good morning welcome to jobs friday the moves are helping apple. stronger than expected iphone sales. details on that and more straight ahead. plus, woodstock for capitalists. i don't think there is a lot of drugs there. becky has a big lineup from the berkshire hathaway annual meeting. it is friday, may 5th. cinco de mayo. big plans for tonight. "squawk box" begins now. good morning welcome to the "squawk box" here

from nasdaq center in times square what is going in omaha, nebraska, becky? >> you know the routine, andrew. it is building we are on the floor of the convention center. this is where all of the different units of berkshire set up they have to fight to get space here a lot of the units are here. we are next to dairy queen i see see's candy. bsf railway. the train set up a race car behind me with duracel. and still not blown up, the mini bus up front behind me is the gekko he is not up they will open the convention hall later today we expect more than 40,000 people coming in warren buffett telling us they have given out more tickets than they ever have before.

40,000 is where they are they have given the out 20% more tickets than years past. they give out more tickets than people come. some tickets can be used to places like the nebraska furniture mart for shopping. an the lot go out in omaha places from around the globe and an 100 tickets went to every one of the 50 sdtates. this is known as woodstock for capitalists. they open the doors at noon. this is a big shopping bonanza they have a cool thing this year squishmellows. >> i don't know. do i know what a squishmellow? are you going to bring me one? >> i will if i can they own jazz wares. a company they bought when they

got allegheny. one of the companies they weren't thinking about a cool thing they have squishmellows. i don't think i'm allowed to show you they are big and squishy they are like marshmallows because they are stuffed and an m animals. >> i'm thinking of food with dairy queen. >> is there a warren buffett squishmellow >> am i allowed to say we're going to go check it out later on. >> okay. if there happens to be, you know i'm in the market. that's all i'm saying. just in case >> i'm in the market for see's candy. >> i know how to get to each of your hearts. >> let me ask about the dairy

queen? are there refrigerators? >> yes you can get dilly bars or orange and cream cicle ones >> i might not be at norfolk southern place long. i might camp out at the dairy queen. >> can you see it? can you get a shot of it >> whoa. they really do it up >> see's candy. >> they get fancy over the years with the set up. absolutely >> this is a huge, huge shopping week for all of the different companies that come here oriental trading >> the gekko what is wrong with him >> straight behind me. nobody is here yet

it's early it's early he is not waving around. >> progressive >> it is an hour earlier here. >> the progressive. >> there he is. >> he's deflated literally. okay i got it because he does a lot of ads >> this is the calm before the storm. the calm before the storm. >> moving on okay okay, evan moving on. >> the calm before the storm a lot coming we have a huge lineup today. including the heads of three of the berkshire companies. head of the furniture mart brooks running will join us. the incoming ceo at pilot company. a lot to talk about with the specifics with each of the companies. we have berkshire lead director and investor mario and tomorrow, cnbc is the place to watch live coverage of the annual meeting

this will take place as warren buffett and charlie munger take the stage. it starts tomorrow the questions start at 10:00 a.m. you can catch the pre s-show at 8:30 omaha time which is 9:30. it starts -- correct me. what time does it start? i get confused what time do we start tomorrow 8:30 local time? 9:45 eastern 10:00 eastern? okay you can see it on cnbc.com at 9:45 eastern i'm lost between the time changes. we have a lot. >> we have a huge show today becky has a lot coming from omaha. she has a huge show tomorrow i want to get a check on the markets. u.s. equities on friday. 122 points up on the dow

s&p up 21 points higher. nasdaq up 78 higher. stocks falling for a fourth straight day in yesterday's session. nasdaq still up 14.3%. take a look at treasury yields we will flip that board around you look at the 10-year treasury at 3.399 2-year treasury at 3.815 check out the price of crude down 9%. that is for the week amid a slowdown lots of concerns of turmoil in the banking sector can we talk how big a show is today? we've got the employment and jobs and david sazloff in studio we have sam altman founder of bumble. think about this i don't want to overstate the

situation. >> you want to throw in dating with the jobs report and david zalsav >> big deal. just saying. >> how long is the flight? are there -- can you bring dairy queen stuff back >> no. you can get the cdairy queen stuff everywhere >> it is not as fresh. have you been to the coors brewery? >> that is different it is not like dairy queen headquarters >> what about the see's candy? >> that will last. if you get a call -- it should be buffett related >> see's candy. >> brooks sneakers >> i got some of those >> berkshire branded with buffett's head on those. you are an entrepreneur. sell them on e-bay. >> i don't think like that you get a gift and sell it on

e- e-bay? >> i don't i'm saying they have value it's a specialty item. >> bumble. shares of apple are rising, but flat earnings beat estimate over stronger than expected iphone sales. steve kovach joins us from san francisco. steve, you wear glasses. andrew and i have trouble looking close up i kept looking at the quarterly sales number and trying to figure out if it really says $94 billion. is that a nine that is just -- that was below and down from last year. what a number. it doesn't happen two straight quarters of down numbers, but still what the street was looking for. >> that is it. the theme, joe, the results were

better than feared look, don't expect to see growth at apple again any time soon that is the overall theme we are getting from these quarterly reports. like you said, a beat on the top and bottom lines driven by stronger than expected iphone sales. up 1.5% and hit a record for the march quarter at apple i talked to tim cook yesterday after the earnings i asked what drove the iphone sales. he said it was a mix of china reopening and carryover demand after the factory shutdowns in china. everyone waiting for the guidance apple sales are guided to fall again for the third quarter in a row. apple implying a 2% to 3% revenue drop for the quarter growth in revenue services mac sales down 31% that comes amid a pc slump and tough compares from a year ago

when they had big launches in the mac business i also asked tim cook the a.i. question and about apple's role moderating a.i. apps in the app store. if problems arise, apple is the major gatekeeper if it has to update policies to keep up tim cook said apple is looking at app store policies and thoughtful of the issues that may come up. they are not ruling out changes. he said they are asking all the time if they should change app store policies including a.i that is an important way to think about apple and a.i. beyond anything they make. big problems arise in apps like social media, apple can be the gatekeeper we have seen what they have done to facebook. >> steve, can i ask and we will talk to sam altman later

i think about a.i. more broadly. i think it could disrupt the entire app store actually. right now you are going to the varied places. in the future, i imagine you just ask the question and you get the answer >> it is not just about that, andrew it is also about the development of apps. these technologies make it easier for people like me who don't know how to code to actually code. imagine that you have a great idea for an app that you don't know how to make, but talk to an app like chatgpt and it makes it for you. a lot of people see this as a boon for the app store >> if you think the future of everything is a chat or some kind of siri maybe they integrate siri into it you see why they would not have to go to any of the various

apps the graphic interface would be a different situation, no? >> people were talking about this rise of alexa in 2015 and 2016 that was perceived as a threat against apple siri what if we don't need screens and talk to the computers. it still hasn't happened maybe it happens i would note that apple has a very prominent a.i. leader who is in charge of siri there is the option of turning siri into the super charged chat b chatbot for sure >> that stuff siri comes up with >> it needs work. >> she is in first grade obvious things even the first grader could know what you are saying and she comes up with the most -- i don't know that's what worries me you can tell a.i. to write code, steve?

>> that is a big part of it. >> of course you can that's half of what makes it exciting if not more >> now you can code, joe you can make an app. >> the second derivative for me. w wow. >> you can build a squawk app. >> what would it do? >> we can success that >> it would deliver your see's candy and dairy queen. >> what about the dry ice in the cooler no way would it melt? coming up, shares of lyft plunging right now we will show you what the company reported which is weighing on the stock. down 17.5% next. and we told you about becky's lineup from omaha. we have a huge lineup. bumble's founder whitney wolfe herd we have david zalsav and sam

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box. shares of lyft are plunging. revenue $1 billion which was up 14%. that beat on the top line. the current quarter forecast is where things got complicated weaker than expected it was the first quarterly report since the new ceo david risher took over former amazon executive. he said we are improving the ride share service and thrilled with the early results stock losing half the value over the last year. earlier this week, uber shares jumped after revenue and guidance came in higher than expected uber stock is up against it. tale of two cities. i want to get back out to omaha where becky quick is what's coming up >> coming up next, andrew, we are talking more about what is happening as investors gather in omaha for the annual meeting joining us after the break, we

talk to the head of the nebraska furniture mart irv blumkin will be here we will have board member sue decker and investor mario debelli. "squawk box" will be right back.

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welcome back we are here in omaha ahead of the berkshire annual meeting joining us is irv blumkin of nebraska furniture company irv, it is great to see you. >> good to be here welcome to omaha >> thanks. people who come in here get a discount at nebraska furniture mart >> it varies bypro product it is the deepest discount and

tremendous value to customers. you get to take advantage on products maybe not typically discounted. >> maybe not iphones >> maybe not. >> what do you see in the weekend? >> we will see 50 plus million dollars. >> wow furniture was a hot item anything people wanted during covid. where do things stand now? the supply chain and people wanting to spend on anything what do you see right now? >> right now, especially last 30 days, traffic has been down. it gives companies like ours which is strong and stable the opportunity to pass on value to the customer of we see a slowdown. >> you say pass on to the customer offer discounts? >> more opportunities available to us because we pay our bills and take volume and our industry

over reacted when they could not get supply there is plenty of supply available and inventory available in full warehouses it gives us an opportunity to pass on value to the customer sdpcustomer >> there are some chains which too much inventory i don't think you are in that severe of a situation. what do you do with inventory levels >> our inventories are in good shape. we really work hard on making sure we have the right product and we didn't overreact. at the time during covid, everybody was trying to buy whatever they could get because they could sell whatever they could get. we took a position to make sure we kept good control of the inventory. we are taking advantage of the opportunities. >> you had better opportunities and better version of getting stuff into the stores during covid. what were some of the things you were doing to get inventory that others could not get >> we do business with a lot of

sup suppliers. we have a broad base we were able to leverage and adapt to take care of the customer because of the broad vendor base, we made sure we had product to take care of the customer. >> irv, one reason warren buffett invested in apple is what he saw at the nebraska furniture mart how important of an item this was. what he saw coming through iphones are not something that ever gets discounted anywhere. >> it is rare. apple is a great brand it is a sticky brand if you are in the business, it is the brand to have. >> they came out with numbers stronger than anticipated with the stronger iphone numbers. have you seen the same in your stores >> we have it is a brand people want and our sales are still good you know, there has been limited supply issues, but overall, they have done a great job. >> what is the toughest thing to

get? >> there were times where ipads were tough to get. overall, we are in good shape. >> we have a jobs report coming up in a couple hours what is the labor market like from your per -- perspective >> it is still tight during the last six months to a year, we had to make adjustments because the labor was tight. it is loose evning up a bit. >> what adjustments did you have to make? >> we adjusted a lot of warehouse staff. we just need to make sure we kept our people loyal to us and made sure we had good stability. we wanted to make sure we were competitive in the marketplace >> you paid more >> absolutely. >> what is the average wage for you right now? starting salary? >> in our warehouse, you know,

$20 plus an hour >> before covid? >> $16 or $17 an hour. >> that is serious inflation. >> it has been serious inflation. >> what do you see from the inflation outlook? has inflation come down? >> in our industry, inflation has come down. freight has come down dramatically inventory availability it is more available prices have started to stabilize and come down. ove overall, inflation and we care for our people they are slowing down. >> irv, i want to thank you for joining us. >> thank you >> great to see you. guys, back over to you joe. thanks, becky. coming up, more still ahead. next, we have bumble founder whitney wolfe herd and then david zaslav and sam altman.

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good morning welcome back to "squawk box. live from the nasdaq market site in times square. it is like we are talking about

a gourmet meal and i'm/ on a diet >> we haven't introduced our guest. >> that is what we are saying off camera we said whitney was going to be here like i said, sounds great. great. i'm on a starvation diet i'm married. it doesn't help us. >> you and i are married >> not to each other it seems that way the way we argue. >> joining us right now with where she is swiping right ceo of bumble whitney wolfe herd you said something fascinating that 6 out of 10 couples meet over a dating app. is that true >> dating is now starting

online this is normal according to a stanford study updated with 6 in 10 couples start online. >> do you track people on bumble is bumble using a better hit rate 7 out of 10 >> we don't have any way to track every couple that meets online there are millions of interactions the at any given moment we were actually in ours office the other day coming through what felt like thousands of wedding invitations. so many were actually bumble themed with bees and hives and asking us to come to the wedding or baby shower it was remarkable. this is having a real impact on people's lives. >> the stig inma is gone now when i think about the chance of meeting someone through serendipity. all of those things. that never happens you can do it this way

>> fate is great, but bumble is faster >> have you used that as a slogan >> i think we may have >> you notice they have a partnership with netflix now you are saying to me did you see this show. did you not see this show? >> i haven't seen the ones you see. >> that's why we're not married. the point is you have the partnership. that is one of the things. one of the metrics people talk over whether they like each other >> when you watch similar shows, you probably have similar interests. it is a great way to break the ice and kickoff a conversation. >> how much do you think about your business as a barometer of the economy and how much is it impacted by the economy? >> i think what is so interesting is dating is a very indestructible demand on a global basis no matter what has happened

throughout history, recession or war, love prevails. >> you probably helped during the pandemic. >> we helped bring you together when you were stuck inside love is an indestructible thing. the n not just love, but we are in an epidemic of loneliness we have bff offerings. bumble has evolved from just love. >> does bff turn into something else >> no. sometimes, but predominately what we are seeing on bff is women that are looking for female friendship. >> just female friendship? i thought you can find male friendship >> women were getting on bumble to date and finding a partner and then they were lonely. i need friends i need someone to go do things

with i don't want to feel isolated. people get it wrong. they think dating is just this singular industry of just love it is not just for singles you need to have more relationships in your life it is a multitude of relationships. friendship unity. >> i'm not going on and finding bros. >> yes, you are. i'll make you a profile. i was back stage >> i have three dogs >> the gentleman back stage showed me his grandson's bumble success story. you can find all sorts of things here. >> i have three dogs and i might be an old dog without new contr tricks >> that is working out s>> match is your biggest competitor i assume you sit with a white board and think who is the direct competitor. how do you think of the

competitor set >> it is interesting we are in a league of our own at this point we have offerings and brand use case that you can't compare to anyone else. what facebook used to be or meta was to keep in touch with friends. we are helping you find new friends and new love interests we are helping you and navigatee world of people you don't know yet. what sets us apart from peers or competitors is i set out to build a company rooted in kindness and safety and treating people better on the internet to create healthy relationships on and offline. >> i like to give you credit for a moment they got out of russia when all of the ukraine stuff went down immediately. >> immediately. >> you know who didn't match. interestingly. >> listen -- >> they just got out finally fascinating. >> this is who we are as a

business we try to lead with our mission and our tag line is kind connections. we have to operate that way >> we talking with sam altman coming up. how does a.i. change the business >> we see it as a pro ppeller we have been using a.i. for years. this is not a pivot. >> that is on the engineering side and block people from sending lewd photos? >> we have been using sophisticated technology to match you. we are in the business of making sure who you see is who you want to see and you will have, you know, a lot in common and you will have a lot of relevant things to talk about when you think about how a.i. can actually accelerate the process of meeting who you want to meet from on-boarding to the

real date. think about that a.i. will be an opportunity for us to help you pick better photos and write a bio how do you make the move as a woman because that is the difference for us and what got us here. women in control how do we give them more control and more safety through a.i. we are excited about that. >> is this a bigger mode we are talking about p apapple in the app store does this create a bigger moat the truth is if the interface is one big chatbot and say i'm looking for a date help me. they need to come to you to do that and how that really works if people aren't going to go to the web sites. it depends what the interface looks like eventually. >> we have the audience. we have millions and millions of loyal engaged people

retention and engagement and registration the demand is there. not just for love, but our brand and what we offer is there we will stay top of line in terms of innovation and how we offer matches to you at the most premiere level of a.i >> what are you smiling about over there >> it has been a long time it's kind of foreign to me i think the other day and i was talking to my daughter about something. she said if you hype up your profile and your picture, it doesn't look like you and you have more stuff in there -- there's an actual term for that, i think. have you heard that? >> you know what i see now i see people on the instagram account. professional photographers make you look like a rock star. >> i know what you are talking about.

>> i guess met the person and said you are not that person it was a bad situation i don't know anything about that it is new to me. >> we have been combating this for years. we leaned into being your authentic self photo verification >> these are not fake photos some professional photographer >> facetime. there are so many ways to authenticate yourself. we need to provide a platform to express yourself in an authentic way and accountable for the interactions you have with people on the internet. >> and sometimes opposites attract. does it always work if you have everything in common i think about what my wife likes to watch we watch french history movies i like war movies. we watch both. >> we hear this all the time

opposites are still attracting on bumble. it is not just a mechanism of you like these two things and boom you are a match it is up to you to sort through the audience around you. >> think about it. >> this is how we meet it is going to be how we meet. we are excited about, you know, the future it is all about kind connections andinternet. >> this is a good morning show we have been talking about the fed all week and inverted yields curve. >> financial nerds could meet on the squawk section on bumble >> this is getting interesting >> i'm ready. >> whitney, thank you. i appreciate it. coming up on the other side of the break, adidas shares jum jumping. details on that next. and at the top of the hour, warner bros. discoryve ceo david

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welcome black to "squawk box. shares of adidas higher. the company saying it took a revenue hit of $441 million related to the end of the partnership with ye. also known as kanye west adidas gave no update on what it will do with stock and unsold yeezy shoes which is a long standing question. we want to get out to becky who is in omaha. what's on deck >> we have our shoes coming up here check it out brooks running shoes the special he digedition for t weekend. we have jim weber.

we will talk about people still running after the n where so mae running before is it still happening? you can watch us any time. just watch the cnbc app. >> announcer: executive edge is sponsored by at&t business at&t 5g is fast, reliable and secure oh, i can tell business is going through the “woof”. but seriously we need a reliable way to help keep everyone connected from wherever we go. well at at&t we'll help you find the right wireless plan for you. so, you can stay connected to all your drivers and stores on america's most reliable 5g network. that sounds just paw-fect. terrier-iffic i labra-dore you round of a-paws at&t 5g is fast, reliable and secure for your business. doors can take us to new adventures and long-term goals. your dedicated fidelity advisor can help you open those doors. by helping you create a comprehensive wealth plan,

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welcome back to "squawk box" everybody. we are live in omaha, nebraska, at the berkshire hathaway annual meeting, coming up tomorrow. joining us now is jim weber, the ceo of brooks running company. >> it's good to be here. >> running was such a huge past time that so many other people picked up during the lockdowns with covid and there was a lot of thought this was going to be like so many of the kind of fads

that took place during the lockdowns and that people would go back. what have you seen when it comes to running >> in the last year we've seen some coming and going in participation. it's really walking, running, trail running. so it evolves, people come and go but running has grown 2 to 3% the last decade. a little decline last year but it's back. >> so is this a recession-proof sort of habit, running >> we've seen that in the past, the great recession and even the d dotcom bust, we've seen resilience in the marketplace especially at the premium level as they're buying gear shoe sales have held up and demand is really strong literally up until last week we see a slowing in europe on purchasing, but we think people will run through it and when the shoes wear out they'll be back to buy more. >> not many of the berkshire

companies actually put out numbers. you guys did put out some numbers on what you've seen for the quarter. for the end of the year last year i think it was $1.2 billion in revenue for the quarter you saw revenue was up 20% year over year for revenue growth versus what you had the first quarter last year. >> and there's been so much disruption in supply chain that inventories are part of that story. we are up 20% in q1. we grew 35% in europe so that speaks to how strong demand is we think we're gaining a bit of market share but the premium side of our marketplace is super healthy and that keeps us optimistic cautiously, but optimistic about demand for the balance of the year so the business is solid. >> it was really hard to have issues with the supply chain, i think about through the first half of last year, is that right? was it starting to loosen up then >> i've described it to our partners like losing your crop if you're in farming 44% of our production was shut down for three months on the

footwear side so we lost so much volume and we caught up last year that's part of our growth, fulfilling demand for the first time disruption has been immense. it feels more normal now than it has in three years, so we're getting macto normality in the supply chain. >> if you strip out the weirdness in supply chain and inventories, what are we back to demand >> at the premium level we're seeing 2 to 3% growth in the market. >> and what about margins because of all the inflationary pressures that have come from different places >> what's interesting in our industry is there was a lot of inflation and supply chain that has abated a bit and it's gone back to where it normally was in 2019, early 2020. then we saw inflation come through all of our areas of services and materials, but that has stabilized a bit too, becky. oil is below $70 now so that's a big factor in our supply chain so inflation is still something

we're paying attention to but it's not ramping like it was a yore ago. >> i'll ask you a jobs question pause we get the jobs number in an hour and a half what are you seeing in terms of hiring >> it's definitely gotten easier we are based in seattle and hire a broad base of talent it was so competitive, and so we see that as more normal as well. we're able to hire great people. >> do you have any layoffs you have had to deal with? >> we don't. we're pausing in some areas and being cautious just to see what happens in the economy we've grown a lot in the last four, five years but right now we're stable and filling where we need to on critical positions. >> i think ghost and adrenaline of your two biggest lines for performance running. >> ghost 15 is the best selling shoe. >> which one has nitrogen infused in the midsoles? what the heck does that do and why? >> it's so exciting because

there's new technology coming into running there's a lot of innovation right now. the midsole is where it's all happening. it's getting your fit, feel and ride so we injected at the molecular level nitrogen it's literally almost half the weight and has better cushioning, and durability characteristics. we're going to bring it throughout the line. it's also in our new glycerin. >> i think nitrogen making me faster but it's more about firm and weight >> it's much lighter, just much lighter. and the cushion characteristics or as if you had more material under your foot. we haven't reduced the material, the density is much lighter. >> if they last longer, does that mean people will not have to get running shoes as frequently >> that's bad news for you, isn't it >> these shoes are not y

inexpensive, so you get to the mileage out of the shoes you want to get 400 or 500 miles and that's at the high end of that. >> your biggest concern would be what >> the volatile economy is always difficult i view us as a small global company in our industry. global supply chains are stable now but we don't take anything for granted anymore. so keeping our eye on that single source of supply is always an issue now. so we're spending a lot more time thinking about disruption and how we would respond. >> jim weber from brooks jim, thanks a lot. >> thanks for having me. >> great to see you. guys, on a programming note, cnbc and cnbc.com are the only places you can watch live coverage of the berkshire annual meeting and warren buffett and charlie monger take to the stock exchange to answer questions we have john rogers, ann winblad

and ron olson and howard fft.buet also bobby kodick from activision we'll be right back.

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good morning it is jobs friday and we are just about 90 minutes away from the number of the month that could set the tone for the market we'll have a preview of what investors can expect. plus earnings from warner brothers discovery is set to hit the wires. the ceo will join us for an extended interview we also have live coverage from the berkshire hathaway annual meeting. we'll speak to the ceo of berkshire's pilot company and susan decker that's call coming up as the second hour of "squawk box" begins right now. good morning and welcome back to "squawk box" right here on cnbc. i'm andrew ross sorkin along with becky quick who's in omaha, nebraska, with a big weekend ahead, coming to us from the woodstock of capitalism. also joe kernen right here

u.s. equity futures may move around because it's jobs friday. we'll get the jobs number at 8:30 a.m. eastern time the dow up 34 points and the nasdaq up 77 points. we'll see where that all lands at 8:30. 10-year note at 3.407. we've been talking about energy and the energy complex we'll show you oil, wti crude will cost you $70.45 becky? thank you, andrew. we've got some earnings headlines for you this morning as well. apple shares higher in the premarket trading after beating quarterly revenue estimates after results for is flagship iphone apple did post its second consecutive quarter of declining revenue for only the third time in the past decade coinbase posting

better-than-expected quarterly results leading to a premarket rally for the stock. that rally comes despite a warning of upcoming pressure on its subscription and services revenue. and the two stocks on the travel front on the move, first booking holdings, shares there falling after the travel services company reported quarterly profit and sales that beat analyst estimates however, it's adjusted earnings did fall short of what the street was expecting you can see that stock was off 3% expedia shares up by 6.25% that comes after the quarterly results even though they reported a larger-than-expected loss it had a 20% leap in gross bookings joe. we're less than 90 minutes away from the jobs report. steve liesman joins us with more >> goldman raised by 25,000. >> to what what's the consensus >> their number was 250. the consensus is 180 but there's a bunch of -- joe, i'm feeling a

little unloved this morning. you've got za zzlof, buffett, ad the jobs report is where >> we spent about ten minutes with bumble and you've got 60 minutes. >> now they're yelling at me get to it. with the job market expected to slow today, they hope there's some response to the fed's efforts to cool the economy in a job market that has not seen fit to quit. nonfarm payroll is up 180,000 is the expectation versus 236 i went back and looked there has not been a job growth number with a one handle on it since december 2019 as we've been through this post-pandemic hiring surge 3.6 a tick-up on a low unemployment rate. average hourly wages 0.3 still too hot as far as the fed is concerned for 4.2% year over

year wage gains. slowing has been happening job growth has averaged 314,000 the past six months. businesses seem to be hoarding labor while others are catching up to the pre-pandemic level government jobs have been a recent source to the job market. several indicators are suggesting that adp and ukg among them have shown it's pretty strong. we need to be in the 100,000 range. that's been a really good thing that's happening here's the participation rate of prime age workers, 25 to 54. it's surpassed the pre-pandemic level. 900,000 workers came back in the labor force in the past two months but participation of workers 55 and older remain far below normal kate rogers has a great story on that coming up sometime this morning i think. more labor supply should help ease wage gains and ease the

fed's concern about inflation. overall the fed wants the job market to cool with the median forecast it's running out of time to get there. you're 3.5, 3.6. you've got to get to 4.5 to hit the fed forecast. >> i resemble that whole prime age thing. warren buffett, we're spending a lot of time with him what's he? >> 93 years old. >> shotner is like 93. i just don't like it everybody is different everybody is different prime age can go well beyond -- not for nothing, steve. >> if i can just explain the chart. the prime age is used -- this is a group, a lot of whom should be working, that we expect to work. when you get beyond prime age you can get into a place where a lower percentage of people -- 55 and older -- >> i understand, everybody is different. >> but here's the problem, joe if you look -- i wish i had the chart, i don't have it you look at the 55 and older, it

fell and it has not come back. and so the thing i like that kate rogers story has coming up, corporate america is waking up to this. we have to figure out ways to get older workers, is that the right word can i use >> wiser maybe wiser. wiser workers. >> whatever it is. >> experienced worldly. >> andrew is like under his breath here, boomers, boomers, boomers. >> ask not for whom the bell tolls. >> i'm getting a pair of glasses, by the way. it's happening, it's happening. >> what our survey showed is that the pandemic was the reason for them to leave the workforce and there were health concerns and they were like the heck with this some of them got benefits that allowed them to get to 62 or 63. and i know we've got to go but here's the thing real quick. the thing that we've not found is leaving the workforce is one thing. there's usually a flowback

there's not been happening they have not come back to the workforce. >> i didn't even mention our youthful and very energetic president who's going for another term okay, so let's just -- the whole prime age thing is just -- >> the best joke of the weekend -- >> oh, about france? >> the white house correspondents dinner weekend was roy woods joke who said in france, there's riots over raising the age. this guy is begging and here in america we're begging for four more years. >> and don lemon says i'm in my prime. >> you guys keep talking >> quarterly results just out from warner brothers discovery earnings falling slightly short of estimates but its streaming business turned a profit well, we'll talk about it. warner brothers discovery ceo

david zaslav will join us right after the break. before we head to break let's get a check on the markets "squawk box" will be right back.

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warner brothers discovery out with quarterly results the company turned around prior losses in its streaming business reporting a profitable quarter joining us now for an exclusive interview, david zaslav, the ceo. i looked at the stock, not a lot going on nothing like paramount global, which i don't know whether you noticed yesterday. >> we don't have a lot going on. >> but after seeing that, i was interested in how wbd was going to perform in relation to that at least as far as streaming goes, it's a pretty big difference in what you've been able to accomplish i've read the articles and "the wall street journal" full of accolades saying you realized something a year ago with streaming and now everyones coming around to the same realization. i won't say it's not everything it's cracked up to be but certainly there were very high hopes for it and you need to be realistic. >> well, look, streaming is a tough business and we had a different idea our streaming business should

stand alone and it should be profitable and meaningfully profitable we have the largest tv library, largest motion picture library, we have global content, and our streaming business was losing a lot of money, so this was a meaningful turn for us we made $50 million on our streaming business this quarter. we had that the streaming business would be profitable next year and we announced today that our streaming business will be profitable this year in the u.s. and so our u.s. streaming business is no longer a bleeder, which is a big deal. and on the other side of the ledger, our focus has been if we have some of the greatest ip in the world and we're a global diversified company, we need to generate free cash flow. we have a fair amount of debt. we're concerting that debt to equity by paying it down so by the end of the year we'll be below four times levered.

>> you're still on track, so end of '24 you're supposed to be down under three, two and a half is where you want to be? >> we'll be less than four times levered this year. >> okay. >> and then our goal is to continue to delever, which we will this company has real free cash flow we're a diversified company. we have our streaming business in the u.s., which is now profitable we're going to roll that out around the world and then we have our traditional business, we're the largest maker of content in the world. our warner brothers tv business generates over 110 shows, shrinking and abbott elementary, so, look,it's a very difficult time in this business. the advertising market is a challenge. we expected it would be. but we have been hyperfocused on our balance sheet and hyperfocused on taking advantage of the fact that we have great content. >> big news right now in the media scape in hollywood is the writers strike you talked about all the great programming you have

how do you think the writers strike is going to impact you? there's some people who could argue that from a profit perspective, it could be quite beneficial, at least temporarily? >> well, look, we're a pure story telling company. we've been fighting to get the greatest creatives to come work and warner brothers. we have all the assets we have in incredible library of ip, a diversified portfolio. in order to create great story telling, we need great writers we need the whole industry to work together. and everybody deserves to be paid fairly. so our number one focus is let's try and get this resolved. let's do it in a way that the writers feel that they're valued, which they are, and they're compensated fairly and then off we go let's tell great stories together. >> you're too late for the strike, i think. it would have been nicer when we thought we were going to grow forever. i thought it was the greatest time in the world to be a writer

like a year and a half ago things are tight now and we've got a recession on the horizon. a tough time to be negotiating. >> well, the advertising market is tough but people are consuming more content than they ever have. the quality of the writers and the story telling is as good or better than it's ever been and so i think it's a good time -- >> some companies are glad because it's such a -- >> we're not glad. we're not glad >> where the studios are and where the writers are right now, what is the trigger that puts them back together besides just time >> i think a love for the business and a love for working. we all came into this business because we love story telling. we want to entertain when we're at our best, we get a chance to have an impact on the culture. almost all of us got into this business with a lot of sacrifice in order to be part of that journey. and so that's what's going to bring us together.

>> becky has a question for you. >> hi, becky. >> hey, david. great to see you just on the strike, there are a lot of people from hollywood who actually come out here too i was talking to a few of them last night and the issues around this really have to do with streaming and with digital if streaming is not going to be as profitable and the writers now feel like they're not going to get as much of a cut and paid in the same way, is there any flexibility around that? the last time the writers went on strike, they were out 100 days the terms they signed were worse than the original offer that had been put on the table. if you're telling us that streaming is not as profitable but the writers feel like, hey, they're not making the money because they're not getting paid the same way they used to with the repeats or different thing out there, is there flexibility on that point? >> well, one, we think streaming will be very profitable for us we are unique. we have a lot of scale we have the largest tv and motion picture library and we have hbo, some of the greatest creatives and all of our discovery content.

so for us we think it will be very profitable. we said we'll make over a billion in '25 right now we're significantly ahead of where we thought we would be having said that, the industry is in the middle of significant disruption people are changing the way they consume content. so it's very difficult to figure out how does that work, what's the right value for it so i think it's fair that we're trying to figure out when it was just everyone consumed content on a tv set and it was a model that existed for 50 years, it was very easy to figure out where's the value and how do we carve it up fairly. >> are we making enough movies we're still not back to where we were i think in your view you need to open movies in the theater for everything that comes from a great franchise, that starts with opening in a theater. netflix still is not going to do that, buteveryone else is sort of following your lead, right?

>> well, the motion picture business, that community experience of you and i going to the theater together with a group of people, the lights go out, it's magic. it's one of the few things other than sports where we all come together on main street and we see a story. we all have stories that have entertained and inspired us. one of the things that happened when i got to this warner brothers discovery new company is the industry had decided let's put all the motion pictures on the streaming services and when i took a look and we spent -- our team, leadershi team, spent a month and a half looking at it. we can go back and look at a year, year and a half, we didn't see any more subscribers, any reduced churn, any economic value in doing that. and so i think there was a feeling that maybe if you put your movies on the streaming service, your streaming service will grow better and be more robust i think it's quite the opposite and we've said that. when you open a movie in the

theater and then you put it on the streaming service, for instance, "elvis," ten times better than any movie we put direct to stream. >> the search lights, the premieres, the stars, that's hollywood. if you don't do that -- i'd hate to lose that when i was out in l.a., we went to the motion picture museum it was the best museum i've been in i didn't realize how much i loved that whole -- it's hard for me to admit, but i love it warner brothers. warner brothers, you have a legacy here. >> when you think about what this business has done, that impact on main street in those theaters of people going to the theater has really been significant. in the '30s, warner brothers did a hundred movies a year. >> let's talk hulu. >> i wanted to talk about the chess board that you see i would say the speculation in the business has always been that potentially come '24, 2024, if there was a merger opportunity for you, given the tax issues around doing a merger now which are basically making

it impossible because of the timing and the spin-off or the spin and the merge, that you might want to merge. there's always questions about where paramount will be. there's a big question about what happens to hulu right now, in terms of whether comcast either ends up getting bought out or doing some other deal with disney. how do you see this all playing itself out >> i'm just focused on us. >> okay. >> we're a leader in news with cnn globally we're a leader in sports we have -- right now with the nhl and basketball, we're almost 50% of all viewership in the u.s. with our cable channels and with sports. and we have the broadest bouquet of content between harry potter, d.c., lord of the rings, game of thrones. we have a great hand we have a scaled streaming platform that this year in the u.s. will be profitable and made $50 million. we have great ip that people love we have sports and we have news.

i think we have everything that we need. more importantly, this company is generating real free cash flow this is a real business. so to me as we look at this year, focus on the balance sheet, take advantage of the great content, sports, news, entertainment. we have a real advantage in that our streaming service in the u.s. is now profitable and delever. focus on paying down the debt and watch the equity rise. >> look, there is going to be a question about whether hulu trades one way or the other. if disney has to buy it, it's going to-- talk about debt, it's going to add to their balance sheet not in a good way. there's now a question, a real question about sort of paramount global and what happens to that company. and i think long termthere's always been a question about whether you want to remain independent and whether you want to merge with, frankly, nbc universal. >> the focus of every business is how do we generate shareholder value.

free cash flow, shareholder value and market share and so given the assets that we have, we're a pure story telling company, the diversity, the global narlture of those assets right now it's working we came into a company that had some challenges and we're making the turn. >> we've been talking about that you're never big enough for years. discovery wasn't you never had the scale. it's still a $30 billion -- even after all this, it's still a $30 billion market cap you're still pretty small. you need to do things or, as you said, just shareholder value and it will take care of itself. >> what do we need to delight subscribers around the world news and sports. we have hbo and max and discovery. we're launching a new product on may 23rd and we love the product. it's a broad range of quality content. and then we're going to take it around the world and we're going to continue to focus on our

balance sheet because as our company starts to delever, it's going to be clearer and clearer that we have some of the great ip in the world. >> can you take me inside the room on the decision on branding at max and hbo max there's people in tv land who say the hbo brand is this jewel box of a brand that represents tv. >> it is. >> but there's also a view that it represents the sort of elite, sort of coastal audience and, therefore, doesn't capture the larger sort of broader global audience that you want, which is i assume how you got to this conclusion but as you know, when the decision was made, it was like this remarkably polarizing thing where there were people on all sides saying this is great and other people saying this is the worst decision in the world. tell us how you got there. >> well, look, hbo has never been stronger. euphoria, house of the dragon, white lotus, the last of us, succession you know, when i was with you

guys at nbc here at the cable group, we had must-see tv. there was 35 million people that would watch "e.r." they would watch it together and we'd have a conversation that's what hbo is on sunday night hbo is a shared experience it's the new must-see tv the one place where people come together and they watch that content. but right now after 50 years, which is how old hbo is, it has in the u.s. 55 million subscribers. and so -- and it hasn't grown that much. even with all the incremental investment over the last several years by the prior owners. and we did a lot of work we went across the country, and a lot of people -- the people that have hbo -- >> love hbo. >> -- love it. and those that don't have it say -- we said here's what's on this platform, friends, big bang theory, the biggest tv library in the world, discovery, food. would you buy that

would you want that? and people said yes. and then we said hbo max and they said we've been saying no to hbo for 50 years so we think we can have both and we'll see. when you go to max, there's a fully curated place for hbo. and then we have everything else there and that will be better for us to grow. >> you're lucky that we only have a minute because i want to talk about cnn and the cable news wars. former president trump is going to be on cnn >> he should be. >> you've already gotten criticism -- remember what john malone said, let's get some real journalists. now you're getting hit from the left. >> cnn has the greats journalists and the largest group of journalists in the world. in the ukraine, poland and russia, we have over 86 people on the ground. we're not -- we're not reporting from a desk. >> do you see what happened at

some of your competitors >> we need to hear both voices that's what you see. republicans are on the air on cnn, democrats are on the air. >> msnbc is a real force to be reckoned with with some of the problems fox has had. >> there are a number of advocacy networks out there. our focus is to be a network -- >> like us. >> to the facts, the best version of the facts, as carl bernstein would say, great journalism and not just politics either but when we do politics, we need to represent both sides. i think it's important for america. >> i think it's a very admirable goal for america the question from me is does it rate that underneath it is the business question. >> we've got a great political season coming. this is a new cnn. >> great for who for the country? >> in terms of the amount of news that will be coming. >> some people don't like the choices. >> i'm very excited about my

friend gayle doing the show with king charles king charles is the greatest name in tv news history. >> well, i'm proud of cnn. we're on a great journey and this country needs it. journalism, facts, broad aperture. >> but do you think that can be as profitable as what it used to be >> i believe in great brands i believe in what ted created. it inspired me to get in this business you build a great brand and in the long term you'll have a great value. we get it right, take it around the world, we will be stronger wee 150 million people a month that come to cnn.com if you check your phone on any given day, that's us so i think we've got a nice foundation we're focusing on getting it right. >> big rebrand coming up in june, right? you've got some work to do. >> we're keeping the name. >> i know, but things have not improved yet. >> a lot of it has >> i'm talking about just raw ratings. >> well, for us the focus is

let's get the message right, let's get the brand right, let's get the balance right and the rest of it will come. >> who do you think about fox news >> that opens up opportunities, does it not? >> our focus is to do a great network. we've got to do what we do best. >> was it an advocacy network, cnn? >> everybody has to make a judgment on everything based on how they feel. >> i can tell you it was an advocacy -- let me just tell you, yes would be the answer. >> for you, joey. >> talk about him. andrew, are you going to watch trump on cnn >> of course why wouldn't i >> the last guy wouldn't have put him on probably. even if he was the front-runner. >> i don't know about that. >> oh, i do. >> it's a longer conversation. david zaslav, we appreciate you coming. >> you have a multi-faceted company. when we come back, we are going to head back out to omaha, nebraska, ahead of this

weekend's big berkshire hathaway annual meeting which you can only see on cnbc and cnbc.com. incoming ceo of the country's leading operator of truck stops will join becky. that interview is straight ahead. a look at the premarket winners and losers in the s&p 500 and then sam altman, co-founder of open ai, coming up at 8:00. back after this. time now for today's aflac trivia question. cinco de mayo celebrates the mexico army's victory at the battle of puebla iwhn at year? the answer when cnbc's "squawk box" continues ahhh! coach k, there's a goat here. the story of my life. no coach, there is a goat here! whaaa! what's this? a thousand dollar hospital bill? but i have good health insurance! gaaaaaap! did you say 'gap'? he's talking about the expenses health insurance doesn't cover.

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welcome back, everybody. pilot company is the country's leading operator of truck stops in the united states earlier this year berkshire hath away lifted its stake in the company to 80% becoming the majority holder. wheel we were reporting last month we spoke with warren buffett and greg able. both men said they were thrilled

our next guest would be taking the top job at pilot >> adam wright, who is a 20-year energy veteran with berkshire hathaway energy and started his career with us back in 1996 and has gone through many different roles in the organization on the energy side including being ceo of midamerican energy, one of our largest utility subsidiaries so when this opportunity presented itself, we approached adam to move to knoxville and take on the role we're just thrilled to have him back he had moved on to a company for the past two years and we're thrilled to have him back in the family i know he's thrilled he'll be a great leader for pilot flying j >> adam wright is the incoming ceo of pilot company and he joins us this morning. adam, welcome. >> well, thank you, becky. glad to be here. >> that was some pretty big praise that you got as you step

into this new job. this job is pretty different than what you've been doing in the past you were at berkshire hathaway energy for a long time, started out as an intern and worked your way through just about everything but pilot is a different beast this is a company that's been run by the founder and his son all the way through. so what's it like stepping in, and what are you learning so far? >> well, excited to have the opportunity first and foremost and it is vastly different i wanted to give the haslams a big thank you. they have welcomed me with open arms, open minds, open hearts and everybody at pilot has been fantastic. i think for this industry i like the fact that you can innovate a little faster. when you look at the energy industry, it takes a long time, there's a long arc because of the regulatory processes you have to go through to get new innovation in place. we can literally change the pizza crust on our pizza tomorrow if we wanted to it's just a different speed of play from an innovation standpoint i love the fact that we get to impact everyday lives. we touch 1.3 million customers a

day with a real boots on the ground speexperience and that's very exciting to be a part of. >> it's a huge operation people know the brand and see them on the roads. it's got 750 locations in 44 states and six canadian provinces, more than 790 restaurants, 77,000 truck spark parking spaces, 6300 diesel lanes. this is more complex than people might understand walking into it you're also dealing with natural gas, liquids business, a partnership with gm, you own a fleet of tanker trucks what do you really need to get your arms around what are the big, important moving pieces in this? >> well, all of it for sure absolutely but you're right there's a lot of sophistication in the truck stop business that was one of my biggest surprises. you think truck stops and you think diesel and maybe a slurpee but there's a lot of innovation using data, consumer behavior. how do you move energy from a lower cost supply base to where our customers can fuel their

trucks and their cars. but there's a lot to get my arms around i'm focused on a couple of things to start. one is our guest experience. we need to improve our facilities to make it a seamless, more efficient operation. more amenities for our drivers and for our guests. >> like what >> we definitely need to make it more appealing, i'd start with that we want to be clean, we want to be fast, we want to be safe. and so we want our truck stops and facilities to represent that if you're driving by yourself on a road trip maybe with your kids, you pull off, you want to pull off into a well lit parking lot and know that it's a safe environment and the amenities are clean. when i think of our truck drivers, they're actually stepping out of their cab to a fueling island they're going to get back into their apartment. so just imagine walking into your home and having diesel maybe on the ground or things not tidy and neat and you have to get back into the place where you call your second home. so we just want the facilities to really represent the best of us so we're focused on the whole guest experience

our team member experience, focused on improving that. i learned that this industry has a very high turnover ratio our nonleader store operators, we turn over about up w150% of s a year so we're in the process of hiring 10,000 for the big summer push, but we want to give them an experience where they know they can have a long career in this industry. >> does that mean more money on all of these counts being invested into the business >> total value proposition for our team members and our guests always it's not always just more pay for folks. that's clearly a part of it. we want to make sure we're competitive, but it's the whole suite of things. >> like what >> give them an opportunity to develop professionally making sure they know they can advance at pilot there are a couple of things people always want to know one, do i belong, two, am i safe and, three, do i have a future i think if we can give our team members that type of experience, they'll want to stick around for a long time. >> do you look at some of these issues as an economic indicator?

i think about warren buffett always looking at the rail cars, counting those and telling me t something. what about gas prices and demand how much can you gauge from that >> freight is down significantly. the ports of l.a. and the east coast of our country, there's just a lot less to move right now so freight is down we actually -- the last stat that i took a look at, we have 1.25 trucks for every truckload of things to move. so there's obviously not enough things to move >> that's such a flip from where we were. >> it is. >> a year and a half ago. >> yeah. >> when you couldn't find enough truckers to bring all the stuff coming in. >> now we have excess. the freight rates are extremely low because of that, oversupply in carriers right now, so it's hard for the smaller fleets in particular to break even and stay open. >> you know, it's weird because we had so many problems with the supply chain that it's hard to gauge how much of this is the consumer actually spending less and needing less things that are

out there and how much of this as the supply chain got a little smoother. >> we're definitely looking at the data to try to figure that out. we're offering further discounts for the summer where people can fuel for us with a discount giving people a lot more choice when it comes to bundled products to try to make their dollar go a little bit further. >> what about evs. you're working on ev charging stations too it makes sense because you've got so many of these locations, 750 locations. >> well, we definitely want to be a catalyst for the transition for electrification in the transportation sector. we've got a great partnership with gm right now, a network that continues to progress for the trucking long haul ev, that's going to be a little trickier to figure out because of how much energy that takes. >> and how long it takes to charge to? >> basically it's taking what a typical house uses in a month and condensing that down to a one-hour charge period that takes a ton of infrastructure a lot has to get built for that to happen. but there are other things we can do we can work to have carbon

offsets, carbon intensity and processes for our carriers to assess where's the best place to fuel with a biodiesel mix and renewable fuels. so there's ways we can do things to help on that piece. >> adam, i listened to a podcast that you did that was really impressive you talked a lot about your history growing up, how you got into berkshire hathaway energy, but for people who don't know, you played football at the university of nebraska omaha and that's when you actually started interning at berkshire hathaway too. what lessons do you take from playing football in college and putting it into business >> there are a lot of things that are applicable to both. i think being disciplined is a big part of it, being prepared is a big part of it, working shoulder to shoulder with people i tend to approach leadership that way i don't want to be a command and control type of leader, i want to just align with you and see what you think, get you to think higher and more creatively just partner with people that's truly a football image

shoulder to shoulder, so there are a lot of things that i've brought over from football. >> it's a pleasure to meet you we look forward to seeing what you do at pilot and thanks for your time today. >> you're welcome. thanks for having me >> adam wright joe, back over to you. still to come, an interview with open ai ceo sam altman. you need to handle this, andrew. >> i am and i'm ready. >> and then at 8:00 a.m. eastern we'll count down the april jobs report, which is at 8:30 nonfarm payrolls expected to be up 180,000 for the month and it's a big number given what the fed did this week. how long are they paused what could this number mean for that perceived pause check out the futures ahead of uris up 162 points fo straight down days. there's some pretty big numbers. we'll be right back.

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welcome back to "squawk box," we are live in omaha, nebraska, at the berkshire hathaway annual meeting and we are surrounded by squish mellows this morning you might wonder why because jazz wear, the company that makes them, was acquired by berkshire hathaway this is very cool, guys. andrew, joe, are you rilistenin? this is a place you can come in, sit on the throne, get your picture taken with them -- >> i just got the press release so now you can show it on the air. there it is. >> check it out, look! it's the warren and charlie squish mellows that they have made this is the first time they have put a human face on a squish mellow here they are. these are the ones that are going to be for sale for the shareholders guys, now do you get it, what squish mellows are >> i want those. what are they charging, becky? >> this is really comfy.

these are 20 bucks, i think, $19.99 they have small versions too that are $9.99 i think they're probably going to go pretty quickly yeah, they're cool and it's -- you know, everything is squishy. >> i'm putting my order in now. >> i've got to show you the rest of this. look around here for a second. when we come back, we're going to be talking to sue decker, the lead director from berkshire hathaway check out these things too i don't know where the darth vader thing came from. but they have squish mellows all over the place and there's a swing. come over here and check on this too. there's a swing that you can sit on and i think this is where people are going to be taking pictures this time too so we're getting ready this is before the whole crowd gets here. they're expecting more than 40,000 people this year. given out more tickets than ever before when we come back, we'll be talking with sue decker, who is the lead director from berkshire hathaway see ya ♪♪ i don't accept this. i can't do this anymore.

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hathaway employees are expected here this afternoon. joining me is sue decker >> great to see you. >> let's talk about some of the serious issue. esg has been a huge issue for lots of pension funds and others who have been involved in pushing many different companies to disclose about more climate change there have been several items adding to the proxy, where shareholders are going to vote this quarter, including one that says it's going to vote against for failing to address climate risk this has been a huge issue for several years. as lead director, what do you say back to shareholders and others who have raised issues with this? >> it's a tough issue because i think berkshire is on the right side of this debate and has been a leading company in terms of disclosing information

about subsidiaries that do consume the largest carbon footprint. we have put out very specific goals for reduction that are industry leading in each of their areas. the hard part is what you raised, that the philosophy of berkshire is to push decision making down to the individual businesses who are making the right decisions but to roll this all up at a corporate level given how few other companies are involved in real greenhouse emissions is very costly i think the end what everyone wouldlike is for clear rules t come out of the sec on what should be disclosed and to be applied uniformly and consistently and i think that probably will happen in the next two years >> you all have had conversations i assume with some of the others who have brought these issues what's the point when they come back you don't fill the forms out the way we like them filled out?

>> i think there'schecklist and different organizations are using different recommendations so the companies don't have a uniformed way to apply these principles i'm really proud of the disclosures that berkshire makes but they're at the subsidiary level rather than the corporate level. >> warren buffett probably has more yoautonomy than any other e at this point. as lead director what are the things on the board that you kb guys are talking about >> i don't think being lead director changes the conversation it's really just good governance to have a party that is a lead director when you have the chair and ceo as the same person, it makes sense to have somebody organize the thoughts and have a confidential forum for directors if they would like it. but the issues are the issues that are always present, which

is succession, what will happen in generations ahead with berkshire. ri r risk management is the job of warren but the geerts updated >> let's fatalk about rafter. there have been so many questions on a.i. and how that is going to potentially change things we saw what happened with cheg, which is different than what you guys are doing they are selling subscription services to students to try to help with homework someone who understands technology and social media so well, what do you see with a.i. in terms of its usefulness and the concerns it might bring. >> i'm very excited about the potential of a.i there are so many issues like climate risk that we just talked

about where we could learn the scale that a.i. computation could help us. there are so many big societal problems it could solve. for something that big you have to think about the unintended consequences there have been issues raised by jobs, there could be productivity gains but serious job losses there's the same concern for misinformation that we've been gr grappling with on social media there are some down sides. i'm in favor of regulation almost everyone wishes that what we know now about the mental health crisis in the country and some of the down sides of the large technology companies and how they operate, especially with advertising models that really incent company to drive attention and at its worst addiction.

i think we wish there were more guardrails today on how constant is created and distributed i'm hoping we get in front of it this time instead of reacting. >> are you in agreement with elon musk who says we should have a cooling off period for six months while we figure out some rules around it in. >> i don't think that's realistic. right now there's an arms race going on with companies and countries trying to advance the technology i don't think a pause makes sense. i do think coming up with some accountability for the companies make as soon as. a c -- make sense. we understand a little bit about how regenerative a.i. is working in terms of digitizing the query and running it through transformers that have been trained on the web, but nobody really understand, including the companies, why a specific result has come out from a specific query. you can ask companies like you have audited financial

statements to come up with some way to reverse engineer and show how they're coming up with these results. it would slow things down. right now they want to move forward, not backwards and i think business models. one of the biggest issues is the addiction to social media. what if you have some sort of carve out of section 230 so they are protected so they pursue prescription models than more of an advertising model that will try to drive consumption >> and that's what you do at rafter >> that's the problem solving, is that a lot of the social media companies are getting increasingly worrisome to administrations at universities, membership marks, advocacy markets because they become

toxic and misinformation we drive private we see a 20% increase in people coming to communities because there's such demand to have a safe way to have protection. >> we thank you for your time today. >> andrew, back over to you. >> thanks, becky coming up, sam altman will join us live for an extended interview along with operation hope founder john hope bryant. that's coming up next. and then when i was diagnosed, there was just such a big weight put on my shoulders. every night, i felt like maybe i won't wake up tomorrow. but there's no way that this is going to win. i'm winning. announcer: st jude children's research hospital works day after day to find cures and save the lives of children with cancer and other life-threatening diseases.

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to put your money when it comes to childhood cancer. lachaka: because it takes a heart for somebody to say that i'm willing to give to st. jude so that they can help save more lives. that's huge. damon: our giving to st. jude is right up there with our mortgage. that's the priority that we put on giving to st. jude. announcer: please call or go online right now. become a partner in hope today.

good morning, it is jobs friday we're about 30 minutes away from the big number apple shares on the move iphone maker beating street expectations in its latest quarter but sales fell year over year and what's the best way to responsibly develop artificial intelligence sam waltman will be here the final hour of "squawk box" begins right now good morning and welcome back to "squawk box" here on cnbc, spanning the -- well, not the globe but the country anyway live from the nasdaq market site in times square, andrew's here with me. becky is out in omaha, nebraska

at the berkshire hathaway annual meeting. you must know all the haunts at this point now, becky. >> on the floor? >> restaurants no, you know omaha by now, don't you? >> honestly, i don't get out that much here there's a few good places but i don't get out that much. >> you've been there enough to realize there's no place to go, i think, basically >> no, no, no, there are some really great restaurants it's just every time we're here we're working pretty long hours. there are certain places that we don't get far outside of >> well, in a new world when we have a.i. to deal with, we'll do it a different way we've got a big interview right now, ceos involved with artificial intelligence. biden told the ceos they need to

mitigate risks posed to individuals and society and national security. joining us right now, sam altman is here and ceo job hope bryant. last night they kicked off a listening tour across the united states focusing on a.i.'s impact and dispelling misconceptions about the technology we want to thank both of them for joining us this morning. good morning, gentlemen. >> good morning. >> good morning. >> sam and john, it's great to see you. sam, i want to start with you. before we get into what the implications are for society in a sort of broader way, i do want to talk to you a little bit about what took place at the meeting yesterday and what your personal takeaway was from the understanding or not that folks in the white house and folks in washington have about this technology >> look, our mission is to figure out who to build these advanced systems and deploy them

into society with maximum benefit and that requires government and regulation. the companies can do a lot to get that started but long term we will need our governments and governments around the world to act and to put regulation in place and standards in place to make sure we get as much of the good as possible from these technologies and minimize the down sides the meeting was about that >> you were talking about the need for regulation, especially long term, but what's the distinction between that what long-term regulation looks like and to the degree that there's going to be regulation in the shorter term, what that will be or should be and the challenges it may pose. >> in the shorter term, there's a lot of issues people are discussing how are we going to know what competent is real, is generated, is from a human. you need to know whether you're

talking to a human or a.i. so there's a class of things about that and longer term as the systems become really, really powerful, i do think we'll need some sort of international authority that is looking at the people building the most powerful systems and making sure we are running evaluations for safety, ad it's and sort of tracking what's happening we do this for other very powerful technologies. you think a.i. will need to be one, too >> given how fast things are moving and how fast you're developing this technology, how much time do we actually have? >> i think it's sort of like a spectrum it's not like we're fine and then all of a sudden we need to have this strong regulation in place. i think we need to start thinking about the issues now and then over the next period of many years, we'll need to put increasing rigorous regulation place. >> john, you've been spending a lot of time thinking about

underprivileged, underserved markets, underserved people and the implications on jobs and things of that sort. i'm curious where you think a.i. really is going to land. we were talking about this earlier this week that actually in an odd way, it may be that blue collar jobs actually become more valuable oddly enough >> maybe certain blue collar jobs i can run you through certain occupations that may be at less risk than others we talked about that last night here in atlanta. we got into some level of detail but i think there's no avoiding that this is what i call the third reconstruction, i've said on your show before, it's the industrial revolution. this was like going from mankind to horses and more appropriately from horses to transition to automobiles, which took 50 years

to complete. this is probably going to happen in five years, andrew, and it's going to disrupt the lives of 100 million working families, you know, between now and 2030 and if we do it right, there will be another hundred million or plus jobs that will come in if we train them properly. if we do it wrong, it won't be just black and brown people who have pain, it will be my poor white brothers and sisters this is like dr. king and the civil rights movement when he talked to all of god's children. last night was probably one of the most important meetings i hosted ever because of the implications i'm very hopeful because a guy like sam is on point sam called me and said let's do this meeting it wasn't mine, it was his we talked about it but he took the initiative to go from the white house to our house it was quite dramatic. >> sam, you've been working on

this on chat on one end and talking about the issue of universal income on the other. how ind twined are those two ideas in. >> somewhat. i think it worth saying this is only a partial solution. i think people lp still need all of the other reasons we work and i think people feeling useful and status and creating new things is not going to go anywhere no matter what new technology we develop. but if we can eliminate -- if we have a way to share the tremendous wealth we're all about to create, i'm very interested in that i just don't think it the whole solution >> what did you think when you saw that elon musk signed that letter saying there should be a six-month sort of pause or

moratorium on the development of a.i. >> well, i don't think the letter caused for a pause in development. it caused for a pause in one direction of development, which is scaling up the biggest models i understand where people side for that are coming from and i understand the very role cause about anxiety about the speed at which things are moving. i think that in particular is an unnuanced policy and we should talk about what sort of evals and practical systems do we need in place to ensure continued safety >> one of the reasons i asked is because he co-founded this with you and now seems to be on the other side competing with you, right? >> yeah, as far as i understand it >> so what is that relationship like now >> fine. i mean, you know, people do this

stuff sort of. >> sam, i have anxiety about near term concerns with a.i., which we talked about. but i also just can't help myself thinking years in advance and not necessarily to the singularity but when machines become really, really, really powerful and we don't really understand at that point what might happen and you've seen some of the end of humanity type fieears that he been expressed by some pretty smart people could we build in a safeguard to make sure 20, 30, 40 years from now that humans and completely superfluous to machines? i've read some science fiction is it impossible >> the reason that we started this effort is because of these questions. i mean, getting this right, figuring out the new society

that we want to build, how we're going to integrate this technology is i think one of the most important questions of our time i'm very happy to be here with john starting this tour. because figuring out how we want to build this for people that are not just sort of the people in the area, figuring out how people want this to look like, how the technology should work, how are we going to set the rules around it, how do we use it, how do we do it for the people of the world as a whole figuring that out now is really important. we can decide anything we want we collective society. there there be many variations and versions of this that work and we have over the coming years a very rigorous discussion about how we're going to integrate this technology into our lives. we can build in all sorts of safeguards and rules but if we don't have this discussion with

a very broad group of people, we will build something a small slice of humanity wants rather than humanity as a whole >> go ahead. >> you mentioned a name that's been observant of what sam is doing. i think if they were doing it themselves, they would trust themselves to do it now. sam has something that a lot of tech leaders don't have. he's got i.q. and e.q. some people have a blind shot called people. we're not human doings, we're human beings if we don't do this the right way, we'll win the battle and lose the war we do this right and we push the whole really civilization forward. we have to bring everybody with

us i think that -- sam is the only tech leader that i am aware of that went into the community ever with a new technology like this to listen and not just talk and say help me make this better, almost like a moral bill of rights. we probably need that as much as we need regulation and i think that this community with help him do >> sam, a question because i think it's one on the top of mind of probably every business leader and i'm sure you get it all the time, which is how to protect their own data in this context of a.i i think you and greg have often talked about in a perfect world you'd be able to trade off of all the dayia in the world and you wouldn't want it siloed. in a way you'd want to have access to everything but right now you have a world where every business is looking to try to figure out how can they secure their data and to put it into

these silos. can you talk about those two ideas, which are ultimately at odds >> you have your beautiful idea in the vacuum about how you'd like things to go and then you get the cold, hard reality of what customers want. we've changed our plans. we don't train on any api data we haven't for a while but now we've made it an official policy we did have this dream we'd be able to trade on as much data as possible that's not going to happen we're developing new technology to need less data. >> do you think the data and content becomes more valuable over time for less valuable overtime a guest on this show many times talked about banning news

organizations to sue, to prevent effectively the training on their content thinking that this could be sort of a revolution that would undermine the news industry, which of course has been challenged over the years before but i'm sort of coursious because in a perfect world, it is something you'd probably want to be able to train, the "new york times" and nbc news and "time" magazine and all of it. >> we don't want to train on anyone's data who don't want us to train on their data a lot of people do people are like, please get this in the model, i want the model to know this a lot of people reach out and say, please, please, please don't train on my data and plenty don't and we respect that. i think the way to understand the models is a region engine first, not a database. so these models will have

general purpose reasoning capability and then they'll be able to like go out and search for data on the internet or access it if everyone gives the right permission so i think that the picture of the future is just going to be a little bit different where we build these models or data that people are happy to tran on. and they can opt out >> it's a super important conversation we hope we can continue it with both of you. sam and john, i wish you well with this tour around the country. hope to see you guys soon. >> coming up, legendary investor mario gabeli will join us live bsepthe numbers from the april jo rort coming up in 11, 12

minutes. you're watching "squawk box.

welcome back to "squawk box," everybody. we've only got about 8 minutes to go, 9 minutes until the fultz report s s&p futures up by 26, the nasdaq up close to 80

when we come back, we'll be locking for those april jobs number and we'll talk impact with investor mario gabelli. and tomorrow watch live coverage of the berkshire hathaway annual meeting. a big lineup for you tomorrow, too. we'll be talking to all of them. stay tuned you're watching "squawk box. sedt e was just such a big weight put on my shoulders. every night, i felt like maybe i won't wake up tomorrow. but there's no way that this is going to win. i'm winning. announcer: st jude children's research hospital works day after day to find cures and save

the lives of children with cancer and other life-threatening diseases. beth stewart: there are treatments that were invented within the walls of this hospital that have continued to improve the cure rates for pediatric cancer, and st. jude's not going to stop until every single kid gets that chance to walk out of the doors of this hospital cancer free. lila: if it weren't for st. jude, i wouldn't be sitting here today. peter: this place has really shown us the strength of what can happen when so many people work together as one. people want to be a part of the cure. announcer: thanks to generous donors like you, families never receive a bill from st. jude for treatment, travel, housing, or food so they can focus on helping their child live. for just $19 a month, you'll help us continue the life-saving research and treatment these kids need. join with your debit or credit card right now and we'll send you this st. jude t-shirt that you can proudly

wear to show your support. christen: i think it's the most worthwhile place to put your money when it comes to childhood cancer. lachaka: because it takes a heart for somebody to say that i'm willing to give to st. jude so that they can help save more lives. that's huge. damon: our giving to st. jude is right up there with our mortgage. that's the priority that we put on giving to st. jude. announcer: please call or go online right now. become a partner in hope today. coming up, it is the final countdown. what a show so far but we're just minutes away from the april jobs report. our extra panel standing by. the data that's likely move the market all day long. it is next when "squawk" returns. impossible-to-change problems. [beeping] from developing treatments at unprecedented speed

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welcome back to "squawk box" on cnbc. wow, 8:27. that means we're just a couple minutes away from the government's april employment report ahead of the number, let's bring in our jobs panel, jason furman. he's now an economics professor at harvard's kennedy school of government nada isa, former deputy assistant to treasury secretary

under president george w. bush our own steve liesman is here, rick santelli is here as well. look forward to getting the number and then talking about things steve or rick, you want to -- any preamble, last thoughts? >> very quickly, the challenge of data is weak. the question is whether the layoffs catch up with some of the other strength we've seen out there. >> rick? >> earnings. watch earnings 4.2% last time that was the lowest average hour l hourly earning and up .2, i would play very close attention to those particular components, joe. >> jason, i imagine if you were on the fed it would still have

been a unanimous decision to go up 25. >> absolutely. it was the right decision. i think it's fine that they're leaving the future open. i think they're going to find this inflation is very stubborn and they're probably going to need to hike one or two more times. i'd be shocked if they cut rates any time soon. >> save the best for palace, nada anything that you think we should be paying close attention to do you think the fed was right to go up another 25? >> i've always said i think the fed has a long way to go i think -- so i do agree with the rate increase. i think it was a good decision to keep their options open and not to commit to holding, but i think the hard part is coming up it's been easy so far and it's had only one decision to make. and now the hard part comes.

>> all right it is time for the aforementioned jobs report steve, you got the fed futures ready in. >> i'm actually just doing that now. we're 90 basis points light of where the fed thinks it going to be we got the first cut built in. i want to hear him riff on that. >> what is it, rick? got it >> the april data for the jobs report for april non-farm pay rolls, 253,000 that is much more than the 180 to 185 that we were looking for and 253,000 is the best, well, only since february when it was up a at 326. the point is it is a bit better. if we look at government versus private, private was very strong at 230,000 that is a full 70,000 more than

expected and if we look at the unemployment rate, 3.4%, 3.4%. remember, that equals 3.4 in january of this year, which goes back into the 1960s, a very u unemployment rate. average hourly earnings pop, .2 more than expected temperature .2 in february was the lowest level going back one year to february of '22. so that is a nice pop. and year over year up 4.4%, 0.2 better than expectations and the last look goes back to june of '21 so we popped higher on that. average hour live work week holds steady labor force participation holds

steady as well, 52.6 and 62.6%, that is 0.1 better than 6.7. we see interest rates have popped, although the pop is up to 3.43 in 10s we see the preopening equities are still down about a half of 1%, at least in the futures contract and one other thing is important to note that right now if yields up we see the 20 and 30 yields are up other maturities are getting close. so we want to pay attention. there are definitely higher yields on the session.

>> you meant that equities are down a half a percent from where they were before the number when they were up because they're still up we're going to get reaction from our panel and i'm trying to figure out good news when it's still bad news i thought when we thought they were going to pivot, you would have thought the market was going to go up and it didn't because recession fears is taken over or did the market not go up because they didn't believe there was going to a pivot because there are more strong numbers coming >> i want to give you a slight -- >> i'm talking about for the markets. >> for the markets >> for the stock market. >> it's ultimately good news for the following reason -- we brought 900,000 people into the workforce last month we had no change of participation rate this month but we put a bunch of them to

work we also had 180,000 decline in the number of unemployed so i was afraid so it kind of all evens out. there is some throw sloeing in the job market it is very incremental the popin the wage numbers is difficult to understand but eight problem for the federal reserve. where i look at this influkes into private education, up a big number on the private sector, 43,000 i wanted to see what's happened with government, which has been the source of strength of 23,000 i mean, do i have to play the game that job growth is bad? i don't want to play that game >> and -- >> we lost 150,000 jobs on revisions. last month's 236 is 165.

that's a huge drop >> and you can't always just say that strong jobs mean more inflation. i mean, that could do we have to worry now more about inflation because of this report because the stock market doesn't seem that concerned with what is a pretty good number, although we did have revisions. >> i don't think it's necessary but there's certainly a strong connection there and i so in a sense, this is your good news and bad news for the fed i think jason and part of the solution is slowing down the job market it doesn't seem to be working at this point >> what's happened is the gap is

down a little bit. when we went into this number, joe, the market was pricing in that full f and now it's been pushed ahead, the first full -- the market is still pricing in rate cuts by the end of the year >> jason, do you have a good explanation for that because it kind of goes against what you've been saying and what has been borne out up until -- at least until today >> you look at a report like this and it's hard not to be happy and celebrate was 3.8% there's a lot of good things happening in this economy. the question is how sustainable are those things job growth is starting to slow

it's down from about a 325,000 pace that we had seen before that but that wage number, those are super noisy, hard to interpret them but that tells us that it probably isn't just labor force participation increasing, this really is a very hot labor market what does it mean for the fed? you could say it means one side of the mandate is completely fines, at least of now we really don't -- >> unless you own one of the regional banks, jason. >> oh, yeah. they can't reorder the whole economy. they have tools for that they should be using their banking tools, not the fed funds

rate for that. i used to think they needed to raise the fed funds rate to 6. i think one or two more hikes may be in u enough >> i just want to put some numbers on what jason was just saying the three-month average job growth has gone down from 345,000 per month to 222 a month. i think rick mentioned all this but just to be clear, rick, are you seeing this bug do you have that in there or is that just -- oh, sorry. >> it's in the two-month revision at minus 150,000. >> so for the fed, which will look at this a little more long term, it will say you know what? the job market is slowing but i think to and i think the story

is that there's a fear, jess. >> it's all about speed, isn't it, gentlemen. it's whether the need of job creation, the speed of inflation going down and speed is the whole key as i've said a million times. everybody can push being and considering that, i don't argue with what fed fund futures markets are telling us because i can have a position there and get a check. however, i really do think that jason has a point, that many of the negatives from the fed perspective are coming down too slowly, but the answer will change over time as the markets observe how slowly jobs are getting created, coming down or inflation, it's going to make pay justments and ultimately what i see is that we're going to stay and keep rates higher for lang.

>> i think keeping rates higher and not going higher than they are, making this less this it's the only way to proceed given how some of the faux paw so, jason, number one. >> he did not just disagree. he disagreed with the markets. he. >> he's open mutual funded that's what it's telling you >> i said to steve -- >> precliktably. then you tonight. >> no, i didn't do it on purpose pup?

>> it everyone crazy >> steve liesman on pivot day -- >> what was pivot day in. >> he said we're not pausing it but we'll pacically possible one inflation report to get the fed fund back to a 25. but it's not >> i know, i know. because i don't think the jobs number shouldn't down it but the in i do want to make one point, though rick was talking about speed i think that's an important concept. let's remember the fed is looking for 4.6% unemployment rate by the end of the year. we just went a tick away from that idea. so part of their whole construct is this rise in unemployment, eases up, loosens the economy, take some of the so to the extent they may be driving

surges, especially on powell's side which is the concern. have i a hard time understanding the pricing of the fed funds market for example, the three-month treasury bill is trading at 520 and change or 527. but the three-month fed funds future, let see, what would that be august or so is at 499. i don't understand what the fan is >> nada or jays? >> because it a log jam. many so the log jam max a difference than the stand alon >> i was go to ask what was oil trying to tell us at 69, maybe up about 70 again. doesn't that tell us a lot of the fed's work is already done in terms of demand and global growth or not? >> the signs are pointing in different directions and that's the thing we've been struggling with for the last year there's been some economic

slowdown the job market just doesn't seem to be budging, although i would say sometimes these things move all of a sudden. so we do so i think we needed to keep an eye on this. but i wanted to say one thing, that the credibility of the fed, i don't think is stnt i think the core inflation is still high and i think that given where we are with the label peacekeeper don't raise rates again is they're easing up on inflation so that's the difficult decision i think the fed has to make. from a credibility perspective, they should. >> the idea of what happens with credit tightening and standards

is something in the future when you look at the data of what's happening to credit standard and what powell told us is going to be in the coming senior loan officers sur way to be cautious and not move too fast ahead and wait for the data, as you say, but i do in, i think we have to -- we have to see a couple of mora and -- >> adp ended up doing well and goldman likes this better than some shops some shops just disregard adp.

adp's wage data have drawn from a much ush much -- it is showing it declining but high. if you want to know what's going on with wages, better to look at what's happening in the adp data than the government data >> really? >> yeah. they have like 13 million inputs and i think it's like ten times less for the government. >> adp it has nothing to do with the alarm system company i got a sign up. >> totally and surely as my -- they've been very good about the economic stuff jason, you been out to fresh pond this year yet >> we're desperate to have you come, joe. they have a standing invitation.

>> i love that course. steve, thank you big concert coming up. >> central park. free dead in the park. >> is this going to wreak everywhere >> we're actually sponsored by a can a bus company 2023, good god. nada, thank you. >> i'm on stage doing my thing and whatever's happening in the crowd, i cannot be responsible for. >> thank you to the people from central park for your services >> it's all legal. >> it's not legal. >> when we come back, everybody, more insight on the labor market and reaction to a dizzying week for financials we've got legendary investor mario gabelli.

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welcome back to "squawk box," we are live from omaha, nebraska, ahead of the berkshire hathaway annual meeting this weekend. we want to bring in the chairman and ceo of gamco investors, and mario, we get to see you here every year i know that you are a long-term guy. i know that you tend to look at companies, not necessarily company fundamentals and not necessarily the big picture, but there's some really weird stuff happening in the big picture right now, and i can't imagine it's not factoring its way into how you think about things >> clearly, one has to think about how the banks could break an old philosophy. what buffett does, what he did, is he gets his float, i pay him

for my insurance, and then he doesn't have to pay me for three or four years. the other guys take my deposits and lend very long rule 101 it's a challenge, and then they have -- >> so, insurance is better than banking because you can't get your money back. the deposits are much stickier >> you got your insurance, and it's been paid for, and you get your benefit of that down the road the second part of what buffett does is patience in other words, step back, and look at the cycles, and he knows there are cycles i started covering autos and conglomerates in the media and entertainment, and during that period, the banks lost money on oil tankers. then, in the '70s, they lost money with the banks and the real kahuna was the savings and loan how do we change that? how do we get that erosion in the value that's not translated

on to the balance sheet and solve that problem and then a couple of other things >> just a simple accounting change, you think, that would change the banks if you had to market to market >> if you mark to market now, it would take significant erosion on significant companies, particularly where they had office space and commercial real estate you know, if i'm a politician, i would clearly be concerned about mortgages. i don't want to damage the mortgages that people hold if i have a 3%, 20-year mortgage, i'm going to be sensitive. but office buildings, they're not going to care, and that's where the challenge is right now. >> so, the banks we care about, not just because of bank stocks, that's a much smaller part of this, but the bank's health on the impact of the rest of the economy, what it means for businesses that need to borrow money, what it means for consumers who need to borrow money, credit crunch that comes and all these questions about commercial real estate >> from my end, what we look at is what is the cash flow of the

company, ebitda minus capex. interest expense is below the line, and that's rising sharply. the companies that we follow and what we're talking to, they're starting to manage all the working capital. they're starting to see the end of double ordering, inventories coming down, and that's very healthy on cash flow the short-term challenge is, obviously, if you're borrowing on a rate called sofr because libor is gone. you're paying a lot of interest expense. a company that sells fishing equipment reported earnings, johnson outdoors, and we follow because we like the outdoor market and we want to see what happened with the ebbs and flows of the cycle with regards to covid, and interest expense was up sharply, but working capital is improving, and they're going to work on that. >> does that make a stock you like or a stock you don't as the interest expense goes up >> the interest expense is an element in the capital structure so that if i'm buying the company, what i'm looking at is what are they earning from the business and how i would finance it is also a separate decision

like yesterday, first horizon, i don't know what happened there i just read some headlines as to why they walked away on the other side, financial engineering, m&a, lots of that dynamic is at work, and so as a result of that, i'm going to see a lot more of the private equity organizations trying to figure out -- the pe guys got a lot of money. they're going try to figure out what deals to buy, and the prices are coming down >> mario, you follow media very closely. you saw what happened yesterday with paramount where they slashed their dividend earnings were under a lot of pressure i think the dividend getting slashed was a big surprise >> i disagree. i was embarrassed that i said that they should cut it and i was only concerned that shari redstone had a company in the theater business that needed the cash flow. so, she owns, say, 50 million shares at 40 cents, you know, a dollar to make it simple she's getting $40 million in

cash flow and a very favorable tags tax rate now they cut it, they're saving $2 billion over two years. the federal trade commission stopped one sale, simon & schuster, and bob bakish is doing a very good job, so the stock dropping six, i just p bought it, and warner brothers is probably down today because of the negative implications of streaming and content f. if you look at the company, they've got 650 million shares, $12 billion of debt, $25 billion, disney is -- what's that company apple. apple, the big apple, they can come in and buy it if shari wants, and i think three years from now, you're going to get a $75 stock. >> the key, if shari wants is that the key? >> she owns 30 million of the 40 million voting stock >> do you think she wants? >> i can't answer that i think her father lived until he was in his 90s. she's a young person she's got a long runway.

and she's been very patient and doing a good job at keeping bakish running the business. he's got a good global overview. >> what do you want to hear tomorrow from warren buffett and charlie munger >> well, his annual report was short this year, and he talked about the same things. is it okay to buy stock back wow. what he wrote, you know, was very clear, and secondly , be a long-term investor, and don't do the wiggles. the i grew up playing "world of warcraft" or "diablo iv," you know, my time frame is very short. he's saying to the next generation of investors, think long-term. the dow closed at 33,000 when i started in the business, it was 1,000 the compound annual growth rate was like 7%. so, 45 years from now, when you and i are here, charlie's only 145, warren's -- the market will

be, you know, if the system stays intact, it will be one million at about a 7% kegr >> that's a long time. 45 years is a long time f. you're looking at slightly shorter time frame, let's say the next five to ten years, are you concerned that growth will be slower? >> yes, the next three years, aside from the convergence of political risk, buffett said one thing, and i -- we all think about that nuclear war and some kind of -- another pestilence of some sort. >> biological. >> biological. go back to what baltha said 170 years ago. basi basically, the scourge of society, but if you have a system like he preaches and the united states with the allocation of capital, with all the flaws, the rule of law with all the flaws, we'll do okay >> mario, we kept you here until the last possible second i want to thank you so much because this is an annual vent to get to see you here, and we appreciate your time >> i haven't seen you before at the last event

>> thank you very much, mario gabelli. joe, back to you >> few seconds left. thanks, beck we are down now. >> we are. >> little off their highs, but 194. not bad. hot number go figure. does it mean a soft landing is possible that's what some people are saying, that this is what a soft landing looks like, which would be amazing if it could be. grade job, beck. have fun safe travels we'll see you next time. "squawk on the street" is next ♪ good friday morning, welcome to "squawk on the street," i'm carl quintanilla with jim cramer and david faber. stocks try to assemble some green arrows, financials getting a bounce, the key upgrade and april jobs comes in ahead of expectations, 253,000 with wage growth a bit hot for the 13th consecutive month of better than expected job growth. >> on the earnings fro