The yen soaring on the news. Does that excite you . With kelly here. Kelly can yes she loves currency stuff. Its crazy. Talking about 108 . Just the move. Look at that chart. I dont have a lot of insight. But i think it is remarkable that it can get whip sawed like that. Everybody piles in thinking it can only get weaker and then here we go. Live by the sword, die by the sword. Anyone putting their foot on the accelerate anywhere around the world is usually a boost and i thought really . This causes us to go down . Well the turnaround for japan. It was interesting when they did the negative rates thing in the first place. And everyones trying to do the same thing. But it was that moment they went negative you actually started to see things go the other way and it hasnt stopped since. When they go negative. Politicians do that a lot. They promise to not do that. I have to say two things. Can i compliment you this morning on two things . The tie and the haircut. Thank you. And dye job how does that look . Very nice. You do think i dye, dont you . Do you see that . They cutoff the gray. Looks great. Just putting it out there. Thank you. In the meantime, japan at the moment, japanese stocks dropping 3. 6 and in a News Conference the bank of japans governor says hes not thinking about applying negative rates to lending facilities. As to why they decided against action, kuroda says more time was needed to monitor the effeceffect s. So honestly, they are not negative enough . They want is that whats missing . They wanted him to go more negative . You could argue it was the asset purchase program. Some people are expecting that to triple and it didnt. Thats big we dont want to do a 4 loss here any time soon. That adds up after a while. You can only do that 25 times. And then you are at zero. Then you are at zero. Or close to it. In the meantime given all of the activity overnight. Dow looks it would open up higher. Nasdaq looks to open higher about 5 points and the s p 500 looking to open up higher about 13. 5 points. The action in toko follows the teds. The first glance at q1, gdp expected to slow to a rate of. 7 . Also due this morning, weekly jobless claims. And today is the busiest day yet of earnings season. With all of these firms reporting on your screen, well bring you all of the results from the tech giant after the bell. So far about 3 4 of S P Companies have beat expectations. Did you say. 7 for gdp . Yeah. We may revisit that number later in the show today. Do you think a couple of times . Well just in response to les say someone is taking a victory lap. Yes. About his legacy. Yes, yes. And about saving the world were gonna have that conversation. Seven years later. Yes. Zero Interest Rates. Yes. Try spinning that. Ill spin it for you. Remember, life is relative. Its a global world. But the counterfactual. That says wed be much worse off if he hadnt done those things. You can apply that same thing to where wed be if we hadnt shot ourself in the foot with obamacare and [ inaudible ]. Thats what ive im riveted. I looked at the guest list and i was so excited just to get up this morning. You were. Shares of facebook spiking this morning. A rough ipo. Down to 19 because it didnt have a mobile strategy and now it us warn about the mobile strategies. You can never trust those warnings in ipo. They have to put them in there. They go public. They didnt have a mobile first strategy. And frankly i think the Public Market disciplined them. And they turned around and did it. And blew it out of the park. And analyst to come in and talk today. If we could just get him . Hes here. Look hes here. Facebook spiking this morning after blowing by estimates on both top and bottom lines with earnings topping consensus by 15 cents a share. Monthly active users at 1. 65 billion beating out streets expectations and here is Ceo Mark Zuckerberg on the conference call. Now more than 3 million businesses are using our Advertising Products every month. Weve expanded measurement capabilities so more businesses can see the results they get from us. Weve made it easier for Small Businesses to do the same tools and formats our larger advertisers use. And as sure as i was that apple might not forever be the i thought the same thing about facebook and i guess i have no idea because i cant believe people are still sitting in their house looking at other peoples pictures and vacations and that they are making money mobile. Thats even more pathetic. If you are out in the real world on your little screen looking at someone elses vacation, anthony. People are doing it. The tech giant reporting ad revenue. How do you advertise. Who buys something based on who what they see on facebook . I think marketers are finding it to be very effective. Who are you . Andrew needs to intro you. Hes here so often and our audience knows. Hes a legend here on squawk. I dont detect any sarcasm. No. No. Hes a legend not. Introduction needed. Go to it. They grew ad revenue. The number is 63 . And they are expected it to decelerate because of the scale and it is not. And people are talking should we advertise on cable tv or on facebook . And increasingly Larger Enterprises and smaller are saying facebook gives me the reach. I trust it. There is third party measurement. They have measures to verify the ads and the ads are quite effective when you look at conversion and click through rate. Raised on this company . Definitely raised it. Its close to 5 bucks. 30 times 5, our target price is 155. And its free cash machine. And we have them going to roughly 12 billion in free cash flow. What do you make of the re by the other. The other thing impressive o about the quarter is we just saw a deceleration in the u. S. For google and twitter. So now the set up for facebook and all the intraquarter checks will people say uber stop spending those are wrong. In the and you think facebook is stealing their business. Taking share from all sorts of media platforms. Whether its other underperforming online ad formats. Instagram has become the new twitter. Contributed gout almost seems like the new periscope. There are a lot of ways where i can identify facebook is looking to take twitters use case and really take control. And i think the theme is so many ways to monetize and, you know, now they are opening up instagram messenger. So Facebook Messenger did 900 million users will start to monetize in the Second Quarter. And whatsapp. Before we went on the show i said who clicks on these ad. And they all said weve been clicking on the ads lately. Just chitchatting. He said yes. They are more taylortailored an relevant. Someones figured out. I get great ads and the rx bars i eat all the time. I now which is unsettling. To some degree. This move from twitter to instagram is not that new. I remember a couple of years ago. Im going name drop here but petra. I was doing some charity stuff for her. Bill clinton was at that thing for her. Happy hearts and she do no twitter anymore. People have migrate over the years. And next is snapchat. Facebook gives overall engagement metrics and the way they do is how many daily active users as the ratio of monthlies. And thats highest ever reading. 66 . They dont break it out by cohort. So you dont know what its looking like for younger people. And i would suspect its better for older demographics on a relative basis. Because snapchat is killing it as far as we can tell. Why snapchat and not whatsapp . I didnt want an answer. I just wanted them to play that for you. The share structure. Mark zuckerberg being able to keep control of the company while be able to sell shares. Is it a good idea . I dont think it is anything new. You knew it was a founder led control when you buy facebook. So very similar to alphabet structure now. And the key is yeah hes the best ceo in the space. And, you know, yeah hes maybe tightening his grip on the company allows him to sell shares without diluting his voting control. But he has put limits on how much he would sell in any given year. So basically i dont think it is any change to the shareholder. And it why isnt it dilutive . As the minority shareholder you really didnt have any say . The companys decisions anyway. So even if you owned one share of stock, clearly zuckerberg owned the majority share of the stakes. And the other thing he can do is use it for acquisitions. And on the call he talked down the need to do any acquisition strategically but that is not another thing. Whats the like of going to disney. Youre gonna ask me that . I just kid. I wouldnt rule it it. Shes incredibly well regarded and respected. And by the time leaves his post in i think it is that much further into the future where disney needs put under the microscope by you, you know, with marissa or meg meg. I just dont recommend it. I think shes a really great executive. I really really do. Because she leans in. Across the board. You hear at disney the reason that tom stags was not going to be the next in line here or the air apparent was because of the creative side. So some rumors is that ike pe l pearlmutter. So what you hear from people is that they want somebody on the creative side. And cheryl is really more of a technology and the digital person as opposed to the movie and tv content person. So trying to square that away. Since were speculating do you have a name . I do think it is very possible that he extends his contract for a year, buys them a little more time. I think basically he wanted to be sort of, you know, the heir apparent. And they basically want to cast a wider net. Yv i dont have a name im going to throw it. I want to know that he really stand this guy so he could stay longer. That is the shakespearean disney historical that is what i think happened. You hurt the number two guy so the number one guy can sell bingo. I dont think thats what happened. But you are a very serious young man. Whenever we. You should embrace that whatsapp thing. Just maintain your sobriety and dont get dragged into the muck. And. First of all i try and stay sober in the morning. I just try. And [inaudible]. Then at some point. Viewers arent always. They may be brand new. So there is no downside to being repetitive. We do a three hour show. And we hear by 8 00. Weve had these great discussions at 6 00 about the discussion of the day. And we need to repeat those at 8 00. And the same goes for you. So you act surprised whenever we do whatsapp . And dont be surprised some people are not sober at this hour. And all depends on the markets and whats going on in asia i guess. Asia is bad today. And our futures are down. Not good. Our futures the u. S. Futures. Our futures the. As a tv analyst hes very concerned. I think you do. No i think you do . Its [ laughter ] limited. Limited upside. Thank you so much. Valiant pharmaceuticals cleaning house. Making some sweeping changes to its board. This after outgoing Ceo Michael Pearson and activist bill ackman get grilled on capitol hill. Quite an intense series of questions last night to mike pearson and bill ackman and the former cfo there. We are hearing about potential changes to the board. The wall street journal reporting five directors potentially stepping down. Four reading up to take their place. This comes as mike pearson on his way out. Joe papa due to take over at valiant. Bill ackman said several times hes expected to start as early as monday and also foreshadowing some changes. Listen to what he told the committee. So a lot is going the change. A new ceo starting probably monday. A lot of the board is going to turn over. A new board for the most part. Were going to have a number of the new directors have a tremendous amount of pharmaceutical industry experience. And pricing will be top of mind. Ackman really trying to emphasize that these acquiring of old products and drastically raising prices is a small part of the Business Model and they should really focus on the rest of the business. But he was pledging over and over to take a look at prices of the drugs and to look at lowering them. We should see potentially some news on that in the coming weeks kelly. Your point is an interesting one though. Ackman is a vocal force for company. Hes been in about a year. There are others who have been in much much locker. At this point hes got to be saying, god, who needs this . Hes now saying my interest now is just keeping the company out of bankruptcy is it . This is a huge position and next thing you know hes in front of congress. Bob corker yesterday . Giving him the business. My goodness. At one point he says you hedge funds you are always trying to lobby do what else are you lobbying for . He says i cant really think about anything else. He said what about herbalife . Did he really keep a straight face . What about fanny and freddy . And is that line stopping shells . And one of the ones doing the grilling was hedge funds hogs need to be tied or Something Like that. Missing piece was they are acquiring them especially niche drug asks they immedia drugs and they immediately go up like a thousand percent. Market selloff from japan this morning. And the read on the gdp report and how slow the economy is moving along so far in 2016. And a programming note. Tomorrow becky quick will be in omaha for the berkshire Shareholder Meeting and join was some of the shareholders of. And monday. Keep watching squawk box on cnbc. First in business worldwide. Im in the mood the rhythm is right move to the music we can roll all night 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. I stopped in time. Welcome back to squawk box. You are a good typist. How many words. I did. We had to learn in school too. But now you got the iphone you dont need to type. Right. What i said was totally obvious. That aches lets check on the markets this morning. The futures are reacting to weakness in europe which was caused by weakness in japan. And i try to remember these things. Were near the highs but were in this descending pattern of lower lows or lower highs. Can if you fail to go a little higher you are not in a reverse head and shoulder you are kind of in this band. And here we are we have not done well. And suddenly some renewed fears are coming around. A strong yen again is coming back. Start of the year. All the data starting to get worse. And then got better. And now can it get any better than this . And the cramer said the most important segment to look for with earnings was tech. And one good tech, facebook. And Everything Else has been literally disasters. Across the board. The japan nikkei down almost 4 . The results of some of these meetings, the fed, the boj and you mention the tech space joe. Paypal and facebook are moving higher this morning but others are not fairing as well. Joining us chief economist at ihs. And chairman and ceo of aureus asset management. What do you make of it when we see some of these big bell weather Tech Companies stumbling the way they have and what kind of implications does that hold . I think everybodys been waiting for tech earnings because we started with financial earnings that are decent. Then you saw manufacturing numbers like cat for example, microsoft, google, apple were bad. Yesterday facebook was very good. We didnt think the first draqu going very strong. Theres been weakness the last few months. If you think about the next half of the year. Starting in june on, if you have a weaker dollar, energy pricers are obviously higher and stable gdp with some consumer spending. You could start to see gdp numbers looking better. So i think more about the second half of the year than this quarter. And you hope they get better. Sounds like were only going to get about 7 10 of growth. Is there any brightening on the horizon. There is. We are gdp trackers. Were a little above the consensus. Five of last six years, First Quarter was terrible, followed by much stronger growth in the second, third and sometimes Fourth Quarters. We think Second Quarter will go up to around 2. 5 percent this year as last year and the year before. So the gdp numbers are a little squirrelish shall we say. In the sense that i dont really trust them that much. They dont have the seasonals right. Weve always gotten a weak First Quarter. I would largely ignore it. The Fourth Quarter was never as weak in the previous years where you were followed by a weak Fourth Quarter. And we started i think the atlanta fed started like two seven or almost 3 . And now were down to 77 10. Looks more than seasonal this time. There are more underlying issues than just the seasonality. My point was we have had five out of six years like this. The other problem is the oil rou rout in terms of cap ex had continued through First Quarter. It should ease and by the Third Quarter i think the drag will go away. If you look at whats happened with the Energy Sector theres been total devastation. People start to come back to work. The community, states that are effected by Energy Pricing will start to do better and we live in a consumer economy. And the we have consumers going back to work, which millions and millions more people are working. Consumer spending is really what we want to see. That is whats going drive the economy higher. Maybe the bank of japan just did the fed a favor here. Because it maybe helps keep that dollar from restrengthening. If you believe the fed is going to raise rates in june and we think also again in december, that trend will reverse itself a little. There is probably not a lot of upside on the dollar but were not beginning a long dollar slide. To come back to the oil price question. It is also helping prospects over seas in terms of Oil Producers and emerging markets. Not only oil price has gone up but currency has gone up as well. Pressure is off emerging markets and that is good news. Thanks. Coming up. Much more on the big selloff this morning and were expecting ford to roll out results at the top of the dollar. And if you text and drive and you know who you are, the textalyzer is looking for you. That story is coming up next. And a special report coming from shiny on the