What's on the horizon for financial markets? At PJIM, it's a question that over 1,400 investment professionals relentlessly research in pursuit of your long-term goals. Specialised across asset classes, but united in collaboration, our teams provide global and local expertise. Our investments shape tomorrow, today. Pursue your tomorrow with PJIM, a leading global asset manager. Market moving insight and analysis join Jim Kramer. David Faber and me, Carl Cantonea, on the opening bell hour of CNBC's Squawk on the Street. Good morning, welcome to Squawk on the Street. I'm Carl Cantonea. Bands back together as Kramer returns with David Faber here at Post-9 of the New York Stack Exchange. Just in peace, trying to snap a three-day losing streak amid a series of corporate misses today. US Bank Corp ASML, Travelers, JB Hunt, markets still digesting Powell's hawkish comments from Tuesday. Roadmap begins with the fight against inflation, as the Fed Chair says there's been a, quote, "lack of further progress" this year. Plus United is one of the biggest scanners on the S&P in the pre-market, this on the back of strong earnings. Airline also slashing its expected deliveries amidst Boeing's quality crisis. And Tesla is asking shareholders to reinstate Elon Musk's $56 billion pay package that was back in 2018. The S&P versus Delaware Court avoided that compensation earlier this year. Let's begin with the markets set to open higher after the Dow ended six straight sessions of declines. S&P Nasdaq Russell did extend their daily losing streaks to three. Yesterday, as you know, the Fed Chair suggested that rates could remain higher for a longer period. Here's what he had to say about battling inflation. More recent data show solid growth and continued strength in the labor market, but also a lack of further progress so far this year on returning to our 2% inflation goal. The recent data have clearly not given us greater confidence and instead indicate that it's likely to take longer than expected to achieve that confidence. That said, we think policy is well positioned to handle the risks that we face. First off, Jim, welcome back. Oh, thank you. You're in sight for sore eyes. Oh, thanks a lot. All right, it was great doing a little fishing. You know what I listen to this? And I keep saying, all right, so we've all been saying this. We've all been saying that he is pragmatic. We've all been saying that we have a problem with inflation. So when he verifies it, I don't think we can say, well, this is a sea change for the Fed. I think that the Fed has said over and over again that you have to have inflation go down, but at least for, he wanted several in a row. David, I think if we act surprised, we're phonies, if we think it's a sea chamber of phonies. Okay. Because he's, you know, he's looking at the numbers like we are. Yeah. He said they have to have cooler numbers. They're not cooler numbers. He has to wait for cooler numbers. Do you think that that's, like, anything different from what a pragmatic person would do? No, I'm not questioning. I'm not questioning the, uh, the stance. No. Okay. I mean, it's pretty straightforward, frankly, the market did not react. No. It did. It already seemed to have been getting positioned for this likelihood, right? Right. Because what's happened here is that when you get the verification, call me, get verification what happens. I mean, I was watching the tape because I was ruining my vacation and I kept thinking, okay, well, this is the chance for the people who don't know anything to react. It turned out there were a lot more people who knew than didn't know. So I just don't want to get into this thing. I don't want to get in the horse race of the Fed. The Fed has said, Jay Pao said, okay, look, we got to have some, some cooler numbers. So when we don't get cooler numbers and you have people still calling for three cuts, I mean, these are people who are saying, you know what, I've looked at this situation and I really think that the Eagles are going to win the Super Bowl against the Chiefs. I mean, what the hell do you know? Yes. What do you know? The comment, Jim, that maybe was a surprise was his forecast for year-end PCE at 2.8. B of A's out today saying actually the base effects and for December, for example, aren't that favorable? And in their words, if we take him at his word, there's a real risk the Fed may not cut until March 2025 at the earliest. I thought, oh, geez, well, I mean, like we have mine out here. I just actually just yellowed that because I said, well, that, that may be news. But again, please tell me, other than JB Hunt, who is cutting price, who is in trouble, and has to let things come down, I don't see that. We have a president who's calling for a tripling of the Chinese tariff. One of the few things that's happened has come down a steal, but we'll let's end that. We'll talk about that in a bit. All right, let's just then come back to the broader market. So your thoughts are what at this point given we have been digesting for some time the idea that there are certainly not going to be six, let alone perhaps three, let alone perhaps any rate cuts during the course of 2012. Well, I think we need to get to the point where people don't think there are any and then we get some good numbers. Aren't we kind of getting close to that? No. Well, we're not. We still have like Bullard, who's a really smart guy last week was still about three. I don't know. I gotta say, somebody this morning is like, we might get a hike and not a cut. I'm like, what? I mean, that's starting. No, he had not said if he had not said we're done, I think he would have hyped. That's based on these numbers. But where he's getting now in these numbers. Wait, what? You think if he had not said we're done, based on where we are. So if he'd never said we're done and just said we're data dependent all along, they'd be hiking now? Well, the numbers are worse than when they said that. That's just you have to take that. I mean, housing prices are at least affordable than they've been in ages. I mean, isn't housing one of the basic rights he's looking at? Now, look, I look through these numbers and I say they're not nearly as bad. I think if the numbers were tabulated by, I don't know, by service now, by sales force, we would look to the numbers and we'd say to ourselves, wait a second, these are not that inflationary. But when you calculate the numbers as what was on the CPI, I think that you could easily make a case that the Fed should have raised one more time. I don't think that's wrong. It's just that what's happened, they're not getting the desired effect. And I think, and the reason I said it is if you go through over Morgan Stanley and Goldman Sachs, they're finally, the window is open. People are now be able to make money, the private credit is going to be able to be good again. And that just says we're coming, you know, look out for more inflation. While you even tweeted this morning, if you're looking at the banks, it's about the fees in an environment where IBs rescind it. Oh, my God, I mean, you know, they're all raving about how much more they're making off people. I mean, I couldn't believe that. As much as I love Charlie Sharp, I love Charlie Sharp. That was a great quarter. He is making a huge amount on the fees. I think the stocks would be at 60. But the fact is, is that they have all these new groups that are doing business and that's smart. So it's not like the fees are like you were getting, you were being charged $10 foot ever now you're being charged 15. You just have more fee business because they brought in a lot more fee people. David, we want banks to get away from that interest. Okay, that is a sucker game. Yeah. We want fees. Right. Well, and to your point, in the institutional business, I mean, in the investment banking and as well for Wells Fargo, there were significant fee generation. Yeah, Charlie really, I thought Charlie did a great job. Well, analysts that anticipated bank America yesterday got hit in part because of what you just discussed. No. That's the income that interest margin. And USB this morning. USB this morning and we're still, you know, JP Morgan is still dealing with the significant decline its stock had on Friday, Jim, which you were also, I don't believe we're here for it. Well, it doesn't matter if I was here for it because it was very disturbing. It was between a barracuda and a kingfish. And by the way, I caught the barracuda, which is trash fish, the king we ate in the middle way. You throw a barracuda back. You throw it back, right? Actually, there are locals who like barracuda. Oh, okay. So they usually, you don't let it escape. No, I mean, you give it a headache, you know, it's not for the sport of it all. No, right. But let's, let's just go. Why don't we go back to JP Morgan? Sure. Since I, I read it in real time. Yes. And I said, okay, so we have really good quarter. And then Jamie comes on, you know, Jamie is a little like Dr. Strange. Look, I mean, you know, I was waiting for no fighting in the war room. I mean, honestly God, he comes on and basically he's just as looking, I don't know why you would ever buy my stock. The world is coming apart, inflation is raging. Who knows what's going to happen? And I said to myself, wow, he's issuing a sell on JP Morgan. I, I'll try to give him, but have a go to hold. I mean, honestly, if you listen to that, and I, I happen to respect Jamie, I think he's terrific, but he killed the stock. Worst reaction to earnings in 23 years? Well, if he had just-- It's a long time. I'd say he had just decided to be with me on the boat, a stock could be at one night. If he had just decided to come on the fishing trip, I would have gone so much better for you, for everybody. A stock could be at a hundred and ninety-eight. You know, Peter Sellers did play a lot of roles in that movie. So I just want to make sure-- Okay. You know, there are some moments, that movie's very good. Yes, it is. Sterling Hayden, blacklisted, not really kind of semi because he talked, he testified, he was fabulous too. He was? He was. Hope for Shane. Yes, of course. Essence. Yes. I do think that Jamie was a downer. I mean, he was just a downer. Purity of essence, that was what it was. I was with a group of people who are very sophisticated mates, but called them. Mates. They're mates. And it was a, a punch-up. I don't understand. They're sophisticated in the ways of the sea. No, when I read-- And they're seafaring abilities? What a park. No. Are they pirates? Listen, mate. I'm, I'm now into that too. When I, it was very hard to ignore his burst in, where he basically threw cold water on a stock called JP Moyen. I see. Okay. Did you disagree with that? No. It has been an interesting earnings season for the big banks, Jim. We had JP Morgan, obviously, to your point with some of that negative commentary to a certain extent from Jamie Diamond. Yesterday's earnings from Bank America not well received, but then Goldman Sachs and Morgan Stanley. Goldman Sachs, by the way. Again, we don't need to go over stuff we already discussed. Oh, I'm sorry. We'll keep an eye on the financials. I do. You know, just because you're not here, it doesn't mean it didn't happen. The world ending, because I'm not here, now every start of the world. Yeah. Um, Goldman Sachs-- It is your world. We've flipped it. Yeah. Exactly. Perfect. Dave. Thanks for that. You're welcome. David Solomon delivered the quarter we've won from Goldman for a long time. It was just a great feed-based quarter. Um, Morgan Stanley, his head pick, he came in hot. Now you either felt that James Gorman had just tanked it so that he could come in hot. Or he could just say, "Listen, he's a Boolean." I was-- You may say he's an ambulance. A Boolean about M&A and about IPOs. I'm David. That's your world. It is. Welcome to it. See, I'm back in your world. I'm back in my world. The M&A world, I would not share that, uh, a Boolean. But that's head pick, said that. There is a level of business that will continue to get done, but it's not. And as we get closer to the election, I think certainly from the perspective of companies considering a large transformative deal, which we have seen very few of course, uh, harder and harder to get done. Well, okay, so let's have-- can I have a little comedy hour? Do you mind? Can we sneak comedy in? Oh, is it the first-- And I ain't talking CLMI-TY. You're going to talk about your prepants? Well, no. No. No. No. The FTC wants to-- apparently wants to block, uh, tapestry buying cap-- capry. Yes. Now, okay, so that's stupid. That's okay. You can use the word. Yes. It will not-- I mean, I guess we're looking at the .7 increase in apparel over the course of the last year. But this is being blocked, I don't know, because of Jimmy Chu. Is Jimmy Chu the issue here, or is it my co-course? Uh, I am not certain I'm aware of what you're discussing, obviously, and that it has been yet another, uh, concern overall in the market in terms of the FTC, again, preparing to block. Right. Well, I mean, this-- In fact, the price-- what, the Jimmy Chu prices are going to go up? Is that what we're worried about that now in America? That TOE cleavage takes precedent over anything else? There we go. They did get the FTC. That's the FTC. They did get EU antitrust approval, uh, because it's really critical. I mean, this is-- it's comical. I'm sorry. Man, I didn't go to law school for not to-- your way, you just come back and you've still got it all up with all-- my major about the FTC-- My major was antitrust, okay, kind of major and just kind of a soft major, yes, but I was in law school. I was friendly with all the professors in antitrust. If they ever felt that the issue was, you know, well, you've got to stop the price increase in shoes that give you great TOE cleavage, I-- we were talking mostly about Chevron. I mean, this is-- well, let's just say it's comical. You know what this was when I saw it? I figured it's episode 11 of CURB. We should point out, on that deal, it is a $57 all cash deal. How great is it for you? And how great is it for you? It's not frustrating, as you might expect. Tapestries, oh, because it was a stupid deal and the next quarter was bad. But David, all I can tell you is that Michael Kors must be preserved. Got it. If you had gone into law, you would have been in antitrust, do you think? Oh, absolutely. That's my specialty, because I made a killing on the SoCal deal. Professor Rita told me that deal will pass. I took everything I had at what cost. It was legal. Bingo. Pay for last year law school. Well-- So let me tell you. Oh, god. That's kind of how it all began. It was this trade. He said I think the deal passes. He was the professor of the best guy in antitrust. Bless his soul, I think he would be shocked that they brought this case. Yeah. When we come back a lot more on what's driving in the morning, best performing stock on the S&P. We'll talk about that. One of these Mrs. and Travelers, ASML, JB Hunt, got some price target cuts on Tesla and other calls on Urban, GE, Vernova, Elf, and Dana hurt when we come back. Hello. I'm Laura Castleton, US head of portfolio construction and strategy at Janice Henderson Investors. Is a brighter future possible? At Janice Henderson, we think it is. For 90 years, we've worked to help clients achieve superior financial outcomes and fulfill our purpose of investing in a brighter future together. We know that this means our thinking and our investments are helping to shape millions of brighter futures for the next 90 years and beyond. To learn more, go to Janice Henderson.com. You seek the key, but first, you must learn the ways of precision, craft, and performance with Acura's All Electric ZVX, 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 ZVX is their most powerful SUV yet. Unlock the energy when you visit Acura.com to order yours today. United's up sharply in the pre-market. The airline posts a quarterly beat due to some strong travel demand. Company also slashing its expected aircraft deliveries for the year amid Boeing's quality crisis. This is what CEO Scott Kirby had to say earlier this morning on Squawk. There are challenges in the industry, the capacity limitation, particularly the suppliers. It is pretty remarkable. We started the year with this kind of bow wave of aircraft delivery, supposed to be 183. We actually knew we wouldn't get all those. We planned for 101. We're now planning for 61. The biggest impact to that really is on our cost structure. We hired enough employees to fly 101 airplanes and we're going to be carrying that as we go through the summer. It'll catch up within a few months, but we'll carry that during the summer. That's interesting. They're going to try to make up for some of that by leasing some used air buses, Jim. Yeah. Look, this continues the fiasco of Boeing. He was very calm about it. I expected that he would have been more agitated, but he did a great job. This is a terrific quarter. We always wonder why everything, every plane is an extremely full flight. And David, one of the reasons why every plane is an extremely full flight is because Boeing is not delivering the planes that they thought. Nam was the last time you flown where there was a seat. It's rare, it seems, that there are many empty seats on a plane. So that's been the case for some period of time since the end of the pandemic, certainly Jim. But you really believe that it's simply capacity constrained, yes, for the industry, to the point where they're missing out on potential revenue opportunities? Well, I mean, look, their numbers on the plasma, so the passenger revenue seat miles are excellent. But I think the fact is, is that you would like to fly. Let's say you had a route structure to San Francisco. Well, I think you could easily do four more flights, and they'd all be full since nobody could get on them anyway. And I think that what's happened is, is that they would just insert on all the, you know, on any of the runs that right now we all know are extremely powerful because we look at the bill and we can't believe it. Right. Right. And there would be more competition. I mean, now that, you know, you have FTC worried about something it's impossible. The two things that have happened here is how does seat prices go up so much? I'd like to look at that, right? I mean, don't you think that's... Yeah. Do you have a... And then the shirts, do you have an entrance in the Boeing CEO sweepstakes at all? Larry Cole. Dave Gibson. That's cool. Take Larry Cole off. David Git was working on a very big merger. Take him off. Take Judy Marks. So... Judy Marks. Good. I don't know. I'll get to that time 100 to then. I'll pick someone. Are you going? Yeah. I would imagine. So hang out with my homes and who else is that? My homie. My homie. Oh yeah. He's... He's all over me. What? I'm going. Okay. Hey. Hey. I didn't say anything. It's a great event. Yeah. It's a... It's a very... That's the first time. Yeah. We'll talk more about some of the corporate leaders that are on the list this year. We'll get Kramer's mad dash. Count down to the opening bell. One more look at futures. This has been the pattern here where the pre-market starts strong. We'll see if it holds as we're trying to snap this three day loss. Don't go away. From a flat tire in the city to a dead battery on a distant drive, AAA is partnering with T-Mobile for Business to accelerate response times and get more drivers back on the road fast. Our nationwide connectivity powers location telematics, so AAA's fleet can find straight a drivers quickly while being fully equipped with the in-vehicle tools to have answers when they get there. This is elevating the member experience. This is AAA with T-Mobile for Business. Take your business further at T-Mobile.com/now. All right, let's get to a mad dash. Of course, we've got an opening bell about six or so minutes from now. We haven't talked lily quite that much. No, we haven't. And we've got to talk about it today because of the latest potential indication for a drug that seemingly can do anything. This is... Well, it does. I mean, if you're overweight, there's a lot of things that can happen. No, this is an overweight study for sleep apnea. These are people non-diabetics obese patients. Now, get this, David. The placebo, I think you might have been on the placebo, which is, they did 14, 4.8%. But Eli Lilly did, this is events per hour, 27.4. And then, you know, some of these numbers, I think the insurance companies have to take notice. The reduction from the baseline in line with 50 to 60% drop in events of sleep. You know, that is actually a sleep apnea PhD data in line next page. This is to be able to stop it. It's to stop sleep apnea. Yeah. And, you know, I've got to tell you, what this is, the reason why I bring it up is not sleep apnea necessarily. It's the growing drum beat to the insurance companies that you better approve of this. When you have a demonstrated significant benefit, thank you, LeRink, in improving severity of obstructive sleep apnea, also known as OSA. And you, you know, this is really a minute added to the list, right? Obviously, the reduction, significant reduction in weight is the key, but it's also potentially positive for preventing future heart attack and, or even stroke. Yes. Yes. Stroke. You talked about what it may mean for certain addictions as well. Well, they don't want that, they don't want to do it because they think that there's other reasons why people are addiction. So they do fatty liver, and fatty liver, it's been remarkable. That's a death sentence. Okay. All right. Do you know what? I mean, it's been one of the great moves in the stock in a long time. So there it is. Look at that. All right. So it's not to go? Or is that? Yes, as each trial comes in. I can't do anything. What do you, fatty liver is millions of people, millions. And the Mets have won. How many straight? Uh, the Mets have won nine of the last 12. Okay. Good. Now you're a happy guy, all right? Me. We're gonna go. We'll be right back. Times out with its annual list of the hundred most influential people in the world. This year's business leaders include Nadella, Mark Cuban, Larry Ellison, and Nvidia's Jensen Wong with Metafounder Mark Zuckerberg, the guest contributor writing about him. He says, quote, "While most of the industry focused on making mobile devices, he recognized that delivering the most powerful chips would unlock the next wave of innovation. And most AI models, everything from large language models to systems for autonomous driving to applications in science and healthcare, are trained on Nvidia hardware. You can trace this innovation back to Nvidia being in a position to design modern GPUs and deliver them at scale. It's a remarkable testament to Jensen's ability to evolve and execute. This is going out to a broad audience, Jim, much broader than ours. And let's make it clear, they are now friends. They weren't always, but Jensen can win over pretty much anyone, as we know from the New World War, which was the best they've read. I would emphasize that there's a hoarse, a foam course rest. There's a belief, like the other day, that there was an algorithm such that we had to change and destroy, and they can't. And now we take every kit, every blackboard, to the computer, what's happened is, is that they're all making Alphabet, Microsoft, they're all making chips in conjunction with Nvidia and Nvidia is actually helping them, because Nvidia knows they can't produce enough and wants to appease these clients. So this full idea of, you know, Zuckerberg making an Nvidia killer, let's just read that. That's not the statement of someone who's declared war against Nvidia, is it? Open each other. I mean, jeez, it's okay. Sitting bell at the big board today, education through music, providing music education to under-resourced schools, and at the NASDAQ, it's the New York chapter of the Lynx, a women's volunteer organization focused on African Americans. Jim, it's a nice segue into what ASML said about Q1 bookings and full-year sales. Yeah, they kept it. They did keep their numbers, which I found surprising given the fact that this was even much worse than to drop than people thought. I thought instantly that people say, okay, ASMLF, they make the biggest machines, you have to have them. They didn't have the orders that we thought, therefore, Nvidia's weaker. It did not happen. Now, just so we know, this is really about Taiwan, Semic. Taiwan, Semic didn't order a lot. It could be about Samsung, too. I bet Taiwan, Semic's up, and that's Nvidia's play. So anyone who thought that was the case, and there's real buy with Taiwan, Semic, is just saying, okay, look, this is, even though Taiwan orders were down, don't just believe it's some sort of interreg and the numbers will come back. Or else, ASM would not have stopped by its forecast. ASM makes these giant machines their biggest buses. Our government doesn't like them going to China because they make the, they're for the most sophisticated scenario people think it's all Nvidia. But I feel with Taiwan, Semic up, what that says is Taiwan, Semic doesn't need them right now, but they will, when they need them, find. Right. Speaking of China, we have, and you briefly mentioned the president speaking to the steel workers in Pittsburgh today, he's going to call, we think, for a tripling and tariffs on shiny steel and aluminum, obviously an effort to shore up support in Pennsylvania and Ohio. Right. Now let's go over what he said versus what should have happened here. One of the great things, one of the few things that has come down under, under Biden, it just really doesn't have a lot to abide in, but I'm sure if you're from the other party you think that, is hot rolled steel, 319, 318 dollars for the increment that you worry about in March of, March of two years ago. And now it's down to 291, cold rolled for 93 down to 396, aluminum 3298 down to 2559, rebar down substantial, that's the, what you would use if you're building a building. So the one, one of the things that's really happened is, is that the prices have gone down, even though David's counterintuitive because we would think the tariffs, the Chinese would do it. But this is one of the things like it, this is score one for pal, but no, yeah. The president wants to make it. But it's also more performative than anything else. It's more for show. I mean, it's more for show. More for show. Chinese imports are incredibly small. Right. Even through Mexico. They just don't account for much of anything in terms of steel being consumed in this country. They gave up. And so it, yeah, to your point, it's more for show. I would note as well that as part of today's announcements, there was another mention made of U.S. steel, which of course, as you well know, I followed closely in terms of NEPON Steel's $55 share deal to acquire the company. But here's the press release. Here's what the president or what they're saying, iconic American steel company, vital for a domain, an American steel company that is domestically owned and operated that would continue to seem to say, NEPON, you're not going to be able to own this. There was a time. Now, Siphias is the only way potentially through which they can really effectuate that, that occurrence because there wouldn't appear to be any others, just obviously as Japan, our significant ally, NEPON, which has agreed to invest in the assets here in the U.S., but has run afoul so far of the unions. Right. Well, not since I'm in Roth. Do we think that U.S. steel was a big company? True. True. But it has certainly been one that's been a focus because, of course, as you see, if in fact this were to change direction and/or you will see the U.S. and the president back off in terms of its seeming opposition to said transaction, we got a lot of stuff, a lot of points you can make up very quickly here, 40 to 55, you know what, the steel will be out there probably to the election. What do I'm saying? He knows. A lot of them are just going to wait till the election and see if things change, although Trump has said similar, if not even more, draconian things when it comes to this. Again, I come back to the fact this is not a Chinese company. This is NEPON, a Japanese company that is considered a great ally that was just visiting the White House. Right now. The Prime Minister, which was just with the last... Hey, it looks like if there weren't a commitment to keep it basically unionized. Yeah. Then I could understand. The president's a union president, he said that like the issue is on. Yeah, and he's gotten the support of that steel workers union. That's that Cleveland clips has been incredibly effective as we said many times in terms of galvanizing the opposition to the transaction, even though they would not necessarily appear to be a potential buyer overall, given their own real antitrust concerns. Anyway, I just wanted to mention that was part of the announcement on the Chinese. It was... You could argue, Carl, that the Chinese wiped out U.S. steel effectively, it's only 9 million dollars in the company. I would say that a non-union company, New Corps, took a ton of business from them and New Corps is a fantastic operator, the best in the world, the lowest cost, and U.S. deals historically the hot cost. How this became a battleground is beyond me, given the fact that there really isn't anything that would say that they would be hurt, but then again, I mean, look, the regulatory authorities are fighting the Kroger Albersons even though they have committed to be union. So I don't know what they want other than to be able to make a show, they're putting on a show, like it's Mickey Rooney and Junnie Garland here. Yeah, it kind of goes with election years, Jim. Oh! I've got that! There's a lot of show. There's a lot of show. There's a lot of show. Yes, it is. Hell. How poignant. Yes. There's a lot going on with an election year. What else? They've started. They care about parameterization. I don't know. We'll get to that in a little bit. How about LVMH? Can we talk a bit about-- Don't bother this parameter. One of the big luxury providers of all sorts of goods, I'm trying to actually see where the stock is. It looked up. It was up. It was a 3% organic revenue growth quarter for the company, 20.7 billion euros. There it is. Up almost 5% you see it right there. And yet the headlines were that it was a bad quarter. I mean, give me a break. Number of the analysts weighing in. Well, let's see. The worst is now behind us as expected, the luxury sector going through a temporary period of normalization. They say following above trend post-COVID demand, and this was confirmed by the first quarter result group from LVMH. But not worse than any worse than was expected, in fact sort of in line in terms of that organic revenue number. And the stock is pulled back. You see it right there. They ended that chart about 10%. So again, better perhaps at least than the market had been setting up for in some way, Jim. Overall, good enough is the Morgan Stanley note on it as well. So generally, not raising more concerns about previous weakness in the luxury market. I'm wondering if there's a read through just some of the companies that have been crushed by short-fallen child. Now, this is, there's, you know where Tim Cook is? He's in Indonesia or in Indonesia? Yeah. I think he's putting together a basically a coalition of the countries that have say 200 million people that are great markets instead of the Colossus that is China that is no longer a great market. And I think it's something to watch. So I'm, you know, you put a factory in a place because you want business. Indonesia's getting a huge kind of people to understand how they're, they're chut apples crushing it in Indonesia. He's in Jakarta today. I was in Hanoi last couple of days talking about commitments to suppliers there. Musk is expected to go to Delhi in a little bit where sources tell I think Reuters today that could be another $3 billion investment. You can listen to what Cook said about some of these countries, ex-China. We talked about the president's desire to see manufacturing in the country and it's something that we will look at. I think the investment ability in Indonesia is endless. I think that there's a lot of great places to invest and we're investing, we believe in the country. So are you looking at a giant supply chain hedge? Not just yes, but also I think that what he's saying is we recognize that you are a huge country and we are number one in your country. I mean, look, Brazil has 215 million people. They have number one in Brazil. These countries, if you add up five of them and their growth is so much faster than China, I think we have to start thinking that there's a mosaic of business where we're going to say, you know what, all of these analysts who just totally focused on China will not see what's happening in these other countries where there's a commitment. It's almost like there's a Belt and Road initiative by China and wherever they go, they give money and suddenly there's a lot of business with China. He's doing an Apple Belt and Road and I think it makes all the sense of the world because these other countries count. We're so China-centric, we don't realize that there are a lot of people in Indonesia. David, there's a lot of people in Brazil, that's why the Eagles first game is being played there. Is it really? Yeah, Friday night game, I think we have it. In Brazil? Did you just say? I follow up. No kidding. Yeah. I wasn't informed. Now I am. Thank you. Are you being sarcastic? No, I had no idea. Oh, really? No, I did. No, I did. I don't follow the Eagles. Well, no, no, it's more of an NFL. We're going to follow the band. We're going to follow an NFL. There's a lawsuit involved in it. Glen Friday. Not the Eagles, man. There's a lawsuit right now. Anyhow. It's got 215 million people. Yes. Brazil. Yeah. And Indonesia's got 200 million people also. You put together this mosaic of places and they equal China in five years from now. They will see China. It's a mosaic play. Got it. I want to hit Tesla guys because we mentioned it at the outset. They obviously, on Squawk Box, they covered in depth sort of the move by the company to put it all to a vote. That is all being that enormous compensation package for CEO Elon Musk. That was agreed to buy the same shareholders, or at least the shareholder base at the time back when it was voted on 2018, but a Delaware court said, no, we're not, you know, it wasn't arrived out properly in terms of some of the influence of board members and the likes. So they're putting it back to them. And high likelihood would be they'll approve it. It was all stock-based comp, of course, based on what at the time seemed like incredibly difficult to reach targets that were reached for the said stock price. Lately, though, if you have any targets that involve the stock going up, Jim, they aren't being hit. This thing's down 37 and a half percent for the year as we pointed out yesterday falling below that half a trillion dollar market value for the first time in quite some time and right near 52 week low. You know, it is a stunning decline. You know, obviously you could pick on Kathie Wood for Camille and say it's the greatest. There are price targets of like $25, $27, I think that's a little facetious. But, you know, David, this hybrid truck, I know, I quote enough, I quote you saying you saw one. I did, but one bombing down Broadway the other day really catches your eye. I will say that. Wow. Yeah. I mean, that's what it does. But apparently it's harder to make than we think. We know that. It's not, it's not commercial, it's not a commercial thing. It's a boutique thing. Would they have been better off focusing on a lower end or lower priced cars? That's where I'm going. That's what they needed. Well, this is fascinating note out of Barclays today. They cut to 180, reiterate equal weight. They think the quarter is going to have a gross margin miss and a headline miss and maybe negative free cash flow. But, Jim, the biggest issue is what they're calling this binary bet. Do you go low cost car or do you go full autonomy? You're hard pressed to think of any other precedent of a company of Tesla size basing its path of success on such binary bets. Yeah. I mean, it's just, look, do you want to sell it down here? I don't know. All right. If they suddenly, he's capable of issuing any press release that could indicate that he's got a car that we don't know about. Yeah. But, I was trying to claim the middle CG, that was a good piece. I read that was a can of court key themes, mega binary. That was the Barclays. I mean, every day that there's something and it all starts reading like pornography. I mean, it's purion, right? Like, we don't need to read this stuff. I mean, enough, right? So, obviously, I mean, bad quarter, the free cash flow is bad. That's not what we, it was in the, in the cars. We didn't think that EV would suddenly become something that, a pariah. No, I wouldn't call it that either, but obviously the focus the company wants is, is out a bit towards things like the Robotaxi, towards the new entrants that they will have in the market as they combat, really, the Chinese EV makers in particular, but overall waning growth a bit. That's kind of the point of the Times piece yesterday, David Gellis' piece called, has Tesla peaked that argues it's not about all EVs slowing Jim, it's more about Tesla getting separated from the market. Well, I think the Tesla didn't have a new model. I mean, in the end, it is a car company and, you know, you got to, you got to refresh. I mean, if we had, let's say, if Farley were sitting over there, which I wish you were a ton. He said it's in a sense. Yes. I mean, Farley's just over and over, you see, you got to have something fresh, something new. Yeah. You have to have one fifty's kill in the cyber truck. Yeah. Guys, it's a 35th anniversary of CMC, and I hope you know that. Are you going to ring the bell this afternoon? No, I don't think I'll be here for that, but I do remember 30 years ago when I was a fledgling reporter here. 30 years ago, you were 30 years old. The first story that I... You were 30 years old. Thank you. What I covered in depth was the fight for Paramount, and here I am again doing it all over. That it was summed to Redstone and Barry Diller. Of course, Redstone prevailed at Viacom buying it for $10 billion, by the way, value above the current market value for Paramount, which of course also includes CBS at this point as well as Viacom, which became a far larger company. Why am I mentioning, because here we are again, and I have to admit I find it fascinating yet again. Let me give you a quick update because we have been covering it for some time. First of all, this period of exclusivity that the Ellison camp, Skydance, Redbird, KKR, are also a part of that are in right now in terms of negotiating with the special committee of the board. That is going to... And let's call it early May, May 3rd. They're not going to have a deal done by then. I don't believe the market expected that that would be the case, but certainly worth mentioning every indication I get from people on all sides is it's going to take more time than that. We're negotiating in full right now, there are obviously, as you might expect, conversations between the advisors to the special committee and the Skydance camp as well, but it's going to take more time than that, and it may be more twists and turns from here. You've got a special committee that has its hands full in terms of trying to determine how to deliver value and/or what the value really is for the B shareholders here, and it's not just determining the value of Skydance, remember, because the transaction that is currently contemplated both pays a premium for national amusements, the control shareholder, but also involves paramount coming up with an exchange ratio to buy the Skydance studio and bring in an emergent with paramount studio. And then, as I pointed out many times, in addition, the issuance of new shares, many of which would be purchased by Larry Ellison, for example, and other members of the Skydance group, Redbird KKR, Special Committee has got to decide a lot of different things. What's Skydance worth? It's a private company. You can't necessarily just do it on whether they last raise capital. It's not the easiest thing to determine. It's, of course, something they will be able to, but it may take time. You've got to figure out what the status quo would mean for paramount. It's not just, okay, if we do this deal, how would it work out, but what does the status quo look like? We do nothing. And paramount stays out there. As a fairly high-leveled company and a challenged business, what happens to the stock price? You've got to deal with a control shareholder and share a redstone. And you've got to make sure that, in fact, the numbers you're hearing from the Skydance group in terms of synergy, really cost-cutting, and I want to make it clearer here in terms of previous reports, are real. I've reported on synergies that could be as high as $3 billion. What I really should have said and what should have been communicated more clearly was that's mostly cost-cutting. The actual revenue synergies are small, $200 million, perhaps. The potential for significant cost cuts, that is major. The floor of a billion is what I'm hearing to as high as $3 billion from any number of areas, you know, whether you're talking about the Nielsen contract, the fact that the window in paramount movies, to paramount plus where it is, so many different areas, at least that they believe, Jim, there would be significant ability to cut costs. So, a lot to go here, and then there will be the question as to what happens at the sort of towards the end of the negotiating. My expectation, in some ways, is this special company is going to look for some sort of compensation for the B shareholders beyond the prospects of a company that will be able to grow, will be delivered to a certain extent, will be larger and be able to deliver more free cash flow. But will they want them to deliver something in the near term, in some way, in terms of value? Maybe it's in a hand-stocked buyback. I don't know what it would be, but I think there's got to be an expectation this thing's got one more turn before they finally figure out whether they can get there or not. Do they ever talk about the incredible presence that Paramount has in live sports? I mean, for instance, if you want to watch international football, they're the one. Yeah. And I think that's worth a fortune to anyone, including our network. Now, of course, if they're going to block the cap-free cap-istry deal, then what happened? The relationship with the likes of the NFL is important in other sports, and Red Bird, by the way, one of the partners here, has got very important partnerships overall with the likes of the NFL. They can close everything except for the sports, it would be an incredibly attractive property. Yeah. Carl, that's the update for today. Thirty years after, of course, we reported on the Battle for Paramount. Yeah. And don't forget, CNBC is going to ring the closing bell to celebrate 35 years today. As we go to break, not a lot of data, or Fed speak today, although Mr. and Bowman later on tonight, big events will be the 20-year Bond auction at 1 o'clock. And also, beige book at 2 p.m. might be interesting, 10-year, 4, 6, 2. Don't go away. Watch the airlines today. Wow. Can you hear 12% pop in UAL as they raise their guidance, even as they cut their Q1 aircraft delivery forecast, also helping some shares of American, both United and American, the number one and two S&P gainers at the moment, as we're back to 50-67. Don't go anywhere. Okay, we're looking at small and medium-side banks. We have First Horizon, which is Fairbank, Brian Jordan's going to be one. And I think he can, just this 4% yielder was once capable of, I thought, going out of $25, because there was a bid from a Canadian bank. It did not go through. It was blocked. And he's just a straight shooter. He'll tell us how the Southeast is doing. We need to know. I think we're all looking for stuff that's going down so that the Fed hasn't used your job. It's not the president. He's not helping this situation. Well, we're just glad we got you back, because there's only a season without you is tough. Oh, thank you. I'm glad to be back. And I know, David, you're glad to see me. Excuse me, sorry. So happy. Are you kidding? Thanks, mate. I know. I'm so happy you had fun with your mates. Yeah, well, I was with a lot of mates. Yeah. Just trying to make Carl and I jealous. That's all their mates. Oh, there you go. See, that's what it's like to be living a dream, David. That's right here at the desk. That's what that is. You look exhausted. Oh, shit. Yeah. Yeah. It's just out to do the triathlons and so on. A bad money, 6 PM Eastern time. You've been listening to the opening bell on CNBC's Squawk on the Street. All opinions expressed by the Squawk on the Street participants are solely their opinions and do not reflect the opinions of CNBC, NBC, Universal, or their parent company or affiliates. You may have been previously disseminated by them on television, radio, internet, or another medium. You should not treat any opinion expressed on this podcast as a specific inducement to make a particular investment or follow a particular strategy, but only as an expression of an opinion. Such opinions are based upon information, Squawk on the Street participants consider reliable, but neither CNBC nor its affiliates and/or subsidiaries warrant its completeness or accuracy and it should not be relied upon as such. To view the full Squawk on the Street disclaimer, please visit cnbc.com/squawkonthestreetdisclaimer. Norman, we need to pause this surgery. What, Doctor? Cos Xfinity Mobile just got even better. Now you're automatically connected to Wi-Fi speeds up to a gig while you're on the go. 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