tomorrow. >> see you there. >> yeah. >> been a while. >> it's been fun. endless week. you guys know this from last weekend too. andrew's been working for two weeks straight at this point, no breaks. you got to be tired. >> no breaks. it's all good. we like this. >> it is. all right, that does it for us today. we will see you right back here tomorrow. right now it's time for "squawk on the street." ♪ good monday morning, welcome to "squawk on the street," i'm carl quintanilla with jim cramer at post nine of the new york stock exchange. david faber is at the milken institute global conference in los angeles. pretty steady market ahead of the open, light on data this week but plenty of high-profile earnings from disney and uber to airbnb and arm. ten-year remains below 4.5%. our road map begins with berkshire's boom, a 39% gain in q1 operating profit. meantime, buffett says they did

trim apple and sold off paramount at a loss. >> speaking of paramount, the company is, or its special committee is opening up negotiations with sony and apollo. they're also talking with skydance as well about their bid for the overall company. from here at the milken institute global conference in los angeles, the next two hours, we're going to be joined by marc rowan, david solomon, and darren woods. so, nice lineup ahead, guys. >> let's begin, david, with buffett and apple after that stock's friday rally. berkshire says it did trim its stake by about 13% to just over $135 billion in q1. didn't stop buffett from praising apple at the meeting over the weekend. take a listen. >> at the end of the year, i would think it extremely likely that apple is the largest common stock holding we have now. when we look at coca-cola and american express and apple, we

look at them as businesses. now, there's differences in tax factors, managerial responsibilities, all sorts of things, but in terms of pulling your money, we always look at every stock as a business. and we don't -- we have no way -- no attempt made to predict markets. we have no attempt made to pick stocks. >> jim said the business may be even better than coke axp and said the iphone is probably the best product of all time. >> he definitely endorses tim cook there. i struggled to figure out whether he was in that camp which just says, there's nothing new or the camp that says, we're on service. and also, remember, tim cook is adamant, it's a tech company, and i wasn't sure whether buffett felt it was a service company with tech.

now, these -- none of these have to do with the fact that he's selling some. david, you know that apple's become very controversial because of whether it has growth or not and whether it's just afternoon iphone company without something new. what is your impression about what people are saying? say, about vision pro, does it matter? what else is moving the needle that they're doing? does that impact, do you think, what buffett's thinking? >> i really don't know, jim. you're the only person who's talking regularly about vision pro, and as our viewers know, you are single-handedly trying to make sure it becomes a key part of the enterprise, so to speak, that businesses use it. but beyond that, as you well know, i think the focus now is, what, about a month away, right, at the developers conference and what the company will be saying specifically about generative a.i., its inclusion in the next generation iphone and whether that will truly drive an upcycle in sales. obviously, we are coming off a quarter that was well received by investors, jim, as you know,

and i mean, buffett's going to be an owner here for a long time to come, even with reduction a bit in the overall size of the position. >> well, david, there's no doubt that if you have a refresh cycle that is a.i., which is what tim cook told me last week, then you would upgrade your phone, because that is the first real change, not incremental change, but real change. i postulated that some of the things that samsung has, the android system, you know, including, you know, you get to circle things and the one where if you speak, it allows you to speak in the language that you're with. i didn't go into the specifics of that, but tim cook told me, don't worry about that, that this stuff will be so much better than apple has. so, david, i mean, i can't imagine not wanting to get that phone if it has a.i. in it. >> okay. well, that's -- that's a positive, isn't it? >> i thought so. and when it comes to the vision

pro, there was an article that i read this weekend that said that 100 fortune companies have gotten it, so that means half of the fortune 100 has taken vision pro, which this wag said means they've sold 50 vision pros. kind of left me hanging on the vision pro. >> when all else is -- when everyone else is talking about vision pro, carl, i do believe that our friend, jim cramer, will still be talking about it. so, they got that going for them. >> can i call it spatial computing? >> that's what apple would call it. >> spatial computing, which is used to be able to make things -- a digital twin, to be able to sell things, houses and cars. carl, i know i'm in the minority on this, and i don't have any bones to pick. >> minority is the wrong word. early, i think, is the right word. >> early is good. i got it from jensen huang.

i didn't get it from tim cook. as for berkshire, the other big topics, able, the cash, paramount, and what buffett said about a.i., deep fakes, and scams. take a listen. >> if i was interested in investing in scamming, it's going to be the growth industry of all time, and it's enabled, in a way i -- obviously, a.i. has potential for good things, too. but i don't know how you -- based on the one i saw recently, i practically would send money to myself over in some crazy country. i do think, as someone who doesn't understand a damn thing about it, that it is -- it has enormous potential for good and enormous potential for harm, and i just don't know how that plays out. >> david, comparing it to nuclear weapons, genie out of the bottle. you two are kindred spirits on this front. >> we are.

they don't call him the oracle for nothing, guys. listen. that said, of course, as mr. buffett indicated, there's very little that we fully can understand, to a certain extent. even its creators don't fully understand. but it may not be as much as sort of the apocalyptic things that i kind of kid about on air, as you guys know, as much as the deep fakes and the ability for bad actors to use generative a.i. to their ends, and i certainly think that seemed to be where buffett was more focused, but harm is harm. and while, you know, maybe they're not going to replace us just yet with the a.i.-generated robots and that's a ways away, this is much nearer term, don't you think, jim? >> oh, yeah, david. i was arguing with someone about a medicare scam where i knew it was a scam, and i knew that they had my medical records. i wish they did not. i don't know who gave up my medical records, and i was very

cognizant that i went on too long and that they could easily imitate my voice doing something if they were going to do a.i., because once you have the cadence, you can make anybody sound like you, and carl, that's r a real threat. someone sounded likeme and i said, listen, we have a flash crash going on, well, it could do some damage. >> on the anniversary of the actual flash crash day. >> yeah. >> how about the cash? there's been some charting it against the berkshire market cap. by that measure, it's not very extreme. >> no. i also know that there was this bizarre mention of a canadian company. i emailed becky and congratulated her on her great coverage, of course, and said, could this be enrich? that's a canadian company that has got a huge pipeline, and he loves pipelines, and then i was also concerned. he talked about geico and not having the right technology. you know, geico would be the company that would bring down the cost of insurance. i think we're all conscious.

when you get together, not that that's our topic, we got together this weekend about the derby, and thank you for that great pick, number 11, and i won't mention your name. >> good ratings, by the way. >> very good ratings. but i did think -- yeah, good ratings. i expected geico to be the cost-cutter, and geico has not been there. progressive uses a huge amount of a.i. to figure out instantly whether their off or on their market. and david, i don't know whether you have checked your auto insurance recently, but it is probably the thing that has gone up the most. >> yeah, no, like a lot of americans, i can attest to that. yeah. i recently got my bill because i renew towards the end of may, and it was sticker shock, no doubt. very significant. i didn't figure out the percentage increase, guys, but it had to be very large. that's all. i tried -- sometimes you look at a bill, and you're like, i don't want to think about how much that went up. it was that case. >> a lot of people have been

holding back on fixing a problem that they have in an accident, carpal. they don't want to report it because they're afraid their insurance will go up even more. it is ripe for a disrupter, the insurance industry. my father had geico, and i couldn't believe how low my father's insurance was versus mine. i thought geico would be the disrupter. i'd like to hear something about them doing that. that would be great for america. yeah. guys, busy morning. bicoastal "squawk" this morning. david is out quest. we'll get his interviews from milken, including apollo's chief, marc rowan. in the next hour, david solomon and exxonmobil's darren woods. meantime, we'll get you set up for a week. not a ton of data, but we'll get you ready for disney tomorrow, uber, arm, airbnb, warner brothers, all this week. ade, unlocking the power of thinkorswim, the award-winning trading platforms. bring your trades into focus on thinkorswim desktop with robust charting and analysis tools,

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we are live from the milken institute global conference in

los angeles. joining me now is marc rowan, the ceo of apollo. $671 billion of assets under management. that's the new figure from the quarter that was just reported. it's good to have you, actually, after that quarter as well, given that was, i think, thursday. >> thank you, david. >> marc, it's good to have you. we're going to talk a lot about the private markets as we have during this annual interview that we do, but i want to start off with the old business, private equity, because you guys are in the news with paramount. i don't know how much you can share, but i would love if you could at least explain, perhaps, why apollo is partnered with sony on a potential bid to acquire paramount. >> there's not a lot i can share, but private equity is all about value creation. it's about taking something and making it better. and so, you think about industries that have gone through transformation, media, which you live every day, is in the midst of an amazing transformation. the notion that two studios could potentially come together, historically, we would have thought not possible, but you

think of all the new competition from streamers, from meta, from apple, and from everyone else, this market is wide open. having scale, having the resources to produce content and to it efficiently, having multiple genres, multiple everything, it's been an interesting spot for us. we're active through yahoo, active through legendary. and partnering with a strategic just brings something else to the table. >> why do they need you? >> usually, for money. but also, we have been in this industry a long time. i used to joke with people in the cable television business that people thought of john malone as the strategic and us as the financial, and yet you look at every business that john malone's built, we built them and sold them to john. we've been here a long time. this is, for me, my 40th year doing this and for the team, 35 years in the media business. we've made the mistakes we need to make to pay the tuition. >> you know, when it comes to that potential deal, and again, who knows at this point, it's

not without its regulatory aspects as well, whether a foreign buyer in the form of sony, obviously, or the stations, given how many you already own. are those potential gating issues coming to any fruition? >>regulatory is an issue for every transaction, but these paths are well trodden. sony already owns a studio. we already own tv stations. the limits and the laws are pretty straightforward. >> you think it would be if you could get it at the right price, then, something that would generate a good return, even in the very challenged world that we live in here in media land, marc? >> for us, purchase price matters. this is all about providing our investors excess return for unit of risk. there is nothing that is worth doing that does not provide a return to our investors. >> i want to get back to the conversation we have been having for some time, which makes me jealous when you talk other plays. >> you can't have me every day. >> i'm glad you're here. i've noticed, when you talk about sort of this move, public

to private, it feels as though every year that i look at it, your remarks get a little more pointed. this is from the conference call just last week. you said, "i believe we are revisiting the most fundamental concepts that underlie our financial markets," and then you went on to talk about all the reasons why private going from aa to public, but explain to our viewers, why are we revisiting the most fundamental concepts that underlie our financial markets? >> take the most basic product we have in the u.s., the largest pool of money, i believe, anywhere in the world, 401(k), 12 to $13 trillion. these are the people who need returns the most. what are they invested in? for 50 years, their invested in daily liquid stock index funds, for the most part. why? well, we go back, and we think about the origins of our financial system, and stocks and bonds were the two tools that people used to build portfolios. and stocks were fully

diversified, 8,000 public companies. bonds, again -- and now you look forward, and you think about 80% of companies who are over $100 million of revenues in the u.s. and europe are private, not public. why would you exclude yourself from that much of the marketplace? and the answer is, people are not. we are revisiting the whole notion of what it means to be public, what it means to be private. is private safe? excuse me, is public safe and private risky? or are both safe and risky and just offering different degrees of liquidity? lots of places around the world have found a way to blend public and private markets on behalf of all investors. >> when you talk about that, you go on to say as well that you believe investors increasingly will seek out equity exposure in private markets in other forms that exist can today, and you go on to say it's your job at apollo to create the products. so, what would that look like? we are talking about potentially a seismic change, and i wonder

if i can access the private markets almost as easily as the public, what's the difference? >> i spoke at a conference, and i spoke to a group of people who are on record as being against private equity. and i reminded them that private equity is a product. it's not, in and of itself -- it's not all equity that's private, and i tried to make a distinction in their minds between private equity, the product, and equity that is private. it started with the same logic. if 80% of the market or 80% of the companies above $100 million of revenue are private, why would you exclude yourself from that marketplace? think about what private equity is. private equity is a fund. private equity uses leverage to enhance returns. they target high rates of returns, and it's locked up. what if many of the characteristics of public also lived in the private market? active management. but the difference between a public company and a private company may be share ownership and not much else. >> right, well, and not access to daily liquidity, obviously, as well. >> when you think about, again,

the investor universe, start with the 401(k), do they need access to their money on a daily basis? do they use access to their money? are we paying too much for access to our money on a daily basis? then you move to institutions, many of whom have 20 to 30-year time horizons. why are big public institutions 80% liquid and 20% private? because in another time, we thought of having a private bucket, because if private is risky, you want only a little bit of it. but if private is safe and risky, and public is safe and risky, shouldn't you be where the action is? >> what are these products going to look like? can you give us some sense as to how you think about it? >> you break it into the portfolio construction. you have equity, mostly public equity. you have debt, mostly public fixed income, and then you have alternatives. alternatives are already almost exclusively in the private marketplace. >> yeah. >> in credit, we are watching institutions and individuals around the world begin to use their fixed income bucket to

participate in private credit market. i always like to challenge cios. is a private single-a rated security an alternative, or is it fixed income? that can take an hour in some places. by the way, it's just fixed income. if you can earn another 150 or 200,000 basis points for the same rightingating, you're goin that. w why is it happening faster in public and credit? investors are able to say, this is a single a, and i'm just dealing with liquidity. we don't have those sign posts in equity yet, but if 8,000 public companies go to 4,000 public companies and eventually go to 3,000 public companies, institutions around the world are going to need to find ways to participate in this market, and they may choose to participate in a product, private equity, or they may choose to participate in equity that is private. >> right. but when it comes to the private credit markets, which we have

been discussing, and when your firm has obviously benefitted a great deal from, there is starting to be a bit of a pushback. david solomon said a lot of the refinancing they did at goldman was refinancing private capital structures with more attractive pricing available in the broad base syndication market. jpmorgan sees rising credit default risk. banks strike back against private credit. what's going on here? are we making too much of this? is there starting to be a shift back the other way? >> we're dealing with a fraction of a fraction of the marketplace. let's start with, what are they talking about? what is private credit? this is a definitional issue. for me, everything on a bank balance sheet is private credit. loan to companies, private. loan to individuals, private. mortgages, private. 100% of a bank balance sheet is private credit. most of these comments are actually talking about levered lending, direct lending. >> yes. >> this is a nice and very important market. it's a $1.5 trillion market.

>> it's a profitable market. >> but the market i'm talking about is a 41 or $42 trillion market. it encompasses investment grade. most of the market in private is actually investment grade. not a single one of these comments is actually addresses what's happening. in 2008, as we were suffering a financial crisis, and we were repairing, regulators around the world had a choice to make. where do they want credit to come from? there were only two choices. it could come from the bank marketplace or investors. 2008 regulators made a decision in the u.s. that more credit should come from investors, and less from the bank marketplace. and by the way, regulators around the world have continued to make this decision. >> yeah. >> this is not a market that we're talking about levered lending and the broadly syndicated market fighting back and credit default. we're talking about a fundamental restructuring of the way that credit is provided. is it provided by banks who have lots of good strong reasons to

provide credit? or is it provided by the investment marketplace? so, think about where credit's going. infrastructure. energy transition. long-dated things to support -- >> enormous support. >> these are long-dated. are they on a bank balance sheet? are they in a daily liquid fund or with institutions who have long-term horizons? >> marc, i want to end, if i can, sort of pivot to college campuses, because you were early and outspoken in terms of what you saw as rising anti-semitism as a board member at wharton, specific to penn. columbia just canceled its overall graduation. these are the same seniors who potentially had their graduations canceled from high school as a result of covid. >> not a very lucky class. >> no. where do you stand right now in terms of what you're seeing, what you're doing? any improvements, or are you still frustrated? >> frustrated? i think all of us should be frustrated. we are the luckiest people in the world to have been born here, to have been born at the

time we have been for all the freedoms that we have, all the opportunities that we have. what we're watching take place on campus is anti-semitic. it is anti-american. it is anti-western. and the question is, do our institutions, our educational institutions in particular, have the backbone to know right and wrong? moral from immoral? the fact that a small group of professors actually support a lot of the leftist ideology that's been espoused by these protesters has kept the university administrations and university presidents somewhat paralyzed from simply clearing the campus and enforcing the law. last time i came and occupied your home probably made you unhappy. nothing other than that is going to be here. people, mostly outsiders, have taken over our campuses, and administrators have, in some instances, think university of florida, think university of texas, think vanderbilt, really done a good job to say, free speech, great. right to protest, great. but there's a way, there's a time, and there's a place, and if you violate the rules, which apply to everyone, not just

anyone protesting, there will be consequences. other places, if you are weak up front and don't enforce your rules, you end up with encampments and now you're weigh health and safety and other types of concerns. bad management. >> well, we'll end there. to be continued. but i always appreciate it, marc. thank you. >> great. invite me back. thank you >> you're always invited back. marc rowan from apollo global. carl, back to you. >> thanks. when we come back, we'll follow up on paramount, talk some starbucks. got some sell-side calls this morning on names like cr.mion we'll get this week started after a short break. wooooo!

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>> announcer: the opening bell is brought to you by nuveen, a leader in income, alternatives, and responsible investing. let's squeeze in a quick "mad dash" before the bell. >> if you're looking for something that's up big today that does matter, it's micron. baird upgrades it from hold to buy. somebody puts out a note on this one, and you quickly get a giant move. a lot of this is the high bandwidth business that is so good that's the one we talk about for a.i. so, just keep in mind that there are buyers underneath of these

stocks. >> it's going to be between that and arm later in the week. >> yeah. >> plenty to talk about regarding chips. let's get the bell here. at the big board, it's scrub supplier figs, and at the nasdaq, cognizant, celebrating the lpga tour cognizant founders cup. jim, we're going to try to work our way above the 50-day here for the first time in few weeks. >> what we want to do is we want to watch apple because apple was a big driver last week. and that was the surprise driver that i think people can really get behind. we're still working the prospect that alphabet approval is better than expected, and amazon, i just think, crushed the numbers, but had -- is reporting on a day where we concerned about whether rates were going to go up. there's just a lot of things that are trying to catch up from last week that are positive. >> you made the point last week that it's nice to have open space where there's not a ton of

data this week. we'll get a little fed speak. we'll get some earnings. but really, until ppi on the 14th -- >> exactly, carl. we are in kind of a halcyon moment. i mean, we do have arm. i think rene haas is having a great quarter. i really think that arm is going to be doing terrifically. otherwise, when you look at the companies that are going to report, there's nothing that can move the market entirely, because this is just the end -- last week was the end of the cycle. look, disney, obviously, matters. it's a dow stock. it will be hugh johnson on the call. hugh, we all know from pepsico, was just a very solid operator, so it would be terrific if he did the same thing he used to do, which is let people know exactly how the quarter was configured after it's reported. i hope he does that again. the banks seem to be playing catch-up. >> david, jim mentions disney, and in fact, deutsche goes to 130. al

allen gould thinks that streaming losses are ahead of guidance and they say iger gave a master class in how to beat an activist. >> well, i'm not going to disagree in terms of some of that. jim might. listen, it is still very much a focus on disney plus, on direct to consumer, on the efforts to get that to profitability and, of course, to bring it to a margin level eventually that is at least within spitting distance of netflix. that's the hope. and how quickly they get there is going to be a key here, and if they show real progress this quarter, even perhaps as much as a break-even quarter, that would certainly be seen as a real positive, i think, jim. there are any number of other issues that you're still always going to be talking about. espn, over the top, which is getting -- we're -- at some point, we're going to be less than a year away from what they still say is a very important product for them as opposed to the joint venture with fox and warner bros. discovery for the sports streaming service. but jim, it's still all about,

in many ways, direct-to-consumer. for this entire industry, and of course, we'll talk about paramount as well, but specifically, the disney, which truly wants to be that number two and be in at least the conversation to attain the margins that we see at netflix, which is obviously separated itself from everyone else. >> i think that netflix has been this kind of straw man the whole way. netflix knows exactly what it's doing. netflix is always one step ahead of the posse, but paramount, their paramount plus versus disney, paramount's really lagged. it is interesting that someone might want to buy them still. >> yeah. i mean, the idea of the purchase there, and you heard marc rowan, which was nice, because it's not often that you get any color from a potential bidder for an asset, talking about the possibilities of putting sony, legendary, paramount together. it's all about efficiencies. it's all about cost-cutting in many ways and then having a

strategy to attack this new world. i think even more so from the redbird, ellison side, skydance, remember, which they're still in negotiations. as we told you friday, the exclusivity would expire. it did. sony and paramount -- sony and apollo's bid is now being reviewed as well by the special committee. so, they'vegot two things in front of them at least. they're working on both. it may be that neither one comes to fruition, although i think there is a hope that certainly door a or door b is preferable to door c being this company just stays independent and tries to fight through this period of incredible challenge on its own. right now, with three different people running it, it seems very hard to imagine that would be good for shareholders in any way. but that, at least, is also being held out as a possibility. we'll see. they want to get this thing done as quickly as they can for obvious reasons. they have been negotiating with skydance for such a long period

of time. now they're going to really deeply explore sony and apollo's bid. >> if you could be monty hall one more time -- >> that is a deep track. >> could you please tell us or handicap a person who has a not great balance sheet, which i would say, warner breeothers, which you may disagree, versus comcast, which has a very good balance sheet, when it comes to the nba. >> listen, it's -- comcast has put warner bros. discovery. this is what people -- this is what i am hearing. it's not my opinion. they would say it's a difficult position because very difficult for them to spend $2.5 billion on the nba over an 11-year contract, by the way. and very difficult for them to look at what the future of tnt would be without the nba, and what that does and how much it damages the company at this point, which is still reliant on its cable networks to produce a

great deal of its overall cash flow. that's what david zaslav has made it. it's a free cash flow story. that's the focus and parts of his compensation and metrics are based on free cash flow and the delivery of that. you -- you put them in a position, jim, where they're damned if they do or damned if they don't, i think, is the thinking, at least, on comcast nbc universal's part. that said, it's a big number for comcast as well. and as you know, peacock is not exactly making a lot of money right now either. >> no. >> as for buffett, which we began the hour with, interesting to listen to him really take responsibility for that trade, which obviously got -- take a listen to buffett. >> a.i. was 100% responsible for the paramount decision. i read speculation that either ted or todd had some involvement in that.

no. it was 100% my decision. and we sold it all, and we lost quite a bit of money. i think i'm smarter now than i was a year or two, couple years ago, but i also think i'm poorer because i acquired the knowledge in the manner i did. but if -- i just want to be very clear that, a, we lost money on paramount, and b, i did it all by myself, folks. >> well, there's -- there's two things managers never do. one is admit they lost the money and two, they did it. you got to admit, david, whatever reason, it was a breath of fresh air. managers should learn exactly what he said and use that when they've lost money. >> yeah. i mean, there's only one warren buffett, right? he gets an awful lot of patience from his investor base. a lot of these other guys are just selling, selling, selling, it would never be in their

ability to actually admit a mistake, because god forbid that might hurt their ability to market and raise more money. warren's not worried about that. he likes to play risk arb sometimes. he did it on activision 2. i wondered what in the world he was thinking, and i guess he wonders as well. every so often, he makes a bad move. you remember the airlines. >> right. i tend to want to forget the bad moves, given the fact that i see so many managers making bad moves that never admit it, versus this fella, who is so public in what he does. for him to admit it is actually just showing you how much humiliate he has. he could just say, look, i bought apple when nobody else bought apple. i took a little profit from apple because it was too big. david, no one did that. and i think that i can forgive paramount, and i can forgive the airlines, given the fact that this is a person who took a position in apple and just kind of owned it through a bunch of transitions.

you got to appreciate that. >> without a doubt. and by the way, let's be clear. the loss on paramount was, you know, infinitesimal compared to the gain on apple or the overall position. so, even though he said we lost a lot of money, yeah, it's a lot of money in aggregate, but not as percent overall of their performance in any way. >> now, what was his view on the vision pro? did you get that? >> cramer, one, faber, zero. >> no, he was talking to me about some land he's got in new mexico. >> that's 500,000 acres. i have an option on it if they do it, david. see you later. i will be at whatever it is those skydance things that you do. what is that thing in aspen that you go to? i don't know, whatever that is. >> jim, speaking of -- >> i haven't done anything in aspen. >> speaking of tough talk, i got to get your take on this schultz post, regarding the u.s. operations of starbucks. >> all right, so, obviously, howard schultz, very unhappy.

a linkedin post. i think it focuses on a couple things, not just -- that america has to be fixed, but there is a notion in the notion that there has to be a little more humiliate, contrition was the word that he picked. >> more time with aprons on. >> right. and then i thought the most important line in this entire thing was that -- and we're talking about laxman narasimhan, the current ceo -- is that senior leaders, including board members, need to spend more time with those who wear the green apron. one of their first actions should be to reinvent the mobile ordering and pay platform, which starbucks pioneered. so, right there, he's saying, listen, you can't get in and out, and that apparently is what's hurting some of the loyalty. now, let's understand, melody hobson ran the search. melody hobson picked laxman. this is not going to be something that i regard as being revolutionary, because if the chairman of the board, melody hobson, is for laxman, than howard's great to be able to put

some heat on it, but it ends there. and i can't imagine that the chairperson would do anything to make it so that howard's comments would do more than just be read. >> it is feeding the discussion, though, that we heard from mcdonald's and mondelez and lamb wesson and kraft heinz. >> howard did not key on expensive, other than one of the things he's upset about is that nobody on the board understands the inner workings of the company. there's no retail operator or merchant that howard has the respect of with the intimate knowledge and the complexity, including china, 82 countries, 100 million customers, so i know that howard would like to have someone on the board that has that. rich allison was at domino's. there's a person that has some worldwide retail experience. andy campion, from nike, has a terrific knowledge of china. but david, there's no one that does fit that depiction, david

gibbs or something, that howard would like, other than howard. >> right. well, jim, i mean, listen, he is a significant owner of stock, so he's a significant shareholder, but it ends there. this is unusual, to say the least, isn't it, to see an ex-ceo -- by the way, he's been ceo three different times. >> right. >> putting out this level of criticism of the current management team. i mean, it's highly unusual. what is it -- >> i've never seen it. >> what does he want? does he want to come back a fourth time? >> no, no. and candidly, i've never seen this done. i think he's coming from the point of view of just sadness about where the franchise is, but when you look at the board, there will be no -- there's no one there who can really necessarily do -- they can put some aprons on. nadella, sievert, who's

brand-new, meegd chose, very forwardly, by the way, chose laxman, so i don't think that this goes further unless, david, you can tell me, does an elliott move in here? does ackman move in here, who was there before? does someone -- does pepsi move in? does nestle or those type of things that just because of antitrust might as well just forget about? >> i mean, it's awfully hard to imagine multihundred billion dollar deals, even if it adds up on paper. you're probably going to get challenged in some way, what you're describing. it would be fascinating. but -- and activism, jim, you're got to have a plan. to your point, it's not likely trying to sell the company. a plan from an execution standpoint that's going to somehow create value. is that obvious at this point? >> not at all. and i think that one of the things that is -- that i think howard may be trying to do is

simply get the board to try to help more about what's going on, and it's not clear that what's going on is anything other than the fact that the numbers were so horrible, that howard was shocked, like a lot of other people. david, when i saw the numbers last week, i was -- it was disconcerting. given the fact that there had been an expectation they were going to do 15 to 20% growth, they didn't do that. i know, for instance, howard was never, ever mentioned weather as a reason why his numbers came down. that was actually one of his hallmarks. please never mention weather. dunkin had numbers that were the opposite of starbucks, and dunkin offers more of a value. david, is it grousing? i think it's more than that. i think it's someone who is saying, hey, look, here's some ideas. david, i don't think that ideas are as -- i don't think they're going to be as well taken if only just because howard decided to leave the board, and howard

is not ziedesiring to come back the board. i think it's interesting, and i think it's a nice note about what should be done, but beyond that, david, i don't know what else that can be done. >> yeah. time, i guess, we'll see. we'll see what they can plan. of course, to be fair to laxman as well, a number of these issues were in place, jim, before he took over, that are raised by howard schultz, were they not? >> they were. i think that what happened was an expectations thing. i think that there was a sudden decline that kind of took everybody's breath away. we knew that things were being guided down. it had been guided down since $106, but there was an expectation that if your numbers are going to be this bad, you should have preannounced. and they did not preannounce. and the numbers -- i don't think anyone that i have heard thought the numbers were sub-optimal. i think people felt the numbers were just plain horrible. >> more macro.

above 5,150 for the first time since tax day. that's in spite of the fact that some of the headlines coming out of the middle east do not give great hope to a cease-fire, let's say, in the short-term. >> i'm surprised they're being ignored, given the fact that this is something that affects the world, because last time, when they -- when -- if you wanted to just -- i don't like to conflate money withl lives o either side, but there was a $5 war freedom in oil that had disappeared, given the fact that people had hope in a cease-fire, and that $5 war premium is going to have to be built back in. when david speaks to darren woods, i think you have to figure out if there could be a return to the war premium. i don't know. >> okay. i will try and do that, jim. >> yeah. because i mean, you know, the peace did -- there was a perception that maybe there would be a treaty. and that i know that blinken was

working hard toward a treaty. it doesn't look like there is. >> yeah. meantime, gasoline futures, two-month low, couple pieces on the tape today about gasoline demand growth, jim, this year, might be cut in half because of what china's done and the way of building in evs. >> i think that's very important. i understand that tesla had a very bad month in germany. there's no -- you know, obviously, we're loving hybrids here, but china is the place where we had the worst climate change, and that's largely because of coal. david, i mean, i think that china cutting back on gasoline is going to make it so there's going to be a surfeit of gasoline, no matter what, particularly because the united states is producing a little more gasoline than people expect. >> right. interesting. jim, carl, i do notice shares of lilly are having a nice morning so far, one of the other themes we've been talking about for quite some time. i sat next to somebody at dinner

who's on one of the drugs, and i was struck by how little they ate, i have to say. >> well -- >> that may be why the stock is up. >> they fully admitted it. i was like, why aren't you eating your dinner? "i'm on maunjaro." >> i got -- i got a drug that's, you know, going to be in trials, and two to three is actually very, very hard for something that has a new mechanism when there's already an old mechanism in place, because the fda is reluctant to approve a new medicine without much further study. i don't know about your compadre there, but i think lilly may be going up because people realize amgen is not about to put something in the market. >> that's well said. >> it's a great thought, and i think your person -- that's very important. meantime, as we go to break, as we said, 5,157 is going to be

at a three-week high on the s&p. every sector, green, except for staples, down just a touch. ten-year, still circulating, 4.5%. not a lot of fed speak. tonight, we'll get barkin and williams, this afternoon, but for the week, it's mostly about jobless claims on friday. after last month's massive solar flare added a 25th hour to the day, businesses are wondering "what should we do with it?" bacon and eggs 25/7. you're darn right. solar stocks are up 20% with the additional hour in the day. [ clocks ticking ] i'm ruined. with the extra hour i'm thinking companywide power nap. let's put it to a vote. [ all snoring ] this is going to wreak havoc on overtime approvals. anything can change the world of work.

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. take a look at nasdaq 100 gainers at the open here. jim mentioned micron at the top and this note out of baird today as they go it it buy, adds to the list of top semi ideas while catching the train a bit late, they say, we see meaningful upside opportunities ahead. s&p up almost 30 points. dow is up 120. take a short break and be back in a minute. i promise that our relationship will go well beyond just investment decisions. it's the intersection of your money and your life

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time for jim and stop trading. >> one of the most controversial stocks in the market is carvana. one of the most controversial analyst out of jonas from morgan stanley, and he has a sell but talks about raising his price target from 45 to 75. bull case 180. he talks about the return of profitability now. the one thing he doesn't really take into account is that the stock is up another 6.

5 1/2. this is one of the great short squeezes of all time. i spoke to ernie garcia, who went from losing a company to having a major home run thanks to apollo and i think it's a different company. sometimes you reinvent your company, and it goes places and this is good. >> jonas has written about the ev business. i think he said going into a dark age. >> the dark age. >> robotics ai are ascendent and as a result, tesla's priorities are changing too. >> right. and i do think that when you do robotics, there's only one company that can do it, nvidia, because as i've seen that blackwell, the robot can basically be us. i know that david may not want that. i mean, i don't know, i can have a david sitting here and like what i say and smile. >> that's why he's scared. >> already. the robot i've been waiting for all my life. the robots that jensen huang from nvidia has, are very -- are

robots that i know musk likes. >> yes. >> musk likes. >> yes. >> that's important because tesla has a good relationship after a rocky one. >> really quick, tonight? >> i have judy mcreynolds from arcbest. nothing like analyzing the trucking companies to analyze what's going on in america. >> we'll see you tonight. "mad money" 6:00 p.m. eastern time. when we come back, more from david at milken including interviews with david solomon and exxon's darren woods. back in a moment.

. good monday morning. welcome to another hour of "squawk on the street." i'm carl quintanilla live from post nine and sara and david in l.a. at milken and we'll talk about what they have coming not just today but in the coming days. a huge hour meantime of interviews with the chairman and ceo of goldman sachs and the chair and ceo of exxon.

pretty good tape today as we're back to 5156. dow up 110. 30 minutes into the session, three movers we're watching tyson food nears a 15 month high after reporting a profit beat, revenue was shy. company sticking with its revenue growth outlook. spirit under pressure. discount carrier, wider than expected loss expects second quarter revenue to come in below estimates and then paramount following news it's begun formal takeover talks with sony entertainment and apollo, mark was with david, and says the media space is right for m&a and then buffet revealing his sold berkshire's stake in paramount. that was pretty good stuff. >> as you might expect, not willing to talk specifically about the bid but i was surprised he was willing to engage and talking about the inflection point in terms of media we've talked so often about and what they see as a

potential opportunity in terms of the work they've done previously. apollo owns ya hoo! finance and legendary pictures and with sony roll into and create a much larger hold there in terms of what paramount might become. we have to wait and see as the special committee of the board continues to continues to focus on both bids, no longer exclusive talks with skydance. nice to have you here. >> yes. >> sara is here even though we're in separate boxes. >> we're together. >> we're together. >> it's exciting to be here, david. 5,000 people coming here, and the milken conference is a pretty unique mix of investors and increasingly ceos that are getting a lot of face time with institutional investors. some of the big bank ceos are here. we have great conversations, obviously, coming up all day

looking forward to exxon this hour for you and david solomon and then later you're going to hear from jane fraser. i will talk to her in the afternoon the ceo of citi. we haven't heard from her several months as she has been undergoing restructuring and transformation of citigroup. we'll talk to ken griffin later as well and then a bunch of ceos coming in the next hour of "money movers" and the topic de jour here, what's happening in the economy with inflation. we'll have these sticky numbers and now there's hope that the fed is going to start cutting rates again this year. remember a few weeks ago we weren't so sure. >> no. >> we got the softer jobs report and there's a debate where it's hard to see around the corner whether inflation does continue its progress, about whether the fed will really start cutting this year, about whether we'll see any meaningful downturn. it's a weird cycle. i made a chart of the quit rate. people are saying one jobs report, it was a little bit

soft. don't read too much into it. this is the quits. people, it's a signal of confidence that people have that they'll be able to go out and find a new job with higher pay and i highlight it. it has come down to the lowest level since 2020, and it is a sign that labor market is cooling. it doesn't mean that it's not still tight and a great labor market, but it jives with the numbers that we got on friday, and paints a picture increasingly for the markets and the fed that inflation should come down if it is being driven by wages. wages have been the case. >> right. >> that's what i'm watching. >> that's what you're watching. i'm not going to watch that, if that's okay. >> you're going to watch it because i'm telling you to watch it. >> you know, topic de jour i think it's ai which i will talk about. >> ai always. >> i have an interesting panel here later on the subject. as you might imagine i'm going to hear my worst fears realized too. >> i will try to get your worst

fear. >> as a result of friday are we starting to see forecasts that mean -- it felt like we were talking december, if at all, for a cut. have things changed even in the last 48 hours. >> into now the conversation is maybe we get september and december. we won't know more until the inflation numbers start to come out because that's where the fed is looking, and next week we'll get cpi. this week is a light data week. we'll get important information. we get information on bank lending and credit conditions in the economy will come out later tonight. we'll have auctions. the demand has been strong. bank of america put out a great chart about the economics of prize indicator and the bond market and bond yields, bond yields moving lower as economic surprise for the worst region, i mean jobs report is a key, highlighted the services data on friday going below expansion, so

for yields to stay lower and help juice the equity market you might need to see more economic indicators come in worse than expected, not necessarily recession or big slow down but that's where we are in terms of the macro backdrop right now. >> sounds good to me. i don't know what carl thinks. >> carl? what are you watching this week? >> i was making a list of what you were saying about the quits rate, the nfp miss, new rents down eight straight months, productivity running 2.9. ism new orders to inventory down. there's a lot of dove food out there, as we like to say. >> yeah. i mean you can -- you can paint a picture where you would see the inflation progress pick up, but the question is, is that really happening because it's been terribly difficult to forecast inflation, and we did get some prices paid internals in both the ism services and manufacturing numbers that were a little bit firm, so i think everybody, including the fed, needs to see what happens. the good news is, you're going

to hear today from a range of ceos across different industries and investors, top investors, about what they think and so in the next hour on "money movers," we're going to kick it off with chevron. obviously, a great barometer of oil demand. middle east tensions flaring. israel is trying to evacuate rafah fromcivilians right now. so the question on escalation in the middle east potentially. you're going to hear from ibm ceo ar vin krishna about ai. it's his first time talking since they reported the slow down in consulting business which spooked the street recently. >> so much from brookfield that's so important in a market where we talked about mark rohan of apollo and you'll talk private credit with air row getty. >> still a big topic here. i wonder how much it is holding back the distress cycle that everyone was waiting to see as a

result of higher interests. >> yeah. >> and defaults. because so much money has gone into the direct lending. >> there is still a fixed income bias to a certain extent. remember who -- michael milken, let's not forget why we're here. >> yeah. >> who created the high yield market to the extent that we have it. carl? >> it's a huge event, guys. we're really grateful you're there. viewers will be too in the next couple days. s&p, nasdaq coming off their best day since late february. both posting their second positive week in a row for the first time since late march. let's bring in edward jones senior investment strategist and talk about the sort of i think it's been described as two steps forward, one step back, that we've been managing to put together the last few weeks. what do you think is going on? >> yeah. thanks, carl. look, it's been a nice second half of last week. in fact, we got three back-to-back what i call a triple whammy of positive news flow for the markets starting with the fed, kind of taking that tale risk of a rate hike

off the table. jerome powell highlighting he doesn't see the stag or inflation, and that was a great line. slew of positive earnings underscored by the apple earnings on thursday. finally friday i think was the cherry on top, where we got this almost goldilocks jobs report where we got a tick higher in the unemployment rate, but notably a nice tick lower in the wage gains bigger. overall we say we came into the year with a strong market. we went through the month of april and we did get our first 5% plus correction, but what we're looking at is can that correction become anything deeper or more prolonged? we would say given the fundamentals of potential rate cuts, an economy that's holding up, it could be cooling, cooling in a very nice, gradual way, that could lead to better inflation trends going forward, so we say generally the fundamentals are holding up and by the way, we think as it the earnings growth story this year that carries more weight than any evaluation expansion.

net, net we say -- >> i was going to say, bottom of consensus is inching up as we work through the season here. i think close to 244. you think that's more important than any kind of p/e. >> clearly the story last year was expansion. this year s&p returns positive because earnings growth is positive. the nice part of that story is early on in this year, q1 and q2, that earnings growth is driven by mega cap tech. those same growth parts of the market. as we get towards the back half of the year, earnings growth does start to broaden and we think that could be one of the catalysts that leads to a broadening of market leadership as well. so earnings growth still looking at about 10% this year versus the 0 to 1%-year. >> have earnings impressed you or treading water? how do you characterize the earnings growth of those 493, for example? >> yeah. absolutely. look i think again, first quarter, if you take out the s&p, or take out the magnificent

seven, the s&p not impressive. flatish earnings growth. in the back half of the year, 50-50. even if you take out the mag 7, we were still looking at a nice 5 to 7% earnings growth for the rest of the market and we think that's the story. if you get a combination of a fed that does lean towards rate cuts this year and we get earnings that hold up, that will lead to unlocking of value in both the cyclical parts of the market but if you go down the cap space, we think mid caps in particular are starting to look attractive here. we would say think about balancing that portfolio if you get more volatility, heading through may to september and then an election period, there could be periods of volatility ahead of us still. if you use that as opportunities to think about broadening your portfolio in equities and by the way the bond space is looking more and more interesting too as we head towards rate cuts we think for long-term investors we're set up nicely here. >> we'll talk more, i'm sure, about whether or not sell in may gets tested as the months not

looking too bad for the moment. mona, thanks as always. david? carl, as we head to a break and give our viewers a road map, what we got for you are for the rest of the hour live from the milken institute global conference in los angeles. we have a host of big guests on cnbc today. i'm going to be joined in the next hour by goldman sachs ceo david solomon that's actually coming up shortly. his take on the state of business, of course, the markets, rates, so many things to talk to david about, and exxon mobile ceo darren woods as well. just completed that deal, of course, which they now own pioneer. we'll ask him about that. g show ahead for you. "squawk on the street" is back right after this. it faster and sell more. much more. take your business to the next stage when you switch to shopify. your record label is taking off. but so is your sound engineer. you need to hire.

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welcome back to "squawk on the street." let's get to kristina partsinevelos tracking movers this hour. good morning. >> good morning, carl. the sec is planning to file an enforcement action against robinhood's crypto currency business for alleged security violation. this according to wells notice filed this past weekend. shares did react negative in the morning. they reversed their course almost 2% higher. mizuho putting out a reaction sans the action was overblown since investigate subpoenas were already disclosed. micron getting love from baird analysts with outperform rating and price target of $150. they say memory prices are rising faster than expected helped by ai trends and the stock's recent pullback is a

good buying opportunity and shares up 5% right now. barclays says crypto exchange coinbase's recent earnings beat is enough to propel growth for this stock going forward, although the firm is keeping an under perform rating, they're bumping up their price target from 179 to 204. you see shares trading above 234 right now. shares 5% higher. carl? >> thanks so much. kristina partsinevelos this morning. still to come, highlights from the berkshire meeting over the weekend including warren buffet's take on apple after trimming their stake by about 13%. what investors need to know when we return. and risk-reward analysis, help make trading feel effortless. and its customizable scans with social sentiment help you find and unlock opportunities in the market. e*trade from morgan stanley with powerful, easy-to-use tools, power e*trade makes complex trading easier. react to fast-moving markets with dynamic charting and a futures ladder that lets you place, flatten, or reverse orders so you won't miss an opportunity. e*trade from morgan stanley

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warren buffet holding court this weekend berkshire's annual meeting fielding questions from shareholders for several hours on saturday. one of the big headlines was berkshire trimming its stake in apple by about 13%. we have sold shares and i would say that at the end of the year, i would think it would be extremely likely that apple is the largest common stock holding we have now.

we will own, unless something extraordinary happens, we will own apple and american express and coca-cola when greg takes over this place. >> meantime elon musk tweeting thoughts posting buffet should take a stake in tesla it's an obvious move. first bought apple in 2016. tesla is up over 1,000 time in that time. hear to break down the headlines from berkshire's meeting is mike santoli who, of course, was in omaha over the weekend. we got abelle to chat, the cash, ai. >> on the apple position, you know, he took pains to say we didn't reassess the business, it's not really a call on how we view apple anymore, although the fact is that over the course of 2023 it went from $119 billion position for berkshire hathaway to 175, from 39% of the portfolio to 49%. so trim it back.

he in the context of a view by buffet that there's not really a lot of rich value targets out in this market, and he does not mind holding a ton of cash. all that said, so not really a big rethink of the position. of course, it's going to be one of the biggest holdings at the end of the year. it's three to four times bigger than the next biggest one bofa. there's always an interesting tension at berkshire hathaway. tens of thousands go to this place in owe hmaha to hear one two men give their acquired wisdom. on the other hand the message from them is we've built this place to be perpetual beyond our lives and it's going to be in good hands and the culture is what it is and it's structurally sound. and i think that was what really, if you just looked over the course of the full day, that was the point that was hammered out. no person is indispensable. the balance sheet is impenetrable and we'll be fine. >> did you find berkshire

aficionados who go seeking clues about the u.s. economy who this year were more interested in the japanese economy? >> in the japanese economy or in sort of other aspects of how the business is being run and where the opportunities are. there was a lot of questions about, you know, why not india? what do you think about investing in china right now? actually buffet says he was really throwing cold water on the idea he feels as if china is a good place for capital right now. india, he also said, essentially, maybe a more energetic management might find all the great opportunities there, but we're kind of in retreat mode, he isdidn't say that, but that was the message. >> pretty interesting. we'll hear about paramount and other moves. ai was fascinating too. busy weekend for mike santoli. >> not going to be a straight line. >> carl, thank you. after the break goldman sachs chairman and ceo david solomon going to give us his take on a lot of different things. we were talking about that as we het re. don't go anywhere. we're coming right back.

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we are continuing our coverage from the milken institute global conference. joining me now is david solomon the chairman and ceo of goldman sachs and it's good for you, good for me to have you back. we policed a year because we've made this somewhat of an annual tradition. thank you for being here. >> absolutely. i'm happy to be here and with you. i've been at this event for a long time. >> yes, you have. >> and it keeps growing. i'm happy to be here. >> it is enormous. and a lot, obviously, that we're going to be discussing here. i mentioned this earlier, ai is going to certainly be one of the topics that is explored in depth here at the conference, and i notice on your conference call from the middle of april after you reported strong numbers at goldman sachs you decided to spend a lot of time on it. you know, it was right up there in the top of your initial remarks. you called it a -- comes up in virtually every client conversation i have, you said. artificial intelligence. why did you choose to sort of

spend so much time on ai in the goldman call? >> well, i mentioned it, and, you know, if i mention anything on that call, it gets an amplification because it's something that our clients are talking actively about because the changes, the transformation in compute is accelerating at such a pace and the implications on productivity and efficiency and business, are going to be enormous. we've been using ai, david, and you and i talked about this, for 20 years in our business? some way. what's changed now is the power of the compute that's available and the speed and your ability to apply it. there's enormous productivity opportunity. there are efficiency opportunities, and also if you think about the amount of capital that's going to be necessary to implement this, the amount of energy and power that's going to be necessary to implement it, this is something that people are going to have to think strategically about and that's something that goldman sachs helps our clients with. >> yeah -- >> it's a big opportunity.

>> enormous financing needs. >> and that's goldman sachs. >> where do you think we are when it comes to those needs, whether building the data centers or to your point the infrastructure to actually power them which is becoming more and more of a crucial issue? >> we're very early in that journey, candidly. i think one of the things that businesses are thinking about, one thing governments are thinking about where is a lot of that capacity going to be housed? when you think about certain data center capacity we've used for certain things in the past, latency has been very important. here it's not as clear latency is important. you need land, access to power, you need space. you actually need a regulatory environment that can be constructive to the implementation of all of this, and i think we're early in the journey. i think it's a global issue and something we're focused on because our clients are focused on it. we have an ability to help them think through these issues that help finance this build out which is going to be hugely important for business. >> it's enor pus must. the xap equities numbers from the hyper scalers are mind

boggling. >> incredible. >> back to ai and your business. you talked about use cases you're testing and implementing, focusing, as you just said, you used the words on productivity and efficiency. when we talk about the larger generative ai what it's going to mean, it's not going to mean a reduction in jobs? >> you know, i think that the first focus for this is just productivity. we are a knowledge organization. we're professional services firm. we have an enormous number of smart, talented people all over the world. if you give them tools to allow them to expand their capacity to focus on things that are valuable for our client, they can actually take on more. and it's just a silly analogy, but think back to when we started. if i go back to when i started 40 years ago, it took six hours to do a common stock comparison. now it takes an instant. it doesn't mean over that journey we've had less people focused on our clients. productivity, ability to take smart people and give them tools so they can do more, do more quickly, help our clients think about things in different ways,

that's where our focus lies on this at the moment. there are efficiency opportunities and we focus on those too. >> the testing, again early days here in terms of what you're seeing and how you're seeing it? >> you have to test. you have regulatory structure. a lot of work to do. i would say it's early. we have a lot of focus on it. putting resources towards it. this is going to be a journey and it's going to certainly, you know, play out over the course of the next few years, just in terms of the acceleration of how on our platform we can create more productivity and more efficiency. >> yeah. well speaking of goldman, you're coming off of what was a very strong quarter. by the way, 25 years since the ipo. congratulations. >> 25 years since the ipo saturday. >> saturday, yes. >> and i was reflecting on it. i mean it's really -- if you think back and think about the journey, there's been some very bigdisruptive events. 9/11 changed our lives forever the way we think about the world. financial crisis. pandemic. in fact, we shut down the stimulus that comes out of that. through it all, i'm super proud of the organization.

our people, the organization, stayed focused on our clients, growing our business, and, you know, we've accomplished a lot over the course of the last 25 years and hopefully more to come. >> as i said, you had a very strong quarter. you did seem a little more positive in the overall environment than i'm accustomed to. you're a realist, at least you haven't been saying hey, things are great, and you're not. but at the same time, you do seem to think we're going to see more m&a? i've not seen signs of it. it's another monday with a dearth of deals. we'll see more capital markets activity. what's -- positive tone i guess? >> well, i was trying to amplify if you look back at the second half of 22 and the first half of 23, got better in the second half of 23. for investment banking activity it was a 10-year low. companies need to finance, companies need to make strategic moves. the financial community, about

30 to 35% of investment banking needs to transact in order to move their businesses forward, and we've seen a meaningful pick-up in discussion, dialog and activity, some capital markets activity has now pulled through. m&a volumes haven't been depressed. >> no question. >> there's no question that regulatory environment i think is slowing some large cap m&a, but overall, activity levels are picking up. we've seen an improvement in resources we're deploying to transactions in the sponsor community and, so i just think it's getting better. it's off the bottom. >> right. >> in the call i didn't sit here and say we're going back to 2021. >> you didn't. i did notice a more positive tone. >> i think it's picking up and we see more activity and our business is, obviously, very correlated to that activity. >> you think the -- as the election looms not larger, as it gets closer, does that paralyze anybody when it comes to activity? >> i think an election is a moment in time, you know, there will always be a perception of

markets before that election and after that election, but in terms of the things we're talking about, m&a activity, capital markets activity, i just think if you're to look at the next 12 to 24 to 36 months, we're going to see activity levels that look more in line with 10-year averages than well below 10-year averages. >> couple rate cuts might help. do you think we'll get them? >> i've been cautious on that. earlier in the year when i was on the network and people were thinking about seven rate cuts, i was more cautious. you know, i think inflation continues to be a little bit sticky. i think there's a possibility of a rate cut or two this year. i could also see if the data, you know, doesn't prove, you know, to move in a direction to support that, that we could stay where we are. so i think the fed has been very clear they're watching the data and, you know, until they see, you know, inflation come in just a little bit more they're going to be cautious on whether or not they move rate cuts through the system. >> something that's come up in my conversations with you and some of your colleagues through

the years is the idea that buried within goldman is a blackstone. and we don't get any credit for it. i noted you have $296 billion in alternative assets under supervision. >> yep. >> that's a big number, going up, obviously, significantly. you're a fairly big player in private credit. is there a point at which you think suddenly that will get more attention than the few related earnings that come from the assets will? >> i think you know because we've talked about this a bunch, we have two key focus areas for the firm. our global banking and markets business and our asset wealth management platform. we've been growing our asset wealth management platform very nicely. we had a target when we did our initial investor day in 2020 of raising $150 billion of alternatives by the end of 2024. we upped that to $225 billion. we met that target a year early. we've said to the market that we expect to raise another 40 to $50 billion this year. so we have a really broad, full

service asset and wealth management platform. it's growing. it's a big focus of the firm. and i think over time the firm, the market is becoming more aware of the strength of this fran franchise, and its ability to really create unique solutions, solutions based business, that can really support our clients' needs. we're in a very unique position with a full scope of products from liquidity to public fixed income and equities to alternatives on a global basis, to really serve capital allocators well. we think it's an area we can grow in quite consistently over the course of the next couple years. we've got it organized in a way right now where we think it's very well positioned to serve our clients, and so that's getting a lot of focus inside the firm. i think over time investors appreciate more of the scale of that business and the opportunity that it puts forward for the firm. >> you talk -- you got $130 billion in private credit assets right now. you think you can get to $300 billion over the next five years. why? >> i think we're in a position where we have a strong franchise in private credit.

you know, there are a number of firms out there that are focused on. at the end of the day there will be 10 to 15 firms that have real leadership position in the private credit space. i think we're one. we have a unique ecosystem because we have both the broad syndication of banking platform that we've always had and we also have a big private credit platform. >> we need each other or they work together? >> they actually complement each other. when you think about a client that's coming to market and try to raise capital they want a menu of the most alternatives possible. the firm is in a position to give them a broad array of alternatives to meet their financing needs. >> you saw on the call that you saw some clients actually refinancing private credit through the syndicated loan market. >> you're seeing both. so you're going to continue to see a growth in private credit, but i do think you're seeing a pick-up in debt financing and the traditional way and we're positioned to capture that both ways. it's not either or.

it's and. >> yeah. >> it's and for our clients. >> and, you know, speaking of financing then, sponsor activity remains incredibly low. any expectation that's going to pick up? >> sponsor is a commercial. they make money when they buy things. they make money when they sell things. we vice they haven't been buying or selling a lot. there's a lot of pressure from lps. we had a big reset on valuations, we had a big reset on leverage capacity, and i think the market has absorbed that and you're starting to see that activity pick up. we have indicators inside the firm around resources we deploy to support clients in transactions, not all of which are completely visible at this point. and that activity level is definitely increasing. so i do think you're going to see a pick-up through the remainder of the year in that kind of activity. >> finally, david, i mean i mentioned 25 years since the ipo. you're not going to be here for another 25 years, but -- >> god forbid, david. hopefully here, but not here. >> hopefully on the planet.

>> not here talking to you at 7:30 in the morning on the first day of the milken conference. >> retirement it would seem is a long way away for you, fair to say? >> i have a lot of energy focused on our client, our people, focused on our business and file good about where the firm is. i feel good about the progress we've made over the course of the last few years, and we're going to continue to execute, serve our clients. we've got an incredible talented ecosystem at goldman sachs, and i just think the firm is an exciting place to be right now. we're going to stay focused and continue to move forward. >> some of those double digit returns that you saw in, you know, i mean r they sustainable? >> we've -- >> in global banking? >> we've been very, you know, clear that we feel that we can run our mix of businesses in a mid teens level return through the cycle. that doesn't mean we're going to see that every year. but we've been clear that we're marching in that direction and confident in our ability to deliver that for shareholders. >> yeah. >> we're going to continue to stay focussed.

>> almost an 18% roe for the markets business. >> i said on the earnings call that we had a very good quarter, and that should not be the expectation for every quarter. but our mix of businesses we think we can deliver mid teens returns through the cycle and we think our shareholders will do very well if we continue to do ha. >> yeah. all right. david, good to catch up. thank you. >> thank you. appreciate it. good to see you. >> david solomon, ceo of goldman sachs. still ahead here, exxonmobil ceo, since they oscled that deal to buy pioneer. don't go anywhere. in minutes! -how? -a.i. (impressed) ay i like it! who wants to come see the future?! get your business online in minutes with godaddy airo

. we are back here in los angeles. exxon mobile completed its deal to acquire pioneer resources last week more than doubling its footprint in the premium basin. darren woods good to see you. >> good to see you. >> first time you've had chance to talk with us since the deal was completed.

you had to do a deal with the ftc,sheffield is not on the board, but what happens now in terms of the things you've discussed and actually happens on the ground, particularly in the permian? >> now we get busy creating the value that was the premise for the deal. we've spent the last six months working with the clean team with pioneer thinking about integration plans loushgs we bring these two organizations together. i tell you today, david, i'm more confident than ever that the synergies we anticipated we're going to average about $2 billion per year annually as we get ramped up and start running. >> why are you more confident? >> i think the quality of the people, the things, the clean team learned as they were working with them, there will be reverse synergies and synergies we can bring. they have quality people and acreage, and we have technology and unique development plans. when you bring those together we'll produce more oil at a lower cost with a less environmental impact. that's good for the u.s. economy, u.s. consumers, u.s.

energy security and good for the environment. all those things we're incredibly confident on. with the additional value that we see bringing the pioneer, some of the things from pioneer into exxon mobile, going to increase the value from an exxon mobile perspective. >> what's a reverse synergy? what are you talking about? >> some of the things that pioneer is doing we can adopt and bring into the broader portfolio of exxon. >> such as? >> procurement opportunities, different things as we look at the things that they were doing to run their business. they were very focused in the unconventional space that brings a level of understanding and expertise that we can basically leverage across the rest of our businesses. >> i mentioned this because, of course, i spent time in the permian with your guys when we did our documentary a couple years ago. where are you on electrifying all the effort downs there, and how does pioneer fight into that as well? >> we're making great strides in that. we had plans for a base permian operation to get to net base zerbe 2030.

we've moved through our rigs and facilities out there to electrify them. what we exited to when we announced the pioneer deal, they had a 2050 it in zero aspiration. we're transitioning that into a net zero plan by 2035. that's a piece of work we'll bring that acreage and that organization into the work we're already doing in our base permian and feel good about the progress we're making there and the potential that we'll realize in getting to net zero. >> part of the issue i remember at the time it's not just enough to electrify, but you have to make sure the electricity you're using is being generated in a sustainable way. is that the case? >> absolutely. we're doing a lot of work to make sure we're getting renewable power into the facilities. all that is part of the plan we put together and so we will get to net zero by 2030 for our base operation. certainly by 2035 fort permian see what we can do that to bring that forward and marry wit with our base operations. >> your recent earnings call you were asked about another area

carbon capture, something else we spent a good amount of time talking about during our doc, which i continue to promote here, maybe people will still watch it, it's on peacock, where do things stand in terms of the use and what you're doing there? you have a number of questions about it on the call as well. specific to sort of progress points that you can share? >> well, what i say in the call what we wanted to emphasize is that the transition and the drive to eliminate emissions in the economy, has an electron solution, but it also has a molecule solution and we're a company that knows how to manage and transform molecules. carbon capture and storage is a big part of that. the challenge with the existing technology for capturing carbon out of the atmosphere it works for high concentration streams, but it's expensive for low concentration streams. we're working on a breakthrough technology to bring that costs down. we built this pilot in baytown which is early in its development, early in its run but we're seeing really positive signs and so we're working --

>> it's a brand new approach, you said. >> brand new approach using brand new materials. think where technology has come since what was essentially a very old technology around capturing co2, for the purposes that technology was designed for it works, it's economic, but what we're trying to transition to and to capture very low concentration streams we need a new technology. fortunately there's been a lot of development in technology since that original technology was developed, so we think there's an opportunity to change the -- >> we're a long way, aren't we, from actually getting to a point, and you indicated this, where we can really -- where this can be a profitable business in any real way? >> i think we're a long ways from getting the costs captured down, and that to me, if you're going to achieve the global ambition of net zero, you're going to need a lot of different tools in the toolbox. carbon capture needs to be one of those. if we can find a way to bring that cost down and get down the costs, which we're very early in the technology cycle, that opens up a huge opportunities around

the globe in combination with what we're doing with wind and solar and hydrogen. the world needs a lot of solutions and we're hoping to make this one of them. there's lots of people working on this. i'm not suggesting we'll be the only ones, but we will be the ones that actually have this breakthrough, but whoever does, they're going to need companies lick exxon mobile with our balance sheet and ability to build these projects to deploy that around the world at scale. >> you're pretty good at managing those giant projects. that takes me to another deal that didn't get as much attention for obvious reasons, the denbury deal that was closed this summer. what is that doing for you in terms of carbon capture, since that was the focus of that company? >> think about the carbon capture as a value chain or a business, end-to-end business, we're creating something brand new from, you know, capturing with the technology that captures co2 with the existing high concentration streams, we have three contracts with a fertilizer company, a steel company, and industrial gas company. we've got to then transport that to sites to sequester the carbon

so the denbury the largest co2 pipeline system in the u.s. gives us the ability to transport that co2 and a huge adsflang terms of bringing our -- advantage in terms of bringing our costs down to build a system along the gulf coast where we've got a very high concentration of highly concentrated streams of co2. >> darren, a good amount of attention and time spent by me and my colleagues over the dispute between you and your partner hess over the joint agreement in guyana. my only follow-up, can you give us any sense in terms of yer expectation on timing? i think you're waiting for the third arbitrator. what are you working with, with the timeline in terms of when this dispute is going to be resolved? >> yeah. i think the timeline ultimately will be decided by the arbitration process and the arbitrators. we're still putting together that panel of be a traitors. we'll go into discovery -- arbitrators and we'll about go into discovery.

john hess made a point he thought this would slip into 2025. my view it will go into 2025 as well. this is an important arbitration not only for exxon mobile but for chevron and hess. we need to take our time to do what's right, make sure that we do all the due diligence and we get to the answer here, the right answer. >>withal, the right answer, you continue to have confidence, and i think it's come down to what is maybe as few as 11 words in the contract that you're going to prevail, but why? >> i wouldn't concentrate on 11 words. i would say this contract is designed to ensure we have those rights. it's a foundation of these contracts that we do all around the world, so we're pretty confident in it. >> and you said last week, i think, with becky or a week and a half ago, you're not interested in buying hess. >> that is right. >> that is correct? >> this is around confirming our rights to very valuable assets. as part of the transaction, we understand their rights, we understand the asset with respect to this transaction and then we decide what options we have to maximize the value for

exxonmobil insurers. it will go down as one of the best in the industry. we're doing everything we can to protect the value, protect the value of the shareholders. >> you weren't managing it then. you sold 30% of it for virtually nothing to hess, right? >> shell was a partner originally. they stepped out of it. we sold down some to hess. >> real quick, let me end on global prices, gasoline and oil prices, obviously. especially given what's going on in the mideast. are you surprised at the level they are right now? do you expect we may see it tick up? >> i would tell you, i think the industry is doing a great job of kind of managing some of the minor disruptions we've seen. there's very stable supply available today and the inventory levels are low, but we're continuing -- the industry is continuing to meet the demand. my expectation is there's a lot of confidence that the industry will continue to meet the demand. as we get into summer, the demand starts to pick up.

you'll see the supply/demand balances tighten and there may be pressure on prices. i think for now, the world is well supplied and i think pretty stable. >> pretty stable, all right. darren, it was great to catch up, however briefly. thank you. >> good seeing you. >> good to see you, too. darren woods, chairman and ceo of exxonmobil. we have a lot more "squawk on the street" straight ahead. don't gonyer awhe.

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mobile savings are calling. visit xfinitymobile.com to learn more. doc? disney set to report earnings tomorrow morning with many wondering what's next for the stock. a big underperformer over the last three years. julia boorstin is here with more on what to watch. i was trying to remember the last time we had a premarket print on disney. >> that's right. disney typically reports after the bell. doing things differently this quarter, especially after ceo bob iger has put his battle with activist nelson peltz behind him. now iger isunder pressureto continue to turn around disney's stock. the stock is up 26% this year. though still down about 40% from highs in 2021. now, on iger's agenda, getting the company's studio back on track. after a downturn last year. but the two most important areas in focus are disney's parks and streaming divisions.

disney's parks and any commentary about summer bookings could provide a valuable window into the state of consumer spending. while investors also look for updates on iger's plan to invest $60 billion in the parks and resorts division over the next decade. for streaming we're looking for updates on disney's expectation that the division will break even this year. we're also looking for details on the coming streaming venture as well as flagship app set to debut next year. redburn, a sell on disney, says paid sharing should be a material benefit for disney, albeit less so than for netflix. that's another factor. with a proxy battle seen as accelerating iger's key changes at the company, analysts are bullish. 78% have a buy, 16% have a hold, and just 6% have a sell. carl? >> pretty interesting, julia. we mentioned with cramer earlier today a couple of positive notes, one by loop capital, they go to 140. they say streaming losses may be

ahead of guidance. to julia's point, closer to break even. we'll find out more in the morning. julia, thanks. huge hour on head on "money movers." the ceos of chevron, brookfield and ibm all kicks off in just a couple of minutes.

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good monday morning and welcome to "money movers." i'm sara eisen, live from the milken institute's global conference in los angeles. carl quintanilla with me from the new york stock exchange. chevron ceo mike wurth is here, the outlook for demand, and brookfield asset management's lays out how he's deplaying more than $900 billion in assets. and a big hour coming up from l.a. let's begin with the markets. dow up 100 points, s&p back above 5150. first time since about the middle of april. although we've been in an extremely tight range since the open. let's bring in our senior market