in fact collapse . We dont think so, but the uncertainty about that ebbs and flows, questions like brexit, greece is probably going to be in the news before too long because there are problems brewing there. And also there are a lot of regulatory uncertainties at the moment that you eluded to. When you add that up, we are in an environment of a lot of structural risk right now. Measures of risk like vix have dropped a lot, but youll see that move around. In that kind of environment, you want compensation risk. Heres the problem, right now the compensation of taking risk in this environment is not high relative to the uncertainty we see out there. We have people out there all the time. One of the more common phrases as well, nobody has a crystal ball. So its called inside the crystal ball. You have a crystal ball now to conjecture what would be inside . Some people say theres no crystal ball. Is there a crystal ball . Well, theres some collective wisdom that they can help you improve your track record in forecasting. Theres no magic crystal ball. But what we found in our book is that there is a lot of unforced errors in forecasting. And that there are avoidable mistakes. And you can increase your batting average if you dont strike out unnecessarily. Well, you did a round, i think you are probably on the first couple of months of the original squawk box probably in 19 whatever that was, 95 or something . The wisdom occurred to you. You have written other books, havent you . This is my first book. Youre kidding me. So it is your best one. First. Best and maybe last. Its a collection of answers to a lot of questions that i have received over the last 20 years. It gets all packaged in one product. Okay. Thank you, seth. Is masters your favorite term . I will say it is definitely one of my favorites. Do you have a masters degree . I do. Okay. Coming up, when we come back, well talk about yahoo . The auction is on. The bids are due and verizons chances are looking better after reports that time, alphabet and at t wont be submitting bids before todays deadline. Well talk to you about how much this sector is worth. As we head to break, heres a looked at last weeks s p 500 s winners and losers. The first stock index musiwas createdoughout over 100 years ago as a benchmark for average. Yet many people still build portfolios with strategies that just track the benchmarks. But investing isnt about achieving average. Its about achieving goals. And invesco believes doing that today requires the art and expertise of highconviction investing. Translation . Its time to bench the benchmarks. You know we want to have kids some day. So when we bought a place, we specifically looked for a house that could accommodate that. In a couple years, its gonna be a trip to see my kid runnin around, playing with some toys, knowing that hes got a home like i did when i grew up. Thats gonna be an awesome day. Whatever home means to you, well help you find it. Zillow. Real is touching a ray. Amazing is moving like one. Real is making new friends. Amazing is getting this close. Real is an animal rescue. Amazing is over twentyseven thousand of them. There is only one place where real and amazing live. Seaworld. Real. Amazing what does twitter see in the new cfo . Thats coming up on cnbc. Pepsico reports that revenue was slightly shy of the forecast, but they report an increase in Profit Margins and the 3 increase in berverage volume. The stock is up by a dollar right now. Pepsicos cfo Hugh Johnston will be coming up in our show later on. And this is a firsttime offer for the companys core Internet Business and asian assets. There are reportedly more than 40 parties interested in all of this, including Telecom Giant verizon. We have also heard of the mail. Verizon tops the list of those chasing after yahoo . We are hearing of others who reportedly wont make a bid. Well bring in our analyst from europe. Do you want verizon to buy this thing . I think its the most sensible. Verizon bought aol in june for 4. 4 million. They have Tim Armstrong. They have synergies between the Technology Assets they are trying to invigorate in their mobile strategy. What is a reason price for verizon to pay . What price would you say, you people are crazy . I think for the core, i think if you value it as a multiple of their adjusted 750 million, you would say five times makes sense for the asset where revenue is eroding. So five times is almost 4 billion. There is problem a control appeal yum on top of that, premium on on the of that. If it goes above 8, that is crazy. But youre fine with above 6 it sounds like. Yeah, that sounds reasonable. One of the pieces maybe it is bankers trying to advertise this, is the value of the patents this company may have. And the royalty arrange. They have with yahoo japan. Was that 90 million . Yeah. Assuming that gentlemyahoo continues to make money and doesnt try to get out of this. If yahoo japan continues, theres a royalty payment for the right to use the brand name of yahoo for japan. So basically the point is, if you pull that out of the model, then the revenue and profits erode that much more over the next couple of year. And what would you pay for that . It is hard to put a value on that because soft bank is just working so hard to change that arangement between soft bank and yahoo . So you cant comment on that. That was the reason people thought soft bank would be a logical acquirer of yahoo would they buy it or no . The reports we are hearing is they are not that interested and verizon and Tim Armstrong has support for a bigger bid. Tim armstrong now works at aol as a subsidiary of verizon, yeah. Would you expect Marissa Meyer to work here . I dont know. With respect to selling aol, he went through kind of preparing aol for the ipo and has been through the restructuring, the layoffs and all of that. And so my sense is that hes sort of been there so they think of him as a capable executive to think through the restructuring. If you think about the synergies youre trying to pin me down on it, if you think about the synergies between verizon and yahoo shes called one of the worst ceos in america, that is why i ask the question. I know you would love the interesting narrative. What would you have done . Turnarounds are very few and far between. When she came in, people were already saying, look, this is the last chance. This is the last objective i would agree there were personnel decisions and acquisitions where capital was squandered. However, i dont think theres another ceo better suited what did she do right . Well, shareholders are rightfully upset because revenue is down at lo. They are down 15 , 20 . Thats an answer to what she did right . You just dont know what it would have been with another ceo. That was a weird answer to is there anything shes done right . You said shareholders are upset that how does that answer what did she do right . Are you buying time to think of something she did right . No, i just think it is easy for you, joe, it is easy for us to say look, hes the one who asked it. I could care less. I just wanted you to answer his question, or not. I think when we look at what is happening at googlele and facebook, they are structurally taking display from banner ads. Maybe marissa has done a good job in pioneering some of the new Revenue Growth drivers. The there you go. Thank you. You needed a little time to come up with them. But really you are going against the buzz saw in facebook and google in what they have done. Facebook is the one that replaced myspace. I should have gone on facebook, right . Is that it . Besides verizon, is there any other company you think makes sense . I think verizon makes the most sense. Is that one of the companies in the world where you say to yourself, were talking about a couple people because what verizons private equity. Is it easy for the private equities to carve out the asian assets away from the core . As it is, i think the market could be underappreciating the approval process that verizon for yahoo would have to go through. Whether keep in mind, if there is a change in control, yahoo has a lot of important relationships with the likes of mozilla and yahoo bing. That would have to be restructured and restruck. So when verizon bought aol, there were at lot of people who looked at the deal and thought they were crazy for going ahead and paying for it. Is this a similar situation . Or do you think all of this is madness that actually i mean, this time around there are a lot of different places that have looked at this. And said no thanks right now. But you think verizon does make sense . I think there is something going on at verizon with respect to consolidation of Advertising Technology soflt wh technology. So when you look at the adapt mobile service and the ability for a big Wireless Company to facilitate the shift in viewer ship of video onto our iphones and the ability to serve ads on the devices. Why does it make sense for verizon and not at t, for example . Thats a good question. Because they have Tim Armstrong and aol. They are already on the path. They have bright they have adapt tv, so if you have bright roll, you have two of the leading video ad technologies. Verizon is not going to bid against themselves. Why would they go above 4 million. It would be a pain to do as well. Is 8 billion a reasonable number to them . Thats a good question. I dont think tim has a support for a crazy bid. If they view themselves as being the only guy at the table, then they couldnt be too low. They couldnt be shockingly low. I dont know. Andrew doesnt think it is worth 8 billion, i know that. I can tell you in advance its not worth it. The point is Everybody Needs to watch. 6 billion is high . Joe, you need to stream netflix on to your verizon. Five years from now, thats the question, would it be worth more than 5 or 6 billion five years from now attached to verizon . That to me is a struggle. If they are going to pay that much, it should be 50 compounded over guidance for the First Quarter is for revenue to be down in the teens and that would be down 53 . Right. Unless you think that somehow Tim Armstrong is a magician. Anyway, thank you. Nice to see you, sir. So they have a picture of katie couric in the paper today. That is their key spokesperson. When we come back, it has been or is a big week for the president ial race. The closely watched New York Primary is tomorrow. Joe hardwood spoke to joe biden ahead of the vote. The Vice President s comments right after the break. And heres a quick check on whats happening in the european markets. In the early trade things are weaker. In fact, the dax turned around, it is flat. The ftse is down by less than. 20 and so is france. Squawk box will be right back. One of millions of orders on this companys servers. Accessible by thousands of suppliers and employees globally. But with Cyber Threats on the rise, marys data could be under attack. With the help of the at t network, a network that senses and mitigates Cyber Threats, their Critical Data is safer than ever. Giving them the agility to be open secure. Because no one knows like at t. We believe in the power of active management. 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. Youto get the help yourefar looking for. Thats why at xfinity were opening up more stores closer to you. Where you can use all of our latest products and technology. And find out how to get the most out of your service. So when you get home, all you have to do is enjoy it. Were doing everything we can to give you the best experience possible. Because we should fit into your life. Not the other way around. Welcome back to squawk box. Netflix has new competition, amazon is launching a new membership for standalone video. That are dropping you to sign up for prime to access the streaming content. You can subscribe for just 10. 99 a month or get the prime video for 8. 99 a month. Im glad they are doing it. Because those of us who get packages every single day dont connect in our head the idea of i pay less than that for prime anyway. I only pay 99 a year for prime delivery and all the stuff i get . Yeah, this is a monthly. But i can pay less on a monthly basis if i pay an annualized fee and get the deliveries for free . Correct. Thats a pretty good deal, the prime deal by itself. Its a great deal. One of the greatest deals of all time. I get it for free. If you have amazon prime, which most people get for the delivery service. Then you also get the video. But now they are offering just the video, which makes a lot of sense. So what is missing, what is the difference between amazon and netflix . All different shows. All different sorts of programs. All the original stuff on netflix you cant get on amazon. All the original stuff on amazon you cant get on netflix. If it was on fx, can it g ben netflix and amazon . No, this is the way it moves now. So hbo is on just netflix. No, hbo is its own. But watching where do i see it you get it on demand. Thats not a netflix. Thats your cable. Sons of anarchy is on there. It is getting more and more confusing. Everybody has a separate deal. Now you pay 9. 99 or 10. 99 to do all of it. If you want all of it, you have to get hbo, showtime, amazon this is my argument for why amazon is a good deal. And why you need to break t out if i want to watch house of cards, is that netflix . Yes. Lets talk about what happened at the box office over the weekend. Disneys live action version of the jungle book was king. The new version classic of the movie brought in more than 103 million in its debut weekend. Thats kind of cool because it is all cgi, not just a cartoon. Neil sethy plays the boy protected by the wolves. Coming in second, the latest chapter in the barbershop series. The barbershop the next cut took in 20 million as well. And elizabeth warrens comic book is celebrating the lives of noble women. Past subjects include Hillary Clinton, Michelle Obama and sarah palin and nancy reagan and madonna. Coming up, battleground new york candidates gearing up for tomorrows big primary. John harwood is going to join us in just a bit right after the break. First stk index was created over 100 years ago as a benchmark for average. Yet many people still build portfolios with strategies that just track the benchmarks. But investing isnt about achieving average. Its about achieving goals. And invesco believes doing that today requires the art and expertise of highconviction investing. Translation . Its time to bench the benchmarks. Its how you stay connected. With centurylink as your trusted technology partner, you get an industry leading Broadband Network and cloud and hosting services. Centurylink. Your link to whats next. Okay, so you launched your banks app. Now what . How will you keep up with the new demands of todays Digital Economy . The fact is some believe they wont need a Traditional Bank down the road, so at cognizant, were helping banking and Financial Services Companies Think digital, be untraditional, and reimagine what the bank of the future can be. Our clients can now leverage customer intelligence to predict their financial needs and provide more contextualized products and services. Were creating new platforms across channels so customers can effortlessly invest, borrow, lend, transactwhereverwhenever they choose. And were digitizing the way banks run, driving efficiencies and delivering new value for their customers in return. Digital works for banking and Financial Services. Lets talk about how digital works for your business. Senator sanders, you believe the super rich should pay more in taxes . Yeah. Yeah. Wouldnt that be bad for actors who made a lot of money on a certain very successful sitcom. Yeah, so . Wouldnt it be even worse for the person who created that sitcom . I mean, wouldnt he lose a lot of money . Do you see what im saying . Yeah, yeah, yeah, you should vote for her. Thats me yes. That was julia low dreyfuss quizzing Bernie Sanders on snl. Tomorrow is the much anticipated New York Primary. John harwood shows us. I hear he got paid all his royalties. Thats in tax freeze. Thats like me. Im now limo lib rock. David and elaine. Elaines money is all in tax freeze. Getting paid . But there are people that say bernie is going to come after you with a big 50 wealth tax if he gets a chance. Guys, were going to have a serious melding of entertainment and reality if we sustain the larry david thing through the next couple of months and then start injecting veep into this through julia dreyfuss. It will be an amazing amount of possibilities there. It will, john. You know, youve got kasich and youve got sanders. You know, were going to have pataki on today whos pushing kasich. I just dont get it. I guess the world is full of lost causes that continue to do because of the i dont know, some idealistic notion that youre making a statement, but its getting in the way of everything else, isnt it . Joe, speaking of lost causes and idealism. Bernie sanders in advance of New York Primary, down by 10 points made a trip to the vatican to push the message of morality and the economy, changing the way we tax and the way we spend. He got an audience with the pope. Friday i had an interview with joe biden for one of our speak easy interviews aboard the amtrak train. Asked him whether that was an indication that the pope was siding with Bernie Sanders. Heres what he said. Bernie is at the vatican today giving a talk on his message. Should your fellow catholics look at that and say see that as a sign that the pope thinks hes on the side of the angels in this race . No. I know the pope as well as anybody. Im probably the only guy that met with him three times. He i was there when he was when he was elevated. I hosted him here. He spent a lot of personal time, an hour and a half with my family when my son baeu died, so, no, i dont think that can be read that way at all. I was raised in a traditionally catholic social doctrine that its legitimate to look out for yourself. Never at the direct expense of somebody else. Its legitimate to do well but never at the expense of not looking whats behind you. And so i just think that bernie making a trip is a good thing, but to suggest that the pope would embrace bernies policies, i dont think thats the case. I dont know. I doubt it very much. So, guys, well have the full speak easy tomorrow with joe biden. As new yorkers prepare to go to the polls, solid leads for donald trump and Hillary Clinton. If they can both win tomorrow, theyre going to take big steps towards nailing down the nominations. Yeah. If you had to pick a pope that would be aligned with bernie, this is the one. This is the one. Yeah, this is the guy. The argentina. Jp 2, my who are row, would not grew up in i dont think he was a bernie guy . No. No. He got to see the benefits of socialism firsthand. Thanks, john. Coming up, our next guest lob mohamed elerian. Great time for a shiny floor wax, no . Not if you just put the finishing touches on your latest masterpiece. Timings important. Comcast business knows that. Thats why you can schedule an installation at a time that works for you. Even late at night, or on the weekend, if thats what you need. Because you have enough to worry about. I did not see that coming. Dont deal with disruptions. Get Better Internet installed on your schedule. Comcast business. Built for business. Warmer weather like this, it can only be one thing. Mosquitoes. How concerned should you be about the zika virus. Well talk with dr. Anthony fauchi of the nih. An official name for the poll voters that has the web abuzz. Details straight ahead. The second hour of squawky mcsquawk face begins right now. Good morning, im joe kernen. Supposedly were going to have a big sell off. Check out oil, the losses there are significant this hour. Oil is now indicated down or is down 3. 3 . Wti is back below 40. Were going to have more on the doha meeting. Sully sully is there. He spent the whole weekend there. Again, waiting for doha. I want a rundown on just the entire weekend. He was tweeting it. What goes on in doha. Do you know, sorkin . What happens in doha. Stays in doha, really . Except for the price of oil. Except for that, cant talk about anything else . You can friend soind some place a kibble . Morals clause. Really . Theres a statute of limitations. Once youre in doha. Pepsi could he reporting a quarterly profit. Pepsi did report expanded Profit Margins and increase in organic beverage sales. Stock is up by 1. A blowout for hasbro. 14 cents better than the street expecting. Revenue beating by a wide margin as well. Hasbros results were based on toys from the star wars movie. We will be keeping an eye on amazon and netflix shares. Amazon will offer a net streaming by 8. 55. Up until now amazons Video Service has been available as part of the prime program. What is it, 99 a month or 99 a year. It may have gone up. They just said 99 in my year. Thats not bad. Okay. 99 a year but you have to buy the whole year. Thats all right. They lose money. Morgan stanley is up. 69 cents a share. 9 cents above expectation. Expectations and revenue essentially in line as a result you see that stock up a little bit this morning. Up about 1. 9 . Okay. The Worlds Largest Oil Producers in doha failed to strike a deal to freeze output. Well take a look and tell you whats going on c wti crude. Brian sli early in the morning a lot of smiles. The saudi oil minister, big smiles, big grin, everybody thought theres a draft deal on the table. This thing is going to gets done sooner rather than later. Well be out of there by lunch. Not the case. The people left to visit the amir. When they came back, more meeting. Some of the smiles started to turn to frowns. A lot of chatter that the mood inside the room had grown hot. That was a direct quote and very tense as well. There was fighting over some of the language. The meeting finally grew into the night. At the beginning of the 12th hour the saudis and everybody else ended up leading. The qatar ri Energy Minister came out and said the group, quote, needed more time but that fundamentals were okay for no freeze trying to paint the best picture there. The bottom line, guys, no deal. Started with optimism, ended up with conflict and acrimony. Everybody left without getting a deal done. The question now is, what now . So heres the talk. There is obviously iran who did not participate in the meetings. Wants to up production. We know that. Expect iran to raise production. The saudis may try to raise production as well in part to be punitive to iran. Theres been commentary coming out of the saudi house, if you will, to that effect. Now there is one bullish element to the story, which is that there is a massive strike by oil workers in kuwait. If their production drops by 1 million to 1. 5 Million Barrels per day that provides, a, a supply balance for increased iranian coverage but cover for irans raised production. The next time the Group Officially gathers is june 2nd in vienna, austria, as the opec meeting. There is some chatter that we could have a surprise meeting of the opec nations plus others before that. Guys, yesterday a breakdown and a failure. The price of oil is breaking down this morning and it is a new world order for oil here on this monday in doha, conor. Ill talk to you guys later. Well be live on air on cnbc. Thanks, brian. A packed economic agenda. The National Association of Home Builders will release results of aprils Housing Market index at 10 00 a. M. Eastern. And lots of comments from fed officials. Well hear from fed president s from new york, minneapolis and boston. On the earnings front, ibm and netflix will release results after the close. And a day is because of the because of the weekend, i dont know why. Why did they put it off . Patriots day holiday occurred on friday, some offices were closed. Today is tax day. So get those taxes filed if you havent already. Have you done it . Yeah. Yes. Dont you do it electronically . No. You got an extension . Yeah. Why . You got an extension . You couldnt get done by thats a red flag. I have certain investments and other things that dont that dont get fully audited and dont close until after. Anyone seeing the show thinks you wont get audited. Ive got a problem. I get a thank you note. Ill bet you do. Thanks for upholding exactly. The administration and everything. Lois lerner has a picture of you on her mantle. Top performer. Lets talk about everything from the Oil Implications to the changing policy signals from the fed. Joining us is mohamed elelrere. Hes the author of only game in town. Mohamed, its great to see you this morning. Wonderful to be here. Thanks. Lets start off talking about doha. Earlier we talked to john killdoff and he said the real problem that cropped up is the new crown prince is the one who wanted to put his foot down. They want to ininflikt the most pain possible on the high cost producers. Do you think thats the case . I dont think this is an issue of personality. I think this is a problem that people dont trust each other in the world. In the past it was okay because saudi arabia was willing to be the key producer. Now with shale and everything, saudi arabia isnt willing to pay that. Im surprised that the market was expecting an agreement. Right. Right. To see the selloff in oil prices. But its a lot less. Last night it was 6 , 3 . I think we will put this behind us quite quickly. Why do you think that . I think we are seeing supply destruction going on, and traders are getting used to the new reality of pricing, which is a little bit more volatile but that doesnt indicate longer trend. I think youre going to see us volatile but hanging around. Lets talk about the demand side. When you look at the Growth Prospects in the United States, when you look at other places around the globe, things havent been great. Its been a pretty rough quarter. Im not sure what we can expect. What do you think . That was the message this weekend. Its amazing. Its now a general consensus. Growth will remain low and uneven. People are worried and define the grexit, and they agree on whats to be done and then it stops. The next step, lets go get it done. Yes, the prospects are going to be for low growth and youre going to see central banks, particularly in japan and europe, try to do more. Will it be successful . Negative Interest Rates to this point seem like they havent worked at all the way they hoped. It will be successful in producing asset prices, yes. Will it deliver growth . No. Does it come at a higher and higher risk of Collateral Damage . Absolutely. Youre seeing the damage of negative Interest Rates. The system isnt built to operate negative. Its kind of a crazy scenario to be paying somebody to hold your money. What is the damage that youre seeing . I know the financials have been hurt by this. In japan theres been lower trading activity. What do you think eventually plays out . Three things stand out immediately. One is you have whole sectors of finance out there, insurance, pension, certain banks. They simply cant do it at negative Interest Rates and we cannot replace something with nothing. So were going have an impaired financial system. Secondly which means what for who . The savers, retirers . Fewer longterm Financial Services that are credible for society. Thats a hit. Second, starting to see in japan individuals disengaged. Wed rather keep that money at the state. Third, the Political Risk of negative industry fails. What do you mean, im going to lend you money and pay you interest . Give me a break. I worry that the longer we stay in the negative Interest Rates, the more damage to the system. What does it mean for somebody like a shinzo abe . What does it mean for other political leaders . In theory it means get going on the third arrow in the case of japan. In the case of europe, get going with a whole list of things theyre not doing. In practice theyre going to stand behind central banks. Central banks are like doctors, they never walk away from the patients. Even though they dont have the right medicine, they will continue prescribing whatever they have. Yes, there will be Collateral Damage and side effects but theyll never walk away. How much of the collapse in this whole theory is negative Interest Rates . The Federal Reserve has put its Interest Rates on hikes. They thought they would be weakening the currencies and its not happened. For me its stunning to wake up and see the yen at 1. 08. I think if you bring in an fx trader theyll say the pricing of fx is focusing more on net differential. Look, this race to the bottom, if youre going to devalue your currency, you cant do it when everybody is trying to do the same thing. And now getting counter productive results. I doubt the bank of japan had any notion that the currency would end up at 1. 08. I think they are as surprised today as theyve been the past few weeks. Mohamed, thank you. Youre here with us for the next hour so obviously we have much more to get to. Thank you. When we come back, the New York Primary just a day away. Well take a look at the issues that will have voters buzzing as they head to the polls tomorrow. With warmer weather in the United States, how likely is a serious outbreak of the zika virus. Squawk box will be right back. Great time for a shiny floor wax, no . Not if you just put the finishing touches on your latest masterpiece. Timings important. Comcast business knows that. Thats why you can schedule an installation at a time that works for you. Even late at night, or on the weekend, if thats what you need. Because you have enough to worry about. I did not see that coming. Dont deal with disruptions. Get Better Internet installed on your schedule. Comcast business. Built for business. The final frenzy push for delegates in new york is on. Donald trump and Hillary Clinton looking for a clean sweep. Last week president ial hopeful ted cruz joined us. I am perfectly happy, ive said this from the day i was elected, to compromise with anyone. Joe, ill compromise with ma martians. What i dont support is compromise that goes backwards, that makes the situation worse. Joining us now lisa caputo, she served as Hillary Clintons press secretary when she was first lady. Also former governor george pataki. Unless something changes drastically, ladies and gentlemen, in the next year or so, half the country is going to absolutely hate the president. Its depressing. Lisa, this is the wall street journal. Among voters in the polls, negative rise for both frontrunners. Among voters . Both parties, 56 , both parties, 56 hold a negative view of mrs. Clinton, 32 a positive view. Thats a 24 point gap which is twice what the gap was from one month ago. The negatives increased that much. Governor, even though youre not backing mr. Trump, just because he is the frontrunner, hes at 65 negative, 24 favorfavorable. Thats a 41 point difference. How did we get here . Cant we all just get along . I think thats the question, cant we all get along. I think what you see inherent in those numbers is a real disaffected population. People are very discouraged with the establishment and i think donald trump has managed somehow to classify himself as an outsider and has really corralled and almost redefined the Republican Party by being able to capture those voters who are not just disaffected but arent working. Hillary clintons been out there for a really long time, arguably probably the most prominent public figure on the National Stage for the past 20 years. First lady of arkansas, first lady of the United States, senator, secretary of state and i think, you know, theres probably a little bit of the microscope on her on how shes analyzed, what she says, is it strident . Theres a little bit of that, but theres no arguing with her record. So i think theres a little probably fatigue with folks. Theres nobody new out there, and i think thats what you see. Whenever we hear about right wing conspiracies, well, theyve been after me. We understand that to some extent but we understand some has been selfinflicted obviously. I wont go into any of the details. Govern governor, we ticked back up above 5 . What is this disaffected where is that from, the stock markets come back. People dont feel it. Why . Because theyre not getting pay raises. They know somebody whos unemployed or know someone whos dropped out of the work force. You said what are we going to do about this . You know, theres ee northern miss negatives for hillary, enormous negatives for donald trump. Its not the people, its the candidates. They are both horriblefully flawed candidates. The solution is nominate somebody else. The race isnt over. Im hopeful that donald trump doesnt get the republican nomination locked up. Im backing john kasich. I think hes the type of candidate that the American People can say, republicans and democrats, heres a problem solver. Heres someone thats going to put, us first. Governor pataki, the republicans had 17 people to choose from. Why did they choose donald trump . Because of what you were saying. Its exactly right. Theres enormous anger. The government doesnt act in the public interest, it acts in its own selfinterest. They feel republican politicians do the same thing. I think theyre right. Look at the tax code. 78,000 pages of incomprehensible lobbyists written special interest driven nonsense. Governor, if you end up choosing a candidate thats not effectively selected by the public, the party, what happens . Donald trump if he gets a plurality at this of the delegates wont have been chosen by the public. There isnt enormous participation. Governor, he and cruz together, lets say one has 1100, 1,000, the other has 800 and rubio, a guy who left the race still has more than kasich, thats never going to work. I love lost causes, too, and i admire you and i think its nice. Well, forget lost causes. Forget lost causes. Theres a lot of people who think he is not doing anyone any favors snag. I think he is doing the American People a favor. Bernie sanders wins, too. Joe you cant get chosen as the nominee of your party by saying these polls of 3,000 people have me ahead of hillary. The polls, thats not going to get the gop to nominate him. At the convention after the first ballot, any delegate is free to choose whoever they want. I understand that. I think the delegates are going to say exactly what youre saying, this is awful how a majority of americans are going to hate the next president. Lets nominate somebody who the American People can get behind. By the way, who can win the race. Im going to nominate sanders. He beats everybody. If you look at that same poll which is the nbc wall street journal poll, i believe youll see in that poll that the biggest negative is on congress. Right . Congress cannot get anything done. The fact of the matter is, the way washington is working today, its broken. The question is, who can the country elect that will actually bridge a divide and get people to work together. I will tell you, Hillary Clinton has done that. She did it as a u. S. Senator. She did it as secretary of state. Its about governing and pulling people together and bridging the divide. Secondly, i think, you know, whoever is elected if they can take the senate with them, that will enable them to actually get stuff done in washington and build a majority in terms of what they want to do on a legislative agenda. I think its unfortunate that, you know, were at a state of play looking at polls 9 months out. People are disaffected. People are disaffected. Thats why all the candidates are working to earn it. Our republican Counter Point to you and your lisa, your record in the senate, the record as secretary of state. You hate trump more than you hate hillary so i dont hate anybody. All right. Nkts i think neither one of them is fit to be president of the United States. Thats not a good you have to be honest with what the American People think. You cited the numbers. Almost 2 3 of americans dont think hes fit to be president. Neither do i. Neither do a majority of republicans. What if people think on the second go around that cruz has had the ground game to corral a lot of those delegates. Thats cruz. Is he palatable . Yes, he is. Maybe you could have helped him by backing him. I backed the one that was the best to lead our country. I was a governor. He was a governor. Governors have to lead as an executive. Which is why i hope tomorrow people vote for john kasich. Im retired. Im retired but you know what, whats fascinating about this is the whole Republican Coalition has changed. Trump has done that. Now we may go into a brokered convention which is quite extraordinary. Thank you both. Bend me shape me, any way you want me as long as you love me, its alright bend me shape me, any way you want me. Shape the best sleep of your life. Sleep number beds with Sleepiq Technology adjust any way you want it. The bed that moves you. Only at a sleep number store. When we return, the director of the National Institute of allergy and infectious diseases, dr. Anthony fauci. Hell talk about the possibility of a zika outbreak in the United States this summer. Squawk box will be right back. Youre down with crestor. Alright now theres a way you can get crestor for 3. Adding crestor, along with diet, lowers bad cholesterol. Crestor is not for people with liver disease, or women who are nursing,pregnant, or may become pregnant. Tell your doctor all medicines you take. Call your doctor if you have muscle pain or weakness; feel unusually tired; have loss of appetite, upper belly pain, dark urine or yellowing of skin or eyes. These could be signs of serious side effects. Ask for the crestor 3 card. Ask your doctor about crestor. Youto get the help yourefar looking for. Thats why at xfinity were opening up more stores closer to you. Where you can use all of our latest products and technology. And find out how to get the most out of your service. So when you get home, all you have to do is enjoy it. Were doing everything we can to give you the best experience possible. Because we should fit into your life. Not the other way around. Mopping the stories front and center this morning, Morgan Stanley earnings 55 cents per share. Investment banking was a weak spot. Investment results were better than expected. More on Morgan Stanley coming up. Didnt we say were going to stop with comparing it to the estimates and start no, we said we were going to do both. You need to know what happened a year ago and you need to know the broader environment. This is true. I think we should play with real numbers. We will in a moment. One economic report on todays calendar. The National Association of Home Builders is out with its april Sentiment Index at 10 00 eastern time. Expected to increase from the march increase. Shares of toyota under pressure with the automaker suspending production following a weekend earthquake in the country that caused a component shortage. Then we have a little bit of hollywood over the weekend. Disneys live action jungle book leading the box office with, ready for this, 103. 6 million. It was the second biggest cable debut for the box Office Behind universals furious 7. Public Health Officials using the strongest language yet in warning about a possible zika outbreak in the United States. Meg terrell joins us with more and a special guest. Meg . Thats right. As the warmer months are on the horizon, were gearing up for the local likely transmission of the zika virus. Weve had more than 350 cases on travelers as well as local transmission in territories including puerto rico. Were taking a look today at what efforts are underway to stop the virus from Mosquito Control to longer term work on vaccines and therapeutics. This as the battle for funding zika efforts continues in congress. The white house is asking for 1. 9 billion. Joining us is dr. Anthony fauci, thanks for joining us. Good to be with you. As this funding fight continues, how 3r50e7d would you say we are with the tools that we have to deal with zika as it comes into the u. S. States . We started the effort, we being hhs, u. S. A. I. D. With the nih and cdc. We started our efforts already. We certainly need the money that the president has asked for, but what weve done is essentially we cant wait. Weve started on all of the issues that you mentioned, the issues of Mosquito Control, Public Health issues. Weve already started on the development of a vaccine which is going to take some time as well as the screening of drugs. Were moving money from other areas to do zika. Hopefully well get the zika moern soon so we can really go full blown. Tell us about the time line of that vaccine that youre working on and any sort of external partnerships. As we saw with ebola, there were a lot of pharmaceutical Companies Working in that space. Is that happening here as well . Yes, that is. Some of them have already made public the collaborations. Others were still in the negotiation stage. We have about five or six candidates lined up to go into vaccine development. One is ahead of the others but not really by much. It may or may not be the best one, but it certainly temporally is. By that i mean that were making it up to go into human phase one trial which is a very early trial to determine safety and whether it induces a good response. We will likely do that starting sometime in the Fourth Quarter of 2016, probably by the end of september. That will take a few months into 2017 to see if its safe and whether or not we can go to the next stage of testing. All of that is already in progress. From there its likely a few years, i would imagine, until wed have any potential vaccine that people could actually use. What tools do we have to try to control the spread of zika . Obviously its causing huge problems in puerto rico. How can we make sure to stop that there and to make sure were protected in u. S. States . Good point because there are two separate issues here. When you look at the outbreak thats going on in south america and Central America and the caribbean, obviously there are issues there, such as particularly Mosquito Control in the sense of trying to stop mosquitoes from breeding, by cleaning up the environment, doing insecticide, larvicide that is environmentally acceptable and friendly as well as to try to screen people through the sense of clothing and insect repellent. With regards to now and the summer months, the now the critical issue is to protect pregnant wiomen. Thats why you have the recommendations women who are pregnant, trying to get pregnant or might be pregnant dont travel. Its a strong travel advisory. Now that we know it can be sexually transmitted from a man to the mans sexual partner, that when men go down there and then they come back, depending on their circumstance, should for variable periods of time practice safe sex with consistent and correct use of condoms. As we get into the summer months when there will be more robust mosquito involvement here, Mosquito Control again becomes a very important issue as well as protecting ones self, staying indoors, wearing clothes that protect the body to the extent we can do that in the warm weather and insect repellent. Dr. Fauci, both of my sister in laws are pregnant. Theyve been told not to travel and its cya. Is the answer we dont know. The information where theyre getting now. From their doctors and weve had doctors who have come on the show. Im sorry if they said that. Thats not true. There is no local transmission in the United States and there should be no restriction on traveling within the United States. The restriction on traveling is to the areas, including areas in the caribbean, central and south america for pregnant women but to tell someone not to travel someplace within the continental United States is not true. Its been widely disseminated. When you talk to disney world false information gets widely disseminated. This is an issue. My second question is, how do we know that this is an issue that people are safe in the United States . There testing of mosquitoes in local areas to make sure there is not an outbreak that comes out . There is no there are 350 plus travelrelated cases in the United States. There are no local transmissions. So theres no indication we shouldnt worry at all anywhere in the United States . You stay you stay alert. I mean, again, be prepared, not worried. Preparation is to do the kind of surveillance and screening that the cdc constantly does. I have to repeat, there is no local transmission of the virus in the United States, continental United States. There is in puerto rico, the american Virgin Islands and american samoa, that is where the local transmission is as well as obviously south america and Central America. Theres about 42 countries that are listed on the cdc websites to which pregnant women should not travel. Dr. Fauci, its meg. What should we expect here in the u. S. The same mosquitoes that carry zika carry chicken dunga. Would you expect a similar pattern for zika when it comes here and does spread through mosquitoes . I would not be surprised if we had small local outbreaks. Within the last few years given that theres a considerable amount of denge and chicken gunya virus which is also transmitted by the same mosquito that transmits zika, we have seen local outbreaks in florida and texas, in denge the chicken gun yeah. As those have occurred they have been well contained generally by good Mosquito Control to the point that theyve not become sustained and theyve not become widespread so if we do get local outbreaks, which i would not be surprised if we do, hopefully well be able to contain them in the same way we contain the local outbreaks of denge and chicken gunya . Youre confident we would catch these early . Only one in five who get zika show symptoms. Thats right. Mosquito control has been successful in the past. We cant be cavalier. Hopefully well be able to do the same type of containing if and when we get a local outbreak in the continental United States. Dr. Fauci, we really appreciate you joining us. Thank you so much. Good to be with you. Meg, thank you. When we come back, axle rose has a new gig with the legendary gig acdc. Does he have what it takes to fill in for Brian Johnson. Plus, Morgan Stanleys Conference Call is underway. The company reporting a short time ago that the stock is up by over 2. 4 . Squawk box will be right back. D vital data are stored. With centurylink you get advanced Technology Solutions from a trusted it partner. Including cloud and hosting services all backed by an industry leading Broadband Network and people committed to helping you grow your business. You get a company thats more than just the sum of its parts. Centurylink. Your link to whats next. Im spending too muchs for time hiringnter. And not enough time in my kitchen. announcer need to hire fast . Go to ziprecruiter. Com and post your job to over 100 of the webs leading job boards with a single click. Then simply select the best candidates from one easy to review list. You put up one post and the next day you have all these candidates. Makes my job a lot easier. announcer over 400,000 businesses have already used ziprecruiter. And now you can use ziprecruiter for free. Go to ziprecruiter. Com offer6 guns n roses singer axle rose will be joining acdc for its rock or bust tour including rescheduled u. S. Dates. Rose is replacing ac dc singer Brian Johnson according to a statement posted by johnson. Johnson has been advised by doctors to stop touring recently or risk a total hearing loss. Johnson joined ac dc in 1980 after the death of the original singer, von scott. Their first album together back in black became ac dcs biggest album. Its considered a hard rock classic. The voices sound similar enough where you could barely right. Right . Axle rose has that raspy sort of ahhh. Im sorry about the hearing. Morgan stanley beating estimates. Mary thompson has many of the details. Morgan stanley reporting a 55 cent decline. The bank held the line on expenses. Earnings of 55 cents a share. Revenue at 68. James gorman saying the First Quarter was characterized by Challenging Market conditions and muted client activity. While we see some signs of market recovery, global uncertainty continues to weigh on some investor activity. Revenue at the firms Investment Banking dropped 32 reflecting metered ipo activity. Bigger than expected decline in revenue from debt. Trading revenue fell as well. Both equity and fixed income trading results were better than expected. If performed as expected, Profit Margins holding at 21 and revenue from the Investment Management arm fell reflecting declines in value of equity investments. In the midst of a billion dollar costcutting estimate, morgans noncompensation estimates declined in the quarter. Compensation estimates held steady. The return on equity came in at 6. 2 . The firm says it wants to get its measure of profitability to manage 11 by 2017. Becky, back to you. Mary, thank you very much. When we come back a poll gone awry. A viral name game on the web gives a 300 Million Research ship a new name. We have the details right after the break. In the meantime, take a look at the futures this morning. Things are a little bit weaker. It was a strong week for stocks last week. The dow up by 1. 8 . This morning the dow futures are down. The s p down and the nasdaq off by 11. Great time for a shiny floor wax, no . Not if you just put the finishing touches on your latest masterpiece. Timings important. Comcast business knows that. Thats why you can schedule an installation at a time that works for you. Even late at night, or on the weekend, if thats what you need. Because you have enough to worry about. I did not see that coming. Dont deal with disruptions. Get Better Internet installed on your schedule. Comcast business. Built for business. Welcome back to squawk box. The internet has spoken. The peoples choice to name a 300 million state of the art research ship, rss bode mcboat face is apparently those of you who were waiting on it. Over 700,000 names were submitted to the research council, boaty mcboat face won easily. The vote was only advisory. The council gets the final say on the ships name. It all began when the nerc invited the public to christen the largest and most advanced British Research vessel to date. They asked for names that were inspirational, however, a simple joke from a former bbc employee james hand quickly became the crowd favorite over more traditional names. Hand offered an apology as the joke took on a life of its own which has spawned countless riffs like trainee mctrain face or cheesy mccheese face. Now were contemplating renaming our show squawky mcsquawk box. Game for that . No. I like the boaty mcboat face. Renaming a ship is said to be bad luck. Oh. You do not want to do this. Its not named yet. Not official. Right. If you wanted to change it from boaty mcboat face, then squawk. Youd better be shurn. Kearnee mckearn face. You cant rename a research vessel. Mckernenin face. It sounds stupid. I was listening thinking the only people that voted were a bunch of millennials. They think its funny. Everything is a big joke. Always throwing change. I think its kind of funny. Ask and you shall receive. Shouldnt have put it up for a vote. Youre thirsty if you name a boat that. Craving attention. This is what you get when you ask people for a vote and you ask them their opinions, youve got to live with it after that. You cant name it boaty mcboat face. Yes, you could. You would go against the votesers and steal the election from them . That shows the type of person you are. Divert the voters. It was a painful day. Painful day at started about 5 01. But this was at the ballpark for one umpire yet. The mets and yankees, below. 500. Yankees stadium, a Seattle Mariner tried to bunt. The ball bounces off the dirt and straight up into the groin of umpire mike mcchin ski. After a brief recovery the ump continued to call the game. Whenever you americas funniest home videos, you will see a groin shot every single week. Caddyshack someone gets it never gets old. You get hit in the nads and youre going to see it on video again and again and again although its not funny. You can see that guy probably wants to scream or ahhhh. And i dont know if theres anything i know you ladies want to have everything equal. I dont know you can have that. Ill give you that. But the pain is very strange. It kind of moves up do we need to describe the pain . Its not like a sharp its not like a sharp pain, its a pain that takes over your body . So then we do have it. Its called labor. Im now uncomfortable. Labor might be. Dont be you know what, as a kid you should learn how to talk about your body and not do it in a juvenile way. Im not talking about it in a juvenile way. Because youre maybe youre sitting wrong because that can cause the same type of pain. Lets talk about stocks. The bell is going off. Do you want to talk about netflix . Can i talk about my stocks . I was thinking to myself, you know how youve been avnet flicks for a while. Do you have enough time for me to read it and then resnond. Do you have stocks to watch in the meantime . No. Watch while joe reads the paper. Going to do both. Stocks to watch today. As stra zen neck ka has held internal talks about bids for medivation. The drug maker has been considering making an offer for the past six months. Barons writing that intel could rise or not. Barons also saying that the shares of General Motors and ford concerns at least 25 or not over the next year as u. S. At auto sales are likely. Whats the bottom line here on netflix . Bottom line is more competition, that stock which may now get hammered. Between the other amazon news today that amazon prime is going to be available monthly at 899 just on video to compete with them. Looks like netflix is down 1. 50. Whooeats going to han with profits . Theyre burning cash. Theyre buying content. You need to compete against everybody else. You call that the demise of netflix in the past. Obviously greatly exaggerated. Anybody that sold that didnt think that this guy was going to figure it out has been wrong. One of these days well see. Well see whether it goes to 400 billion from 40 billion 47 billion. Right. By the way, part of the reason were talking about this today is because we have Mark Randolph on, one of the cofounders of netflix. Well get a chance to talk to him about this. I understand new technology. I dont understand. Netflix is attractive. When you have something, not a comcast lover. When you have Something Like a disney, look at the multi as far as a need yeah is concerned, look at the assets, theme parks. Worth three or four times as much. I know it is. But if youre going to look for a diversified media play in this new world, comcast disney, comcast. Except theres one piece on disney. No, which is 50 of the company or 40 of the company is espn. Then you have to decide if you think espn is in the same boat that netflix and hulu and all these other guys. Youll have a problem with comcast, too, and being with cable might be a place i dont know. Oh, no. Im actually youre more negative on disney than comcast . I still think the pipes at least at this moment in time, theyre like railroad tracks. Theres nowhere else to go. Right. Very, very valuable. It may very well be that in the future, way out in the future wireless is as fast if not better than the pipes themselves. I physically dont believe it but its possible. You see the fcc is doing this stuff with wheeler, activists like when is he done . Is he done with this sflags is that he will be done in just a couple of months. Okay. All right. Weve got that to look forward to. Im surprised you havent commented on the google news in brussels. Wait. We have to wait. The ceo of faranos speaking out after they propose banning the cefaranos. Lets talk about the futures. S p down by 6, dow down by almost one. Squawk box will be back. Its been shaken and pummeled. Its innovative enough to brake by itself, park itself and help you steer. Its been in the rain. And dragged through the mud. The 2016 gle. Its where brains meet brawn. Lease the gle350 for 599 a month at your local mercedesbenz dealer. They are. Do i look smarter . Yeah, a little. Youre making money now, are you investing . Well, ive been doing some research. Let me introduce you to our broker. How much does he charge . I dont know. Okay. Uh, do you get your fees back if youre not happy . dad laughs wow, youre laughing. Thats not the way the world works. Well, the worlds changing. Are you asking enough questions about the way your wealth is managed . Wealth management, at charles schwab. Happening now, Oil Producers under pressure as they fail too make a deal. New this morning, verizon reportedly moves to the top of the pack of yahoo suit jurors. The clock is ticking ahead of todays deadline. Nbc exclusive. Th hheranos ceo speaks out. Th h speaks out. Heranos ceo speaksth. Live from the most powerful city in the world, this is squawk box. Welcome back to squawk box here on cnbc. First in business worldwide. Im becky quick. Hi. It was a big week last week for stocks. The dow was up by 1. 8 . A little bit of a give back. The dow futures are down by 51 points. S p futures off by close to 57. Stanley morgan, they beat earnings 9 cents above estimates. Revenue essential though came in line. Investment banking was a weak spot. Management results were better than expected. Pepsi could he posting better than expected profits. Pepsis Profit Margins expanded. An increase in organic beverage sales. The companys cfo will join squawk on the street at 10 00. Hasbro hand dilly topping estimates. Hasbros estimates were based on star wars. I think weve bought all of that, frozen and frozen dolls. I dont get that. Are they like popsicle. Frozen. From the movie frozen. I knew that. Let it go. No deal in doha. This time its not what we call when youre an expert tv person you call something as live. Then its taped. Then he says, thanks, guys. This guy is really live. Brian sullivan joins us there with the latest. Unfortunately, brian. I understand its a four second delay so i dont want to talk over you. So just think about when youre done with your report, youve been there for a weekend. I want to hear about whether theres any place to get in trouble in doha at night and whether you were able to find any place like that. Well, call this a kind of as live then, joe. Yes, we are live thanks to our cnbc arabia bureau. We had a satellite problem this morning. No, havent left the hotel. Heres the reality. Yesterday a very dramatic day. Could have been historic. They havent made a coordinated deal in more than 15 years. They hope to get that yesterday here in doha. I guess well call it noha. Nothing ended up happening except that all sides left without an agreement. Lets talk about the fallout for oil. Yes, oil is down nearly 4 , wti futures not as bad as you might expect. Well get to the reason in a second. Here are the bear and bull cases for the price of Oil Following doha. Obviously the bear case, oil hoped to cap production, hoped to freeze it at january levels. Guess what, nothing happened. Now saudi arabia and iran may actually pump more oil. We know iran wants to do that to get back to 4 Million Barrels a day. That could put the world into a giant market share battle where its sort of every country for themself. Of course you go back to opec, even though it was not an opec meeting yesterday, kind of a failure of the group, maybe some are saying does this mark the end of opec . At least it mitigates their power. What about the bull case for the price of oil . Why isnt oil down more . There was a giant kuwait at this oil worker production strike that could knock off 1 million to 1. 5 Million Barrels a day. In the short term that could mitigate any output increase from saudi arabia and also from iran. We know that u. S. Oil production has come down 700 Million Barrels a day. Thats an ongoing thing. Again, that helps mitigate production rises elsewhere in the globe. Theres some talk that maybe after this failure opec will come back together, try to work out their differences and show the world that they are still in charge of oil prices. Not happened yet. If you want to make a bull case, there you go. The last thing, guys, is demand growth. If we see china recover, if europe doesnt faulter we might actually see demand pick up which once again could bring supply and demand back into balance a bit. The take aways, guys, hot meeting yesterday. Very tense. A lot of people saying maybe not the end of opec but certainly shows that some of these fractions and factions inside of opec and other nations are not anywhere near being resolved yet. Right. Brian, youre all business. Appreciate that. Ive found if you do step out, im looking here, do you see this on google, you can find anything on google, there are places, absolutely, places to go and have nightclubs, dance, alcohol. Everything you need, dude. Youre working. Thats fine. Weve got it. Thats why youre over there. Thats why youre over there. But what stays in doha what happens in doha. Stays in doha, too, sully. Just a thought. Thank you be. Brians going to be on throughout the day. Well hear a lot more from him. In the meantime Michelle Carusocabrera caught up with the head of irans central bank. Michelle. The conversation was about what central bankers do when it comes to monitoring policy, et cetera. But of course when youre running the central bank in iran, oil is a big deal. Asked him about this doha meeting. He said, he thinks its completely unfair that saudi arabia is asking to do this because they have a quote a of 2. 4 billion barrels that theyve never been able to meet under the sanctions. He says they have a right to get back to that level. Translator what iran is doing right now is trying to get back and secure its share of the market. And it is in full accordance with the content of jcpoa. And i think that what saudi arabia is asking iran to do is not a very fair logical request. Right now iran is trying to just take back the quota it is entitled to so we are going to do that and that is the main direction. He went on to accuse the other producers of overproducing and being the reason why the price of oil has fallen saying its all their fault. Look, a lot of it has to be that there are new producers producing so much more than ever before. Oh, yeah. The United States. These are individuals. These are not countries that you can get to agree to stop producing. Sure. That was very much a political statement that he was making, absolutely. Michelle, while youre here, why dont we talk a little bit about brazil over the weekend because yesterday the lower house voted to impeach president rousseff. That vote, the number was much bigger than expected. They only needed 342, they got 367. Some people thought it might be close. They thought the betting was that it was going to happen. This number is so big that it means that the senate vote regular majority. A simple majority to put her out of office for six months but they think this job this vote was so strong they may get to a 2 3 vote which would permanently put her out of office. So this was just a vote to look at whether to start impeachment proceedings. Exactly. 2 3 vote in the senate. Doesnt put the 180 countdown clock. She leaves office if the senate gets to 2 3. Impeachment. Much bigger deal. Thats why youll see the market rally. Fade this rally because the minute this vote happens, buy on the rumors, sell on the news. This news is much bigger than what anybody expected. Now were talking about is she going to be out of office everybody thinks its a done deal with the senate. Is it six months or permanently . Michelle, thank you. Okay. Lets get more on oil. Bring in matt smith, director of Commodity Research at clipper data. What should we be watching here . Doha is done seemingly. Kuwait is the next thing. Is that going to be settled . That would make a difference, too. Put more downward pressure. Well, this striking kuwait at the moment, joe, is helping to temper some of the losses were seeing today. It will be a relatively temporary thing. Looking forward though it seems given we werent able to see any sort of collusion in doha, were going to see crisis come under pressure here Going Forward. That said, the wheels are already in motion for global balancing here and so we are already seeing u. S. Production coming off. Weve dropped below 9 Million Barrels. That will continue Going Forward. As brian mentioned, as long as we see demand coming through from china, india, and the middle east as well, we should start to see the market continuing to rebalance into the latter half of the year. In relation to what happened in doha with the absence of iran being there, there wasnt going to be much decided anyway. Just wonder whether so the kuwait strike finally gets settled, it just seems like the saudis wanted one more push to show that theyre serious in trying to drive a stake in the heart of the high cost producers, but were talking about it now and it just seems like there will come a time in the not too distant future where they finally say, okay, everybody cried urngle so now were willing to play ball. Isnt that coming soon . Not at all, joe. You think theyve held out since november 2014 when they said were just going to keep production coming to the market. Were finally seeing though signs of production coming up now. As you mentioned, the high cost of production, not just in the u. S. But say in the north sea, in norway, et cetera. Their plan is actually working. Theyve played this brilliantly in that theyve said, hey, were willing to cut production here as long as everyone else plays ball. Knowing full well iran isnt playing production. I think were going to see saudi production coming to market. Were going to see Market Forces take hold and well see the market rebalancing as we move into next year. In a word, the lows are in in my mind. What about you . Do you think the lows are in . Probably. Its the level of 26 while we could see down side here Going Forward at 35, possibly 30, the realms of single digits, the teens are not going to happen now, i do not think. Never say never. It feels like that rebalancing means that were going to see production leveling off now. Well see prices supported. Okay, matt. Thanks. Thanks, joe. Hes not in doha. Hes in louisville. Yeah. Theres stuff in louisville. Louisville. Louisville. Yeah. You cant do it. I cant say button and you cant say louisville. You can say missouri, right . Still doesnt make say oregon. Can you say nevada. Nevada. Nevada. Nevada. I say it. Im i know. You say tomato, he says tow matteau. No, its not that, its nevada. When we come back, deadline day at yahoo . Who is topping the suitors. As we head to a break, take a look where theyre trading, dow down 58, s p down 7 and the nasdaq off by almost 14. Watching squawk box on cnbc. First in business worldwide. eeeeohmumohweh hush my darling. dont fear my darling. the lion sleeps tonight. hush my darling. man snoring dont fear my darling. the lion sleeps tonight. woman snoring take the roar out of snore. Yet another innovation only at a sleep number store. Welcome back to squawk box. In Global Market news this morning, the nikkei dropping by more than 3 . You can see it closed down by more than 3. 4 . Among the reasons, japans major exporter suspending work after two earthquakes hit the region in a span of three days killing at least 41 people. By the way, they still have rescue efforts underway. Residents of ecuador recovering from a deadly earthquake, 246 people were killed on saturday. Hundreds of buildings were destroyed. Officials say there have been more than 160 after shocks since saturday night. In u. S. Corporate news, Silicon Valley been abuzz for quite a while for a potential takeover of yahoo . Today is the deadline. Today is the deadline for opening offers. Ed lee is joining us. Hes the managing editor at recode. Basically verizon is the only one in the hunt. You have to wonder why do they want it in the first place. They do have a lot of yahoo has a lot of ad tech. Verizon bought aol which has the ad tech assets. Why do they want more . Isnt this part of Tim Armstrong wanting to build a bit of thiefdom . Thats right. When aol was an independent company he tried to buy yahoo . In his mind a big part of it is yahoo sells a lot of video advertising, so does aol. You combine those together you conglomerate the big ad. If youre not youtube, facebook, everyone is a distant third. If you aggregate all of the video eye balls, to buy the whole thing for that is weird. You look at this as a diminishing asset . It will continue to diminish. Its fewer users, less revenue over time. Are you sympathetic to Marissa Myers plight or do you psy to yourself, this has been a mitigated disaster . I would definitely lean towards the latter. It was a tough it was a tough call to begin with, a tough job to begin with. That was the challenge. That was the point of the job. I think you still have to hold executives to account. You didnt do your job. Nothing against her personally, you didnt do it. Thats the point. Is there any way for her to win at this point . No. No . No, there isnt. No matter what price she sells this business at, if she gets 6 billion thats a loss, 8 billion if she magically pulls a rabbit out of her hat and gets 10 billion for this company, do you not applaud still . Okay. 10 billion is a pretty nice, hefty number. Does that include yahoo japan . That was something verizon wants. Thats worth so much more frankly. Just the yahoo japan is worth so much more. If verizon pulls that off, i dont know if thats a win for marissa. We keep hearing about different private equity i think verizon has enough heft to outflank that. Im wondering why they want that. Let me raise a terrible prospect. Whats the possibility this is a busted option . Whats the possibility that verizon either walks away or low balls the bid, private equity guys come in with something in the 4 billion range and the board sits around and says, we tried. Ladies and gentlemen, we tried. We couldnt make it happen. Were going to keep going on our own . Yeah, that would give us more meat to investors, shareholders like starboard that theyre agitating. Where is starboard for all of this . They wanted Something Like this to happen. Right. So they wanted it to happen if it happens at a good price. But despite what they spelled out, they really want the alley baba stake, the japan stake separated out. They want the core business moved off and management changed. Short of management changing after a busted option, yeah, i think starboard gets enough out of this that is if verizon wins. Is there any chance that a bank comes in and buys all of this . No. They own the yahoo japan piece already. It makes sense because yahoo soft bank owns a big part of ya had a japan. Were hearing they are not that interested. Theres a weird legacy agreement from way back when that they want to cut out. That may still happen. If that does, by the way, that means yahoo proper is worth less again. Whats the chance that we hear more companies have put in initial bids than the reports thus far simply get in the door, right . I mean, this take a look, kick the tires. You know, you cant youve got to buy the magazine to see the whole thing. I thought that speaking of magazines, i thought that time, inc. , interest in this was the most interesting part of it. I do think there was something potentially there that might benefit both sides ultimately. Right. Yahoo has massive readership, massive audience. Time needs that. There was a way to find some good synergy on that front. It would be ultimately a smaller business. Not this big Silicon Valley Internet Business. That i thought would have been interesting. Thats not happening. Still verizons to lose. Theres a banker i know who always loses the line, you have to buy the magazine if you want to peak at the center fold. Center fold meaning, you know, the car mag a sneens. Yeah. Yeah. Yeah. New 9 11 or Something Like that. Exactly. Nice to see you, ed. Have you ever used conglomerate as a verb . No. I probably miss pronounced. No, it is a verb. Its also an adjective. Same spelling, same word. Same spelling, same word. Different meaning. Also an adjective. Conglomerate businesses. Very lucky word. It can be all three. I think google is. Google the company, google an asset and you can google it. I love it when joe is here says i did something right but teaches me something. I try to do that on a daily basis with whomever i come in contact. I appreciate it. And we call steve. Yes, there we go. Thats sort of like calling a bald guy curly though. Its always a little backhanded, thats the thing. Slim. You know . Shorty. When we come back, the Weekend Box Office winners. Plus, beyonce breaking the internet again. The pop star taesing a mysterious new project that will premiere on hbo. Fans are losing their minds over this. Well bring you the details next. With booking. Coms free cancellation, you could just forget the beach wedding. And the beach booty. You could just book a different resort. Like in alaska. Theyve got igloos. Something well show you. Through small things, big things, and spur of the moment things. Disneys live action version of jungle book was king at the box office. It brought in more than 103 million in its debut weekend. A lot of cgi. Was any of it in an actual jungle . Or all green screen . All green screen. They did it in l. A. It looks great. Really does. You dont care . I dont care. I cant tell the difference. I cant tell the difference. Who cares . Lets talk about lemonade. She might be thirsty. Do you know where im going with this . No. When life gives you lemons, hand them to beyonce. The pop star teasing a World Premiere of lemonade. Fans online speculating that it may be an album film. Hbo will air the event on april 23rd. No other details were given. Thirsty for attention. That was the thirsty. Where i was going with it. Yes. When we come back this morning, speaking out. Embattled threanos founder sitting down with maria shriver. We will bring you the details next. And post your jobom to over 100 of the webs leading job boards with a single click. Then simply select the best candidates from one easy to review list. You put up one post and the next day you have all these candidates. Makes my job a lot easier. announcer over 400,000 businesses have already used ziprecruiter. And now you can use ziprecruiter for free. Go to ziprecruiter. Com offer6 we shouldnt sweatlife, the small stuff. But when youre building a mercedesbenz, there really is no small stuff. Every decision. Every component. Is an integral part of what makes the 2016 cclass one of our most sophisticated cars ever. Because when youre setting a new benchmark for refinement, it is the small stuff. That makes the biggest impression. The 2016 cclass. See your authorized dealer for exceptional offers through mercedesbenz Financial Services. I can make your hands clap. The latest sentiment. Its from the National Association of Home Builders. United airlines has reached a new labor agreement. In this case with baggage handlers and gate agents, the workers will get a roughly 30 increase in wages over the period in addition to some lump sum payments. And after tackling inversions the u. S. Treasury is taking aim at socalled shell companies. Treasury secretary jack lu says that new tax rules are being prepared to require banks to identify potential winners. Theranos Ceo Elizabeth Holmes says theyre taking steps to correct their issues. Youre running a health care startup. Dealing with peoples lives. Youre dealing with test results that doctors prescribe medicine based on that. So one would think that you would have had that in place from the getgo. Absolutely. And probably the most devastating part of this is that i thought we did. Holmes doesnt believe her faulty results put anyones health in danger. Shes brought on a new lab director and expert medical board. Do you think this company will survive . Absolutely. No doubt . No doubt. I know what weve built and be i know what weve created and i know what it means to people and it is a change that needs to happen in the world. Maria shriver joins us now from san francisco. Great interview. Do you believe her . Yeah, i believe her. She seemed really calm. I think she, as you well know, has been working on this Company Since she was 19 years of age. Shes fighting for it. And she believes that shes made the changes that are required and i dont think she plans on giving up any time soon. Any sense of contrition though about all of this . I mean, it really has created a lot of stir and questions about how truthful she has been and how open and transparent they have been around how they actually operate. Yeah. I think open and transparent, those words have kind of bogged her, right, since we first started hearing about her and i think as she said in the interview, it was a longer interview, but that it has made her, you know, want to be more transparent, want to be more open, want to be a different kind of a leader. So i think shes learned a lot. I dont think this has been an easy process by any means. Shes now kind of sitting there in limbo waiting to see what cms comes back with. I think she feels shes done what she can. She worked used words like im devastated. I feel terrible about this. I thought, you know, we had done a better job. I want to be best in class. I want to be a company of excellence. I want to do everything to do that. She feels shes made those changes and they are working towards that and are certainly that way in the California Lab and so i think, you know, it remains to be seen how cms comes back and responds. I guess its a subjective term whether someones been harmed or not by a false test. I was listening to that and thinking would i rather i guess id rather have false positives than false negatives, right . But i wouldnt want either. I wouldnt want to think i had something or that something was wrong and i wouldnt want to miss something that i needed to work on. So i dont know how i dont know how you can make a blanket statement that no one was harmed. Well, i mean, she sayings that the Companies Reached out to the doctors, reached out to the people and that to her knowledge, quote, nobody has come back and said that they were harmed. Now, you know, that remains to be seen, i suppose. I think she is trying to get all of the points that cms brought up to their company and fix those points. The first time they went back cms came back and said, no, not good enough. Theyve gone back again and shes hoping hoping that this time it will be good enough. But she knows that this is an ongoing process. I asked her that question, i said, you know, this is not a transportation startup, this is not a makeup startup, this is a startup dealing with peoples lives. Doctors are writing prescriptions based on these results. Exactly. This is a dangerous business and she goes, i know. You know, im going to work harder. Im going to do better. And we grew really, really fast. I think thats also part of the things that she said is they grew faster than she expected. Did she speak at all about the possibility of being banned and what that would mean, whether she would continue to run the company that way . Yeah. I asked her about that. She said, look it, whatever, that will be a decision for the board. Whatever they think i can how i can best serve, thats an open discussion. I think she feels that this is her baby and shes now at the place where she says im the ceo. Cms comes back and says youre banned. That will be a whole other set of stories. That will be a board discussion. I think she looks at this as im in here for the long haul and i want to revolutionize health care. I have a mission and however i do that, whether i do it through testing, through technology, im open. Maria, did she speak about the new technology that really has been what kind of vaulted her into the spotlight. The fact that you can take blood with a few drops from the fingerprint instead of the traditional way of drawing blood from your arm . Thats where all the questions still kind of swirl. Can you get as effective testing from just as few drops of blood . Is she still sticking by her contention . Yeah. In some situations. Yeah. Shes you know, as shes saying, were a technology company, right, and were also a testing company. So i think that might be something shes thinking about if, in fact, she gets banned, so to speak. Right. That they might veer more towards the Technology End of it. Shes talking about unveiling some new technology. I think shes learned about being more open, more transparent. Those are words she said because i remember when i interviewed her about seven months ago there was so much talk about secrecy with this company and i think shes having a new strategy around august of that. Okay. Maria shriver, thank you. Great interview. Appreciate it. Thank you. Nice to see it. Lets switch gears to politics this morning. We are one day away from the new york primaries. Gop president ial candidate senator ted cruz joining us on the squawk set making his case for his plan to reform taxes. Every income group from the very poorest to very richest sees a double digit increase in after tax pay. The average family in america under the cruz simple flat tax will take home 7,600. Thats a real difference for someone struggling to make ends meet. Joining us is larry lindsey. Thanks for joining us today. Good to see you. Good to be here, becky. Thanks for having me. By the way, you guys did a great interview. In a long campaign, you had the most substantive hour ive seen last friday. With ted cruz . Yes. I thought the interview was substantive from start to finish. It was very well done. Thank you. We appreciate it. Lets run through you dont get compliments a lot. I thought id give you one. Yeah, we dont know what to do with it. Talking about larry, lets run through the five candidates and just lay out because youve graded these candidates. Who comes closest to an a . The question that i was asked was look at them in terms of a growth agenda, who would be best for u. S. Growth. There i think ted has it. He is the only candidate out there who moves us towards a border adjustable tax. Right now the u. S. Taxes things where theyre produced, say, here. Germany taxes them where theyre sold. So when you send an american export to germany, theyre taxed twice, once by us, once by germany. On the other hand, germany doesnt tax their exports and we dont tax their exports and the cruz plan is the only plan that takes care of that and thats why, you know, just looking at it i think you have to give him the top grade. When you talk to some of the different organizations that have scored tax plans, many dont look at things dynamica y dynamically, they look at static issues. Sure. Thats where they run into a problem with ted cruz. Hes talking about a value added tax and getting rid of a lot of places where you earn revenue like corporate taxes which is 10 or 11 of total revenue. Go ahead and explain why you think that this overcomes that. Sure. Well, theres two aspects to it. First of all, candidates end up costing money during a campaign but i think teds is the most fixable. One thing that i think would move him from what i gave him an a minus up to an a. He could raise those rates modest modestly and produce a powerful growth effect. If you take that to 19 and the personal tax from 10 to 15, you would still have an enormous, enormous incentive for growth and youd actually for the only candidate ive ever seen in my lifetime actually produce a net positive revenue effect. So its the easiest problem to adjust. Cruz by coming out with this border adjustability really moves the needle when it comes to competitiveness and growth. Lets talk about the value added tax. You just raised it from 10 to 15 . Thats what a lot of people complain about. No, 16 to 19. A lot of people complain look if you Start Playing with the value added tax, republicans say thats a bad deal because youre going to see that deal go up and up and up under every administration. If you talk to democrats, theyre concerned because its an incredibly progressive tax. People spendsing 1 get taxed on every dollar. Remember with regard to the second one, cruz gets rid of the Social Security tax. Right. The payroll tax. Combining 15. 3 payroll tax on everyone. So on net thats why its not a net tax increase for low and moderate income people. Why its actually a tax cut because that payroll tax goes away. In addition, of course, he gets rid of the income tax entirely for couples making less than 36,000. So i really dont think that the revenue argument is there but, again, just a very modest adjustment in the rates. We still have a powerful growth effect. It would give him a net actual revenue producer. If you want to take care of those issues you just raised, hell have money left over to do it. It is of all the problems that are out there with everyones growth plan, his are the most easily fixable. What about trump . In terms of increasing productivity, you give him a c. In terms of International Fiscal policy you give him an f. Well, the trump plan actually costs over 10 years 13 trillion on a static basis. Thats four times as much as the cruz plan. Its 6 to 8 times as much as what i say a fair plan would be for a president ial candidate. Its scatter shot. Not well targeted the way the cruz plan is. So unfortunately for mr. Trump i end up giving him an f. For Hillary Clinton i dont think he really solves the nations problem. Hillary clinton you give her a combination of bs, cs and one d. Yes. Mrs. Clinton is running to be four more years of president obama and i think she does exactly that. Theres a lot of what i would call small ball proposals that really dont solve any of the big problems, but theyre targeted at fixing issues from key electoral groups that are important. For example, theres a college plan in there. Theres an increase in the minimum wage in there. Nobody thinks these are going to enhance growth. They dont. They do cost money but, again, theyre targeted at voter groups that shes trying to get. A very talented group of people working for her. Youre very welcome. Thank you for your time. We hope to get you back in soon to talk more about the candidates. Okay. Coming up, a man who helped build netflix in its early days. The cofounder Marc Randolph joins us live. Squawk returns in just a moment. Berr, der berrp. I help pay the doctor, aint that enough for you . Theres things Major Medical doesnt do. Aflac pays cash so we dont have to fret. Something families should get like a safety net help with food, gas and rent so cover your back, with. Aaaaaaaaflac learn about one day pay at aflac. Com rap its more than its multilayered security and flexibility. With centurylink you get advanced Technology Solutions. Including cloud and hosting services all from a trusted it partner. Centurylink. Your link to whats next. Welcome back to squawk box. Netflix reporting First Quarter earnings. Theyre facing concerns that they can continue to win huge somebody describer growth. Marc randolph knew the company in the early days. Its a global meeting of the minds in technology, entrepreneurship and innovation. Good morning to you, marc. Good morning. When you created this company did you think netflix would turn into what it is today . I am as surprised as anyone. In fact, i am more surprised than anybody. When you start a company you, of course, have no clue whats going to happen, and i was purely trying to get past each week at a time. The fact that it is where it is today all over the country, all over the world, i am astounded. Because you thought it was originally a dvd by mail business . Well, it was a dvd by mail business. Of course, we were starting, that was our aspiration was basically to be a video store. Our goal at the beginning was if we could get into the top five of the be the top five video chains, we would consider that a success. Right. We never imagined that eventually we could take down blockbuster, that we could pass hbo in subscribers. This is all astounding things, not just for me, any founder. No one really expects their company is going to be like this until it gets there. Right. Marc, do you continue to own shares of the company . I sure do. I must say its its somewhat emotional at this point because its kind of your baby, but i absolutely do. Im as pleased as anybody with the performance. When you look around the media landscape and you see news today that amazon is going to start offering a monthly version of their prime subscribership just for the video piece to go against what netflix is doing, when you see hbo announce theyre going to do 600 hours of original programming, how much tougher do you think it makes it for netflix . Well, its always been tough for netflix. I mean, even from the very beginning any startup is tough and as you crest one hill and you think you have achieved something, you see a bigger mountain. The fact that other companies are coming in and competing is a validation of a lot of things that we believed from the beginning and that netflix continues to stand for, that it really is about the convenience of consuming content. Netflix is phenomenal about that. Even though i dont follow the daytoday actions of the company, i know from their dna what competitors they are, how innovative they are to break rules and change things. Im very confident. Do you think there will be consolidation in the space . We were talking in the 6 00 or 7 00 hour, if you want to capture or watch all of the premium programming, if you will, youd have to get a subscription to netflix, a subscription now to amazon, hulu, hobo, show time, starz, the list can go on. Pretty quick your cable bill youre at the same price as your cable bill if not more. You know, quite frankly, im no expert on that so ill leave that to the people who really follow industry more closely. I will say as a personal subscriber, i see no problem subscribing to multiple services. I dont watch just netflix. I do watch hbo, movies from apple just the same way that i eat from different restaurants all the time. As each of the services begins creating their own content, it creates an explosion of choice and i think thats the wonderful thing. Whether that ends up being in the hands of a small number of company or a large number, either one is fine for me as long as we have great things to watch. Youve heard people talk about peak tv, peak content. That perhaps theres over build, too much content at this point with everybody trying to compete against each other. Do you think that three, four, five years from now youre going to see some of these companies, including netflix, scale back their ambitions not the ambitions but the actual no, maam r number of original programming hours . To be honest, i really couldnt tell you since im not currently with the company or active there so i dont know what the future plans okay. Marc, we really appreciate you being with us this morning. Thank you. Oh, its been a pleasure. Wish to tell you were going to have much more from where he is based right now. Exclusive coverage live from emerge america all day today. Up next jon fortt with the coo of hyperloop. Thats 11 045 a. M. Eastern time stay tuned, youre watching squawk box. Change the world with you. She can program jet engines to talk and such. Her biggest weakness is she cares too much. Thank you. My friend really wants a job at ge. Mine too. Im a wise elf from a far off shire. And sanjay patel is who you should hire. Thank you. Seriously though, stacy went to a great school and shes really loyal. You should give her a shot. Sanjays a team player and uh. Sir ridley scott, legendary filmmaker. Are you a film buff, watson . No, but i am studying the visual storytelling in your movies. You know, its amazing how much information is contained in a single image. One visual can make or break a film. I am analyzing images for factory managers, sales people and healthcare professionals. Thats good watson. But not exactly movie material. Perhaps the healthcare professional could be played by matt damon. Youre learning, kid. Lets get down to the new york stock exchange. And cramer joining us now. All right, jim, now the market is going to go down. I read that. You said tech is something to watch. Were finally going to get some tech earnings this week. Ibm important . Netflix . Whats most important . I think netflix im glad the stock is down. I mean, the stocks been a rocket going into the quarter ever since it bottomed at 85. This is whats necessary to try to take some of the edge off. I think the last two quarters people worry about domestic sign ups and then the stock bounces back pretty quickly. When it comes to tech, pepsico gave you an interesting perspective about what the Tech Companies might do. They did not change their currency forecast. If they had used spot, then their forward looking numbers would have been much more positive. I wonder what ibms going to do since ibm other than google and apple has what i regard as the worst swing. I do think pepsico is great, people want to sell them down with oil. Oil is a oneday phenomenon. Youve never had a situation since the peak in 2014 where youve had two weeks after a big decline of this magnitude where it mattered. So i think people should take a look at the stocks that are getting hit today and do some buying either at the end of the day or tomorrow because these prices not positive about what the s p does two weeks from now. Thats sort of my feeling too. Im not sure we see new lows in oil, jim. No, i think its very hard. Even if saudi arabia pumps 1 million more, we will be down 1 million this time. If iran does maximum and the iaea numbers are true that 1. 2 million pickup is happening, then youre going to be in shorter supply. And all that matters is supply and demand. Demand has tightened. Supplies come down. Doesnt matter what saudi arabia says, they can pump another million and wont take it back to 26. Okay, jim, thank you. I know you got the others on squawk on the street. Yeah, its going to be exciting. When we return stocks on the move as we get ready for the opening bell. Stay tuned, squawk box will be right back. Every Auto Insurance policy has a number. But not every Insurance Company understands the life behind it. Those who have served our nation. Have earned the very best service in return. Usaa. We know what it means to serve. Get an Auto Insurance quote and see why 92 of our members plan to stay for life. Something well show you. Through small things, big things, and spur of the moment things. Big things, what if 30,000 people download the new app . Were good. Okay. What if a Million People download the new app . Were good. Five million . Good. We scale on demand. Hybrid infrastructure, boom. Ok. What if 30 Million People download the app . Were not good. Were total heroes. Scale on demand with the Number One Company in cloud infrastructure. Stocks to watch this morning, shares of cvent surging this morning. The provider of cloudbased enterprise Event Management will be bought by Vista Equity Partners for 36 a share in cash. That is a total of about 1. 65 billion. Its up 65 . And we should say that winter isnt coming soon enough for one reporter after hearing that president obama will receive early screeners of the Upcoming Season of game of thrones, a journalist from refine 29 is trying to get her hands on them. Vanessa has filed a freedom of information request to obtain access to president obamas advanced copies of the show. Seriously . No word on whether the ploy will work. Apparently hbo limited media access to early screeners of the hit program. Thats freakish. Before we go we should take one more check on the markets. Again, last week was a strong week for stocks, so wed been watching to see what happens. First of all were going to take our cues from oil this morning because after the talks you see wti down by almost 4. 2 . Last night these oil prices were down as much as 6 . Its not as bad as it has been but increasingly worse throughout the morning. Now take a look at the futures. Which havent sold off nearly as much as this oil selloff that weve seen. Dow futures are down but only by about 58 points. The s p futures are down by about 8 points. Nasdaq off by 12. 5. I dont want winter coming. No, but its the winters coming game of thrones. I know. But yesterday did you see a tree or it was beautiful. It was beautiful. Did you go to central park. And its going to be 80 today. Bye everybody. Well see you tomorrow. Right now its time for squawk on the street. Good morning and welcome to squawk on the street. Im david faber along with jim cramer. And we are live from the new york stock exchange. Carl has the day off today. Lets get a look at crude oil where we start. Wti down a little less than 4. 5 this morning, brent about the same loss. Take a look at futures and then well get to the european markets. We are looking for a down open here in the states, but not that bad overall. Im told our charts are frozen, so take myor