a little bit of pressure on the equity markets dow futures down 80 points this comes after the dow closed up yesterday for the sixth session in a row s&p down barely yesterday as well as the nasdaq dow coming off the longest winning streak of the year it rose 172 points it is up 1% for the week to date the s&p 500 closed lower by a fraction of a point yesterday. the nasdaq was down .20% if you check out treasury yields this morning, we are still looking at the ten-year yield at 4.51 the two-year yield at 4.85%. president biden saying the u.s. would not supply israel with certain weapons and artillery sehells if its militar invades gaza he made the comments during an interview with cnn this marks a big shift in the war. the u.s. would continue to make sure it is secure in terms of

the iron dome and their ability to respond to attacks. the political attacks starting almost immediately based on that interview all over the country and the world. a lot of criticism on one side and praise on the other. it's getting complicated quickly. >> some in israel and the israeli -- um -- far right elements saying hamas loves biden. >> some people saying hamas loves biden or some saying michigan over israel a lot of credititique over ther. >> i don't want to weigh in on it i know what's going on i think it's horrific. it's horrific. when you at the beginning know what is clear what israel had to

do now one of our greatest allies and the most stable ally in that region of the world and important region of the world and we're pulling the rug out from under them. >> i do. i agree. it goes to what we showed yesterday with that clip the great conundrum of war an to is you have to do it quickly and get in and out the politics of doing it he was making a moral argument he said all of this is questionable he showed videos and saying we have done things questionable. that is the point in many ways if you feel like your existence is existentially at threat, there are things you may have to do and they may not be pleasant things the question is -- i have great empathy for the people in gaza like everybody else. how do you do this >> they send you the same

pictures they send me on twitter. war is hell. no one wants to see that no one wants that to happen. with that said, you know how this started and you know how it needs to finish. i certainly don't want to talk about being the only country to ever use an atomic weapon, but at that point in the war, it was u.s. lives or what happened. you know, i'm sure on college campuses, if you ask 90% would say that should never happen there is a contingent of people who think it was right thing to do when truman did it. >> you put yourself back in that point in time. putting your husbands or brothers back in warfare >> we would have lost another 50,000 or 100,000 americans. it came true with "oppenheimer" where you see cilian murphy

celebrating what happened. you could see how much he was struggle the with the effects. house speaker mike johnson survived the challenge from marjorie taylor greene who tried to oust him from power the vote to vacate the speaker's chair was 359-43 ten republicans voted with marjorie taylor greene think about before it would not have taken ten. with kevin mccarthy, it took a handful. matt gaetz and the crazy eight mike johnson appreciated the vote of confidence from his colleagues he will join us in the next hour live from washington >> i think marjorie taylor greene brought this because he cooperated with the democrats to pass something >> the israeli aid which they are not getting. >> she had 43 votes. ten were republicans 77% of the people who voted with her were democrats

>> right it's all strange bedfellows. >> she's cooperating to take him out. >> how many members in the house? 450 whatever there's a lot of them. they can labor inobscure for years. i guarantee if she said self g grandized. it is when it comes down to it. >> think about some of the ones you know matt gaetz, george santos. the names that pop out are the ones who went out of their way >> did you see the squad >> that's what i mean.

that's how you get attention. >> where am i? it showed a whacky place the house. you got factions that are so -- >> those are the names you know. >> did you see what they were saying cory bush? let's talk about the data from china overnight the exports rising by 1.5% in april matching expectations. importing surging 8.4% thanks to the jump of 9% in the china imports from the u.s., among the categories that saw the jump was the crude oil and natural gas. steel, plastics and medicines with automatic data processing machines and parts i want totalk about chines ev maker nio it will launch the low-priced

brand on may 15th. this is coming ahead of the similar line from xpeng expected in the next two months this will be family centric and vehicle priced at $34,000 and the same segment as the tesla model y. elon musk has been outspoken of how he feels the chinese vehicles are better than tesla or all of the american made cars right now. therefore, we need tariffs >> that is the argument from the big three. if you talk to ford or any of them, they are looking for the same thing prote protections. shares of airbnb are lower this morning earnings at 41 cents a share that was compared to estimates of 24 cents. revenue and bookings beat e expec expectations the forecast came in lower than expected it expects revenue to exaccelere

in the current quarter because of the summer backlog will kick in during that point shares are off 8.7%. in the meantime, robinhood with the second straight profit. beating estimates of 6 cents revenue beat in the average per user climbing to $104. here is the ceo vlad tenev on "last call." >> we're focused on three things growing market share and ex-35exp expanding internationally and consumer wallets that is the highest ever >> shares of recobinhood have doubled in last year shares of arm holdings are falling. the report of 36 cents a share

estimates were 30 cents. revenue above expectations the quarter guidance was stronger than expected none of that would explain what is happens it was the forecast for the fiscal year on the lower side of expectations despite the drop, the stock is up 28% year to date. coming up, we're going to talk about the money pouring into artificial intelligence companies like nvidia and mistral. later, former fed vice chairichai gefeus wl join us on the ceo optimism we'll be right back. >> announcer: this cnbc program is sponsored by baird. visit bairddifference.com.

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harvest portfolio management i don't know of anyone who doesn't see the long-term promise, paul, in a.i. there are some smart investors that do think as we talked to stan druckenmiller the other day who sold nvidia. do you think we're in a period here where it might not be the perfect time to buy? maybe you get cheaper prices down the road? >> some of these stocks, particularly the infrastructure builders like nvidia, when i call the picks and shovels of the a.i. gold rush, some have come a long way. however, you know, nvidia is our front man. let's talk about that. the stock has risen several fold and so have the earnings and earnings forecast. extraordinary growth if you look at nvidia, it has a

fiscal year that is not a calendar year. if you look at calendar '25, the stock traded 27 or 28 times earnings that is not egregious to the growth profile joe, i try to separate the companies s in the a.i. space i believe in i believe that will be the dominant theme for a couple of years. then i am not in at all on the end product. the a.i. end product companies i have to believe that when i see it because all of the products will be ubiquitous. however, will they be money makers i don't know will they move the financials of said companies i don't know even though it sounds like a boring way of a.i., i'm sticking with the infrastructure plays.

nvidia is top of my list >> do you think about the '90s paul, you could be buying caterpillar or a drug company. pick the company developing the tools to do the a.i. and the a.i. itself, but pick major companies like the internet or whatever the internet did for them you could look at the entire russell 2000 to figure out who to buy that a.i. will help >> excellent question. joe, we were both around during that period. back then, i ran the tech money for mem merrill i learned a lot of lessons i'm cautious coming out of the a.i. boom, you will have superstars

some are established companies some are companies we don't know yet. most of them, yes, they will lever the product. they will see productivity enhancements yes, they will see some cost efficiencies will it drive the top line i don't know i actually think it will be not the 80/20 rule or the 90/10 rule 90% no-go. >> the magnificent seven the pre-eminent tech companies which win here with utilizing a.i. which are in the best position >> i say the best position is microsoft and alphabet and amazon and meta. nvidia i'm not playing tesla or apple.

>> you have five of seven. you might as well -- you could be wrong might as well buy them all, i guess. obviously, we wouldn't be calling them magnificent seven if they hadn't moved so much already. >> i actually think that valuations are thought unr unrea unreasonable we don't have valuations, joe, that match the lofty ratios we have in the full inflation of the internet bubble. yes, i think they will go higher i try to be careful and rifle shoot rather than shotgun shoot. i have been off apple. apple is the most popular company and i've been short with tesla for quite a while. >> is there anything in the macro back drop that you concern yourself with that

you are not talking about multiples. i don't know if you are counting on cuts which would help, obviously. i don't know which administration -- no one knows how that would play out in terms of regulations and anti-trust in november what do you think of those two issues >> yeah. very, very important we talk about a.i. and other fundamental drivers. of course, the biggest driver for tech and other aggressive growth stocks is the discount factor and discounted cash flow calculation which is the level of rates today so, yes, if we continue to fret about inflation and can't get it down to the 2% handle tand mayb we don't lower rates for some time, maybe god forbid, we crank them up again, look at tech stocks last year when the yield on the ten-year treasury note

got to 5%. that caused an absolute bl bloodletting that is the biggest scare. we started this year, joe, with the belief of five or six or seven cuts now we may not have one. yes, that is very big and on the regulatory side, there's new found aggressiveness look at tiktok we will go to the supreme court with the free speech case. we will repeal or adjust 230 which is protecting the social media companies since the law was enacted in 1996. the regulatory threat is true not just in the united states, but the eu as well >> five, six, seven cuts we're at maybe none.

we're not at five or six or seven hikes. if it was a quarter a piece, it would be eight. >> yup. >> that's above seven. you never know, anything can happen, paul time will pass, i know that, either way i know today's thursday. >> yes, sir. >> thank you >> all right joe, be well >> it is the best day of the week. when we come back, we have new details on google's employee morale problem what employees were povesting on the internal forum. and ahead, mike johnson will join us live from washington, d.c. "squawk box" will be right back.

google executives facing backlash over the strong growth hasn't translated to wage growth for employees. one in the all-hands meeting said we noticed decline in morale and disconnect with leadership and the work force. another comment read despite the company's stellar performance, many googlers have not received increases. asked whether the decision to keep wages lower was a result of the cooling market at the all-hands meeting, ruth porat said our priority is to invest in growth she admitted two years ago the ratio flipped and the rate of spending wasn't sustainable. porat announced she would leave the cfo role to be chief

investment officer that transition hasn't happened. sundar pichai said assuming current conditions, job cuts would be smaller in scale. coming up on other side of the break, smoking in casinos may soon be a thing of the past. i'm surprised. contessa brewer has that story we will go to her next on that. later, quarterly results from warner bros. discovery and those of you with kids, roblox earnings we're coming back after this >> announcer: executive edge is sponsored by at&t business next level moments need the next level network. to start a business, you need an idea. it's a pillow with a speaker in it! that's right craig. a team that's highly competent.

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good morning welcome back to "squawk box" live from the nasdaq market site in times square. getting ready to lit up a

signific cigarette here in a second. >> that's the point. you're not allowed. >> do you not read do you not know anything check the futures. down 54 points now on the dow. go to france and everybody is puffing away down 50 points on the dow. 33 on the nasdaq i took a shot. >> as an explanation for what joe is talking about >> we're getting to it it's two seconds later >> maybe they don't know what's going on that's what i was trying to say. >> stick with us. >> advocates have new allies contessa brewer is at table without a cigarette this morning. >> i have been my entire life. there are people who smoke and who still enjoy smoking. many places they can smoke inside casinos today, when gaming shareholders

cast their ballots, they will vote on the proposal to force the commission on banning smoking in casinos would save money. then, it would be forced to publish the results. same thing when bally's holds the meeting next week. this is backed by trinity health and americans for non-smokers rights they point to research by c3 gaming that said smoke-free casinos generate more revenue. they argue shareholders should know how much casinos are paying in higher health insurance premiums for employees and maintenance costs and if it is keeping away customers who would otherwise go to the casinos, but hate the smoke the three casino companies tried to keep the information out of the proxy statements the s.e.c. denied those requests they are urging shareholders to

vote against the proposals we reached out to all three of the cal scasinos. it is seeing a negative impact on banning outdoor smoking these decisions are based on the local trends for the profitpert owners if they succeed on the ban, they will lose customers to competitors who continue to allow smoking inside casinos we see this play out in nevada and new jersey where they have tried to limit it to 25% of the c casino floor i have been there. you can smell it i'm in the non-smoking section and the guy smoking is right there. do you want smoking or non-smoking? >> the last time i was in a casino, it is like a throwback. >> i haven't i assume you couldn't smoke

glsmoke. >> filter the air better >> they have super high-end filters. there is no safe level. >> i'm all for that. >> it permeates everything. >> it does >> i thought it would help get customers if you got rid of customers. >> parx casinos has gone smoke free in pennsylvania they said they think they are even with what they lost with smoking customers to competitors versus what they gained. how do you put a price on the health of employees? their employees are happy area in a smoke-free environment. if you read the proxy statements for bally's and boyd, they say we want to work with our employees. they will work on proposals that maybe would not be forced to work in the smoking section.

if you talk to the employees, they are concerned about their health knowing what we know about second-hand smoke. >> i guess the other issue that you have with this is if you are also facing big competition from online gaming and if you decide to say you will not allow smoking, that sends smokers to the competitor even if every casino has the same policy. >> i was on stage at the conference and on stage with the board member she said seven states legalized online gaming. you don't have the issue of should you permit smoking or not. >> what issue is this with the percentage of smoking? >> in new jersey, 25% of the floor is devoted to smoking, that is 25% of the customers i have been there.

the smoking section is very crowded. they are all jammed in next to each other i see a difference in vegas. it depends on the property if you go through wynn resorts, it is not that people are not smoking, they are smoking. it is a bigger property. it is more spread out. if you go to the downtown properties, there's a lot of smoke. >> if you are a compulsive person and gambling, you are probably a smoke addict, too while you are at the table, you have to go outside to smoke. you have to take your chips. >> there are states that have banned indoor smoking all together and not carved out casinos. ohio, for instance what you see is smokers still go to the casino and do the same thing they have been doing in bars and restaurants the last 20 years. >> is that less profitable >> no. >> how do you walk away from

your seat? >> you are out with the things -- >> forget about that the real question is are they less profitable? casinos in ohio are less profitable because people are taking breaks over 20 minutes to get a cigarette? >> it's hard to compare. you are not doing an apple-to-apple comparison. where they could offer smoking and parx is the first non-smoking casino on the strip. >> the argument for the employees, i can't imagine you have to sit here and work in this and your option is go elsewhere? that's tough. >> the dealer jobs are good jobs >> yeah. thanks, contescontessa. when we come back, former fed vice chairman roger ferguson joins us on ceo data on optimism as we head to break, let's check out the currency tde quk x" will be right back.

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welcome back, everybody. new data shows s cautious optimism this is all about the board survey for more on this, we bring in former fed vice chairman roger ferguson he is the chairman of the business council and conference board. he is a cnbc contributor roger, this is pretty different. this is the highest level of c, o optimism you have seen in two years? >> that is correct, but the other side is as you pointed out

in the opening, cautious optimism, not wild enthusiasm. the other thing is their expectations for the next six months really are no major change i feel it seems things are moving sideways, not up and not down no great enthusiasm. >> there are concerns of recession which have faded drastically. >> concerns of the recession faded drastically, for sure. like everybody else, they move in the expectation of fewer rate cuts, if any they are reflecting the market they are also not expecting to go on a hiring binge hold jobs roughly where they are and pay wage increases between 3% and 4%. it feels like compared to the market, which has been enthusiastic, it peoples like ceos are in a holding pattern. we will see what happens. >> what are they word about if it is not a recession?

>> there are a series of concerns one of the things that's gone on here is the degree of concern is risk has gone up cyber is number one. regulatory risk is another one they are worried about what they call economic and financial conditions all of these risk factors and concerns have been going up steadily over the last several surveys. part what have's going on here from the ceo standpoint is if the macro situation is with no recession on the horizon, there a number of other things that are causing them trouble. >> like a break or a mismatch in the financial system >> i think they're worried about that i think like many areas, they are observing that the possibilities in the federal government are more limited now even as we need more head room they are observing a number of things they are focused on geopolitical risks which have gone up

it hasn't spilled over to the u.s. economy yet not impossible i think they see some of the same things we see in the environment. >> roger, we did a story in the last ten minutes about google employees voicing discontent over google treporting great revenues, but it hasn't translated into the pay increases they may anticipate. what you can say about how ceos are feeling about the labor market who may have the upper hand at this point >> i'll not comment specifically on google, but for ceos overall, they find it easy to find jobs they expect to increase wages roughly at 3%. it feels as though the labor market is easing up from the ceo surveys. i can't speak to the google situation directly as powell has said, labor markets are coming into better

balance. >> that's a big part of what we worry about with inflation if wages continue to climb, inflation will continue to climb. 3% to 4% doesn't sound crazy if ceos feel like the labor market is starting to ease a bit, it is not as difficult to keep employees or difficult to find new ones, that could be a significant shift. >> that definitely could be. it may be the reason the fed is still, in is some ways, expecting to cut rates this year it is not a done deal yet. we have been surprised about how sticky inflation was in the first quarter this year. i think the notion of caution all around is the really important. it is obviously clear we don't fully understand inflation dynamics just yet in the post-pandemic world. that may be going in the heads of the policymakers and ceos >> roger, i don't know if you saw druckenmiller on the other day. the stuff he was saying, i think

if i got you out to the bar with a couple of cocktails, i think you would say the same thing i do you are always very reasonable and guarded about when you criticize the fed. he kind of said what you are saying only on steroids. do you see any of that >> i saw a little bit of it. i have a high regard for stan. as you say, i'm cautious about criticizing anybody. it's a tough job the inflation problem in the united states caught the fed wrong footed in the beginning. they moved quickly to get things under control. the last mile, as wae're calling it, has proven to be challenging. what they have done is moved away from forward guide ance wisely it is data dependent they don't know what they will do until they see the data. >> you never really understood

the rationale for all of the huge easing cycle of five or six cuts you never saw that >> no. >> what do they see that you didn't see to think we would get that it's wishful thinking. >> it is wishful thinking. you know as well as i know that markets are looking for any hope to keep driving equity valuations up. not surprising i think markets are un underestimating how serious the fed is about 2%. any time we get a weaker gdp report, the notion is the fed is going to cut the slight weakness in gdp the weakness in gdp may be the outcome of restrictive policy. it may be what they are really hoping for i through is a bit of i intellectual market understanding. the fed mandate has everything

to do with getting inflation under control. >> roger just did it again when i brought up the idea of inflation coming down with the hiring situation easing up a bit. he shot it down. roger, thank you we appreciate your straight talk all the time roger ferguson he says it nicer. >> he does really let it all out. coming up -- first thing i thought. i have a cable bundle t you give me a streaming bundle the new package deal from hulu and disney and later, mike johnson will join us live from washington "squawk box" will be right back.

bundle is back disney and warner bros. discovery are planning to offer their streaming services, disney plus, hulu and max, in a bundle which mirrors the traditional cable tv package it will be available this summer both for ad supported and ad-free tiers, pricing hasn't been disclosed disney is going to be the distributor and will collect subscription fees and pay a percentage of the fees to warner bros. discovery. who would we be missing? we would be missing a lot. >> a whole bunch of folks. >> sure. >> you need another -- a couple of bundles might need three or four bundles. >> or five to get back to where you were with a cable box. >> the point is you're not going to pay as much as -- >> it is not going to be as profitable for each of these entities either. >> hello hello. it is 2024

that's what's happening here >> nobody's ever going to make money in this business >> nickels whatever you want to call them. >> still don't understand why it is so different, just depending on the pipes and why the margins get squeezed so much more than traditional. >> what do you mean you don't know >> if you're basically paying to get the same amount of content, it should cost the same. it shouldn't matter how. >> if you got youtube, if you got tiktok, if you've got, you know, x, if you have any of these other free forms of content, that's where people are spending. >> people are going to buy it a la carte that's been the whole point. once you break it up, if you buy it a la carte and not going to buy all the channels, there is less channels. >> a la carte is going to mean you need -- you also have to buy netflix for this

>> if you wanted to own everything, but most americans don't need to own and see all five or six or seven of these things. >> an nfl game and had to sign up. >> right >> and prime, a lot of people are already paying for because they like the free shipments. >> think about the people who don't -- there are people in america, unfortunately or fortunately, who don't care about basketball or football or whatever it is so, they're not getting the service at all. >> i need every single thing. >> you do. you are a unique -- >> i need every single thing that is available and it is still not available. there is a warning on phantom debt we're going to talk about the buy now, pay later debt that americans are taking on that isn't reported in credit data. and later, house speaker mike johnson will join us live from washington, d.c. this morning. don't miss that interview. "squawk box" returns with two big hours ahead. help make trading feel effortless. and its customizable scans with social sentiment help you find and unlock opportunities in the market. e*trade from morgan stanley with powerful, easy-to-use tools,

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welcome back to "squawk box. this morning, buy now, pay later company affirm reporting a surge in transaction volume in the third quarter, up 36% from a year ago our next guest says credit racked up through buy now, pay later programs is hard to measure and this, quote, phantom debt could create trouble in the broader economy. joining us right now is senior economist and managing director at wellsquinlan. good morning to you. you call it phantom debt and say it isn't calculated in the total numbers. how is it calculated and how worried should we be >> it is scary and you can't see it what else do you call it and it is tricky to kind of corral the data around it. a federal reserve paper lamented this in the long footnotes saying how difficult it was to accumulate the data because firms want to protect the proprietary value of what they've got.

when the consumer protection bureau compelled the providers to disclose data, we were able to use that as the starting point and holding one of the firm's content back into some really rough estimates the bottom line is we need better environment around this to understand what it is we're dealing with. >> so, from your estimate/guesstimate, what are we dealing with and what percentage of the credit market is this buy now, pay later business >> yeah, so it is kind of a tricky thing to think about, because they usually pay it off in four or six equal payments. so, the people in the space tend to think about it in the context of transaction volume, rather than a traditional credit analysis that might look at it in the context of balances, for example. so, what you can kind of do is look at the transaction volume in a given year and compare that to the growth in, say, revolving

credit or consumer credit card debt and if you do it by that measure, your average growth rate for consumer credit card debt is round numbers, 125, $150 billion a year, our back of the envelope estimates put the market at somewhere in the neighborhood of $50 billion, you're talking comfortably a third of the transaction increase in credit card volume if that's what it is, that's a really big piece of, you know, the shadow credit market or phantom debt that policymakers -- >> if something goes badly wrong -- >> it varies >> -- in the early days of it, it was the buy now, pay later firm, whoever that happens to be and the way they're structuring a lot of the deals now, they're shifting that, sometimes the merchant shares a piece of it. but that's problematic for one of the merits of the good things about this is that it helps people who are unbanked or don't have access to credit.

that's wonderful if you can take a large payment and break it up into small payments, who would get on the other side of that, but, you know, as they worry about who is on the hook on the late fees, it can add up. >> of the buy now, pay later companies that are out there, is there one or two that you think actually operate more carefully than another is there one you think is more dangerous? >> you know, i don't hold any comparative value assessments of these firms, but affirm is one of the providers that does disclose their transaction volume on a regular basis. and so that's what we were able to do is say, what share did they comprise as a total of 2021 when the cfpb ordered this disclosure and then if you kind of hold them constant and solve for x, that's why i say it is not very scientific it is at least putting some guardrails in giving us a rough estimate of what we're dealing with. >> final question, if somebody from the cfpb or the s.e.c. or treasury department is watching

us now, you would be telling them what from a regulatory perspective about this >> yeah, i would say, you know, there is an incentive for the people who this is serving, for the consumers, the c in cfpb is consumers. from their perspective, you don't want them tied into a situation where a litany of small payments traps them into a one really big problem but, also, you know, what about policymakers in washington, what about the federal reserve, what about economists who are trying to look at the outstanding debt and make some context around where we are, it would be useful to have the more data, the better. >> tim, thank you for joining us and bringing this important issue to our viewers' attention. it is just past 7:00 a.m. here on the east coast you're watching "squawk box" on a thursday morning right here on cnbc i'm andrew ross sorkin with joe kernen and becky quick we have got a whole lot of things going on including speaker mike johnson who is going to be joining us in just a moment to comment on a whole

bunch of news out of washington and around the world but right now, we'll tell you some of the other top stories that are moving markets, bloomberg reporting the valuation for elon musk's artificial intelligence startup now nearing $18 billion as xai set to close its latest funding round. those folks who thought, by the way, that investors early on with elon musk and x would make their money back, they're going to get a piece of this and may make it through this if nothing else president biden saying the u.s. would not supply israel with certain weapons and artillery shells if its military invades rafah, a city in southern gaza where more than 1 million people are sheltering we'll talk about that in a little bit because we have house speaker mike johnson, who now survived a challenge from congresswoman marjorie taylor greene, who tried to oust him from power, he's going to be joining us in the next 20 minutes at 7:20 eastern time we'll talk to him about that, the comments from president buysbuys

biden and so much more. breaking news out of the uk. the bank of england holding interest rates steady, that is as expected. as early as next month, the bank is expected to potentially crates s cut rates that's from the ecb. we'll see what happens as the fed continues to maintain its rates, if these other banks cut, but right now, bank of england maintaining its rates. look at the futures this morning, you'll see that at least at this point it looks like we're still in the red. dow futures off by 67 points the s&p indicated down by 12, the nasdaq off by 51 dom chu has a look at this morning's premarket movers good morning, dom. >> we'll start off our thursday morning movers with a check on computer chips arm holding shares taking a hit, down 8.5% or so, about 200,000 shares of trading volume the semiconductor design company reported generally positive results. earnings still being parsed through for comparability to analyst consensus estimates, but

revenues beat expectations, growing 47% year over year and that was thanks in large part to what else, demand for artificial intelligence related products arm's full year revenue guidance came in short of estimates, which is likely driving that downside move for a stock that as you can see here is up 41% just over the course of the past year to date period in 2024. next up, shares of airbnb, down just about 8.5% as well. around 60,000 shares of volume this is the online vacation homes and travel experiences booking platform it also reported better quarterly results, top and bottom line beats, driven in part by more robust demand for bookings, especially in places like latin america and the asia pacific region, also gains in average daily rates for room nights compared to last year its current quarter revenue guidance came in lighter than expected airbnb expects to see better revenue growth in the next quarter after that, because of demand tied to events like the summer olympics in paris and the

europe cup soccer which is being hosted in germany this year. shopify is up just about maybe a percent or so, around 75,000 shares of volume stabilizing just a little bit after a dismal 18% drop yesterday tied to a disappointing forecast even with a better quarterly report. the enterprise e-commerce merchant platform is getting some help today after analysts at jmp securities and piper sandler upgraded that stock. now, for more on that and other top analyst calls of the day, head over to cnbc.com/pro, subscribers can get more detail and analysis on those stories. becky and others, i'll send things back over to you. >> a little bit of help today. less than 1% gain after the drop yesterday. >> right it is i it was big we'll see if the expectations in the market means things are as good as they can be and need to get a lot better for the guys to go even further. >> thanks, dom

the recent article on cnbc.com, our next guest writes the s&p 500 is increasingly dominated by tech and therefore questions whether it is still the best benchmark for investors. karen firestone is executive chairman and co-founder of rss asset management as well as cnbc contributor. what i want to really ask you about, benchmarks are nice, you got to decide whether you want to be long the market and go all in or whether you maybe aren't as aggressive. i kind of wanted to talk macro, you can talk about why you think there is other ways to play it that's just assuming you want to play it. here's what my point is. 2023 was much better than people thought. i think 2024, given that the backdrop with the fed and inflation and, i mean, real near term worries about how we handle this, i think you need to really -- i think the risks have

increased, beginning 2023, no one was bullish. everybody hated it, it was a great year. >> we were bullish. >> yeah. is it the same is it going to repeat in 2024 or are there some significant headwinds like $34 trillion in debt and stubborn inflation, maybe no rate cuts, is this a time you want to be in the market >> yes i think you -- >> you always want to be in. >> it is the degree to which you want to be in the market and in fact, we're up 9% roughly so far this year market's up 26% since the end of october. so, the market has moved forward despite really the hawks about interest rates, they have been right. if you listen to someone like roger ferguson, he's the person who said, no cuts, no cuts that's been correct. but the market has continued to power higher because earnings have been good now, i agree there are risks, there are more risks this year than last year, 100% that doesn't mean you can't have a decent market and we're having

a decent market. the question is whether the market is the same as what we used to call the market. what is really powered this market are four or five names. not the whole market talking about how good earnings are. the earnings for the big tech names are up about 40% in the first quarter and the rest of the market is negative a couple percent. and that's going to be true throughout the year. the estimates keep going up for the tech names and estimates are not going up for the rest of the market so you have to be careful what you think of as the market >> so the s&p 500 is more like the nasdaq used to be. >> correct 43% is in tech, communication services, and amazon that's 43% of the market and i looked at this for years, because i find it fascinating, i still say, apple and microsoft, the two top names, are 14% of market the 300 names in the s&p 500, the same size. and that is not true

if you look back in history, the two top names would be 6%, 7%. >> does that make you nervous? >> yeah. >> the tech itself. >> it makes me nervous we're so exposed. it is not that it doesn't represent the market of course the s&p 500, it is true, it is identified as the biggest public companies that are profitable in the united states and so what you buy is truly those companies, however, those companies are more concentrated and those industry sectors are more concentrated, maybe everybody doesn't want that much exposure i'm not talking about what we discuss as the s&p, i'm saying people in the 401(k), when investors in our business make these choices. >> 9% is more than the average stock return in a year. >> correct yes. 7%. >> so we already have -- >> we already have 9. >> if you wanted to be cautious and sell, i understand that. but for most people, if they owned the big tech names, they have big gains

do they really want to take the capital gains? >> if you think the capital gains -- >> stan druckenmiller and looking at your gains from nvidia warren buffett and looking at the gains from apple, yes. >> those guys think about the whole big picture and they're in the market actively. most people who get out don't necessarily get back in. the average mutual fund does much better than its average investor because the fund continues and investors sells at wrong time and buys at the wrong time. >> won't get any help from the fed and inflation might stay sticky the wild card is a.i., maybe we get another, i do edon't know hn more points of percentage gain >> of course as we know, nvidia is the only one making any money in a.i. everybody else is spending money on a.i if you looked at what is the biggest change from what we expected in the first quarter, it is how many billions, tens of billions of dollars the big

companies are spending on a.i. 40 billion here this year, 50 billion here, it is really unbelievable the size of those numbers when you think about those tens of billions that are just in capital spending on a.i. technology and research. what i also think is fascinating right now is that if you were to say, let's invest some money in an equal weighted s&p index, equal weighted s&p 500, and the tech names were to come down 10%, 20%, to take some risk off the table, you can have lots of companies that can start to perform better than -- >> a different way of looking at it i asked buffett this question over the weekend, he didn't exactly answer it, but he's long been a proponent of the s&p 500. the question is, would you look at a different way of measuring it that doesn't take so much into account you leave gains on the table. >> sure. >> when tech takes off. >> but warren buffett has the only stock in the top ten that

is basically, you know, financial insurance. he has been able to command a spot there because of how well he's run his business. but, also, because of technology because of apple. >> okay. >> more than anything else. >> karen, thank you. >> coming up, breakdown of robinhood earnings and the state of the retail investor plus, house speaker mike johnson on the failed motion toremove him as speaker we'll talk about israel-hamas war, protests on campus and so much more. do not go anywhere "squawk box" coming right back

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box. robinhood reporting its second consecutive quarterly profit here is the company's ceo vlad tanf on last call discussing the health of the company. >> we also had the largest net deposits in the history of the company, net cash and assets moving into robinhood of over $11 billion, which is the highest ever >> joining us right now is dan dolof, senior analyst. good morning to you. let's talk about this company, and also let's talk about broadly how you think of these platforms and where you stack rank of robinhood. >> good morning. this was an epic quarter for them i agree with everything bob said the growth in deposits, the growth in the customers, they're now gaining share from schwab and the schwabs of the world, people are moving their retirement assets to robinhood, so it is becoming more than just

a meme stock trading platform and i think that's the future of robinhood. i stack it high up on my list. >> and you think that this is sustainable? if we were to take this chart back farther, obviously, this is -- it has been on a nice run, but, you know, life is relative, there was a period before this it was a different story >> yeah, look, i mean, the beginning 2021 there was a lot of names out there that were, you know, i would say, overpriced if you look at the fundamentals, like what they accomplished, the jump in monthly average users, the jump in deposits, the jump in assets, they're executing and they're firing on all cylinders and this is sustainable. let me tell you why, they're expanding into europe and down the road they're going to go into asia, and there is a lot of people like, you know, small time day trading in those countries and that's what's going to get the next leg to the story. so it is absolutely sustainable.

>> how much do you think this is tied to crypto, though >> crypto was a huge part of it. and you may know i'm kind of not a big fan of crypto. i think crypto is the one thing that is not sustainable as the other revenue streams. it brings people into the platform, right, and they're actually gaining share from other platforms like coinbase. so, they're doing really well. in my model, i'm not supering cr assuming crypto stays at the models it has been i'm still getting a pretty high number so i'm being very conservative on the krcrypto revenue becausei don't think it is as sustainable. >> do you model out the price of crypto bitcoin is at $60,000. is part of the calculus have to be that crypto, if it is less, it doesn't go up as much as you were expecting or it comes down? what is the thinking

>> yeah. absolutely right it is the greater -- when crypto price goes up, more people buy it when it goes down, when it is at the 60,000 level, what we're seeing in april right now, in may, volumes come down so you have to have a view on -- you almost have to have a view on bitcoin and where you think it is headed to understand where crypto is going. what we do out of conservatism is just assume the revenue from crypto is a fraction of what it was in the first quarter because this was really nuts, right? >> we got to run, but price of -- if you're doing that modeling, tell us what you think, bitcoin at $60,000 right now, 12 months from now, in your model, it is blank what is it >> i mean, look, i don't have an official view of bitcoin i'm assuming it doesn't go in either direction, just stays where it is. but i'm not a fan of bitcoin period >> dan, nice to see you.

it is a fascinating analysis we look forward to talking to you again soon thanks. up next, house speaker mike johnson on the failed motion to remove him as the speaker. the israel-hamas war, protests on campus and much more. that interview is right after this break . >> announcer: time now for today's aflac trivia question. which musician owns 20% of lionel trains? the answer when "squawk box" return s. see that? that's like the gap in my health insurance. gap in your health insurance? yeah, it didn't cover everything when i got hurt. good thing i had aflac. hmmm the cash i got from aflac helped pay for medical expenses, groceries, rent. it really helped close that gap. go, go, go! yay! go aflac! go duck! get help with expenses health insurance doesn't cover at aflac.com wish we had aflac on our team. you can! ( ♪♪ ) ♪(song in french)♪ (♪♪)

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>> announcer: and now the answer to today's aflac trivia question what musician owns 20% of lionel trains the answer, neil young guggenheim partners owns the other 80% of the toy trainmaker. he's back on -- in a 359-43 vote, the house shot down efforts by representative marjorie taylor greene to oust house speaker mike johnson and speaker johnson joins us now i don't know why we just -- we're thrilled to have you on. whenever you come on, we're -- i guess we're -- we get intoxicated by power, speaker johnson. that might be it can't have the president, the vice president, then majority leader, speaker, is next in line welcome. thank you. good to have you on. >> great to be with you, as always. >> power is so fleeting, isn't it

you're in there, again, i don't know -- this is what you said, i appreciate the show of confidence from my colleagues, to defeat this misguided effort. hopefully it is the end of the personality politics, frivolous character assassination that has defined the 118th congress, it is regrettable, it is not who we are as americans, we need to get beyond it. it could happen again at the drop of a hat, right is that still possible that it can happen at any time do you think this makes that less likely? >> i think it does it was an overwhelming vote, and i think what everyone here, frankly on both sides of the aisle were trying to demonstrate is that we live in very serious times. this is a dangerous time in history, world history, and certainly here on our own shores and we cannot afford to be playing petty politics here. this country needs a functioning congress and if you remove a speaker of the house, the house closes down it is a constitutional office and so you cannot open the door to the house

it literally is not operable and we cannot afford to do that now. we have hot wars around the globe, massive challenges on our hands, and so everyone here, i think on both sides of the aisle recognizes that we just have to move forward and do our job. that's what i do every day i'm doing my job i'm doing what i know to be the right thing and what i'm trying to do is advance our conservative policies and principles, which i believe to be right for the country, as far as i can every day up the field in spite of the fact that everyone knows we have the smallest majority in u.s. history. one vote margin right now. so, not a lot of room for error, but we'll keep moving ahead. >> and i guess it only took -- you had ten, if -- that was worse than speaker mccarthy. he could only use a couple the crazy eight is what was -- there was more maybe that were ready to throw you under the bus, but the democrats, in this case, were decided that it is better to have you there than to

go back into what we would be facing if that happened. it does -- it does seem like for you to prevent it from happening, you need to play ball with them and i think that's what some conservatives would say, that you're not in a position to buck what the democrats want well >> well, let me say this, the ten people -- the republicans that joined marjorie taylor greene in voting against the motion to table, i don't think would have gone the next step and voted to vacate the chair. several of them told me that it was sort of a symbolic sort of show there, but, look, we move forward, i have to lead newt gingrich posted an op-ed last week, johnson has the most challenging speakership since the civil war, over 150 years ago. maybe it is true there is a lot of interesting factors going on here. we're undeterred in our challenge. we have to fight for the things that we know to be right, to fix the country. we have the greatest collection of challenges now, arguably, than we have had since world war

ii, maybe the civil war. but we got to get through this this is the modern congress. this is the day of -- the age of social media everyone has thure own media platform, they can go on every two minutes and say what they're disgruntled about. >> speaker mccarthy was doing what he thought was right too. and we saw what happened there, you on the other hand were doing what you thought was right and that's what you always got to do, and it worked out for you. do you see any irony that what you did for israel and maybe bringing on the wrath of some of your colleagues after going through all that, and now president biden to win michigan is not sending the weapons that country needs to do what it needs to do? see any irony in that? >> i do see irony in it. but greater than that, i see great danger what the president is doing here is not only defying the will of congress to your point, we just voted on this several days ago,

but he's also trying to dictate, i guess, and micromanage the war, the defense effort in israel, as a condition of supplying the weapons that we all know they desperately need i spoke with prime minister netanyahu about this situation and what they're withholding is precision weapons that are desperately needed here is another irony, the precision weapons are needed to try to protect civilian lives in rafah. this -- these are the things they need to do the job that must be done to eradicate the threat of hamas, who is still lurking there. so, for them to -- for joe biden to do this, he is going against what he told congress, what his top officials in the white house specifically told me that they would do, and it is just catastrophic policy. >> speaker, do you think that president biden's position is a moral one, meaning he doesn't want to provide these munitions because he's worried about civilian casualties and believes morally he doesn't want that to happen and thinks he can somehow prevent it, or do you think

fundamentally it is a political calculus, joe mentioned michigan >> i believe it is 100% a political calculation. i think we can all see that. it is the same reason that he's making the political calculation not to call out antisemitism on the campuses, not to call out and to speak without equivocation about the good versus evil here, the right versus wrong he has the largest bully pulpit in america he's the commander in chief. we need him to look right into the camera and say, to speak with moral clarity to say what is right and what is wrong and he's unable and unwilling to do that because he doesn't want to offend the big segment of his base now, his party. there is an actual pro-hamas palestinian wing in the democratic party >> he did condemn antisemitism very recently in that holocaust remembrance speech >> yeah, and it was a little -- it was too little, too late. i was sitting right -- ten feet away from him at that holocaust memorial and someone wrote that

for him and i'm glad he delivered it as he did the speech that i gave a few minutes before, before he arrived actually at the event, was much more clear and much more direct. and, look, he needs to do that consistently he needs to do it every day. this is a problem that is growing across the country, it is not being diminished and we're looking for moral leadership, the country needs moral leadership, from both parties and from the top leaders and he's the top leader in the country, i think he needs to act like it. >> mr. speaker, could a bill pass to defund some of these colleges i don't think that could pass, given -- >> well -- >> the support the protesters had in certain parts of congress >> well, we're going to find that out as you know, last week, week and a half ago, we launched a whole of the house effort, whole of congress effort. we have six committees of jurisdiction everything from the ways and means to the science, space and technology committee that are looking at every angle of that we're deeply concerned about this idea that the ivy leagues

and other university receive billions of dollars of taxpayer funds every year this is the time, the pressure treasurer of the american taxpayers. they don't deserve it. some of them are unwilling to -- they demonstrated that, they're kowtowing to the violent protests and they are ignoring the rights and civil rights of their students who pay tuition and deserve and have the freedom and the right to go to class unimpeded and unafraid that's the problem so, congress is looking at that, looking at the funding streams, looking at the generous tax benefits that their endowments en enjoyed, big universities and also these foreign student visas. if you come over here and you're an aspiring terrorist, you don't deserve to be an american campus, you don't deserve to be there threatening your jewish classmates and peers just because of who they are. and we got to get counsdown to bottom of that there is an appetite to address that and that's something the american people will stand and applaud. >> speaker johnson, i listen to

president biden after you all passed the aid to ukraine and israel and in his speech about it he gave you quite a bit of credit for being able to get this through and work together he did slide into some election sort of tough talk at the same time but itmade me wonder if there is a new willingness or ability for the two sides to work together to get some things done or if we're just two deep into an election year and that's not going to happen. are there areas where you think you can work together, you just mentioned that there is appetite on both sides of the aisle for the bill to defund some of the ivy leagues. is there that same sort of feeling on other major issues too? >> well, i certainly hope so we're trying to advance what we believe to be the right thing. common sense policy. it is conservative that's my brand. i'm a conservative on the right, a life long movement conservative but these policies are not just

good for republicans, they're good for the whole country and i think there are people of good faith on the other side of the i'll who understand that particularly with regard to this issue of rising antisemitism this is something that unites. a lot of the people in the congress on both sides of the aisle. and that's an important thing. and we need to address it together i went to columbia university and spoke to the -- to the wild mob there, a couple of weeks back and i had a couple of democratic colleagues who were there the day before and did the same thing i applaud that that's courage and that's moral clarity and that's the kind we need across the board regardless of whether someone has an r or d behind their name. that's what the country needs. >> i know you got to run, just want to ask you one more, about the save act and safeguard american voter eligibility to only u.s. citizens are able to vote in federal elections. it would require proof of citizenship to register. i mean, just -- it sounds like,

wait, we don't do that now but i guess we don't but is there any chance that sees the light of day and do you think in this next election there will be many, many, many non-u.s. citizens able to vote >> i certainly know and believe and understand that that is the design, i think, of why they opened the border. this sounds like a conspiracy theory it is the only theory that makes sense, joe biden and mayorkas engineered the wide open border, they allowed by my count, by my estimate, 60 million illegals since joe biden walked into the oval office three and a half years ago and they did this because they ultimately, some in that party and some who engineered this wanted to affect the outcome of the next census by spreading them around the country. we're going to work on both those issues that first one is, you're right, it is a violation of federal law right now. it is against statutory law for

an illegal to vote in an election, in the federal election but, there is no way for the states to ask someone if they checked the box and say i'm a citizen, when they do the motor voter registration, if that's actually true. there is no mechanism to prove it, believe it or not. we're going to fix that. we're bringing the bill. i think it is common sense. >> let the democrats -- i don't know what -- they come up with something. that won't pass, will it >> it will be stunning if they vote against that, some will, but they'll have to explain why they're opposing existing federal law and why they want illegals to vote in u.s. elections. they can't say the quiet part out loud, we're about to find out. 76% of the american people understand that's a priority and by some polls 86% of the american people want only u.s. citizens to vote in u.s. elections. what a in ing to advance common sense here.

>> thank you for coming on "squawk box" this morning. >> thank you. bank of america institute is out with its latest consumer checkpoint for april we're going to run through the data, find out how consumers are feeling about the economy and some interesting surprises in those numbers. wel lloubo irit 'lte y autt gh after this

coming up, a check on the consumer and how they're feeling right now about this economy and then a cnbc exclusive look

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welcome back bar bank of america institute is out with the latest consumer checkpoint for april joining us is liz everett crispburg. it looks like spending was up 1% year over year in april, up 0.3%

year over year in march. explain what this means. what are you seeing? >> good morning. great to be here i think what it means is the consumer momentum is continuing, but the big takeaway, what stood out to me in april data is what we didn't see. and that was evidence of the lower income consumer pullback or slowdown. that's what we have been hearing about. yesterday, you were talking here on the show with the ceo of uber and dara said they were looking for signs of a slowdown, they weren't seeing it, neither were we the lower income consumer, what we were seeing is strengthening fundamentals so wage growth, accelerating it is up just north of 4% year over year in april for the lower income consumer, that's the highest level it has been since february of 2023 we look at -- >> february of last year. >> february of last year up 4% is -- we're talking about this with roger ferguson earlier, that was more double

digit growth from 2022, last year was lower, but now it is ticking back up again. you're seeing the lower income consumer continuing to get wage gains, and you're also seeing in march and april, you saw big uptick in deposit balances and checking and savings accounts. some of that -- >> tax refund. >> tax refund. we always see that still, if i compare the lower income consumer median balance, it is up 67% relative to prepandemic. that's a pretty significant uptick. >> roger also told us ceos are far less worried about a recession. other things have taken their place. and i guess what you're pointing to would be the concern about inflation, not tamping down, we won't get back to 2% and the fed is going to have to maintain if not eventually raise rates >> we are continuing to see the spending that underlying fundamental is certainly something that we should all be aware of i think the one thing to think about, though, is are we missing

something, is there something new? and we did a deep dive into buy now, pay later, not in this morning's checkpoint report, but our report last week, to try and understand, like everybody is, what is happening with buy now, pay later. and to kind of set the stage what we found was 8.5% of bank of america customers had a buy now, pay later transaction in march. that case was up half a percent relative to a year ago so who is using it, how many people are using it, how big of a deal is it. >> i guess it would be younger people. >> 100% younger people also what was interesting and potentially concerning is almost half of the buy now, pay later users were lower income consumers. and the other thing that was really interesting that i thought we looked at was we looked at people who used it once or twice versus heavy users and we define that as someone who had 20 or more transactions a month.

right? the fundamentals of that group, credit card balances are rising, faster than everybody else, and their deposit levels, their checking and savings numbers are lower than the others. so not only are they continuing to spend like they had it, their spending growth is twice the level of the spending growth of the light users, and even higher -- even more than that, than nonusers. you're talking about 8.5% of our customers that ain terms of the impact of the overall -- >> concerning for that particular segment. >> exactly. >> liz, thank you for coming in. >> great to be here. coming up on the other side of this, up close and exclusive look at one massive facility built for removal in iceland they're going to building an ad in the u.s. diana olick has that story next.

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congress has authorized billions to develop carbon removal plants here in the united states. and one of the companies involved just opened a brand-new one in iceland that's where we find our diana olick this morning with an exclusive look hi, diana. >> reporter: hey, becky. yeah, this direct air capture plant is sucking carbon out of the atmosphere at a record pace, so-called mammoth is the newest and largest plant in the world from zurich-based climbworth it is ten times the size of the previous model, the first section is now operational and it will totally be complete by the end of this year it eventually removes roughly 30,000 tons of carbon per year or the annual emissions of about 7,000 gasoline-powered cars. so, huge fans pull air into containers where steam is used to separate out the carbon dioxide. that co2 is pumped into the water like a giant sodastream

and piped into the ground where it eventually becomes rock and this is just the beginning >> this will be a trillion dollar industry if we are serious about it just do the math, if we want to capture billions of tons of co2 from the atmosphere, then we'll end up in the end with trillion, trillions of dollars of market volume. >> they just entered the u.s. market thanks to a half a billion dollars from the department of energy one of 78 companies in the u.s. direct air caster space from small start-ups to big names bike exxon mobil and the client roster is very wide. these companies are purchasing carbon removal at about $1,000 per ton. the expectation is that will drop to about $300 per ton eventually now, mammoth has already sold one-third of its capacity before its even fully finished. >> what we do is raise capital

for these companies to scale up, and when they scale up they bring down the cost. that's what makes it affordable more broadly. >> congress appropriated $3.5 billion for regional hubs in the u.s. through the infrastructure law. millions more are coming from funds like the ex prize, bill gates breakthrough energy, lower carbon capital and the jan zuckerberg initiative. again, we'll start to see this, guy, all across the u.s. >> the plant is removing carbon, but what's pow ering the plant? >> actually powered by geothermal if you can see that big puff of smoke over there, that's actually steam coming from a plant, the company the called on-power all geothermal energy is piped through these enormous pipes that come from all the way over there, through and into the plant and howpowers itself. >> wow okay that is something. diana, thank you.

warner brothers discovery shares falling loss of 40 cents a share, worse than 24-cent loss analysts expected revenue also falling short the quarter hurt by a weak advertising market and strike-related delays through its studio segment we'll speak to analyst rich greenfield "squawk box," straight ahead.

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thissing morning warner brothers discovery share, falling after quarterly results missed top and bottom line and disney planning to offer their streaming sflgss s disney+ hulu and max, the cake cake -- tv cable side of it. talking about state of media and this paramount potential transaction in the offing. i don't know what you want to start with earnings what did you make of them? >> you got nba rights, too, andrew a lot of moving parts. a lot of things going on in this company, in this sector right now. look, earnings are disappointing, obviously but it's not shocking. when you think about what's happening. linear tv is in a lot of

trouble. one of the things that's certainly giving adam silver pause when he thinks where the nba rights will go david faber, you and the whole team actively talking about -- obviously disney get them. disney, espn and the new flagship streaming service going over the top, all part of it amazon then do you choose nbc which is, yes, you have challenges with your own linear tv business, but you've got broadcast and also you've got sort of financial fortitude of the comcast cable business that broadband business that warner brothers discovery just doesn't have that's increasingly problematic for their chances of retaining the nba. >> so they don't get the nba, what's would you think about the stock in the future? where is it even now >> look, investors will panic in the short term it doesn't mean that's the correct long-term decision investors will fear that, oh, my

god. they lose the nba. not only do they lose some subscription fees and advertising, but they're going to fear that longer term charter, comcast, others are not going to have to carry this portfolio of networks. you can get hbo through max directly do you need to carry the turner and discovery networks put together in this company and i think the answer is, yes it's a lot of channels to sort of give up, a lot of channels for these distributions to give up the knee-jerk reaction will be panic among investors if they don't get it again, overpaying. say you pay $2.5 billion ors $3 billion to beat out of comcast, that might not be a good financial answer either. >> the earnings question i mean, they are -- they got cash, and they're paying down the debt right? you keep seeing that. >> doing exactly what he said. in terms of cash generation. >> where i was going with this he is doing what he said, and

shareholders don't seem to like that. >> because we're at the point now where it doesn't matter how much cash you can squeeze out of the existing company revenue declining, ebitda declining and it's affecting all companies in the sector. the fear is, right, that this legacy tv business is now in accelerating secular decline and the streaming businesses aren't growing. awe is at disney losing this quarter. added because they gave away part of a charter deal the growth stopped warner brothers discovery lost subs over the last year domestically that sub story is gone yes, you've raised price, limiting losses of these businesses, but the growth story is gone, and the core businesses are getting worse. >> and are you a lever any of these bundle programs, the ones mentioned at the top of this, disney, between max and disney, will help the case we obviously know about this

sports bundle? >> we call it bundlitis. it is a disease. and it is something you think bundling these services together is going to save you it's fixing the wrong problem. the problem is you have high churn. the reason you have high churn, you're not creating a service with enough daily engagement where people want to keep paying for it they need to fix the root problem. the root problem they're sufficientoring from is not enough usage or great content to drive people to use it every single day. >> my question to you -- >> bundling is the wrong fix. >> the fundamental question, though do you believe that any of these streamers, from a value proposition, can actually create content at a reasonable cost that actually moves the needle to create that daily engagement? that is the fundamental question, with the exception of netflix. seems to be the only one actually truly managed to do that can anybody else do that without the scale that netflix already has?

>> they could, but they'd have to do it and literally take a long-term approach hurting the near term. not generating all of that free cash flow you just mentioned andrew they have to literally go through an investment cycle and be willing to tolerate the pain and whether it's disney, paramount global, whether wv you are seeing none of them have the tolerance to make that level of investment and sustain that level of investment. just can't handle it with their investors. >> final question, rich. paramount global what do you think is going to happen here? obviously now news about apollo and sony what they'd like to do if they can get their hands on it, essentially break up the company. the other hand skydance deal still sitting there. you've mate the argument you think no deal happens before, i don't know if any of this changes the dynamic at this point? >> i'm sticking to our gun we think there is no deal. all of the things that private equity would do, all the things

that buyers would do, they can do a lot of these things on their own. there was a jeffrey katzenberg at a conference and echoed what we've been talking about of, you know, you can reduce costs get out of -- licence -- a lot of paramount content to peacock. ryan roberts and your team would love to have it. licence it sew zaslow. he would love it talking about scale and engagement paramount has a very important chess piece. stop trying to be a streaming service and thinking how to create the most value from their content a much better story, the new ceo group i think they can execute a plan that creates more long-term value than just simply selling this thing right now i think they could actually fix it over the next few years and then maybe try to sell it later down the road. >> rich greenfield thank you. >> thank you. it is 8:00 a.m. on the east coast. you're watching "squawk box" on cnbc

i'm joe kernen along with becky quick and andrew ross sorkin stop stories, data bank of england holding rates steady but two officials supported a cut at this meeting versus only one last time. governor andrew bailey said he was, in his words, optimistic things are moving in the right direction on inflation. tesla, cutting more jobs in china also working to streamline its u.s. operations. a bloomberg report says additional layoffs in china starting earlier this week in reuters, reports that activists, hedge fund, an co an holdings enough votes in an annual meeting that takes place today. futures still in the red dow down by 80 points. seen those losses increase there. s&p down by about 11 nasdaq down by 41. still the dow had a six-day winning streak

we'll see where things end up. treasury market right now looks to be yielding for the ten year 45 two years at 484 right over to dom chu with a look at this morning's market movers. >> good morning. get you caught up on earnings headliners so far today. big one so far is arm holdings shares taking a bigger hit down roughly 8.25% 400,000 shares trading pre-market semi mild designer company reporting generally positive results. earnings maybe confess about comparability, revenues a beat beat expect iations grew over te year and a.i.-related demand products mostly. the issue, came in sorhort of estimates. late breaking in the last half hour or so planet fitness shares, down about 8% now 25,000 shares of volume. the operator of fitness centers

and gym facilities reporting revenues that missed estimates profits per share looked at for profitability 3and lowering full-year revenue as well. the company sees a "shift in consumer focus to saving." planet fitness gyms cater to more budget-conscious consumers. perhaps an indicator of weakness in that part of the spending spectrum keep an eye on planet fitness. and told you about shopify some analysts used selling off yesterday upgrading shares today. seeing a similar story playing out with buy now pay later company affirm up 2.25% lost 10 % yesterday. 150,000 shares up of volume. and analysts at jpmorgan upgrade that stock to overweight from neutral and raised target price to $43 from $41. saying they're not letting a good sell-off go to waste.

now, for more on that and other top analysts calls of the day head to cnbc.com/pro becky, theme develops between the last two hours back to you. >> dom, thank you. a not so popular economic theory out there poses the idea interest rate hikes may actually be boosting the economy instead of recession, which many had been calling for and which failed to materialize. our next guest somewhat agrees with that theory talk to him about that bill eagan is head of the absolute return opportunistic team at jpmorgan management. a theory higher rates are boosting things. a lot of people say it's the fed talking about rate cuts boosting things you think the actual rate hikes have helped? >> i remember that article and disagree with a large portion of it the part i agree with, a lot more disposal income running through think economy than

people want to actually realize. i own a couple small businesses, for instance one of the themes i siee, particularly over 55 crowd, maxed out credit that's not true. collecting zero on savings accounts for a decade and more and now all money markets yields taking virtually no risk collecting new-found income, and you're seeing it make its way into the economy that part of the equation, i definitely agree with. >> let's talk about how much you have in cash right now. >> yeah. >> that kind of shocks me. for this fund somewhere between 15% and 80% in cash at any given point in time. right now more than 50% cash >> yes. >> why >> this mantra cash is trash makes me laugh the five-year return on barclays is negative. lot money in the bond market five years lost your entire coupon and some

principle and yet people pile into this stuff. the single best performs the last fiv years what you just said cash so if you haven't had any cash you missed out. >> and anyplace else that's -- >> fixed income manager you're limited in scope what you can do can't just go out and buy div d dend paying ect kuwaits. income producing equities money center banks industrials et cetera and have plenty of upside look at thecorporate bond market spreads at all-time highs. completely beholding to interest rates own investment grade, traditional mortgages. even high yield to an extend because they're trading at 295 basis points over treasuries tightest in -- >> rate risk >> right over and over again when you buy these areas. >> you think interest rates should be headed higher? you think the fed should raise rates. forget about lowering rates?

>> yes think about this from a common sense standpoint look at the check list for fed tightening, all boxes checked. economy rubbnning above where ty thought it would be. this core atlanta gdp index trackses 4.1% and already half way through the quarter. stock market highs volatility lows. spreads at tights. a check list 0 for fed tightening not fed easing go back to the fourth quarter taking about easing bias, data right in their face. >> exactly. >> they are raising. not with rate cuts but the balance sheet. already doing the job of honing it. >> even though the market doesn't really want to listen. right? the bond market, for instance -- >> still pouring it on. >> it's interesting. a $7 trillion fed balance sheet. >> never went down. >> hardly ever went down an economy doing just fine you've got a deficit at war time levels. >> how much would we need?

200 basis points of hikes before -- >> i know. jim's pretty -- >> two hikes three hikes? >> i think what the fed's going to do here i look at it sometimes the best trades the ones you don't make. fed should standback and just do nothing right? their safe bet in reality given the data, should they tighten it, probably should in an election year? probably not the big thing it is an election year everyone's pulling out all the stops. that means turning press in full effect tons of bonds issueded. $7 trillion, a refund for balance of the year plus bills to be paid so much issuance coming up i just wonder who's going to buy it all. >> thank you. >> thank you. coming up, an undercover investigation in new mexico leads to arrest's suspected child predators who allegedly in meta services. i'll speak with the new mexico attorney general after a break

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welcome back to "squawk. roblox earnings coming out posting a narrower loss than expected revenue beast estimates. guidance seems to weigh on the stock this morning down quite dramatically. this is right, if it's right off 28% close to 30% this morning. online gaming company seeing second quarter revenue below expectations and cutting its full year revenue forecasts. dig more into those numbers in just a little bit, but you're seeing a pretty dramatic sell-off right at this moment in rowplox shares. >> new mexico's attorney general announcing arrest of three

suspected online predators following an investigation in which the state's department of justice created online decoy accounts the ag's office describes a so-called "operation midediphile" operating through meta platforms prosecutors will continue to target predators, in their words ultimately only mark zuckerberg and his executive team have the power to make these products safe to use. attorney general torrez joins us right now, and, boy, it's the same story, just a different method to accomplish these horrific ends, i think, mr. a.g. if it wasn't on meta -- they've done it other ways but you think zuckerberg needs to do something actively to stop it from happening on his platform >> yeah. we've all seen the dog and pony

show that happens on capitol hill whenever mark zuckerberg and other executives are taken to task for the way the algorithm operates you know, when they're challenged why they tonight have real age verification. from our perspective, enough is enough something has to change, and we are looking for accountability from this company, from its executives and, you know, yesterday's operation was, i think, conclusive proof that this is just, these platforms are not safe for children, and we need to start having a real conversation about how to change that. >> i don't know whether, if it's not that it's going to be somewhere else, and it's really -- law enforcement obviously needs to get involved. is there any place that is safe? besides meta i figure that -- you know, if meta were to stop it, these same individuals would just move to a different avenue of

accomplishing the same thing >> well, listen. we are always in law enforcement challenged by moving from one sort of orientation to another when i started this 20 years ago, i was a prosecutor in this office in totally different systems. we had to really look in dark corners of the web to try and find this information, and identify these people. so we are always going to have to adapt and evolve as our landscape changes, but that doesn't relieve the burden on corporate leaders to take a more active and focused role in making sure that they place as much energy on ensuring safety as they do user engagement, you know, revenue targets and thing of that nature we have to do this in a balanced way. for example, there are social media companies out there right now that don't allow adult

strangers to direct-message children there are ways for meta to change its business practices to actually just make this a safer product for people to use. >> that sounds like it wouldn't be -- so it would not be that -- it's been done and wouldn't be that difficult what is in it for meta to not do that >> well, i think there is, there are representational costs that come with maintaining a platform that, i think, is trying to place itself at the center of american life, of global conversations, but, you know, there's going to be a real drag on that company's reputation as long as we continue to have these stories. not only about mental health forums, addiction, anxiety, those things, but, really, an emerging awareness just how many predators are hunting in these spaces

>> that's, i mean, you just mentioned a lot of the, you take teenage girls and self-images and online bullying, and -- i wouldn't -- i mean if i were mark zuckerberg i would just close the whole thing down seems like a daunting task to try to address all of these things, a.g. >> listen, my perspective is that this has been a very successful company it's obviously, it has tremendous resources and technical capability my hope is that they would start using more of those resources and those technical capabilities on making their product as safe as possible, and, you know, first we have to get through the legal process to demonstrate that they are responsible for the design features for the way the algorithm works. one of the things that is a central component of our lawsuit is that it is too easy for people who have a sexual interest in children to find

those children, in part because of the way the algorithm is designed and so it's really up to them to start opening up about how their technology operates, and figuring out how to put in some safeguards that can keep people safe. >> do you trust mark zuckerberg to handle a.i. properly, seeing his record in all of these other areas? a.i. would make all of these things, it would be like exponentially worse? >> no. you know, the short answer is, "no. i don't trust corporate leaders who have known about these kind of forums long as they have. some of the things that have come to light in the early process in just the preliminary stages of gathering discovery and information reveal a real sense of awareness inside the company at the very highest levels where we have these safety officers and people who are charged with identifying risk to certain users, and those

concerns keep getting raised to the highest level and they get seemingly disregarded. we've had a number of whistle-blowers coming forward who have identified these issues, and i don't, you know -- the proof of whether or not somebody can be trusted has got to be predicated on their past performance, and from my perspective, his past performance doesn't lend itself to any type of credibility when it comes to something as impactful as artificial intelligence. >> we have to leave it there thank you. new mexico attorney general raul torrez thank you. coming up, glenn hutchins joins, but next, ozempic speangboki aut obesity all along. you do not want to miss this conversation is right after this.

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welcome back to "squawk box. an obesity treatment getting more conversation. talk about it all the time a new op-ed tackles legacy of judgment and morality. a year on ozempic taught me we're thinking about obesity all wrong and its author joins me right now. a new book out called "magic pill." the new weight-loss drug we have you here too tell us we all debated we're not on it. so we don't know tell us about this experience? what is yourself relationship

with food like and what is the biggest lesson of all of this? >> the strangest thing when you start taking these drugs i did a really deep dive into this, when you actually take it, silly to write a book and not take it. i was very overweight at the time it's the weirdest feeling. i'll never forget. the second day i took it and woke up. i realize i wasn't hungry. that had never happened to me before right? i wint to a diner just up the street from where i lived i used to order every morning a huge brown chicken roll with loads of mayo and chicken in it and had three mouthfuls and couldn't eat anymore the drugs, extraordinary benefits and what they do, give you a feeling of fullness. >> can i ask you about something?

>> sure. >> your relationship with food do you still enjoy the food? do you feel that it's changed your level of happiness around food >> so -- >> weigh in, in a bad way? we've all talked about just living life. >> i don't want to go a diner and -- >> i go through really big drawbacks to the drugs in the book 12 risks associated with them. some i'm very worried about along with incredible benefits lots of people lose that pleasure a bit pie had the opposite experience. i realized how much i ate to calm myself down and stuff myself right? from which i was a small child a lot of people have that relationship with food, and you literally can't do that when you take these drugs right? you see people pig out, you would throw up for me, because it slowed down my eating, i actual li take more pleasure in food now, but i'm unusual. most people are more like you're saying your concern is absolutely legitimate. >> i wondered about the pleasure you take in other things i can only like didn't to, i

don't know if this is true probably once every year, two years i'll get pretty sick and won't eat anything five to seven days because i just can't lose weight i don't want to eat anything when i feel better i goes back to eating and baaing to my normal size. is it like that? take the joy out of other things, or -- >> significant minority of people who take these drugs seem to be becoming depressed even concern about possible suicidal itation a huge debate about whether that might be this works on your brain so there's a concern it may be dampening reward systems in your brain exactly the way you're worried about. although other scientists strongly contest that. look at risks of the drugs like that, you think crazy to take this you have to weigh two very s significant things the risks of the drug against the risks of continuing to be obese. realistically i would have continued to be obese.

right? the biggest killer. >> everything bad. >> i was embarrassed to say this, sound naive. i was stunned when i looked at evidence how bad obesity is for you. causes 200 known diseases and complications. more likely to get cancer, dementia, across the board the really extraordinary benefit of this range of drugs, lose 15% to 20% of onbody weight. reverse obesity your health extremely gets better. this is quite possibly something -- >> the holy grail. you're right microdosing with a pill. >> if you look at that -- >> is that possible? >> a big debate about this and experiments going on with it look barclays bank commissioned a sober financial analyst, emily field, to look into these drugs, to guide investment decisions going forward. >> not related to mrs. fields? see, i'm always thinking about

food. >> she came back and said, if you want a comparison for the effect on the economy, you got to look at invention of the smartphone 47% of americans want to take this drug. obesity is the big gest killer n this society. >> what has it done to you in terms of exercise? the other issue, people who take the drugs in some ways -- some exercise more because actually now, easier to exercise. a lot of people don't. say, look, i'm really thin now i don't need to exercise then a big issue about, talking about muscle muscles in your face ozempic face. because they're not eating enough to begin with, you almost have to force feed yourself protein to actually keep any muscle strength? >> really important point. lots of things what you just said, but think about in terms of muscles a big worry about these drugs is, as you age you naturally lose muscle mass, which is the soft tissue in your body, need

to move, get out of the chair, whatever and actually depressing when you lose at age of 30. depressing thought for me. what these drugs do, like any other form of weight loss, reduce your muscle loss. danger, going into the aging process. >> with less muscle. >> and this is particularly an issue. >> you believe, there's a -- whether it's the drugs that's reducing muscle mass itself? >> no. >> the fact people taking these drugs are no longer moving or exercising the same way and/or this protein >> all forms of weight-loss cause a -- you lose weight, fat and muscle mass. almost every does. risky, and that one is sailient for people already thin, taking them to be super thin. right? because they're going to have -- really distinguish a few different groups people overweight and obese taking it to come down to a healthy weight incurring lots of risks. thyroid cancer, risks about

pregnancy but a strong case weigh the balance of risks particularly if you're severely obese. those already thin, incurring a lot of 9istic ares only aesthetic benefit. >> you were working -- doesn't work on -- both hormone. only works on one. just working on one hormone will be enough? the microdosed version for example, it's not as extreme? how do you think about that? >> one of the leading scientists put it to me, we cracked the code what causes weight-loss there are more that 70 gut hormones that affect weight-loss and appetite tinkering with that, an extraordinary range of development of these drugs some will be microdosing smaller ones, some bigger doses. going to discover more, but as one leading scientist put it to me, we found the holy grail. cracked the code.

>> downside. is there a down side >> huge down side. biggest worry, not for me, many people eating disorders loads of young girls trying to starve themselves. worse case scenario, opioid-like young girls able to amputate think appetite and urgently need to regulate. only be able to get these drugs in an in-person, in-patient appointment with a doctor trained in detecting eating disorders. incredible benefits to these drugs. probably saving my life. incredible risks we need to take a big look at this. >> the book called "magic pill" awesome conversation and we'll discuss it more. >> cheers. thanks so much. >> thank you. a new look at initial jobless claims rick santelli standing by at cme in chicago rick, what are the numbers >> interest rates moving down. three opening equities moves up because in this backwards world we live in initial jobless

claims came in hotter than expected looking for 210,000. 23,000 this happens to be the largest amount of initial claims since the last week in august, and last month had a very subtle revision from 208,000 to 209,000. so a rather big jump if you look at continuing claims, kind of reverse image. 1 million 785,000. darn close to expectations last week got slightly revised 1 million 768,000. if you look at all four readings so far for the month of april, and that is the last week in april on continuing claims always a week in arrear, really snug very tight numbers all basically slightly under 1.8 million never really seen anything quite like it. volatility in continuing claims diminished the initial claims number is big. 25 billion 30-year options

completing our may refunding, and i do point out that yesterday's ten year option really sparked a bit of a sell-off that pushed ten year rates back over at least temporarily over 4.5%. becky, back to you. >> okay. watching that closely. thank you, rick. when we come back, a can't-miss conversation with tcnsh ireland chairman glenn huhi "squawk box" will be right back.

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were welcome back to "squawk box," everybody. steve liesman joins us on-set. brand new data on the consumer hey, steve. >> good morning. cnbc nrf retail monitor showing consumer spending moderated in april. much weakness concentrate the in restaurant and food sector some could be result of seasonal facts, like when easter was. retail monitor sews actual credit card spending shows headline index, auto and gas, 0.3 compared to 0.4 in march headline year over year minus 6. had been up. six segments down, six up. the core, weakness in restaurants, core up 0.4 versus 0.2 prior month

seasonal factors partly as work. easter in april a year ago march this year. two fewer weekend days could explain some weakness there but worth mindful whether consumers may be balking at higher priceses when it comes to eating and drinking out like at the diner. building supplies up electronics up and home f furnishing up. weakness in housing. interesting. maybe final a rebound in those sectors. there's restaurants and bars down 0.3 and food and beverage down 1.1%. unemployment remains low following a period they were negative two years real or inflation adjusted wages. you see positive since may 2023. that's almost a year now of positive real wage gains consumers have wherewith all to spend, talking about consumers shifting away from higher-priced choices to those where consumers find more value. reveal monitor you see, running

in-line with census retail data. no surge in government, with the government report in march less volatility than the government and not revised because we use real data and could be in process, backlash by consumers when it comes to higher prices. takeaway from calls especially restaurant sector. could mean a falloff in sales or watch, becky, margin story right? decide to keep market share but perhaps pressure margins a little when it comes to high prices for eating out. >> trying to think about it. maybe we should have expected it just because the numbers for people eating out, increases fed into this point, maybe not a huge surprise, see a little bit of a pullback? >> you don't reach new equilibriums in a calm way right? you raise prices by the way, some retailers had to raise prices because what's happens to the minimum wage and the general wages when it comes to labor but you get there.

you raise prices look, the economics so fascinating. prices are seen as a conversation here's the price do you want it or not? is it too high too low? consumers might be talking back now. saying, you know what? i went out to the diner. >> no mas. >> maybe a little too much >> seriously sorkin, all the restaurant chains this really becomes -- >> and ozempic and friends for all >> and ozempic and friends for alor -- trends for those things. >> conference calls, seeing pushback, grocery stores whether those numbers are coming down hasn't been highly evidenced but definitely something they're keeping an eye on. >> something to watch. snack food folks had challenges. look, going to normalize that. plus get to the place where price soaring. andrew said at the break

spend less eating food, price off the drug itself. >> we have to go tomorrow i'm going to be in minneapolis. actually today in minneapolis, but tomorrow talking live at 2:00 with minneapolis fed president neel kashkari and austen goolsbee. a two-for tomorrow. >> what's goolsbee, going to minneapolis? >> kashkari invite d goolsbee t speak and asked me to moderate i'll talk to you, but you come on cnbc opinio a nice chat. >> a lot of leaks. >> kashkari didn't take the hike -- >> i don't think hike is off the table. a couple more bad months got to go. a smart guy coming up to talk about that stuff. >> we do when we return, in fact,

chairman glenn hutchins joins us to talk about the economy, fed, crypto oh, yeah, wants to talk about the celtics, too guess why? stay tuned you're watching "squawk box. this is cnbc.

welcome back our next guest is onset talking about the economy, the fed, technology and the nba playoff ares welcome north island co-founder glenn hutchins. >> look how happy he is, by the way. >> happy to see you guys

too long a time. >> because you're winning. that's why. >> a big, fat ring on your finger. >> wearing that. championship ring 2008 room on my hand for others. >> get that from putin >> no. but i kept him from taking it! >> we'll talk nba playoffs and maybe some of these rights issues in a little bit, but start off talking about the fed and what we're hearing we just had this conversation with steve he's going up to see kashkari and goolsbee, but the real question that starts to come up at this things is, what happens next kashkari this week made news saying he's not take a rate hike off the table. forget about rate cuts a rate hike is not off the table. w what do you think >> i thought your interview with stan was true. well done. listened carefully to that i said pretty consistently, becky that don't expect the fed to reduce interest rates until

it gets to 2% target full stop. any other forecast in the market that doesn't take that into account i think is wrong and i don't listen to it i've also been concerned about the last part of inflation being sticky, and that it might take longer to get to the 2% target, and the market was seen, than the market was seen to be forecasted right now lots of issuing why it's sticky. right now, broadly described, prices have gone up about 18% to 20% in this cycle. wages up 13% to 15%. 5% cost of living gap left wages increasing by 4% on a relatively consistent basis now, and until, i think, we've caught up with increase in prices, there's going to continue to be that wage push of inflation. the main thing going on right there, right now absent reduction in inflation, you should not expect to see the

fed cut rates, and if inflation spikes um i wouldn't be surprised to see them, with one exception. the only reason -- only way i would see the fed reducing rates without seeing inflation down was if there was a spike in unemployment have to be a real spike. >> something really bad? >> something really bad. yeah the issue think, more interesting thing, how the economy tolerated higher rates, which we didn't expect operation really good. unemployment, corporate earnings, capital spending, stock prices low vix whole thing a goldilocks scenario, even though were have high rates i think -- go ahead. >> i was just getting worried, because 2% might be hard to actually get there, and to do the things necessary to get there, there's always a worry you could do too much and overshoot and even be, the last thing we want deflation and

something like that, after we saw japan. to nail that at exactly 2% we could be waiting for two years to get to 2%. >> could be, joe a really good and important point. think about the nature of the recession that might be in front of us as a consequence of overshooting a little bit, looks more like 1999-2000. interest rate cycle rather than 2008, balance sheet problem. in those situations, reducing interest rates, turning the option to flow back on to the economy historically worked quickly. dangers overshooting interest rate krcycle -- >> need to be able to move your goal posts when do you think, honest to god, we actually get to 2% a real 2%? think we can do it >> i don't may forecasts issue, joe, think about how well the economy's doing. pressure to reduce rates from a policy point of view i understand why market players might want to see reductions for purposes of portfolios

economic performance, no reason. right? that's the major issue. >> except a question about young people trying to buy a home. >> all of those -- >> issues -- >> by the way impacting the political landscape in terms how americans feel what they think is actually going on or not going on. >> issue more around loss of purchasing power's two things that are interesting to think about. >> by the way, a huge -- that's a huge -- big -- if everybody feels they lost purchasing power. >> you can't fix it by lowering interest rates. >> i agree. >> that's exactly the point. i think -- one thing we need to take into account is that the higher interest rates. these aren't really high interest rates by historical perspective and produces a much healthier allocation of capital now than at the low interest rates when money was basically free having a positive price for money is a really positive thing. >> nothing to put it in. >> capital allocated to projects that are healthy and can generate a realistic rate of

return second thing going on, the economy, not taking account. seeing a productivity revolution pre-a.i. product revolution. one of the conundrums of the last ten years why all this company investment not seeing gains? now paired with business processes. really used in companies you see ceo. comes on the set talks what they're doing to further think companies, and younger tech-savvy often digital native executives running those companies now implementing those technology rather than the older generation of the past seeing before the widespread implementation of a.i., productivity revolution driving results in our economy which is part of it. >> let's just jump from what you said, where people are making more rational decisions about howlocate profit can't rely on greed forever. plays into streaming wars and the lack of money that's being

spent or allocated, how all of these big companies are now looking at streaming differently. trying to figure how to make it make sense that plays into the nba rights we've got -- >> a good transition. >> well done, becky. >> well, clicked into my brain at that moment the reason wall street no longer the reason wall street no longer looks at this and says, you can spend to the sky is because they want to see some return on these things now you have the battle playing out for the nba rights it matters as a partial owner to the celtics. what do you think should happen here who do you want to see win this bid? what makes sense >> i don't have a dog in the hunt i think having the best price with a company that can deliver the results over a longer period of time is the right answer, but to go back to the underlying question here, companies have -- companies and industries have problems when two or three things come together, not just one thing. what we have here is not just a

sort of macroeconomic issue around streaming or cost of capital for streaming, but you've also got this rapid decline in linear television, much more rapidly than any of us expected, and the collapse in values of anything other than news and sports. in broadcast television. you were talking about earlier, about breaking up the bundle during this past year, i have been -- i have been favoriting the channels that i watch on a regular basis. i've got four. you're one of them, by the way >> yay >> but so i don't need the bundle i've got 700 channels, of which i use 4. the fifth one is the nba tv, which i can get on the nba app these companies have been subsidizing the sports rights. >> i didn't realize how much of a complicated question this may be for you, because you're on the board of at&t. at&t still has a big stake in warner media >> no, not in warner media >> none? >> it was spun

>> spun completely i thought you still had something in it. >> spun completely >> do you care about what happens to that company when you look at their earnings this morning? >> i watch it with interest, but i don't have an economic interest in it or a fiduciary interest but i think, again, you've got this rapid decline in ad-supported linear television that is significant, and also the companies -- you see what's going on with paramount. the studios, during the free money for streaming era, were the factories for content. >> right >> and so, less money for content and more economic rationality around that means less support for that part of the business too so, you've got these things happening all at once. >> it changed on a dime, though, and it changed because money was no longer free >> part of it. but i think it was -- i think it was hemingway who said, how do you go bankrupt? slowly and then all at once. it catches up to you at some point. >> that's really good.

>> right >> not to belabor the point, and maybe i'm wrong here, at&t shareholders, though -- >> at&t shareholders >> own a huge part >> that was -- >> maybe not anymore >> that was over two years ago, and now the -- >> they spun off >> people who want a dividend have traded out of those securities in my view. >> glenn, you just got back from india. what were you doing there? >> i was doing a bunch of things, but i spent a fair amount of time thinking about what's going on in the business community there, thinking about how to -- it is an investment opportunity. one of the things that's happening now in the world is that the marginal dollar that was going to china is looking for some place else to go, and even some of the people who are withdrawing capital from china to the extent they can are looking at other markets and india is really interesting. fascinating. they make two or three big points about it. they've got their macroeconomic

policies really, really right in terms of managing their budget deficits, growing the budget deficit, less than the growth of gdp, investing in infrastructure, having a national sales tax, and so that feels like it's a really positive thing on the other hand, they've got some very, very serious social issues that are potentially disruptive to business they've got 230 million muslims whose rights they're suppressing. they have very broad-based and growing inequality they have much lower gdp per capita than china. and they've got all the same things we've heard about india over the years, which is corruption, inefficiencies, red tape -- >> bureaucracies >> and very slow -- a court system that works but very slow capacity to get that done. and then, the other thing, which is really good, is they're having an election now, which is really quite remarkable. they're going to have almost a billion people vote, and there's some issues on the fringes around the election, but it seems largely fair and free.

so, you add it all up, and there is some investment capacity there, and some really interesting things, particularly in the technology community, but it doesn't have the absorbtive capacity to take what had previously gone to china that's my quick take >> they're yelling at us to go, but i have to ask you about the celtics. they've been dominating. massive wins >> who can i count on every night? >> it's a team game. we play a team game. i will tell you one thing, make one comment -- >> whenever -- that's the night, then derek white gets 40 points or something >> i'll let our coach and our general manager talk about our team, but let me make a comment about the nba. >> i like al horford >> i like them all there's a changing of the guard in the nba, and it's really interesting to watch right now the stars we watched in the past are watching the game on tv today, lebron james, steph curry, kevin durant. >> jalen brunson >> now we have jalen brunson,

tyrese halliburton, anthony edwards. >> who do you fear who do you respect what other team? >> every team right now at this stage is really, really good and so, you take -- you got to take everybody very seriously right now. but it's great it's see these young players or the teams thriving last night's game here in madison square garden was incredibly competitive to see the knicks come back it's always greatfor the nba t have the new york team do well it's really fun. great time of year 'srelenn, thank you. it gat to see you. "squawk box" will be right back. amelia, weather. 70 degrees and sunny today. amelia, unlock the door. i'm afraid i can't do that, jen. ♪ (suspenseful music) ♪ why not? did you forget something? ♪ (suspenseful music) ♪ my protein shake. the future isn't scary. not investing in it is. you're so dramatic amelia. bye jen. nasdaq-100 innovators. one etf. before investing, carefully read and consider fund investment objectives, risks, charges, expenses and more in prospectus at invesco.com.

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welcome back to "squawk box," i'm julia boorstin with a market flash on warner bros. discovery. shares are down about 2% after the company missed on the top and bottom lines revenue fell 7% from a year ago quarter and a much larger loss than anticipated a streaming was a bright spot. the company added two million subscribers, and streaming ad revenue grew 70% in contrast to the 8% loss in tv ad revenue david zaslav explained the intention of this new bundle that's now in the works. >> we expect this product will help increase retention and lower churn, and thus support higher customer lifetime values. and finally, over time as the bundle gets more traction, we

will benefit from increased efficiencies and greater marketing effectiveness. the bundle will go live later this summer, and we're excited about what it could mean for our business going forward >> we don't have details on pricing or launch date for this bundle, but zaslav called the price both attractive and reasonable back over to you >> just like we are, julia make sure you join us tomorrow we got to go "squawk on the street" is next ♪ good thursday morning, welcome to "squawk on the street." i'm carl quintanilla with jim cramer, david faber at post nine of the new york stock exchange futures are a bit red as the dow looks to snap the longest winning streak of the year, so far, at least. lots of earnings movers. bank of england holds steady our road map begins with a crack in the a.i. stock room arm holdings notching a surge in profits and sales, but shares

under some