You seek the key, but first, you must learn the ways of precision, craft, and performance with Acura's all-electric ZDX, with a premium bang and all-of-son sound system, up to a 313-mile range, and a Type S variant with an estimated 500 horsepower, the ZDX is their most powerful SUV yet. Unlock the energy when you visit Acura.com to order yours today. Market moving insight and analysis join Jim Kramer, David Faber, and me, Karl Cantonea on the opening bell hour of CNBC Squawk on the street. Good Tuesday morning, welcome to Squawk on the street. I'm Karl Cantonea with Jim Kramer, David Faber at Post 9 of the New York Stock Exchange. Futures are sharply lower on the back of Monday's decline as bonds continue to break down 10 year 4-3-8, highest since November. Meantime oil eclipses 85 for the first time since October. A roadmap begins with these market worries about rates as some of the strong eco data fuels concerns, the Fed might hold off on a June cut. Also, I had a rough morning for shares of health insurers, the government's Medicare Advantage reimbursement rates. They come in short of expectations. Many of these stocks down rather sharply huge. GE shares though, they've been up sharply. Wow, and the company now completing its final split by spinning off its power generation business. GE Aerospace CEO Larry Culpe and GE Bernova, Chief Scott Strasek. Both of them are going to join us right here at Post 9 a bit later in the hour. Let's begin with the markets though, and these rate concerns. We mentioned the 10 year going back close to 4-4, Jim. This all got started with the ISM data yesterday. But it's just constant. I mean, you look at it, it just drips and drabs, but rates are going higher. But the market is reacting in a curious way. Yesterday, the NASDAQ actually finished up. I thought that was just incorrect. These are the stocks you'll be getting hit, David. And I do think that this is kind of a very important moment in the market, because we had forgotten about rates. Well, we did yesterday, as your point, but a mistake for the NASDAQ to be up. What does that even mean? No, I just mean that if rates are seriously good to go up, then you want to sell a high multiple stocks. You would think so. You also want to keep an eye once again on those companies that have a debt stack that needs to be refinanced. I think there had been hope at the early parts of this year that you'd see a lot of rate cuts. And therefore, the refinancing risk was lower. Right. Any number of those highly levered companies that do have refinancings coming up, let's call it the next 18 months? Well, you're going to need, Carl, I know you're still at JPMorgan, because you're going to need the economy to stay strong. But that also means you won't get the cuts that some are hoping for. You know, I never believed in the cut theory, because I think the economy is really strong. Those guys, I mean, I guess those guys are just, they wear Tommy Hilfeger. That's the only thing that they do. The only genuine weakness. And they're Medicare. Yeah. Medicare was something. We're going to get to some of the insurers. Just astounding. That was a Biden shutdown. The rates are one part of the picture, Jim. Now, the markets now pricing in fewer cuts than the dots, whereas before we were pricing in double the amount suggested by the dots. But we mentioned oil too. Ukraine struck one of Russia's largest refineries. Iran is valuing revenge for the attack on their embassy in Damascus. Look, in the meantime, there are states in the Gulf that are building nuclear power plants. We're going to hear about that from GE Vernova. I think that oil could go a little bit higher. There are some very good strategists. I think it goes to 100. But natural gas is lower. Oils up and gas leads up. I don't want to emphasize too much what's going on, because we know that it could be ephemeral. Not inflation, but oil. I never want to get caught up in the ephemeral situation. So you're not, this note from JPM, suggesting that Putin could put the squeeze on Biden ahead of the election by taking oil to 100? Well, what we have to do, I mean, they took out a lot of Ukraine capacity. I would say that we actually have the exact right people on. Vernova is actively involved in Ukraine. We're going to find out. I think it's important. Back to Carl's point, though. I'm just, I want to revisit. Sure. No, I mean, and the Indians have been buying the Russian oil. Is that correct? Yes. But remember, Russian, it's obviously it's a global commodity. So if you cut it off in one place, it doesn't necessarily mean that it's not going to, it's going to have an impact. No, and I mean, Russia and the axis of kind of non evils, India building a huge number of coal plants, China building and coal plant every two weeks. Although a lot of it is for backup power. Well, and the sun doesn't shine because they are by far the largest producer of solar as well. And they're putting up more renewable. Let me give you a little heads up partner. April 8th. April 8th. Total eclipse of the sun. We're staying in the world for solar power. I was like, where is he coming with this? On that day, you're going to need your coal. Yes, you got to go back up. April 8th is a disaster for the solar industry. Maybe that's why Vernova has a move. I don't want to make light of the fact that, yes, the Chinese do build a lot of coal plants, but it is said that they are also very heavily, I mean, we know, look what they want to do. They're an electric vehicle, but they want to do new industries by far the largest. They're going nuke. Who's going nuke? Chinese. Trust me on this. Trust you. I have sources. Trust you? Trust me. You have deep sources in the Chinese network. I have great sources on this. Really? Yes, I do. But David, understand, like, you know, when you have an interview, like we have this morning, you got to like go a little, you got to go the distance. Jim's referring to... G.E. Vernova. Yes, G.E. and N.G.E. Their prospects. G.E. Vernova is very interested in small, modular reactors, and I think it's very important because David, I'm actually surprised at you, because you have been one of the most greatest proponents of nuclear. I have talked about it being a without a doubt necessary intern. It is. Not just filling in the gaps, but taking us through this transition potentially, and it's not mentioned here. More people have died with nuclear power than McColl? No, we know. We know that it's a history that makes a little sense in some ways given in this country after Three Mile Island, essentially. Right. Which is... Chernobyl? Yes. And then Fugashimi got three actions. We only have one here in this country, and it is operated quite safely. There is a concern, obviously, about the waste product, but you're right, and the smaller reactors could be fascinating, particularly given the power needs of the thing we talk about all the time, which is the growth in generative AI, the data centers, the power needs of those data centers. What are you going to do? I mean, look, I think that I'm not trying to be two G.E. Vernova Centric, but this is an amazing day. It's an important day, because we had a grid that nobody ever cared about, right? We had no sense that wind could be partly... Because demand has been stagnant for a decade. For, actually, for a hundred years, you can't argue. It really hasn't been any real demand. And I think that we kind of forgot that data centers are the greatest source of technology. Oh, David, what? No, we got the Tesla numbers. Should we do them? Yeah, just do them because the stock's down six percent. Stocks down, all right. Phil's got the numbers for us as well. You want to just do that? What do you think, Jim? I want to check with you first, please. Phil, take it away. Give us those Tesla numbers. These are not good, David. That's why the stock is down. Deliveries in the first quarter of 387,000 vehicles. Let me put that into some perspective. The fact-set consensus as of Friday and it had been coming down was for 457,000 vehicles to be delivered. First quarter of last year, the company delivered 422,000. So this is a year-over-year decline the first since 2020 that we've seen from Tesla. And in terms of production, the company produced 433,000 vehicles. They do point out the fact that they had the change in the ramp up in production in Fremont as they come up with the new model three highland edition. They also had the Red Sea issue, also the issue with production at the Gigafactory in Berlin. Not said by the company, but clearly one of the main factors, guys, what's happening in China. And we know what's happening there as they have lowered their production. And we've seen the announcements or the reports come out of China, and that clearly has an impact here. That's why the stock is under the pressure that you're seeing right now. Again, 387,000 vehicles delivered in the first quarter. The street was expecting 457. Even some of the bearish analysts were expecting, what, 410, 415, not 387. Guys, I'll send it back to you. Sorry. I was going to say, Phil, full-year estimates, I guess we can say goodbye to some two handles, right? Oh, I think that's a given. I think that's a given. Most were already bringing them under two. We had a few people saying 1.91 million deliveries for the year as the estimate that they were putting out there for some perspective. And I don't know if we can pull up the chart that we have showing annual deliveries. They delivered 1.81 million vehicles last year. And if they were to go to 1.92, 1.93, that would be about an 8% increase in deliveries. Now the question becomes, do they hit 1.81 million? Is there a possibility that they don't even make that? That possibility is out there, but it's early, and a lot of things can change. Obviously production is likely to come back much stronger, and deliveries should improve in Europe. They've been clearing out a lot of inventory in the first quarter. And if things start to firm up a bit, then certainly we expect higher numbers in the second, third, and fourth quarter to what extent remains to be seen. China's the wild card in all of this, guys. They are brutally competitive in terms of what's happening with EVs and EV pricing, and that's having an impact. There's no doubt that that's having an impact on Tesla. And remember, Shanghai is not just where they supply China, but that's also where they supply other markets around the world. So they can offset some of the impact of just pure China and the competition there in terms of vehicles being shipped to other markets out of the Gigafactory in Shanghai. But there's no doubt that this competition in China has had an impact. Now, Phil, I know that United States is not the fulcrum. It is China, and I know the problems of Berlin. But this kind of this newfound, we don't want to go electric. We want ice. We also are willing to have hybrid in this country. We want hybrid. Americans are embracing hybrids right now. But it's not what, if you're someone who wants us to electrify and not and get off of nuclear, I mean, get off of a go to nuclear and get off of coal and get and get off of that gas, it's not going to come together at that level. No, but that's not how consumers think, Jim. I think there's very few people in this world who sit there and think, well, ultimately, is the fuel source for this. A cold burning fire, a power plant, is it nuclear? Is it hydro power? That's not how consumers think you know that. The way consumers think is, what's the best option for me, price-wise? And then also, am I comfortable making this transition? And there is no doubt that the recharging issues in this country are a huge issue. The first adopters, they could live with it. Not the people who are now looking at buying a vehicle now. And I hear this timing again from my friends who are considering buying an electric car. Almost all of them say the same thing. If I'm in Chicago and I've got to drive to Cincinnati or St. Louis or Minneapolis, I ain't doing it in an electric vehicle. We test otherwise, I got to sit there and play so right. You're so right. You're so ridiculous charging. We test over everything, all I could think of was like, what happens on 95? On 95. I'm not going to push it to a to a rest stop. I mean, it's worried. Hey, Phil. A company reports, obviously, April 23rd. So, we'll get a lot more details then in terms of price cuts, what actually meant to underline cash flows. You were in Chile not that long ago. You mentioned the production out of the Shanghai factory. But give us a sense in terms of your expectations in competition and other markets where the Chinese can come in with vehicles that are still priced far below what Tesla's able to do. Not only are they priced below what Tesla's able to do in electric vehicles, for the most part, because of the advantages that they have in terms of scale, in terms of labor cost in China. But on top of that, David, when you go to a place like Chile, the thing that you notice is that the internal combustion engine vehicles for $56,000 cheaper from a Chinese automaker compared to a comparable vehicle. We compared one from Great Wall versus a Toyota. They were both midsize SUVs. No comparison at all. And when we talked with consumers, they all said the same thing. It's pretty good. Why wouldn't I buy it? It's $5,000 cheaper. And that's the competition that not just Tesla, but all automakers are facing. And in terms of EVs, yes, Tesla is King of the Hill in the United States and was King of the Hill up until the fourth quarter with BYD, full year numbers. I think BYD probably passes them this year. They're still very formidable, and they've got a lot of advantages, but they are facing a period here where they've got to deal with softness in a number of key markets. Phil, you're right. And we'll get to the Rivian numbers that we got this morning. Got a downgrade of NIO, talk some shell me in a little bit. That's our fill of bow on Tesla's disappointing Q1 delivery. When we come back, the Disney Pelt's proxy battle, today's the deadline for electronic votes ahead of tomorrow's shareholder meeting. Later on this hour, GE Aerospace to trade as an independent public entity after spinning off GE Vernova, CEOs of both companies will join us at post nine. Futures very weak. We'll get to some of the M&A and oil services today. Jim mentions health insurers when Squawk on the street continues in a moment. On April 3, Disney will be hosting its annual meeting of shareholders, and Disney encourages you all to vote for Disney's nominees. Voting is easy. You can vote electronically or by good old-fashioned mail. All electronic votes have to be submitted in a later than April 2, 2024. Learn more at VoteDisney.com. What's on the horizon for financial markets? At P. Jim, it's a question that over 1,400 investment professionals relentlessly research in pursuit of your long-term goals. Specialized across asset classes but united in collaboration, our teams provide global and local expertise. Our investments shape tomorrow, today. Pursue your tomorrow with P. Jim, a leading global asset manager. All right, you can suffer the futures boards. We are going to have a sharply lower open about 13 minutes from now. Of course, that board battle at Disney continues triumphs, Nelson Peltz and Jay Rizzulo trying to get on the board of Disney shareholders having to the end of the day to submit their votes. Disney's largest holders or amongst some of the largest holders that were aware of, T. Rowe Price, Norges Bank, that's the giant Norway fund. They are voting in favor of Disney. The Wall Street Journal reports BlackRock also siding with Bob Iger and his board of directors as well. We're just banged with hold on Mark Parker, but that was kind of interesting. I've been saying this for weeks. A lot of confidence in the Disney camp that continues. It still may be close and don't forget shareholders can withdraw and resubmit until the deadline that happens occasionally. So there is still lobbying to be done here. We still yet to hear from, I think, at State Street, Vanguard, the huge index and/or passive funds that have such an impact on votes like this one. Retail also important. Disney, from when I'm hearing quite confident on the retail vote, some 40% or so of the shares outstanding, considered essentially retail investors. And inside Disney, I think they believe they can get as many 75% of those. So, Jim, you'd have to say right now that Iger's going to win this one, but we don't know yet. We don't know yet. It's still too early. And these reports about with 50% in, again, you can pull and resubmit until the deadline. What are you hearing about cost of this to Disney shareholders? I mean, the costs are running the highest ever. Yeah. On both sides in terms of what they've spent. Well, I don't see the trying side not as important. My trust-owned Disney stock. It would seem that this money might have been better, I don't know, seen park, making movies that sell. I think 40, 50 million bucks, something along those lines. Most expensive, proxified ever. I think that matters because people have to recognize that at a certain point, maybe, they should just say, "Let's have many." He can't do 50 million dollars with damage. Well, they felt otherwise, clearly. And, you know, by the way, it's not just money, it's time. I mean, I've mentioned this for so many years here, in terms of these kinds of fights. The distraction for management, the time that's spent. Now, you're spending it with shareholders. So, conceivably, there is a good that comes from that from sitting down as Bob Iger did with so many of your large shareholders. But there's a lot of distraction that comes along with this. What are the odds that they do something like Proctergive, where it was really close today and invited Nelson to the board? I don't see it happening. Mine is 10? Not a chance. There is a great deal of vitriol here. It's tremendous that everybody's taking it very personally. And we're going to be able to stop talking about it pretty soon, because we don't even know the answer. I think even when you talk about it, like I talk about it, I'd rather talk about midi, maybe goofy. Bring a goofy back. Someone has compared midi-coofy. Something's compared you to basically every cartoon character along the way. Jifford Thumper. I've never been known as Thumper. How about Bambi? Bambi's mom unfortunately. Woody Woodpecker, yes. Yes. Thumper, no. When we come back, Kramer's mad dash will count down to the opening bell. And as we said earlier, GE Aerospace Chief Larry Colt, GE Vrenova, CEO Scott Strasek, joined us to discuss General Electric's final split. One more look here at the pre-market. We're just walking the street in a moment. From pit-length to podium, the Las Vegas Grand Prix is providing fans a race day experience at the speed they deserve. With the help of team mobile for business, our 5G Advanced Network Solutions are powering race day operations with event-wide connectivity. From streamlined gate entry to an immersive app, giving fans blazing fast access to the sport they love. This is accelerating innovation. This is the Las Vegas Grand Prix with T-Mobile for Business. Take your business further at T-Mobile.com/now. 6 minutes until we get started trading here at the New York Stock Exchange. Looks like we're going to be down shortly. For a mad dash, though, you want to talk about paychecks? Yeah. I mean, may not be enough. The PVH is off being paychecks is down huge. They missed the quarter. They also guided lower. A lot of this, David, is actually business is soft. Now, you start putting these things together. PVH businesses are off, paychecks business. Maybe we're missing something. Maybe there is a bit of a slowdown developing just when rates go higher. So, this is a sub-optimal situation, David, because you want to see paychecks continue higher. Small, medium-sized business. Right. You have the CEO on a bunch. We have the CEO on tonight. Thank you for that little prep job. Sure. One of the things that really worries me, David, is that this has been the engine of the economy. Small, medium-sized business. We know that. And to see that tail off would be something that was counterintuitive versus what we thought maybe a couple months ago. I'd be curious to hear what he has to say that in terms of characterizing that. Yeah. I mean, look, PVH was a lot Europe, but paychecks wheelhouses in the United States. So, let's stay close to this. There's a lot of talk that there is a bit of a frugality developing in American business. Interesting. Okay. Could be an argument that rate cuts maybe are needed. Of course, there's so few, I mean, more and more prognosticators eliminate their expectations of rate cuts. But I do the underneath. Yeah. When you have a pal, when you have a company that's really linked to direct linkage, just one means a business and they miss the quarter. We got a lot more stocks, of course, that we're going to keep an eye on this morning opening bell. It's just a little less than five minutes away. And don't forget, of course, you can catch us anytime and anywhere by listening to and following the squawk on the street opening bell podcast. After 130 years as an industrial icon, it is the end of an era at general electoral today. The company has completed its final split by spinning off its GE Vernova power generation business, which will trade here at the big board under ticker G.E.V. GE aerospace will retain the traditional GE ticker. That company's chairman and CEO, Larry Culpe and GE Vernova chief, Scott Strazig will join us here at post nine shortly after ringing the opening bell. Great, look in the journal today, Jim, at the various chapters. The conglomerate really has had over the last century. I think this is very important to discuss with David, just a second ago. I think it's Samuel. The reason I say is that I still think the company has the the zeitgeist of the country. I mean, people want, they want power, they want aerospace. These are very good secular trends. The GE health care dealers worked. But mostly, I mean, people kind of, people gave up on this company. They gave up on it. And they gave up on it to buy it. When Larry Culpe came in and made some plays where he said, look, it may not be so good. Culpe was running, David. He was running. He was early. The early days were a little tough. And then, you know, remember, they announced this plan to split up in November 2021. And where you are, when this division was the win play and he promised Michael Thomas, who best be great, they got it. This is a very big gift. The core to that. Let's get this opening bell and the CNBC deal time exchange to the big board. G.E. Arrow, space and G.E. Bernault by celebrating their listings, as we said. We'll talk to Culpe and Strazic in just a few moments over the Nasdaq Xtrade web operator of marketplaces for rates, credit, and equities. And speaking of rates, Jim, 10 year crosses for four. Oh, I mean, look, we've got a real problem on our hats. We have a lot of commodities that are going higher. We've got to talk about that. We've got a lot of companies that are starting to say that these are a little bit weaker just when we have the Fed not cutting. I mean, come on. So that something has to give you or else we're going to have, as I said yesterday, a seller. I mean, a seller for some magnitude. That's what I've been predicting because we got overboard. This is not a great moment. I mean, that's what I thought the Nasdaq when it was down. I was kind of like, OK, get it over with. But it looks like it's going to be a prolonged decline. Sure. But not a great moment. Aren't we going to want a 2% drawdown before we get too dramatic? Look, I know. I mean, it's been since October, the end of October, it's just been one of the great months. As B.F.A. said yesterday, the 98th percentile going back to the 30s. So let's have a little bit of a rollback. Nothing serious. But let's have it. In part, because we did not expect that rates would be any debate. And it's kind of shocking. And I came in yesterday, says, oh, we got that part of the PCE on Friday. Oh, good. Let's focus on stocks. And no. And yes, I mean, I've been thinking about the oil situation. I mean, you do want it to stop here. We'll talk to these guys. But I just feel rates have to stop going up. They have to. To end this, they have to. And I know it's very little sell off. But it could snowball because there's some wheat, like a P.V.H. That had come in hot. That was one of the hottest stocks in the market. Now you got Ralph Lauren. That's really hot. Is it so hot? I don't know. The P.V.H. guide is pretty dramatic. I want revenue down 11% stock was down. Yeah, 20%. The only guy down that might be worse, David, is that you man a situation. Yeah. I mean, we mentioned at the very top, but we should get to it guys in terms of Medicare advantage. I mean, you got now you've got down rates, and you man enough, particularly helpful. Well, the underlying theme, of course, is the same, which is the deteriorating rate environment, becoming a risk to all the estimates for all of these companies. Because Jim, it was unexpected somehow that rate from provided by the US government would be lower than perhaps had been anticipated. Look, I don't know what these guys were thinking. Did they really think that you man was so far wrong about what they thought they would think they'd get maybe a 5% rate hike. They got 3.7. That was the level that CMS had. They're the regular. And Carl, it's sort of election year. Are you going to give the seniors a 5% increase, and how much they have to pay for Medicare, or do you know? But these guys in that industry, I mean, look at United Health, they've got, they have a giant hack on their hands. And now they have this, and that's the livestock. So you have, these are rock bed companies and they're, this was a shock to them. The analysts at B of Aces in a rational market, insurance companies can always price back to a target margin. However, with reimbursement and utilization pressures heating up. Remember, they also had huge utilization at the end of last year. The amount of benefit cuts needed could begin to weigh on the perceived value of Medicare advantage. You know, I know that I'm the only one who perhaps avails themselves in this year. Yeah, at least now. I mean, if you go in and you're using your program, I like how to get Sipro for my ear, ear drops. It's CBS. And the woman says, yeah, I'm used to 10 bucks, right? 5 bucks, 10 bucks. What was it? $193. I'm not paying $190. I'd rather not have that medicine. But let me see the formula, the formulary. I mean, this was, and I have one of these. I mean, people in this country pay a lot of money for drugs if they're not on the formulary. And even with the Part D, wow. So the idea that you are going to get ripped off and have this thing go up, I think would have been devastating for Biden with senior citizens. So this is a very important decision. It's going to really, I mean, Karen Lynch was doing such a great job at CBS. Suddenly, you'd set back at, you know, Amanda was never in talks to sing the one point. Yeah, their shareholders, the signal are very happy that that ended up not happening. But yeah, they were reported to have been in talks by the journal. And I reported at the time, significant opposition of some large shareholders who sign up. Obviously, those talks did not continue. Hell, look, you said that was a good move. I mean, you matter ran into remember, let's not forget at the end of last. I mean, they ran into headwinds as a result of more people going in for inpatient and do not forget pickleball. The Achilles pickleball. Yeah, that's right. I mean, people they think that pickleball is not a context word and that that you're okay. I place pickleball this weekend and I can see how it could absolutely screw you up very quickly. Well, yeah, yeah. But pickleball was actually mentioned. I'm not making a joke about it. No, no. And also famous UBS note Yeah, it's true. And the cohort is tends to be can be older, right? You are, you know, not just like a slimmer is your heart. You know, I'm sure he served hard. I barely, I'm just learning. I may not keep donut because I think the risk of injuries is very hot. Safer in the water. Safe for the water. Poetically, Jim, health care and tech are down 1% plus. Well, that's what should happen. The only sectors positive really is energy. We didn't mention Champion X. No, that was an interesting deal. Yeah, that's a lot of money. So be well, not money share share share. Yeah, well, they gave away 9% of the company. Talking about a fairly sizable transaction, SLB by acquiring Champion X 0.735 shares of SLB. If you are a Champion X shareholder together, who alone 9% of the outstanding shares of a combined company. And Jim, I'll let you explain sort of why it may make sense and not in terms of what you're talking about next time. It's like poor labs. I mean, it's upstream making so that it's technology to get water, but measure the reservoirs. It's something that SLB did not have. It's a good move. SLB actually said some good things about their business. And they're, you know, SLB is such a good company. They did not screw this up. They've owned this market the whole way, even though they had Russian exposures. They're just a very incoming Champion X is a good company. So I think SLB, I hope should not be down that much, even though they issue a lot of sucked. Or we'll issue a lot when that flows. Yeah. Yeah. Very important. Very important to you. Interesting winners list this morning at the open, at least Jim. GE Aerospace. GE Aerospace Comcast. No, no, that's not true. That's only because Comcast was out three and a half percent yesterday on that downgrade. All right. David, you have to say it, David. What is kind of our network? Thank you. Yeah. Our network. Along with some, we got it. We had an upgrade of Eden, I believe. That's also a company that is in the wheelhouse of the company we're going to be speaking to. And everyone thinks it's pretty fine. Now, that guy had a cell on eat. So I think that that guy was delusional. He's been unbelievable. Barclays goes to equal weight, ETN. Yeah. That was supposed to be funny, Larry. But you know, like, you know, very funny, like lay a thing on the inside. You can't talk to him. He's never on the inside. No, I'm just making a joke about chances have when I made a joke. He goes, very funny, super funny, super funny. Anyway, we do have an unbelievable opportunity here to ask about all the stuff that we've been talking about, except for you, man. We don't have to ask them about you, man. While we get them set up, Jim, a couple of the other calls we mentioned. City cutting, Clorox, and up in E.L. They said that Clorox, that when you're all you're going to get from Clorox, you're basically done. I mean, we have a slowdown. You're going to take Clorox at 200. A little silly. I think there's been a lot of silly calls. Now, what I want are calls that recommend GE and GE, Bernova. And we better start getting those. General Electric completed his file split. Spinio can see you, Bernova, power generation business. Now, Tranny Anderson will GEV. And joining us now in the CNBC exclusive, by the way, here at Post 9, GE Aerospace Chairman and CEO, Larry Culp, and GE, Bernova, CEO, Scott Squeeze. David, I want you to play on this too. Okay. Don't worry. Don't stop. All right. So let's talk about what the businesses are. And Larry, I'm going to give it to you first. Scott, what was this business four years ago? And where is it now? Well, if you look at GE as a whole, Jim, four years ago, five years ago, pre-pandemic, we had a mountain of debt that was holding us back. And we were really in need of an operational turnaround. And I think that's what you see today with the launch of an independent GE aerospace and a GE, Bernova, right? Well, on the other side of $100 billion of debt reduction, you set these two businesses up as we did GE health care on a strong financial basis. And what we've done operationally is not only more than quadrupled our free cash flows, but driven that 190 billion of market cap expansion that we have seen since the dark days of 2018. It's Lazarus, and we have to congratulate you. It's what American business and finest hour, I think. Scott, you've got three businesses. You've got nuclear hydro steam power. Okay. And we know with gas, you've got the second largest business is the wind segment, which is doing incredibly well, a lot of onshore. And then you have the one that made the smallest, but the most exciting, I think, is electrification. So how are you going to divide your time and resources? Well, the reality is the world needs a little bit of all these technologies, right? So as a purpose-built company to electrify and decarbonize the world, it's going to be across those because our power businesses really do electrify the world today with big install bases, generate a lot of cash flow will for a long time. We have been focused on wind because we've been in an operational and financial turnaround of our wind businesses while the industry really is improving itself. And to your point, Jim, electrification and the investments in the grid is the most exciting part of what we have. I mean, for every dollar that's invested in power, you really have to spend three dollars investing in the grid today to make this system work. And grid is a lot of software. There's a level of technology that's involved to make it so that if this data center revolution occurs, we have to make it so all the sources we have can go and give her all she got. No question. The reality is the bi-directional flows of electrons coming back from solar panels on roofs, EV chargers, and the variable nature of power. It's a complex system, but one that does need software solutions. And that's one of the fastest growing parts of GE vernova. You know, I want to get back to Larry on aerospace, but let's just continue here for a second. Scott, when you talk about business improvements and analysts right about it that have led to a sub segment profitability in wind, what are we talking about? What have the improvements been that I would assume you can continue to build on towards more popular? We've really had to slow the game down for the team. A lot of that comes back to underrating focus markets. What we talk about with workhorse products, real products, we can industrialize at scale. And that's coming through with the onshore wind business will be high single digit EBITDA margins this year, applying similar principles to offshore and a business and a part of the energy transition that's critical. Wind only generates 7% of the world's electricity today. We need to be 25%. It's only going to get there if we industrialize things at scale. And that's what we're focused on. Yeah. Larry, viewers may not be aware unless they take a look at a chart. Your GE stock is up dramatically since the middle of 2022. The multiple has also expanded a great deal. Meaning there is a belief, obviously, that you're going to be able to grow cash flows, EBITDA, however you want to measure it at a higher level than have been previously the case. Is that going to be the case? And if so, what's behind that? David, we were here just a few weeks ago really previewing the standalone GE Aerospace financial profile over the next five years. And we were talking about $10 billion of operating profit in 2028. We sit here today as the global leader in propulsion, both in commercial and in military applications. We're in a tremendous up cycle on both sides of the house working feverishly to support the airlines with their installed fleets today. The parcher's up 9.6% year over year just on our installed base as of this morning. That coupled with the ramps that all the major airframes around the world are looking to see through given not only modernization but expansion efforts on the part of the airlines sets us up I think tremendously into the foreseeable future. We mentioned Larry, the piece in the journal today, just looking at the history of the conglomerate over 130 years. And I wonder, we get these think pieces every now and then about the era of the industrial conglomerate in a time where investors want pure plays. Do you think that pendulum ever swings back? Carl, I don't know. I think we're really here focused on GE. And five years ago, we knew that we would be well served by more of a decentralized approach to running the businesses. We didn't really have this day in mind, honestly, but we knew if we were more focused, focused externally, focused on the customer. P&L by P&L, we drive better results. And I think what you see today are three now, GE offspring, operating very much in that way, delivering better results both for customers and for investors. One of your comments to the journal was, when you came in, some of the challenges were playing to see others less so. And I wondered which ones were less so? Well, I think that there was a lot that we needed to do operationally to be able to turn things. Again, both for the customer in terms of quality and delivery, let alone for the investor. And Scott and his team, the aerospace, the healthcare teams, all were at it, hammer and tong, day in, day out. We made a lot of progress, I think in 19 and 20. But then we were hit by the pandemic. Clear of that, I think you see what all three of these businesses are capable of. And Carl, their best days are still very much ahead. And that's really where the operating system that Larry's been teaching us on, such a focus on both getting the operational KPIs right for the customers in the near term while still protecting for investments for the long term. In an operating system flywheel that really works. That to me is why I'm so excited about where these businesses are going in Vernova, because we're still in the early days of really getting that leverage. I spent your early days, let's talk about both wind and small module nuclear reactor. The president wants 30 gigawatts from offshore by 2030. Yeah. First, I want to ask, do you think that's even possible? And second, do you think by 2030 we'll be building any nuclear power prints in this country? Yeah, if we go in reverse, I mean, with small modular reactors, we'll commission the first small modular reactor in Canada with Ontario Power Generation in 2029. We're working right now with Tennessee Valley Authority on the permitting to do something similar in the US as a fast follow. Whether it'll get done this decade, it probably trunches into the beginning of the next decade. But small modular reactor is going to play an important role in the energy transition. I mean, we need to triple nuclear capacity in the world, but we need to do it with something that we can industrialize at scale. That's the exact same product over and over again. And wind offshore, I'm concerned about the cost the overruns have been terrible. Now you're still building when you've got a workhorse product, but I'm concerned about whether you can make good numbers. We are. But what I would tell you is this, I'm more encouraged with where we're going with offshore wind today than I've been in the two years I've had the business. For this reason, the market is resetting. We're starting to drive towards better economics, better pricing that are representative of what this product provides to the world. Offshore wind is going to matter, but it may take a little while for it to reset and that resetting is happening in which it's going to play an important role in the energy transition. Okay, you also are very much involved in what I regard as hot conflicts. What are you doing in Ukraine when the Russians bomb the grip? You bet our air derivative applications with power with generators were the first solutions into Ukraine to basically have mobile solutions that can go right to the point of use where the power and the electricity is needed. We started their derivative, we're investing in the grid, and there's a lot more that we can do in Ukraine and other conflict areas. Larry, I mean, I can remember our first interview sometime back. It was a bit of a different story at that point. It's been a long road. I'm just curious as to your expectations in terms of how long you want to continue to helm GE Aerospace, for example, especially given the enormous amount of work that you had to do over these last five plus years. Well, David, I'm so proud to have not only been on this team, but to see what the team was able to do over those five years. But again, as I mentioned a moment ago, I think at Aerospace, we have a lot still to do as we serve our airline and air framework customers around the world. We know there's a lot happening on the military side of the business. So we had a great celebration here at the Exchange last night. We just rang the bell. We're headed back to Evendale, Ohio later today. That's where I'll be this afternoon in my office and really looking forward to being full time at GE Aerospace. You know, there's another aerospace company that's been having a chair of issues. It occurs to me that it might be looking for somebody who can really turn things around. Would you ever have any interest in being the CEO of Boeing? Our relationship with Boeing is an incredibly important one. Has been David for decades. We are in many instances, the sole provider of engines underway on their single-hour and wide-body platforms. I think all of us at GE Aerospace are going to work very hard to do all we can to support Boeing in a difficult hour. We're optimistic about that. Are you optimistic? I'm curious as to why you're optimistic and what you think, particularly from your vantage point, is somebody who is an expert on execution within the industrial complex, so to speak? Well, I think David and the entire leadership team has articulated what they need to do with safety and quality at the top of the agenda. That's not something that anyone does overnight. We certainly didn't at GE, but I think they're on that path and where we can help today, where we can help as we think about future platforms, right? We're investing today, David, on the technologies that will not come to market until 2035, 2040. So to Scott's earlier comment, we're going to play the short game with our customers. Boeing at the moment, obviously an important one, while we continue to invest long-term, so the decades-long industry leadership positions that we enjoy at aerospace are perpetuated in the industry. Are you referring to different types of propulsion? Are there kind of moonshot technologies that we need to start thinking about seriously? Well, Carl, we'd want you to think a lot about what we call rise, a program for revolutionary innovation and sustainable engines. Think about an open fan architecture that will propel the next generation narrow body, driving 20% or more improvement in efficiency or in emissions reduction. So those are the technologies I'm alluding to, the building blocks of which are underway today, which we won't see at your local airport for a while. But that's the way we invest, that's the way we innovate, always have a GE aerospace always will. Now, Scott, we've got a two-fold mandate. We have electrification on one, and then we have decarbonization on the other. How do we solve and create a pragmatic world of energy going forward? It's going to be a combination of a lot of things, and during this decade of action, we're going to have to use the technology that exists while inventing things for tomorrow. And that's what Vernova's focused on, too, whether that be carbon capture, whether that be combusting hydrogen and gas turbines. It's a combination of a little bit of all the above, right? Now, what do you think that there's right now, I'm something to fill, a political imperative about climate change under a new and different president? Are you concerned that you do not have a climate change believer and maybe some of the, let's say, the incentives may disappear? Are you thinking about that? Yeah, we spend a lot of time on both sides of the aisle. And the reality is with the energy transition, as it relates to the electric power system, it's very clear that investing in the electric power system is investing in jobs. It's investing in US competitiveness, manufacturing. It's becoming more and more a conversation on US and national security attached to energy security. And those are themes that are supported on both sides of the aisle. So you think if Trump wins and the IRA goes away, you think your business is still in the same position? We have conversations with both the Republicans and the Democrats on these priorities with both US competitiveness, jobs, innovation, and that's really what we're investing into. For over 130 years, GE has served many administrations, we'll continue to be able to serve and partner with many administrations going forward. Now, you were able to come up with investment grade two years ago. No, some of the importers that have come in quitting energy security have truly helped you. But I just got to get from you data center growth because I'm getting a 5% number after being out west a year. The grid can't handle that. This is currently configured. Yeah, and that's why it's going to take them. The last 20 years, there hasn't been a lot of investment in new power generation or low growth in the US and the reality is we're going into a cycle where that's going to come. And with it, we're going to have to invest in a lot of technologies. There's going to be new gas additions added in the US. There's going to be a lot more wind and solar. But it's only going to work if we invest in the grid simultaneously, which is why we really talk about the super cycle that's coming with the energy transition that we're so excited to serve. Well, I thank Larry and Scott and congratulate you both. It's quite a day here. It's the reinvention of a company that a lot of people unfortunately had left for dead, but you didn't do that. What a horse. A work horse. Thank you, guys. Really appreciate it. Thank you. Thank you. Thank you. As you can see, a pretty tough tape at the open here down 500. Only utilities and energy are green. Watch bonds as well. 10 year just south of four four. We'll get some fed speak beginning in about eight minutes. Bowman's on the tape soon. Williams, Mr. and daily. We're back in a moment. Jim, what's on that? Well, there's throwing to have you burn over right here in G. And tonight, I've got paychecks, which is the company that is also part of the big sell off. I don't think the sell offs over, but I went to remind people, as you said, it's been such a bountiful time. It's got to do a little bit of rain. We're not going to eat flowers otherwise. Nice. As we move into April, Jim, great show. Thank you, guys. That money. 6 p.m. Eastern time. 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