Hitting multiyear highs this morning. Roadmap begins with Billionaire Hedge Fund manager david tepper not pulling any punches. What hes betting on, plus his take on trump, apple, snap and a lot more. A blowout jobs number from adp shows that businesses are booming. Were going to dig in on the report. And an oped this morning claiming the president is suffering from trade Deficit Disorder. The street is weighing in. Well get the debate on trumps trade plan. Some upbeat news ahead of fridays big jobs number. Data out of adp shows private sector added 298,000 jobs in february. That is the most since december of 2015. And then on squawk appaloosas david tepper offered his take on the markets. China, europe, japan, and us, are growing. The day that we had three republican houses, that was the day the president of two houses, that was a day there wasnt going to be another regulation put on the economy. And that alone just releases animal spirits. Nothing else happens, that releases animal spirits. And upticks were earnings and other things should be. He said on a multiple basis its not that stocks are cheap here. Its just hard to be short. He really argues that aside from the French Elections theres not much to get in the way this year unless we do something stupid on trade. Joe kernen was saying, jim was watching and i think there was no disagreement. I found myself saying, wow, okay, yeah. I feel so good that tepper said the Global Growth, lately ive felt im the only guy out there with the Global Growth thesis. Im doing it from bottom up listening from all the companies, he does it every which way. I like his scenario, basically says we can pause but things are getting better. There was a moment talked about the Federal Reserve and you know what, guys, get out of the way. Things are getting better. Its okay. You can say things are getting better. No one is going to hold it against you. Tepper is a common sense kal guy. Only a guy with total confidence who is that good is willing to admit a mistake on tv. He is the guest i most like to listen to of any of the people we put on. Wide ranging of course as is typical with tepper and his knowledge of a lot of things, whether its the French Elections. Yeah. Or political goings on in italy, or the border adjustment tax debate here in this country. Yeah. I thought it was interesting hearing him talk about that in particular on a morning where, again, people weighing in on their belief at least that the border adjustment tax will not be a part of tax reform. Barclays this morning saying they dont think theres sufficient Political Support for comprehensive tax reform which includes that. But he brought up this idea of it being phased in, which weve heard about certainly over a period of time. And you get the dollar adjustment early. Maybe not the full amount, but early. And then that actually is a benefit. And so the winners become the losers, the losers become the winners early on. But thats how he put it. Its like you cant really navigate it. Right. And that also is good. I love a guy who comes out and says, hey, listen, i know you want to navigate this. I know you want to be able to buy this, buy that, but you real le cant. Again, shows confidence, shows a man whos been around for a long time, not afraid to be able to say you cant make a judgment. Makes his judgments very, very particularly, not just kind of say i like this market, i dont like that market. He is so enjoyable. People at home, listen, this guys the real deal. When i worked for him at goldman sachs, it was the real deal. Hes an impressive smart man. And hes making a lot of what i regard as being nonsweeping conclusions. One of our viewers made the point this morning, teppers unwillingness or inability to overthink macro is his greatest asset. Yes. He doesnt drive himself crazy working at painting himself into mental corners. That and his humility. They are the two things i like. I remember one time someone says, boy, does he come off as being super confident. I said are you kidding me . He just literally said i didnt do this right, i didnt do that right, i got that wrong, wish i got this right. You arent used to hearing someone so forcefully willing to admit they didnt do something right. Thats because hes gotten so much right he can do it. What do you make of his view of the fed . Hes talking four hikes this year. I want four hikes. I think thats why you see the bank stocks up. We need four hikes. We got a lot of business were doing. Business around the world is good. Four hikes would be obviously 3 billion more to j. P. Morgans bottom line. He did not say bank of america was cheap. He did say he wouldnt sell it here. If he does think four hikes, probably have to go back and buy some bank of america, which i think hed be willing to do. A four hike scenario banks are going to be valued as growth stocks. Bank of america does not deserve 12 multiple. They should be much, much higher. Had this debate the other day on halftime. Love to talk about other shows. I notice that. I notice that. There was a fellow, oleary saying he was short these. You cant short these bank stocks if the feds going to raise four times. You cant. Youll be run over by a cat caterpillar truck like some of the people at caterpillar run yeah, that continues. Potential conflict with the federal government over taxes in switzerland for caterpillar continues, but back to tepper. Speaking of foreign nations, he was positive on europe as well. Wasnt he . Wow. Very much so. Which is a theme weve heard and you certainly have been talking about that for some time. Also it being a key in terms of Global Growth. It is so hard doing business in europe right now, my wife and i are doing business in europe theres really no banking. They got to get the bank going again. The biggest risk is the French Election, but even then he said you have hollande as a socialist and didnt matter. I think he made the case for buying every european bank. Really solid case. Even deutsche bank. Holy cow, yeah, deutsche bank. I wish hed said to buy it. I wish he was on yesterday and said to buy adidas. We didnt get there. It was wide ranging but did not touch on adidas. Well get to his views on apple, teva, snap and a lot more later on this morning. In the meantime, Yale Universitys steven roach has harsh words about the president and trade. Out saying trump is suffering from trade Deficit Disorder drawing from what he calls fear mongering from trade advisor Peter Navarro. Added punishing china with tariffs is a misguided approach. Something you could argue tepper doesnt necessarily disagree with. No, he doesnt. I think that tepper did come with real peace in his heart about the agenda. The business agenda. Yeah. And saying that he was all in for almost everything. Where was the difference between him and trump on business . Did you see any . It was obvious that he has other reservations about trump. He has a lot of reservations. He repeatedly said im not going to talk about. Interestingly on this roach comment of course we had navarro write an oped the other day, also i think give a speech. Steve liesman i think was reporting from there and the focus on the trade deficit, the opposition to that line of thinking centers on the idea that restoring a surplus. Right. Is not necessarily going to aid gdp growth as much as doing other things that will help Labor Productivity and labor growth, which are the keys to gdp growth. And theres certainly not necessarily a clear correlation between reversing a trade deficit, some of which by the way is just things like oil and this unending focus on it certainly has been one part of criticism of the trump view held by navarro. And throw in the chinese imports last night plus 38. We got excited about china with all those imports because we think the government has mastered its plan to be able to get the consumer more going but may just end up being more steel coming there because their steel plants are so dirty. The main point is we shouldnt jump to the conclusions that a big trade deficit is the end is the worst part of our economy. But there are industries that are that have gone away. Those are hard to bring back. Theyre trying. Yeah. They may be trying. This debates not ending any time soon with roachs comments today and a lot of other people. Especially since its so hard to get good intel on the evolution of policy. For example, larry kudlow last night tweets this, sources close to administration telling me commerce secretary wilbur ross now opposes border adjustment tax. Very good news. Later on, the secretary himself responds to larry, not true. Ive taken no position on border adjustment tax. So that remains opaque. Geez, this is impossible. Thats why tepper was so refreshing. He said stop trying to figure it out. Go make money. That was teppers view. It was like stop it. You cant fathom this stuff. So lets go buy some allergan. You like the balls in the air, right . Yes. All this health care drama about gop opposition you dont mind . Push it out. Im fine. Push it out. I dont want people to panic. I was studying 2011 last night, i dont know why. Wife was asleep. Studying 2011. 2011 was the year everyone fearful, fearful, fearful, governments dpoing going to bl up, s p downgrades, bingo, had a buy. Also had well, that was mr. Idiot its okay to call people out twice in a recession its okay. We thought hoover was an idiot. Its okay. I look at the situation and i say to myself, well, i dont want 2011. I dont want that to be on my hands people saying get out, get out and the s p does what it does and people say why did i get out . What was that . I remember i happen to be at the eagles practice when the s p downgraded, treasury. And a bunch of players came to me and said do i have to sell everything. I said, no, i think you have to buy everything. And they said to me, no, i think you have to sell everything. And i was like they were bigger than i was, do what you want. Sell it all. I mean, 267 pound guy who can do a 4. 6 is telling me i should sell and im going to disagree with him on the field . Well. Once i ran away, start buying. Its about brain power, not necessarily brute force. Except when youre in the gridiron. I suppose thats true. When it comes to border adjustment tax, i already talked about it a few moments ago and its not unimportant. Tepper can say what he wants about how he views it and what should happen and how it should be phased in over five years and how the dollar will adjust, but tax reform overall has not been an insignificant contributor to our move up in equities, at least some believe. The hope for it. The hope for it. And when you hear about this debate about a border adjustment tax and wonder about the overall package of tax reform and its potential fate, you do have to consider that we may end up with some sort of tax cut at some point on the corporate rate, repatriation deal and thats all were going to be able to get. When . How can they do all these thing sns. That will come later. All of this will come later. 2018 . As they get closer to an election they need to say we did tax cuts. But what you replace border adjustment tax with given its key part of rates and revenue that tax reform plan is going to be a question. Well, these are republicans. Many of those republicans are like the old republicans. They dont like to have a budget, blow up. Those guys didnt go away. I think we have to go, david. I hear music endlessly in my ear. Oh, really . That could be voices. Could be joan of arc. Kevin brady has his hands full this week thats for sure. When we come back hear what peter thiel said last night in houston. Well give you a listen. Also, new ceo of adidas, his outlook and strategy for taking on nike and under armour sara has that first on cnbc interview. Look at the premarket, futures may not be doing a whole lot but the tenyear 2. 57 is a high for the year. Back in a minute. I love to see businesses that just started from ground up grow into further success. It just feels good to know that im helping someone else. My first goal is to learn about their business, what theyre currently doing in their advertising. Pull some research, create a great story. Trying to figure out some way of building some kind of trust in a very quick moment. You have to love to work with people. Our goal, without a doubt, is that all customers are satisfied before they leave. Venture capitalist paypal cofounder trump supporter peter thiel spoke last night keynote address in houston. He referenced a different kind of bull market. Take a listen. Theres this jim cramer line from cnbc cnbc. Cnbc guy with sort of the cra cra cra crazy turrets person, theres always a bull market somewhere, you just need to find it. And one of the thoughts, one of my colleagues has had for a while and im starting to think may be right is one of the places were have a bull market is were now in a bull market in politics. And this is im not sure this is a good thing, but it is a fact that maybe politics is becoming more important, its becoming more intense. Right. The range of outcomes is becoming greater. And were in a world in which there is a bull market in politics getting started. All right. Nice reference of you, obviously. Bull market in politics, the range of outcomes becoming greater. Do markets like that . They i think they oddly do like that. Because i think what happens is that theres a big distraction, you know, people are looking at politics. And underneath if the companies are doing well, you can actually make some money. I think a lot of people are focused on politics, but theres big money guys saying let them focus on politics but its absolutely a bull market in political talk. But there are earnings to focus on. Peter, who used to be a regular guest of mine on kudlow and cramer. Terrific guy. Everybodys loaded with politics now. Yeah, yeah, talking about bull markets though he did not do a good job running a hedge fund. Good venture capitalist. I had him on for paypal. Great investments as venture capitalist, not as a hedge fund manager. Creator of unbelievable thing, paypal, but i do think there are two markets we have. Theres a bull market in politics and theres a bull market in earnings. And the bull market in politics is obscuring the bull market in earnings. But its on. My old friend dan yergin who i ran money for for years, delightful guy, has the best conference around. And thats a conference by the way that we havent talked enough about. Which basically is i think saying u. S. Technology is keeping oil from rallying. Because its so good. So i dont know. I mean, peters right, but you cant make money off of it. You have to be underneath it and looking at whats really doing well. Yes. Youve been resolute about that whole notion that earnings are the bridge between now and whatever policy we get. But its interesting bull market in politics in the sense that peter thiel, i know him as kind of a very successful entrepreneur, im sure people now slam me for saying that i know him and i liked him as an entrepreneur. And i just have to go back to your true what my daughter says, dad, stop. Im not going to stop. Just puts smiley faces on twitter. But there is a big backlash against electronics of late. And i want to be able to speak free freely without worrying someones going to say he said good things about peter thiel. Who by the way had one more bite about globalization and Global Supply chains. Take a listen to that. I think the tide on globalization is just going out. Really . Its going out on, you know, all these different dimensions. So if you have movement of people. I think immigration is getting more restrictive, not just in the u. S. But throughout the western world. I think movement of trade, i think theres big headwinds there through goods, movement through people, movement through goods. Movement of capital, which is mainly through banks. Banks are going to get more regulated. And Even Movement through information where i think there may be some headwinds for the internet designed to survive a nuclear war but even so i think there are sort of a lot of regulatory challenges Silicon Valley will be facing from western europe and elsewhere in the years ahead. So i think the tide on globalization is just going out in a pretty big way. Tide is going out in a pretty big way. Yeah. Neil ferguson just wrote a piece very similar that i read over the weekend. Great professor at harvard. I think the germans are going to fight this tide. When they hear nationalist and they think about what happened in the 30s and thats why i think germanys going to have to spend more money. But i do believe that, look, globalism, our president is antiglobal. Its pretty straightforward. He is. He thinks globalization is a curse word, synonym for you take our jobs and send us your pollution. Yep. Were going to have a lot of pollution to send other places now. The epa, scott pruitt on tomorrow. Favorite epa administrator. Whos going to be on squawk tomorrow. Energy protection administration. Lets get cramers mad dash after the break, count down to the opening bell, take another look at the premarket which has strengthened just a bit. Back after a break. Mapping the oceans. Where we explore. Protecting biodiversity. Everywhere we work. Defeating malaria. Improving energy efficiency. Developing more clean burning natural gas. My job . My job at exxonmobil . Turning algae into biofuels. Reducing Energy Poverty in the developing world. Making cars go further with less. Fueling the Global Economy. And you thought we just made the gas. Energy lives here. So what else is new . Humm. Shes doing good. She needs more care though. She wants to stay in her house. I dont know even where to start with that. First, lets take a look at your Financial Plan and see what we can do. Ok, so weve got. Well listen. Well talk. Well plan. Baird. 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