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tv   Squawk on the Street  CNBC  April 5, 2022 9:00am-11:00am EDT

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it's got a higher yield than the ten-year it's like, oh, my ggosh it's on, it's off. we'll continue to talk about what happens with elon musk through the course of the day. >> and tomorrow, probably day after that and the next day. >> and he keeps giving us more fodder we'll follow that does it for us today, make sure you join us tomorrow. right now it's time for "squawk on the street. good tuesday morning, welcome to "squawk on the street." i'm carl quintanilla with jim cramer, david faber, some weakness in futures as pressure increases, the titan sanctions on russia including possible bans on russian coal in europe elon musk of course joining the twitter board, promises changes. our road map begins with twitter. elon musk set to join the woboa. says he'll make significant improvements in the coming months shares are surging for a second day. plus, bon voyage as covid
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fears ease don't laugh at me. >> i'm sorry. >> the shares by the way are surging on that news >> good. >> yeah. >> good for them >> european union is eyeing new russian sanctions this time targeting oil, gas, and coal bon voyage. >> let's dive right into twitter, guys. elon musk joining the board in this s.e.c. filing, the kpen says musk will serve as a class two director term expires the company's annual 2024 shareholder meeting. musk agrees he will not own more than 14.9% of common as long as he's serving on the board and for 90 days after this he's been all over the replies he says facebook now gives him the willys and agrawal says we're pleased to have a guy passionate about the service >> really build a following, which is important for all of his businesses done it direct to
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consumer, and i think he feels there should be other people that might be able to do the same thing the site has been -- i think the site has, frankly, gresham's law. the bad has driven out the good. david, i think when he's in there, he will be a terrific trojan horse i can't imagine him sitting there and one of the board members, scribbling little notes, roe, do you think he's going to do that >> how he has the time to even fit a twitter board seat on his schedule is hard to imagine given everything else that the man does but it appears that will be the case i would point out that, you know, the twitter board in and of itself right now is a fairly impressive board i would argue. >> chevrolet. >> you've got durbin from silver lake the former cfo. >> terrific, fabulous. >> understanding the capital markets and/or sort of keys to areas of finance and capital
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allocation you got people who can do that you've got people who understand the business side of things, whether it's brett taylor who's obviously the co-ceo of salesforce and the company's independent chairman you know, and on from there, former senior member at google. >> these are heavy weights >> at twitter, not to mention david rosenblatt i mean, they've got -- and was a double click they have got a very deep board. so it will be interesting to see how he fits in, whether leads the discussion whether he simply is able as the largest shareholder to push for things that otherwise might not be the case amongst other board members because he does have the economic interest that none of them come close to, including of course cofounder jack dorsey who was also on the board of directors but owns roughly 2.5% of the stock right now >> you look at some of these things that carl -- you got pra nay pat hole, ylelon, you've got
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to do something about these crypto spam bots the single most annoying problem on twitter that to me is not necessarily what he -- i mean, is that really his single most important issue crypto spam bots >> he said crypto spam bots are the biggest problem on twitter. >> you think if they get rid of them the value will come out there's a little bit of ryan cohen, he's the guy who bought the stock -- >> i'm aware of ryan >> we're going to add him, put him in, and wow, okay. he's in the tent better than he's in the tent than outside the tent. >> the tweet about facebook giving him the willies, imagine if he turns his followers against their biggest and much larger rival. >> just kind of a civil war of where they're sanctioned, you think musk could put sanctions against zuckerman?
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some sanctions how about sanctions. they're doing nothing. the reserves of russia have dropped like by nothing. i don't want to talk about anything other than musk because the war is totally side show right now, even though the pictures -- >> you're kidding about that >> obviously i'm kidding because there's a u.n. meeting today and how long can you ask the chinese to do nothing. chinese should be in there with humanitarian aid i don't mean to conflate the two. i would say when i read what elon musk wants to do, so far, no dice. >> so far no dice about what >> this is not -- this can't be his plan he's got to have more plan >> right now he's locked up. he can't go above 14.9 as long as he sits on the board. he's got a term that doesn't expire for a couple of years i would expect that the influence he exerts will be felt through the board and through his -- again, his economic ownership, which gives him a lot of -- >> if facebook gives him the willies does that mean he gets
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in the boardroom and says, look, we got to -- we got go against reelz. >> it's also interesting, a dynamic on a board who sort of has to say what it's like in that boardroom, i can't predict in any way, nor can board members predict what the dynamic is going to be i can tell you one thing, the dynamic in the boardroom will change with him -- i mean, i don't even know if they have in-person board meetings maybe they will start to again, the company itself is remote basically, twitter >> everybody should be remote. >> when they're zooming in, you know >> but when you look at bret taylor who's the co-ceo of marc benioff of salesforce, he's a mild mannered people, very considerate, very serious. now, musk is very serious, very considered, but not mild
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mannered and i don't think he suffers, bor boredom. i don't think he's going to sit there, let's turn to page 57 and look at the projections for daily average users. >> no, but you were about to say he doesn't suffer fools gladly. >> i didn't say that. >> there are plenty of boards where i can say fool, fool, fool, fool no fools on this one stwl bor. >> boredom. >> there are no fools on this board. >> no. no. maybe management maybe that's what it is. maybe it was the change in management he was waiting for stw >> it sounds like you're saying company's inability to work at maximum efficiency. >> the daily average users are not good the number of people you see that say i'm dropping twitter because it makes my life miserable. you never hear anyone come on and say twitter is a great communications method. you can't communicate -- elon musk communicates with -- i
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happen to love the fact that he has interaction. he has lashrgely a positive following. when i go into twitter and i say i will pay $25 a month for concierge service where i can just say, listen, the people who are saying that the apes should sodomize me, which is pretty much every five minutes. i want them cleaned out. i don't want that anymore. but the fact is that sodomy brings many more viewers. >> oh, good, we're going to mention it twice that's good. >> because it's reality. >> he's just relaying third-party truth. >> i am saying if you want to pick up a thousand people -- >> was it a supreme court decision. >> i know sodomy when i see it >> pornography >> all i'm saying is that the propensity to want to create violence is not something i think musk wants i think he wants a discourse that is something that you can get into i'm praying he gives us two tracks a track where we don't have
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incite to violence, how about that david can we say incite to sflienls. >> violence. >> thank you, sure the genocidal influence of some of the people who don't use their names. look, the number of -- the security risks to being on twitter. now, he doesn't have that, but i think that what he's saying is, look, there used to be really good discourse and now we have people throwing bombing. intellectual bombs seem to suit him. >> he has chastised and i would say attacked some journalists who have been critical of him in the auto business. >> yes, yes. >> he's been ruthless on that. >> i love that that's the kind of thing i encourage because that's him direct to consumer not having to wait for the "new york times" to call him. remember "the times" >> i do. you should read it every day, read it front to back. you used to do the cross word puzzles. >> i try to read it still along with the wall street journal,
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"the washington post," the financial times, and i check twitter regularly. i check out the new york post, still like the sports section. >> four or five years ago. >> twitter was. >> yes >> because, right, you also have a personal experience in dealing with a lot of hostility on the platform i would argue right up there top ten. i mean, you are hated. >> it is top ten. >> it's bad. it gets in your head it's not good for you we can talk about that offline. >> no saturday mention. >> how about we come back to the stock itself, which of course is up dramatically over the last couple of days is it too much does it not reflect any potential changes musk would make there's not a takeover in its future at this point it wouldn't seem where he's going to try and buy the entire company. >> why not >> because he goes to the 15% limit. >> has he ever bided by any of that stuff. >> he's going to have to abide by that. >> what are they going to sue him? >> many, many times. >> he couples up with silver
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lake to take it private. that's what they wrote. >> that's what i think. >> i thought the gordon hasket note was terrific. >> i don't think that's possible. >> you're talking 40, got to throw a premium on it. 50, that's a big number, no. >> well, i'll start -- >> he's the richest man in the world. he gets in there and says, you know what, man -- >> that was my point. >> he gets on the p board and he says, hey, listen, guys. >> that's not going to happen. he can make an offer nothing stops him from doing that i would assume. even with -- he can't buy -- >> he can make an offer they can't refuse. >> he can't buy more on the open market people are enjoying the comments he made earlier about griswold versus connecticut. >> that's powder stewart, my favorite justice. >> prior to the news about the board does cut to neutral. they say it's trading above
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pre-covid valuation. the long-term dau target they still think is fanciful. fair value 49. >> do you think what's exciting about this is it's musk or the fact that journalists are fascinated with twitter. >> i think it's period that we're leading with this when there's so much else of consequence going on >> that's what i'm struggling with. >> i'm happy to move on. >> can we put a code on that, we went to 9:12. >> i think 12 minutes is enough. >> yeah, we did it we got it out of the way we're going to talk a lot more about the energy space today as the eu tries to see whether they can live without russian coal, sooner than oil and gas. >> coal is at $100 coal was finished. i've spoken with people who are involved in the industry when you decommission the coal plant, it can be recommissioned but the greens are really fighting on the side -- they don't mean to be on the side of
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russia, but they're on the side of russia. by the way, david, if natural gas is being drilled in russia, what does it mean if you won't do it in your own countrys? >> we drill for a lot of natural gas here what are you talking about >> i'm saying europe, the greens have succeeded in getting it out of one place and putting it into another. >> a lot of it doesn't make sense and this has obviously created an enormous change in energy need and how it's going to go about in terms of the transition. >> do you find it odd that trump did everything he could to get this industry going and it turns out that only putin could get it going? irony? >> i don't know. >> don't you like the irony? >> what do you think about musk's tweet about -- >> you want to talk about gwac is that what you want to snaubt. >> no, i never talk about that >> a lot to get to obviously, deutsche bank with a call for a recession in the u.s. in the next two years they just upadgred that.
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get ready for next level entertainment. [ding] get e*trade apple tv+ is now on xfinity. howdy y'all. with new apple original series and movies added every month... ...there's always something new to discover. and right now, you can get 3 months of apple tv+ free when you sign up. just say “try apple tv+” to get started. it's a movement. with xfinity, it's a way better way to watch. markets are on track to open moderately lower additional sanctions to punish russia for its invasion of ukraine. some polish reports say the eu will propose this ban on russian coal and other imports we do have our own nat gas highest since 07.
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>> the market's an imperfect market it is -- we could send over a lot more and still not damage that market. i'm surf are prized that natural gas is so high fwichb the fact that we have an endless supply, as opposed to oil. they flare natural gas. >> much less they are making real efforts in our country to flare a great deal left in the permian, i know that for a fact. >> why is our country not being thought about as being on the forefront of trying to get rid of greenhouse gas? >> well, we haven't been as committed to renewables perhaps as europe has, but that may be coming back to haunt them to a certain extent because that transition is not the easiest one to maintain. there are also people who argue when it comes to nuclear that that is where we really lost -- that we've really lost the opportunity. >> france going back. >> canada doing some small -- >> still 70%, they never left
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it. >> they figured out how to put the waste in visit rees you. >> there was always a question there when it comes to generating electricity, why we don't have more nuclear. things have obviously changed over the last 50 years as well since three mile island. >> germany was fukushima fukushima didn't want anything to do with it and don't forget -- how about chernobyl? >> fine. but i mean, we are -- again, it's all risk reward. >> i'm pro-nuclear i'm talking ge every day, where are the plants factory in canada coming but southern -- >> how expensive it has been a small form reactor built by ge is going to come in. >> okay. so why don't we have a lot more of them? >> because we're stupid and it takes a while. i think we've all zorddiscovered
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coal -- coal's the worst, right? then you go oil, nat gas what we really want is green hydrogen nobody seems to be able to do that effectively at all. you need like 50 football fields of solar panels so that your electric doesn't ruin the environment. >> look, i think elon musk -- slip back here for a second. i would like know what he thinks more about this issue that we're talking about than anyone in the world because he is at the forefront of battery technology, energy, and green. now, i think that -- i'm not saying, you know, we had a piece this morning about ben franklin and ken burns, he's our ben franklin if he could -- >> they actually made that point. >> okay. >> walter made -- >> oh, walter. >> some comparisons between the two, being builders. >> yes >> and being aspirational, doing things that are hard. >> right and not being, you know, like i
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was -- said we can't do a field of solar that provides elect electricity. i was a little apugs >> the eu has come out with this package of sanctions that does include coal as much as 4 billion a year, a ban on coal from russia worth 4 billion euros a year saying it will cut another revenue source they also ban on four key russian banks, a ban on russian vessels and russian-operated vessels from accessing eu ports with certain exemptions, targeted export bans worth what they say is $10 billion, all of which may end up to difficulties for the european economy, it may be reflected once again. we have to take a look at how their banks are faring and the broader markets there, but we've talked about this a lot in terms of the impact this is going to have overall on gdp out of the europe, which i know targets have come down dramatically for. >> right
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i just -- i fear that every single one of these sanctions just doesn't seem to have much impact on this man by the way, their reserves have barely been dented. >> but they can access their reserves >> they can buy back bonds >> you got treasury now halting their ability to make debt payments in u.s. banks in dollars. >> how much did they have? we don't know how much they have. >> reuters has a piece out this morning saying they expect to earn an additional $9.6 billion because of just what oil prices have done. this month alone. >> look, i think that this is -- it's no longer humanitarian, i mean, look, united nations, russia is a founding member. you know how russia can block anything, david. i mean, the united nations -- >> security council, yeah. >> china, it's the most important force other than us. they've not been asked to -- >> we also don't talk about
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india very much, which -- india's continuing to take deliveries -- >> and the only thing that's good is the 100 play 600 aren't you worried or happy or whatever, perplexed at why individuals don't buy those and ship them to poland? not unlike the gun running that went to ireland during the '70s? >> what is this that you're talking about. >> you can buy the 600, you just go on the site. >> what is this? a drone? >> a drone, it can blow up a tank >> you can go buy them >> some people did not know what you were talking about. >> this is like running guns to ireland. i can't believe we have to move on the most important issue we talk about. >> we awill be back, though if we talk about mausk. >> we'll get to gm, carnival, downgrades of starbucks today,
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twitter made it the best day ever for its life as a public company yesterday, rising almost 30%, jack dorsey tweeting a moment ago really happy elon's joining the twitter board. he cares deeply about our world and twitter's role in it they lead with their hearts and they will be an inedlecrib team. opening bell in less than five minutes.
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let's get to a quick mad dash and then an opening bell. you want to talk flying cars there are many spacs that came public, and frankly they bluted
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ever everything they've been a great disappointment they've basically been a mockery of a sham. one that's come public that i know david has been very interested from day one is joby aviation flying taxis are coming sooner than you think, initiating joby with an overweight. >> $10 price target is what they're saying they have partnerships with uber, with toyota, with the department of defense. so there are people -- those are very smart companies, and they want to, i think, keep in, you know, let's just say they want joby to own the market >> right >> it's about first mover -- >> they are further along in the approval archer is the other one of course that came plublic as wel. talked a little bit about that they talk about as much as 3 to $4 a passenger mile. they go about 200 miles, maybe 150 miles, you know. >> could be -- >> alternative, a significant
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alternative to cars, making things a lot quicker but it's still a long way to go. >> yeah, but i think that what they're saying -- and i'm being quite serious now. what they're saying is there's going to be a market, and they are going to own the market, and that matters so anyway, joby, let's just say if you want to think long-term, there you go >> there's the opening bell, more short-term, and thecnbc realtime exchange. on the big board it's medical technology company enovis, at the nasdaq, literacy for all, a ceo initiative promoting financial well-being we didn't get to talk about why tech did so well yesterday there's a creeping sense that maybe we're near some peak on rates or cpi we talked about freight shipping yesterday. >> i thought it was cpi betting that we're seeing. by the way, could talk about a peak in housing. there was some positive housing research today i could tell you that i think
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the gary reedman rh note that is must reading about the top in housing has left me thinking -- start thinking about tech because that means -- you get some inflation pressure downward by the way, the semis were such powerful stocks and the faang stocks were powerful that they brought out bears. i saw p two notes that were negative about facebook, okay, there is definitely a tone that every single one of the semis that ran yesterday is too high and that includes amd, and then there's a savage piece about qualcomm, which was an affront to me given the fact i just had the ceo on last night and it was pretty positive. i think the analysts themselves are going to have to be dragged kicking and screaming into being positive there's a lot of holes on
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nvidia, david. >> what are the holes? what do you mean >> h-o-h-o-l-d-s. what do you think -- why do you think people feel that the semis, all the semis are doing poorly >> because of supply ashortages. >> no because of gelsinger saying that everybody else is bad except for intel. >> what? >> don't what. how about really >> why why would they listen to that? >> why would the analysts listen to it? >> yeah. >> because intel was the once mighty intel they were king they were king they were king >> i hear you, but they're not anymore. i'm not quite sure i understand. >> gelsinger -- >> don't forget, he was -- state of the union speech right up there, i didn't see lisa --
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christian -- you know, where is jensen huang because he is messonic, and he has also said look, we're going to take over everything. yesterday lisa su made a comment that was completely disregarded by everybody, we're going to continue taking share. they're take k share from intel, they're not taking share from meta intel. but it doesn't matter. he's got all the analysts on the run. gelsinger might be coming in there. >> spend a lot of money, messonic, that's an interesting term you're using there. >> is he in pay package? >> i think you were traveling. >> i think i was away. i didn't sieee gelsinger's pay package. >> pay package around the world. >> i think i missed it you know how i get to david? i'm calling him. >> right now >> right now >> because you take the calls more seriously
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what what >> you want to talk at all about this at&t -- >> not in the least. >> -- piece are from moffett -- >> not in the least. >> you don't >> of course i studied it all morning. i thought that piece was damning with faint praise. >> moving to their target of 19. we are going to be focused on at&t and warner discovery soon because they are going to be two separate companies, let's call it within a week something like that. in a week maybe this deal closes maybe, you know, within that time frame, sooner or a little later, i don't know. let's just say by the middle of next week, these are going to be two separate companies 19 bucks is what they look at. what they do they say? they say it's tempting to think of this moment as a fresh start. unfortunately for at&t the damage done by their acquisition of time warner and by their earlier acquisition of directv
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can't be undone with the stroke of a pen still over levered and the core businesses are weaker for having spent several critical years with tension focused elsewhere all that said, jim, it's not expensive. >> no. they said it was, what, 6.5 times earnings. >> right now it's trading at 7.9 times their estimated 2022 ebitda. >> the stock is telling you they can't make the numbers you see how much copper they have and how much they have to do -- >> they're spend aing a lot of money, by putting fiber in they are spending a lot. they are a wireless and wire line company that is what at&t is >> how about the fact that -- >> obviously with a different -- >> moffett praised them for reversing very quickly after they took on way too much debt, but that they did not clear the books. i thought that was really kind of a -- >> they didn't change their leverage ratio to a large extent.
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>> they haven't changed the way they account for certain things in terms of expenses we talked about about that during the last quarter. at this point they're sort of going to be flat for a bit, and then they're expecting obviously to move up in terms of what they're going to be generating from ebitda. but it's going to be interesting. we are going to be talking about this more when the deal closes itself, and not just at&t, guys, but discovery also it is going to be then warner discovery, one of the largest media entertainment companies out there. obviously a great focus on their streaming product, whether it be hbo max, discovery plus or what would be the combination thereof. and this idea that, remember, it's all a spinoff, so if you're an at&t shareholder, you're going to be getting these warner discovery shares the question is do you sell them right away so-called flow back is what people call it, and that conceivably could put a lot of pressure on the shares, which may be one reason why buyers have not moved strongly into them at this point, but we'll see. are there going to be others that they have set up to potentially be there to help them withstand what might be that storm of selling, or maybe
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retail holds onto it a lot of questions there in terms of the positioning >> i think retail is still shaken by the dividend company. >> at at&t >> at at&t. >> because at&t is the reason why people -- the same reason why going from verizon and he talks about growth, people wanted it for the dividend and you cut the dividend, there's still a lot of people who don't even realized dividend has been cut because it's secured rather well. >> right you back into a yield now that's not that bad, that's fairy compe -- fairly competitive >> how did it get to be not that bad? >> because the stock came down there's so many dividend boosters, why do i need to be in a company that cut the dividend? the dividend boosters are just -- qualcomm's going to take that dividend up gigantically, but oh, no, qualcomm's levered to cell phones let's buy at&t not levered to cell phones, big
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time cell phone. dir directv, early on i identified directv as one of the worst acquisitions ever. you were like that morning >> i had a lot of questions that weren't answered, that's how i knew management couldn't answer them, at least to the point where i understand what they were saying it was a lot of gibberish. >> genuine at&t gibberish? >> yeah, it was. i remember those conversations ads? i don't quite understand what you're talking about, and we all wondered it was simply done to support the dividend to your point. obviously mike white did a great deal he was the ceo of direct he got out at the right time i mean, look at that asset now. >> i'm surprised you did not mention parent company of this network, the valuation of comcast. >> yes >> actually, yeah, relative to the s&p, got to go back years. i think it was morgan stanley yesterday they still got a 60 target. >> that was some piece i mean, look, i don't want to talk up the network, but it does seem like that's --
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>> it's about 13 timesi, well below the s&p multiple, true, although questions about the cable business to a certain extent same thing i asked yesterday, they own 26% of charter. questions about, right, whether or not 5g is going to in some way compete or even some of these other services that are out there, starlink or the amazon: they're meant for more rural areas that don't have as much coverage. questions about peacock and how much is going to be spent there. >> shoot, you're all over this >> there's a lot of questions. by the way, the bigger question is if discovery -- warner discovery doesn't work a year from now, we're looking at it and you're talking and saying i don't know about this, then you'd have to wonder whether, in fact, comcast is going to have interest in trying to come back again. remember, there's no -- >> they're thinking about blocking microsoft. >> there's no voting stock there. >> i mean, the idea of what you're saying regulatory wise, how could comcast imagine they would be able to acquire warner discovery. it's a fair point. >> right >> it doesn't mean they won't
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look at it a year or so from now, if in fact, david zaslov doesn't deliver. >> he's really nice. just put that right out. >> i think he knows. i think he's offended by that. >> there's a lot of line whatever the result is it will be instructive for the industry, there's no doubt jim, you mentioned consumer weakness and we have downgrades on starbucks of dominos. >> oh, man. >> i know you saw wells going to town on specialty retail. >> why don't they just like tell us there's just a vast depression coming? i mean, i think retail was already hit very hard in the first quarter. the starbucks -- yeah, i mean, when you have a founder come in and say, look, the emphasis is going to be on the workers, then you don't -- you have to cakindo think why do i want to short-term be in the stock longer term i like that call because a happy barista, you get thousands of happy baristas you get a higher stock price
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right now howard, he's saying -- i think howard is saying, maybe you may disagree, that look, one of the principle problems if you're fighting unions or listening to unions is that, frankly, why did he give so much money to buybacks why doin't yo share the wealth logical question if you're working at starbucks, right? >> yeah, it is >> okay. well, i mean, so we stop the buy down so when he's speaking to baristas, his first discussion is why do you favor people who do absolutely nothing for us other than order triple cappuccinos, why do you give that guy something customers and baristas, not shareholders shareholders are not the top -- when you're running a total service business, i think that howardbuilt that on service. >> you know, i think there's an interesting conversation here. we can probably have it at
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another point as well, come back to it, which is in your -- as a ceo and your constituencies, shareholders, customers, employees, i think the argument should be made now that employees are number one that employees are number one. >> used to come on set with us and say employees, customers, shareholders. >> he did, but i think that that now -- i mean, just look at the companies that are responding to their employees, and getting themselves in sort of a difficult position, mr. cha pick and disney as a result of responding to their employees. it's an important point. >> tim cook . >> and the power of employees to move, to change jobs i think they are more powerful in some ways than the shareholder base and the ceos are responding to that. >> if you talk to tim cook, he would say the customer is the person we think the most about. >> i know. >> which is why they have 99%
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customer satisfaction. it's still sad, still the galaxy, samsung. apple's got a lot of wood to chop. >> understood. >> but i think that tim cook has said over and over again that the customers who we work for were beholden to the customer. i think that's fabulous he said that >> they also say your shares take care of themselves. that's probably true. >> who is twitter beholden to? >> elon musk you know why because he's a user, he's a customer, he's not really an employee, he's a board member and the largest economic owner of the stock. >> there you go. >> qualcomm's down four and this is a travesty of a mockery of a sham >> you're really attached to that qualcomm. >> because i had cristiano talking the most i've ever heard, the chassis for gm, incredibly important, and he's declaring war against the ind
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industry for adas. that's not adidas. >> new partnership with honda to try to develop cheap evs >> when does it -- when is she a visionary? >> by the way, before we get to bob, you talked about consumer weakness carnival would belie that. number one s&p gainer as they argue the week ending of march 28th was the best seven-day booking period than ever. >> it is time to cruise. you know, i'm setting up my investment committee, i'm going to make a forceful presentation today at 2:00 about why we -- i think that cruise -- i think cruises are lovely, okay s . >> the idea he had last week, talk stocks, talk investments. >> i saw some twitter chatter on that >> yeah. imagine what that boat might be like. >> i did want to apologize for using -- my twitterfollowing other than for when i said
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cruising has not been good, but cruising, oh, boy, people were like saying, jim, i want to go i want to go i get to talk, i mean, listen to this i get to talk stocks 24/7. i'll talk them in my jammies and in my suits. >> so that's no change from what normally goes on. >> people will pay. >> they'll pay to be around you doing what you do. as i said, i'll meet up anywhere else, you see that on the ticker that's all you ever do you are a dollar sign -- you are a man -- a dollar sign masquerading as a man. >> i almost bought san tan dare for the trust because they're a sponsor of the eagles. i didn't like the ratio of buy something, but every single one of those signs i look at and ex exalta was one i said you got to buy exalta, and exalta was right there in the end zone. >> you're amazing. you're a seer. >> i am a seer >> we're in range of 4,600 once
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again. let's get to bob pisani. >> that has been resistance, 4,600, so we'll see if we can get over that. it's still a commodity play, though, if you look at the new high list. it's once again littered with primarily big cap energy stocks, the marathons of the world that's what's moving today so we see energy up once again, we see materials like mosaic up. these are familiar names on days when the market is dominated by commodities. tech, which has had a real tear on the upside recently pausing a little bit today, so you see apple, you see microsoft, you see salesforce weighing a little bit on the dow consumer staples just up fractionally new high list, i said the new high list was dominated by energy there's only one other sector that's out there, that's utilities. i know they're boring but all of these utilities are paying dividends north of 3%, some of them close to 4% right now, and it's the only other sector that's consistently hitting stocks on the new high list as half a dozen in the s&p 500
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hitting highs. the new story is the tech rally reach been seeing since march 14th, 15th s&p semiconductors were down several days in a row, they are holding up well, up 11%. software up 17 kathy woods had a great little run in the last two and a half weeks up 25% that's quite a movement. mega caps, speculative tech, even so-called quality traders love to talk about this quality idea it's basically growth with high margins if you look at tech stocks that have growth with high margins, those are quality names, micron, nvidia, alphabet, pay com, they all had great runs, 15 to 25%. this is since march 14th that's pretty good how about lower quality, stuff that has high growth and low marges
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we call these cathie wood stocks so what accounts for these facts? how do you account for the fact that quality doesn't seem to matter people are just buying growth. i think that's the key story here we are buying companies that are interested in growth or have growth characteristics because we're looking for companies, it seems like this, traders are looking for companies that can withstand a growth slowdown. so in this kind of environment, growth seems to matter over interest rate concerns so there's -- it seems like a bit of a sentiment shift away from interest rate concerns and more interesting in towards weathering a slowtodown now, this could change of course tomorrow when we get some of the minutes for the fed meeting and all of a sudden we're going to find out much more aggressive rate hikes for the moment, carl, i think there's interest in weathering the growth slowdown is being manifested in this tech trade. >> quick reminder, you can get
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in on the cnbc news investing c with jim of course as always use the qr code on your screen as well. before we go to break, time for the bond report. we are going to get some ism services, kashkari's on the tape later today, ten-year just south of 2.5, and we got a little bit of the positivity in the 2s, 10s this morning, we'll be right back
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time for jim to stop trading. >> we never talk about the ubs evidence lab about meta labs i regard it as very negative they're basically cutting numbers. by the way, keep it as a buy i think that you must buy this say it's a buy, but buy it on any weakness why? i think reels will be a major
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challenger to tiktok in the second half. you can't wait for the second half to buy it you have to buy it in weakness now. travel trust owns it if i hadn't talked about it, i would be a buyer, to the investing club a meeting on thursday and i intend to talk about this. >> we mentioned dwac, down 9%, almost back to 50. you don't think facebook is equally vulnerable if musk decides to shake things up >> musk is a free thinker who cannot necessarily challenge the earnings per share, but certainly the zeitgeist of it, yeah, sure it says it gives him the willies. i respect elon musk enough to say i have to do work on this, see the impact but i know this reels is starting to really gather steam versus tiktok. and it reminds me of instagram stories versus snap. so let's keep track of it. i'm so bullish on this thing, it's crazy >> how about tonight >> i have what david yesterday
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chided me, where did i get my figures for freight? from leo ron they are the national freight company, and they are about removing friction, and remember, the more drivers the better. so i think -- i answer your prayer i went to him and said listen, people want you to be on the record i'm getting pushback >> look forward to what you have to say >> i rose to the occasion. >> that's good >> transports are down again today. "mad money" 6:00 p.m >> when we and back, zelenskyy preparing to deliver remarks before the u.n., and we'll take you there live hey businesses! you all deserve something epic! so we're giving every business, our best deals on every iphone - including the iphone 13 pro with 5g. that's the one with the amazing camera? yep! every business deserves it... like one's that re-opened! hi, we have an appointment. and every new business that just opened!
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welcome to another hour of "squawk on the street. we're live at post 9 of the new york stock exchange. dow up 100 vix below 20 we're awaiting the ukrainian president zelenskyy speaking to world leaders at the u.n. security council we'll take you there live as soon as he begins. we have eco data
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ism services out a few moments ago. rick has it. >> yeah, do remember, carl, this is a march read. reason it's so important is february due to the omicron really took a big drop it drops from 59.9 in february to 56.5. a nice rebound 58.3 in march. 58.3 as we learn in the pay roll report, the service sector hiring is pretty robust. we didn't recoup everything back up to 59.9, but it was indeed a nice bounce. the 56.5 in the rear view mirror that was the lightest in one year going back to february of '21. we see that interest rates are moving back up and the yield curve actually steepening a bit. morgan, back to you. >> rick santelli, thank you. we're 30 minutes into the trading session. here are three big movers we're watching carnival corporation higher this morning after the cruise line operator reported that last week the last week of march was its busiest week ever for new cruise
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bookings those shares are up 8% right now. plus, keep an eye on amazon this morning. that is down slightly, stepping up plans for its planned mega constellation of internet satellites announcing new partners for what could be up to 83 launches over five years amazon's head of devices and services is going to join us later this hour to discuss that news and more. it is an exclusive you do not want to miss >> finally, twitter on the move for a second day after closing up more than 27% yesterday it's the best day since its ipo. the news this morning that elon musk will join the company's board of directors sending shares up another 6% >> that's where we begin with our next guest with a buy rater on the stock and a target of $60. oppenheimer's jason helstein i have seen a couple notes in the flurry of news that say it could be a while before twitter trades on fundamentals again
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you think so >> twitter has been a very disappointing stock for investors in that investors have saw the potential, saw the potential for twitter to fill the hole as alternative news let's not say the hole, the space. facebook said they don't want to be in news snapchat is a messaging application. there really is an opportunity, and i think perhaps due to decisions made by the company, you know, they really haven't lived up to their full potential in investors' perceptions so the question with mr. musk joining the board, can he help the company live up to its full potential? >> do you think their shortcomings have been related to content moderation or about the ad productand technology hiccups we have seen there something else >> you can separate it if you look at user growth, the user growth did slow dramatically in the back half of last year, in the face of what would appear to be very smart product improvements to try to make twitter easier to use
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i think it implies one of two things happened. another a, the product improvement didn't work and it didn't drive more engagement, or b, it did drive more engagement but there was also churn or users left the platform perhaps due to content decisions that the company made and so i think there's a question, and you can look at data there are alternative platforms that people who may have more right leaning views are going towards. so the question is, can you ultimately make twitter more inclusive while still having appropriate rules of the road. >> so what is your trajectory or outlook now given the news this morning for management, what the composition will look like >> it's too early to know. they did give mr. musk a board seat will he grow his support behind the current ceo with perhaps a new road map will he push to have a new ceo,
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new management team, other changes? will he push the company to formally adopt a content platform that is content rules, content moderation rules that are more black and white, more transparent? we don't know. but him joining the board does limit his ability to buy more shares, so he can't effectively take the company private right now while he's on it, so we have to wait and see. i think for people who had been frustrated with twitter as users, it probably does give them hope. >> jason, thank you. appreciate that. we have breaking comments from fed governor brainard, and steve liesman has that >> thanks very much. fed governor lael brainard will say the fed will begin to reduce the balance sheet at a rapid pace as soon as the may meeting. sort of echoing, maybe going further than fed chair jay powell has gone in the past. she said the committee will continue tightening policy methodically through a series of
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interest rate hike of paramount importance is to get inflation down on the balance sheet, she said expect to shrink the balance sheet more rapidly than the fed did in a previous balance sheet reduction period, and that includes monthly caps on the run-off, the fed will set a level on how much it will allow to run off those levels will be large they'll phase them in but gem tothet quickly all this combined will make policy, quote, more neutral, she says, this year. that sounds like she wants to get around 2%, maybe higher on the funds rate, and the fed will have an opportunity to hike rates at every meeting this year the committee is prepared to take stronger action if warranted. that is if inflation does not come under control she says she's watching the yield curve for signs of increased downside risk, and that the russian invasion along with the covid lockdowns in china create upside risk for additional inflation at the same time they create downside risk to growth. finally, she says the u.s. economy has considerable
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momentum, so she seems to suggest it will not be all that painful, all this tightening she's planning very definitively. you know, she's still the nominee to be vice chair of the board, so she's becoming more important in what she says, clearly out there telegraphing what we'll probably hear in the minutes tomorrow and the actions at the may meeting, which seem to definitively suggest the fed will begin reducing next month >> want to quickly get back to oppenheimer's jason helfstein. you said it's too early to know what musk will do. that seems to be the case. what are your expectations if you have any you already had a $$60 price target on the stock when it was where it was before this move up the last couple days >> prior to the announcement, the stock was trading on a multiple of sales about half of
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snapchat so that was kind of the catalyst there. even with this move, you're still trading at a discount. again, when you think about the way news is, traditional news. cnbc news, there are editors involved and somebody is deciding what makes the front page, what makes the top of the hour. and twitter was not supposed to be that. and it's supposed to basically be a platform where anyone can publish content and the algorithm should help source what people see or is searchable, and somehow it kind of got away from that. and again, if your goal is to ultimately have a product that appeals to the majority of people in developed countries, you look at their user numbers in the u.s., and it is a niche product. so how do you make it more of a w widespread product i think it goes beyond ease of
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use, which was the prior narrative. you probably need to expand the ways content can be posted and look, you wonder, if you're a content creator and you have been posting content to twitter and your content was blocked or you were banned, did you go to other platforms? will you come back maybe those content creators won't come back. actually, that's kind of the question and maybe i'm wrong. maybe it's entirely just most people just think twitter is too hard to use and the product changes that twitter made aren't working. but it does seem like when you think through what product changes twitter made, they are logical and should have made the productesiseasier to use >> jason, thank you. talking some twitter and technology at large this morning. >> those brainard comments did take the wind out of the stocks' sails. we were up 100 and currently down about 17. we'll keep an eye on that, as she again did say that the
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balance sheet runoff could begin rapidly as soon as may as we go to break, the ukrainian president zelenskyy preparing to deliver remarks before the u.n 'll keou there live as soon as it begins in a moment. [sound of helicopter blades] ugh... they found me. ♪ ♪ nice suits, you guys blend right in. the world needs you back. i'm retired greg, you know this. people have their money just sitting around doing nothing... that's bad, they shouldn't do that. they're getting crushed by inflation. well, i feel for them. they're taking financial advice from memes.
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[baby spits out milk] i'll get my onesies®. ♪ “baby one more time” by britney spears ♪ good to have you back, old friend. yeah, eyes on the road, benny. welcome to a new chapter in investing. [ding] e*trade now from morgan stanley.
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welcome back to "squawk on the street." defense contractor there,3 harris is standing up a new unit to develop new technologies quickly, striking a new partnership in the process, and doing it all amid an increase in defense spending
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joining us is the ceo, chris kubasic, and raj shah here at the new york stock exchange. welcome, gentlemen >> good morning. >> chris, let's start with agile development group. what is it and why now >> it's two things an entity to be the front end of our business to do rapid capability and development and also a catalyst for the whole country to focus on innovation, agility, and speed and it ties in nicely with the recent president's budget request for almost double digit increase in research and development spending for dod >> i do want to get into defense spending, naturally. first, is the way to think about this that lock heed has skunk work works. >> i think we have some of the same principles. so it's all about speed, agility, and letting the power
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of the workforce come up with new ideas and new solutions. >> raj, shield capital is focused on dual use technology which i think as a concept has become more popular, at least among wall street. you just struck this partnership with l3, how does the firk factor into the strategy >> like you said, we're a brand-new venture fund focused on supporting entrepreneurs at the intersection of national security and commercial technology as we thought about how do we best support the young companies and founders, we knew we needed a partner that could help accelerate the go to market for them when they think about the defense world. we surveyed the market and in our first meeting with chris at l3 harris, we knew that they were focused on the same technology areas, had the same level of agility, and this was a great partnership to help our businesses >> when we do talk about defense tech, what are the types of technologies you're investing in with this new firm and how does that potentially flow through to l3 harris. >> four technology area.
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artificial intelligence, cybersecurity, autonomy, space technology all four are core domains of l3 harris as well >> we're looking for not only a good return, the real benefit of this partnership and we're the only ones in the industry to have a strategic partnership with a venture capital fund is to pull through the technology into our products. just the other day, we worked on a deal with artificial intelligence on the edge, where we're going to take the software from one of their companies and we co-invested in and put it in our kesensors. very exciting. >> longer term, it's innovation, it's potential around rnd, and it puts you in a good place in terms of future budgets in the u.s., but what does it mean for l3 harris in the near term in 2022 >> well, you know, 2022 is a tough year for us, as we have said it's very back end loaded. unfortunately, we're declining in the first half of the year,
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mainly due to supply chain and timing of awards and continuing resolution we're going to have a strong back end of the year, but longer term, what we need to do is plant the seeds for midterm and long term growth so the agile development group is one example of that the partnership with shield is another. so i would expect to see more business, more opportunities in the midterm. >> so you did touch on it before, defense spending is going up the enacted fiscal 2022 budget we got the 2023 proposal as well depending on how factor in inflation and what gauge you're going to use, it's up for debate whether that represents real growth or not. is your expectation we're going to see mark-ups and given the fact wall street is talking about potential for continuing resolution, what's the trajectory >> we were all pleased i think the entire industry, l3 harris, to see the budget follow the threats. we have all been on these shows talking about it's a dangerous world, threats are out there i think we're seeing it real time, they're evolving you have to be quick
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you have to change i'll be in d.c. the rest of the week and having meetings with individuals that control the budget and the process and giving our position on what we think is needed. >> you mentioned the research and development piece of that puzzle, which is poised to grow pretty meaningfully in fiscal 2023, but how does this position l3 harris moving forward >> around $130 billion, and with this agile development group, we want to be on the front end. we want to win these contracts we're spending our own rnd, probably double-digit for this group, to shape new technologies then as they evolve, we'll move them to other parts of the company for production so this is really the front end to get that development going. and then transition into production and working with shield, we'll be able to pull through some of those great technologies as well >> raj, given you have had a foot in both worlds, how do you see the defense budget evolving and what does that mean in terms of the start-up landscape for
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defense tech, which we have been talking about for so many years but there have been so many challenges up to this point. >> yeah, you're right. i have sat on both sides i remember sitting in an f-16 over iraq dealing with software that wasn't the latest, and as an auentrepreneur in the valley saw how hard it was to sell to the department of defense. there's a broad recognition that commercial technologies are going to be really important for the u.s. and its allies to prevent and deter conflict, and we need unique partnerships like the one that we struck here with l3 harris to make that come to fruition >> and i have spent a lot of time in silicon valley over the last year. it's very patriotic. they're committed to national security i think there's a misconception out there. they want to do great things we want to help them bring that technology to the department of defense and international allies >> what is your take on the geopolitical landscape we're having this conversation with a war in ukraine and the longer term dod continues to be focused on china
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how do you see this evolving our department, our nation, and the industry have to be agile and adjust what's happening in ukraine is a terrible situation we have been supporting ukraine for over a decade, main tale with secured communications and the radios, night vision goggles and we'll support nato and all of our allies. at the end of the day, the dod, and we agree, china is the ultimate threat, and we can't take our eye off that. >> you have met president zelenskyy of ukraine before. we're awaiting his comments in front of the u.n. security council assembly right now but i guess in terms of the situation, as it's playing out in real time, are you seeing more demand for your products? >> oh, absolutely. absolutely you're seeing demand for what we already have in storage, getting deployed over into the region, and they're getting rapid capabilities we turned in 30 days some isr capabilities to support a customer in the region and that's what they're looking for, companies that can go
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quickly, make decisions, and you know, handle the threats and the needs that are out there >> morgan, i think the ukraine situation has changed the game when it comes to commercial technology we have seen satellite overhead imagery, commercial communications and it's just going to demonstrate how important it is to take high growth businesses and help bring them to places like the department of defense >> can we say that the geopolitical landscape and what this is going to mean for something like defense spending has fundamentally changed? >> it feels like it's changing what we're trying to do to be different is to team and partner with these new entrants, with these start-ups, with these entrepreneurial companies and inintegrate it we talk about ai on the edge perfect example. we have taken software, put in our world leading sensors, and given new capability here in a few weeks or a few months to our customers. >> we appreciate your time today. so thank you for joining us here
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at the new york stock exchange, chris and raj. >> thank you good to be here. >> all right, as we head to a quick break, ukrainian president zelenskyy is preparing for remarks before the u.n we'ltaoul ke y there live as soon as it begins. we're back in a moment ♪ ♪ wow, we're crunching tons of polygons here! what's going on? where's regina? hi, i'm ladonna. i invest in invesco qqq, a fund that gives me access to the nasdaq-100 innovations, like real time cgi. okay... yeah... oh. don't worry i got it! become an agent of innovation with invesco qqq
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. as we go to break, ukrainian president zelenskyy preparing to deliver remarks before the u.n., and we will take you there live as soon as it begins in the meantime, stocks have lost their gains, as brainard comments on balance sheet reduction, of course, all ahead of fomc minutes tomorrow naaqown resd dmo than 1% we're back in a moment
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welcome back time now for our etf spotlight the retail erbtf ticker xrt just closing out its worst quarter since q1 of 2020 it's under pressure this morning. could more pain be ahead courtney joins us with that story. >> good morning, morgan.
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the u.s. consumer has been remarkably resilient during the pandemic but consumer company ceos are starting to express some concern about what's to come, or maybe what's happening now, and investors are starting to notice and hitting the sell button. so tempur sealy ceo scott thompson said recent geopolitical events, falling consumer confidence, and a new covid variant outbreak in international markets led to lower than expected sales. gary friedman was downbeat on the call, saying higher prices for everything is going to, quote, outrun the consumer, adding uncertainty from inflation, interest rates, housing, and russia's invasion of ukraine makes the most difficult time for rh to forecast since 2008. even though the higher end consumer has remaining very strong the retail etf ticker xrt had its worst quarter since 2020 we all remember that one well. the i-buy commerce etf had the
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worst quarter since its inception in 2016. despite a trend of consistent and largely positive financial results, shares of american eagle outfitters and rh hit 52-week highs. home depot is 2% off its 52-week low in a housing and remodeling market that's been on fire the discounters and wholesale names are taking off bj's wholesale is up 20% in a month. costco and dollar tree are up 9% it's worth mentioning bj's, walmart, and sam's club sell gasoline at a discount for members. a likely draw as gas prices remain elevated and possible spillover for other purchasing while filling up outside, taking a trip inside too. morgan >> courtney reagan, thank you. >> amazon making a big multi-billion dollar bet on space. signing the largest ever commercial rocket launch deal. we'll talk about that news and a whole lot more with amazon's head of devices and services,
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dave limp. that's coming up next. >> meantime, we're awaiting ukrainian president zelenskyy preparing to deliver remarks before the u.n.'s security council. we'll take you there live as soon as it bin we're back in a moment sales are down from last quarter, but we're hoping things will pick up by q3. yeah...uhhh... doug? [children laughing] sorry about that.'s uhh... you alright? [loud exhale] [ding] never settle with power e*trade. it has powerful, easy-to-use tools to help you find opportunities, 24/7 support when you need answers, plus some of the lowest options in futures contract prices around. [ding] get e*trade and start trading today. [ding] get e*trade nurse mariyam sabo
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welcome back time for us to get a news update let's get over to frank holland. >> good morning, david here's what's happening at this hour nbc news reports ivanka trump is expected to appear before the january 6th committee later today. the committee is not commenting. a spokesperson for the former president's daughter has not immediately responded to a request for comment. >> as we have been telling you, ukrainian president zelenskyy is set to address the united nations security council shortly and call for more support for his runt rain the face of the creasing evidence that russian troops massacred ukrainian civilians. >> the european union is proposing a ban on imports of russian coal the president says pressure must be increased on moscow after,
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quote, heinous crimes were carried out around kyiv. germany's foreign minister said it's a first step toward europe ending all imports of russian fossil fuels >> at home, two maryland police officers saved two small children from a car that crashed into a pond. they had to break a window before they could get a 9-month-old and a 3-year-old out of the half submerged wiig the driver was taken into custody after officers found outstanding warrants for his arrest back to you. >> thanks for that >> mike santoli is here to break down today's market action we're coming off the best day for the nasdaq in about a week but giving some back today >> giving some back. obviously, coincided directly with the lael brainard headlines about perhaps being more aggressive about reducing the size of the balance sheet starting in may. of course, that may meeting is right in the first week of may i think it's an excuse for a step back. right at these levels, you were talking earlier about s&p at 4600, and you had this huge move since midmarch in the nasdaq
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i think we're in the zone of figuring out exactly if this is more than just kind of a reversion to the mean type bounce and really what the overall fed picture is anything that conveys the message that the fed is amping up its level of urgency and feeling as if it still has to chase the data and chase reality and get incrementally tighter is probably not the most welcome, but boy, we have priced in a lot so far in terms of what the fed is up to this year >> all right, mike santoli, thank you. amazon announcing the largest commercial deal for rocket launches ever to carry the majority of its 3,236 satellite mega constellations into earth orbit the procure mpt involves up to 83 launches in five years. the ariana 6 rocket, the vulcan centaur. it's the latest step to build out a broad band service from space.
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a $10 million plus bet on connecting more of the world to the internet joining us exclusively, dave limp, amazon senior vice president of devices and services great to have you on the show. >> great to be here, thanks. >> so let's talk a little bit about the news you contracted with three companies, three large, three very powerful rockets still under development. how did these deals come together and what is the price tag? >> well, we're going to be committing billions of dollars for these launch partners. a great deal for them and us at amazon, but as you mentioned for typer because we're getting one step closer to bringing broadband to underserved and nonserved customers around the world. we looked at these vehicles buzz they are large vehicles and they have the ability to bring the amount of mass we need to bring to orbit in a very efficient manner, and that along with the nine atlas 5s we had contracted earlier gets us well on the way to being able to deploy the entire constellation >> you have been developing
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these satellites for the last couple years what is the time table for the launches and when does that service become a reality >> goal is to get a couple prototype satellites up the end of this year, early next that will give us a lot of learning about what we don't know having not put anything into space for amazon before then assuming that goes well, our goal is by summer of 2026 to have half the constellation up, so that's a little more than 1600 of the satellites if you backed up from there, we should be able to launch a service when we get hundreds of satellites up. so we don't have an exact date a lot depends on how the prototypes go, but we're excited about making progress today. >> can you give us any kind of sense on what the pricing for the service will look like when that happens in 2026 >> no, i think we're going to price it, though, affordably everything you think about amazon, whether it's aws, we have lowered prices proactively for enterprise customers hundreds of times, what we do on our website every day, what i do in my own organization with fire
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tv and kindle, it's about making sure we give value to customers, and that's no different. we want a great value for fixed broadband in the u.s. and around the globe. >> how does project keeper fit into that broader amazon strategy i ask that because i know you have come on cnbc in the past and talked about connecting home and connected autos, and sort of this golden age, if you will, in terms of these ambient intelligence based technologies. how does kiper continue to fortify that >> well, as i have said, the pandemic has taught us one thing, our home has been transformed. it's more often than not our movie theater, the place where we're learning to cook, our school in many cases and a lot of that is systemic, coming out of the pandemic it's going to continue so there's nothing more important to make that a reality than proven and efficient and
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high speed connectivity. and there are so many places just here in the united states where homes don't have that connectivity, so if we want to pursue the long term vision of making your house work harder on your behalf, we need to make sure it has that connectivity, and kiper is one great options for customers where they might not have a lot of options. they might be running dsl on copper that is put in the ground in the '40s and '50s and have no opportunity to upgrade to something that's higher speed. >> a lot has been made of the competitive landscape for space-based broadband service. spacex's starlink gets a lot of attention, but you have others in the works as well is the market big enough for everyone >> yeah, i don't think this is a sporting event, olympic race where there's only one winner. if you look at the global segment for the number of people that need broadband, it's measured in the billions, with a "b" and so these constellations are going to be valuable there's not going to be one
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winner i think starlink will be successful i also think kuiper will be successful customers having choice is one of the most important things as foundational as amazon, giving customers those choices and therefore they're going to get more value as they go along. >> so in terms of amazon's extensive portfolio that reaches out to so many different types of industries, how are you able to leverage that scale, leverage that experience to deliver this service in a competitiveway? >> well, i think first and foremost, the critical part of internet connectativity into the home is getting back to the internet one of the nice things that we have at amazon, one of our core capabilities is amazon web services and a lot of the internet is hosted there we have built a big internet fiber based backbone over the years, and having that direct connectivity for customers will mean for faster experiences on the web, for streaming video, et cetera i also think what's underestimated in projects like
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this is how hard manufacturing is almost anybody can build a prototype, but to build things at scale is incredibly hard. i have been doing a version of that for 30 years of my life, and it's the hardest challenge i face as we scale this up, not only the number of rockets we have to make every year, not only the number of satellites we have to make per day, but also the number of customer terminals measured in tens of millions manufacturing, which is a core muscle amazon has, will be able to be really helpful for getting customers what they want >> so just to shift gears a little bit, whether we're talking about satellites or the arsenal of products that you oversee in general, when it's echo or arrow or ring or some of the other products what are you seeing in terms of supply chain dynamics right now? >> yeah, it's not easy to answer that question with a one size fits all answer. some mornings i wake up, we have a silicone shortage. some mornings there's a factory
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shut down because of a covid outbreak unfortunately sometimes it's transportation issues we're having a lot of issues in the industry right now with ocean-based transportation >> dave, i'm sorry for the interruption we want to take you to the u.n. and president zelenskyy. >> translator: thank you very much for this opportunity. i'm sure that all of the representatives of the united nations member states will hear me today yesterday, i returned from the city of bucha recently liberated from russian troops not far from kyiv, so there is not a single crime they would not commit there. the russian military searched for and killed anyone who served our country. they shot and killed women outside their houses, when they just tried to call someone who is alive they killed entire families, adults and children. and they tried to burn the bodies i am addressing you on behalf of the people who honor the memory of the deceased every single day
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in the memory of the civilians who died who were shot and killed in the back of the head after being tortured some of them were shot on the streets. others were thrown into wells. so they died there in suffering. they were killed in their apartments, houses, blowing up grenades civilians were crushed by tanks while sitting in their cars in the middle of the road just for their pleasure. they cut off limbs, cut their throats, slashed their throats women were raped and killed in front of their children. their tongues were pulled out, only because the aggressor did not hear what they wanted to hear from them this is no different from other terrorists such as daish who occupied some territories. here, it is done by a member of the united nations security council destroying internal
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borders, countries, and taking the ride of more than dozen countries who are self-determined. they pursue consistent policy of destroying ethnic and religious diversity. they enflame wars and deliberately lead them in such a way to kill as many regular civilians in cities and to leave the country where they deploy their troops in ruins and filled with mass graves you all see that and they support hatred at the level of the state and seek to export it to other countries through their system of propaganda and political corruption they provoke global food crisis that could lead to famine in africa, asia, and other countries, and will surely end in political chaos in many countries and destroying their
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domestic security. so where is the security that the security council needs to guarantee? it's not there, although there is a security council. so where is the peace? where are those guarantees that the united nations needs to guarantee? it is obvious that the key institution of the world, which must insure the coercion of any aggression to peace simply cannot work effectively. now, the world can see that what russian military did in bucha while keeping the city under their occupation but the world has yet to see what they have done in other occupied cities and regions of our country. geography might be different and various, but cruelty is the same, crimes are the same, and accountability must be
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inevitable ladies and gentlemen, i would like to remind you of article 1, chapter 1 of the u.n. charter. what is the purpose of our organization its purpose is to maintain peace and make sure that peace is adhered to, and now the u.n. charter is violated literally, starting with article 1, and if so, what is the point of all other articles today, as a result of russia's actions in our country in ukraine, the most terrible war crimes of all times, we see since the end of world war ii, and they are being committed russian troops are deliberately destroying ukrainian cities to ashes with artillery and air strikes. they're deliberately blocking cities, creating mass starvation they're shooting columns of civilians on the road trying to escape from the territory
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hostilities. they even deliberately blow up shelters where civilians hide from air strikes they're deliberately creating conditions in the temporarily occupied territories so as many civilians as possible are killed there. the massacre in our city of bucha is only one, unfortunately, only one of many examples of what the occupiers have been doing on our land for the past 41 days and there are many more cities, similarly places, where the world has yet to learn the full truth. mariupol, kharkiv, chernobyl, dozens of other ukrainian communities. each of them is similar to bucha. i know and you know perfectly well what the representatives of russia will say in response to the accusations of these crimes. they have said that many times the most significant was after their shooting down of the
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malaysian boeing over donbas by russian forces with russian weapons, or during the war in syria, they will blame everyone just to justify their own actions. they will say that there are various versions, different versions, that is impossible to establish which one of those versions is true they will even say that the bodies of those killed were allegedly thrown away and all videos are staged, but it is 2022 now we have conclusive evidence. there are satellite images we can conduct full and transparent investigations this is what we're interested in maximum access for journalists maximum cooperation with international institutions involvement of the international criminal court complete truth and full accountability i'm sure that every member state of the u.n. should be interested
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in this. for what in order to punish once and for all those who consider themselves privileged and believe that they can get away with anything. so show all the other potential war criminals in the world how they will be punished if the biggest one is punished, then everyone is punished why did ukraine come to ukraine? i will tell you. because russia's leadership feels like colonizers in ancient times. they need our wells, our people. russia has already deported hundreds of thousands of our citizens to their country. they have adopted more than 2,000 children just simply conducted that those children and continue to do so. russia wants to turn ukraine into silent slaves the russian military are looting openly the cities and villages
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there that they have captured. this is widescale looting. they are stealing everything, starting with food, ending with earrings, gold earrings that are pulled out and covered with blood. we are dealing with a state that is turning the veto into the u.n. security council into the right to die this undermined the whole architecture of global security. it allows them to go unpunished, so they're destroying everything that they can. so if this continues, the country will be relying only on the power of their own arms to insure their security. and not on international law not rely on international institutions the united nations can be simply close, ladies and gentlemen, are you ready to close the u.n., do you think the time of
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international law is gone? if your answer is no, then you need to act immediately. the u.n. charter must be restored immediately the u.n. system must be reformed immediately so that the veto is not the so that the veto is not right to die the aggressor must be brought to peace immediately. determination is needed. the massacre from syria to somalia from afghanistan to yemen and libya, that should have been stopped long time ago to tell you the truth. if tyranny had at least once received such a response to the war we have reached, it would have ceased and the world would have changed for sure. and then perhaps there would not
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be war in my country against our people, against ukrainian people against our citizens but the world watched and did not want to see either the occupation of crimea or the war against georgia or taking the entire from muldova, how russia was preparing the basis for other conflicts and wars near their borders. how to stop it right away the russian military and those who gave them orders must be brought to justice immediately for war crimes in ukraine. anyone that's given criminal orders and carried out them by killing our people will be brought before the tribunal which should be similar to the newer emburg tribunals i want to remind russian
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diplomats, has not escaped punishment for crimes in world war ii i want to remind you those also did not go unpunished. nobody of them escaped punishment but the main thing is today, it is time to transform this system, the united nations therefore i propose to commit a global conference and we can do it here in peaceful cave in order to determine how to reform the world security system, how we will rely or how do we establish guarantee of recognition of borders and integrity of states and countries, how we will serve the rule of international law. it is now clear that the goal set in san francisco in 1945 with the creation of a global
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security international organization has not been achieved and it is impossible to achieve without reforms. therefore, we must do everything in our power to pass onto the next generation an effective u.n. with the ability to respond preventively to security challenges and thus guarantee, prevent aggression, force them to peace, have the determination and ability to punish if principles of peace are violated there can be no more exceptions of privileges. everybody must be equal. all participants of international relations, regardless of economic strength, geographical area and individual ambitions. the power of peace must become dominant the power of justice and security power as humanity has always dreamed of it ukraine is ready to provide a
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platform for one of the main offices of the newly updated security system as similar to the geneva office that deals with human rights and office that deals with environmental protection and we can have u 24 office that can specialize in preventive measures to maintain peace i would liketo remind you of our peaceful mission in afghanistan when we, ukrainians, evacuated from that country more than 1,000 people at our own expense. it was a very difficult phase and ukraine came to their help we took in people of different nationalities, ethnic groups, different faiths, afghan citizens of the european countries, u.s., canada. we did not look who needed help, was it one of our own or somebody else, we helped all of
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them we saved everyone, every time there was a need, if everyone in the world would be confident that help would come, the world would be definitely safer. therefore, ukraine has the moral right to propose reform of the world security system. we have proven that we help others not only happy times but dark times, too, now we need decisions from the security council for peace in ukraine if you do not know how to make this decision, you can do two things either remove russia as an aggressor and source of war so it cannot blog decisions about its own aggression, its own war, and then do everything that we can do to establish peace. or the other option is please show how we can reform or change
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and work for peace, or if there is no alternative and no option, then the next option would be dissolve yourself all together and i know that you can admit if there is nothing that you can do besides conversation, we need peace. we in ukraine need peace europe needs peace and the world needs peace. and finally, i would kindly ask you very much to watch this short video. please give us one more minute of your time the video that we want to show that one country can violate rights and that's the result of being unpunished if possible, please watch this video because it is impossible
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to get everyone to come to our country and see it with your own eyes therefore, i would ask you to watch this video thank you very much. [ applause ] >> that is the ukrainian president zelenskyy. awaiting a video he referenced but perhaps unclear exactly why it hasn't run, of course,
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addressing the u.n. there, recounting many of the atrocities that russian troops committed according to the president with their withdrawal from certain areas of the country. not sure if we will go back in, if in fact the video does run but a number of developments as well, morgan, during the course of the morning, specifically the eu and additional sanctions taken against the russians in terms of russian vessels and other sanctions, unclear whether they'll have impact in terms of president putin and the war he has been waging in that country. obviously russian troops retreated from certain areas ukrainian army has been able to move into them as you heard from president zelenskyy, uncovered what they claim is a series of war crimes
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essentially in terms of the way they treated and killed the civilian population. so that is where we are standing now. we keep an eye as well on the broader economy in the markets here >> yeah. it is a heartbreaking situation, it is a situation that the longer it goes on, the more folks you speak to, kickly with the national security and defense spheres seem to think it could continue to go on with no potential end in sight and it is very sad to hear about some of the atrocities that have been committed and to see how all this is playing out on the world stage now as we do await this video. and the role that things like satellite imagery are playing in all this, something we talked about just earlier in the show, to basically show the world what is happening in real time right
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now. meantime, getting a check on the markets. everything is lower. that's going to do it for "squawk on the street. tech check starts now. good tuesday morning welcome to tech check. i am john john with jon fortt and dedra. elon musk added twitter board member to his resume try to define the word passive well shot for payments, discuss the call on that amazon launching rockets, taking on star link, why they are spending $10 million in space. we start with twitter announcing elon musk is joining the board after he bough


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