it is 5:00 a.m. here at cnbc global headquarters and here is your "five@5." i'm frank holland. risk on. wall street heading for a higher open after the best day since february on the back of the weaker than expected jobs report. big weekend for berkshire hathaway as warren buffett weighs in on everything from the state of the market and apple to the succession plans. highlights from onlmaha coming next. apple is coming off the best day in two years with the refresh this week. investors are looking at

buybacks. and the paramount bidding war is in a new phase after skydance is in the rear-view mirror. and now calling for change at the company as schultz speaks out. it is monday, may 6th, 2024. you are watching "worldwide exchange" here on cnbc. good morning. welcome to cnbc's "worldwide exchange." we kickoff the hour with the s&p having the best day since january. futures in the green across the board. the dow would open up 77 points higher. nasdaq and s&p are firmly in the green. investors are feeling bullish on the back of the jobs report on friday and what it could mean

for the fed policy pathi moving forward. according to the fed watch tool, traders are betting on odds that powell has a move with 63% compared to a week ago. the ten-year yield is currently 4.5%. that is pulling back 15 basis points. the two-year note is 4.8%. we have a look at the energy market and oil is looking to trade below $80 a barrel for wti. brent crude is $83.66. both moving higher. wti up 1% right now. that's the money set up. let's turn to the story from over the weekend. the berkshire hathaway shareholder meeting and warren buffett holding court and

fielding questions from share h h holders for several hours. stock jumped due to insurance un underwriting. buffett trimming the stake in april by 13%. buffett said that was for tax reasons. warren buffett said they would like to spend the cash, but has no plans to do so, unless there is an opportunity to make a lot of money. >> i don't think anybody is sitting at this table has any idea of how to use it effectively. therefore, we don't use it and we don't use it now at 5.4%. we wouldn't use it if it was at 1%.

don't tell the federal reserve that. i prefer it. we only swing at pitches we like. it isn't like i have a hunger strike or something like that going on. it's just things aren't attractive and there's ways that can change. >> warren buffett praised jay powell for his work steering the economy, but the fedneeds help from congress to help with the deficit. we have aneka treon and barbara goodstein with us. good morning.

barbara, i'll start off with you. i'll get your take. the berkshire hathaway sh shareholder meeting. what do you think of warren buffett trimming the cash pile? >> that makes sense to us. that is similar to what our members are doing. public markets are frothy right now. our investors are very similar to what warren is doing. we are sitting on the markets and waiting as warren buffett called it for some enchanted evening. >> you know, we will talk about the things that the oracle of omaha had to say. aneka, hard to remember this before the berkshire hathaway meeting. we got a soft jobs report. 25% below the estimate. after that, we see the s&p and nasdaq having the best day in two months. what does that say about driving the market? does that mean earnings are not driving the market? 10% higher year over year. is it all about the fed?

>> it was a period of time where it was all about the fed. i think markets have moved away from that because to your point, earnings have been really strong. let's zoom out a couple of months ago where the markets were expecting four or five rate cuts. now the expectation is about one. that's a massive change in expectations. markets are around all-time highs. we need to zoom out and be grateful for the fact that markets are behaving better and more fundamentally. it is part of being in a dynamic stock market. >> barbara, coming back to you. you said berkshire hathaway and warren buffett, of course, oracle of oomaha, growing the cash pile. i want to bounce another investment idea off you. your investors talked about it. elon musk, the ceo of tesla, inviting warren buffett to invest. what do you think of that idea?

tesla shares have been under pressure in the last couple months. >> obviously, elon is brilliant for getting the most famous investor behind him. now it is a bigger team than just warren. the take away is all about succ succession. that was the priority and it is about greg now and his direction. warren is steering him to make the right decisions. it is a smart move on musk's part. >> i want to talk about the investment decision and it is warren buffett's wishes that greg runs the stock portfolio. the first annual meeting without charlie munger and you heard directly from a noticeably older warren buffett about what he wants to see and saying he hopes he's there next year. >> i thought that was very

sweet. he was very focused on giving greg the opportunity to speak. he prioritizes succession just like we do. we have a program for rising leaders. this is the most important thing you can do is build the company and train the next generation. he was kind bringing greg in and dedicating time to him so he can establish himself and calm investors going forward. >> anneka, back over to you. we mentioned berkshire increasing the cash position by more than $20 billion. most of it is parked in short-term treasuries. i want to talk about what that means for other investors. so many turn to the oracle of omaha decisions. he is saying cash is king. stay in short-term treasuries while you wait for opportunities. does there make sense in your mind? >> i think there are two parts. one is the short-term side of the treasuries and the other part is the cash pile. i think also what was mentioned

earlier with cash is always king. looking for opportunities to lower your average buy-in cost at companies is wise. it is what we talk about with investors all the time. the fact he is choosing shorter data treasuries and looking at the current yield curve, why take duration risk if you are being well renumb erated at the short end of the curve? >> one other thing that was discussed by warren buffett with the investment in japan. he said he put more money in there if he could. what is your view on japan? any concerns about what is going on with the yen? >> we are bullish on japan. of course, the yen has its elements of uncertainty with every fx. take a step back. japan has the most monetary

pop poll -- accommodative monetary policy globally. let's not under estimate how powerful that is. if you look at japanese companies, the japan region has been uninvest able for investor across the globe. that essentially means you have great businesses which have extremely under leveraged balance sheets. you see more corporate action coming into play. you have a very accommodative monetary policy back drop. if you go back to the gritty and roll up your sleeves, it is a brilliant business and if it is listed in japan, great. >> okay. barbara, the last word. a lot of talk about japan. do you wish berkshire hathaway or you and your members would invest more in japan? do they have more opportunities

that berkshire hathaway should take a look at here? >> i think we are invested in japan. investments went up 40% last year. we are also looking at india and there are many other markets like saudi arabia which have attracted attention. the priority is to focus on businesses we understand. warren emphasizes circle thof confidence. it is not what you know, but what you don't know. we understand and we stay within our edge. that was his advice to shower h shareholders as well. >> thank you, barbara and anneka. for more on what is driving the markets and trading day ahead, head to cnbc pro at cnbc.com/pro. time for a check of the cop r corporate stories with silvana henao. >> good morning, frank.

paramount global is beginning talks with sony pictures and apollo after the negotiations deal closed on friday with skydance. the new talks includes a $26 billion cash offer on friday. skydance remains in the mix as shari redstone prefers it over sony. and shareholder services investor is calling on boeing to vote against ceo david calhoun's nearly $39 million pay package during the annual meeting on may 17th. the package amounts to a 45% increase from the previous year. iss sicites a size abieable incn

the grant. and three-time starbucks ceo howard schultz is calling out the open. in a post on sunday, schultz says starbucks requires a focus on the customer experience through the eyes of the merchant. the answer does not lie in data, but in the stores, frank. >> strong criticism. silvana, thank you. we have a lot more to come on "worldwide exchange," including the one word that investors need to know today. first, warren buffett says the iphone may be the greatest product of all time, but since 2007, what else does apple have for investors? we will discuss that and more. stay with us.

plus, a closer case of the chinese con sierm. consumer. little a live report from beijing. we have a very busy hour still ahead when "worldwide exchange" returns. stay with us.

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is how long will the product life cycle last for the smartphone? they came out in 2007 with the iphone. the best example of the product with the full multi-decade product cycle is the tv. the watch has been the relative hit, but it is not the needle mover that the smartphone is. they don't have the next product. i don't think vision pro is the next product. they are reliant on the iphone. more than half sales last year with every product having a product cycle. >> tom, the tv is the benchmark here, that's a high benchmark. the tv has been an amazing innovation. we're about one month away from wwdc. tim cook has talked about a.i. innovation there. what are you expecting and what innovation to satisfy investors?

>> in the short-term basis, i think apple needs to improve the narrative on a.i. as a way to improve sales, including the iphone. i think google put it best with the raw computing power for a.i. is more of a cloud computing story than a smartphone story. i think at the near-term basis, apple is increasing its game and generative a.i. could be beneficial for smartphone sales for the next cycle in september. >> you have a hold on apple. $173 price target. lower than the stock trading right now. i hope it is okay to pinch you as a bear. is apple not getting credit for the m3 chip? those chips will be used to power laptops they are calling a.i. laptops.

>> i'll argue at 25 times pe, ap apple is getting a lot of credit. low single digit pe growth. they are getting enough credit. i would be more excited if they moved forward with a car. i see opportunities to improve on what tesla is doing. they talked about robots. 25 times with apple getting a lot of credit for a lot of things. >> let's go back to the product you mentioned. apple vision pro. it is metaverse. i know a lot of people don't like that term. apple has been using the term for the apps for the spatial computing apps. tim cook has been vocal about the vision pro with the enterprise adoption. i want to talk about this. are we underestimates the adoption? we are talking about companies

like u.p.s. or dhl to help train staff and cut down on training time. are we underestimating the apple vision pro with the br broad enterprise use? >> it helps the $3,000 price point for the product. mass adoption of the a.r. head sets would be good news for apple, but in and of itself, it is not a needle mover. it is not something to sususust 25 times multiple going forward. >> tom forte, thank you very much. great to see you. thank you. coming up here on "worldwide exchange," the final countdown for the boeing star liner and what is an important milestone for nasa. we have the full story when "worldwide exchange" returns. osition.

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rafah. the israeli military has told people to leave the area. director burns is heading to israel in the last-ditch effort to salvage truce talks. there were more crackdowns on the college campuses. lapd clearing out the protest at usc. officials at the university called in police 12 hours after warning the encampment was the violation of policy and law. protesters could face arrests. this happens as the war in israel continues. and 75 protesters inte interrupted the graduation at the university of michigan. this year's kentucky derby saw record bets.

$210 million wagered on mistik dan. you are up to date on monday morning, frank. >> first saturday of may. i got to go one time. i wore pink pants. i don't know if you have gotten to go to the derby. a good time. >> especially the fascinators and mint juleps. you are all set. >> thank you, frances. watching shares of the company vistra. it is looking to join the s&p this thursday. it is replacing pioneer natural resources. that deal closed on friday. ' wee back right after this.

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gentlemen, it's a beautiful... ...day to fly. it is 5:30 a.m. in the new york city area. 10:30 here in london. inter there is more ahead on "worldwide exchange." momentum monday. stocks rally. a very busy week for earnings and central bank action. record-breaking cash. curious apple stake and succession plans taking shape. quite the busy weekend for warren buffett and the berkshire hathaway annual meeting. later, chinese president xi jinping kicks off the goodwill tour in europe with the stop in france this morning.

what it means for the simmering tensions with the west. it is monday, may 6th, 2024. you are watching "worldwide exchange" here on cnbc. welcome back to "worldwide exchange." i'm frank holland coming to you live from cnbc london. let's get you ready for the trading day of the week. the check of the stock futures with the s&p coming off the best day since february. you see futures in the green across the board. the dow is hitting the highs of the morning and opening up 90 points higher. investors are feeling bullish on the april jobs report and what it could mean for the policy path forward for the fed. possibly cutting interest rates sooner than later. according to the cme fed watch tool, the survey puts the odds of cutting at 63% at the july

meeting. we are checking the bond market. the ten-year yield at 4.47% and the two-year note at 4.8%. it was trading above the 5% yield a couple of days ago. wti crude is high right now. turning to the global markets and the uk is closed for a holiday today. we have arabile gumede now with the early action. arabile, it is all about pmi. >> it is about the pmi figure. particularly out of italy. the economies out of europe are struggling to fight the firm footing. the market on friday closed

higher on the back of the jobs numbers from the united states which has been in play. you saw negativity across the week which was 1% down. you see replay coming into today as the uk is closed today. you have the bank of england putting out interest rates decisions on thursday. the market is anticipating the bank of england would keep rates unchanged. the big ticket items here are looking to move the market across europe which is at play. frank. >> arabile gumede, thank you very much. let's get a check of the corporate stories with silvana. >> good morning, frank. fed president john williams says

the 2% inflation target from the fed is critical for the economy and achieving surprise stability. the comments coming as the fed is calling to overhaul policy. speaking at stanford on friday, williams said setting a longer inflation target and taking action is key to anchoring expectations. the fed is looking at the policy framework later this year. and momenta technology has filed for an ipo here in the u.s. bloombergreports the company is working with goldman sachs and ubs and cic on a listing that may happen as soon as this year and could raise as much as $300 million in the offering. momenta was founded in 2016 from

engineers of microsoft. and boeing is lan launching astronauts tonight on the star liner. the program faced years of delays with unmanned test flights hit with software and equipment issues. starliner will blast off on the rocket from cape canaveral in florida and it is the first time astronauts have been launched since the 1960s. frank. >> thank you. turning attention to china. growth in the services sector slowing in march according to the latest survey and still indicating expansion for the 16th straight month. this as consumers continue to hold back on spending in the face of ongoing uncertainty.

we have eunice yoon with more from beijing. >> reporter: thanks, frank. if you want to know what is going on wlt cith the chinese consumer, look at this latest company which launched the chinese burger. it is going head-to-head with do mcdonald's. it has 6,100 stores. what is the special sauce for tastien? the buzz about the brand is this company has the best menu for anybody who is down on their luck. of course, we went down to one of the outlets in beijing and bought a set which included a d duck burger and nuggets and a drink which costs $4.20. it is 30% cheaper than mcdonald's. this is the trend we are seeing

rip rippling through the area. 52% of those polled plan to save more. the may day holiday just ended. people were traveling according to the data more by 28% since the pandemic, but the spending was up only 13%. people have been looking for ways to cut back. there's one other company, frank, that i want to tell you about, that just filed for a hong kong ipo. a chinese brand offering super cheap prices. an ice cream company. they are offering a chocolate sundae for 80 cents. >> you know, one thing you left out, eunice, are the fries.

this trend with the fast food chain is a trend where consumers shift to local brands? >> reporter: it is in the sense that chinese brands tend to be cheaper than international brands. you see that with starbucks and the local rivals here. it is actually doing well here. another company that has been hit is mcdonald's, as i mentioned. what is interesting is how the companies are leveraging off the nationalism here. company tastien has a slogan. chinese stomachs love chinese burgers. they are playing off the patriotism. >> what about the fries? you never answered the fries. >> reporter: the fries are okay. for the chicken nuggets, i felt like they were a little squishy.

maybe you get what you pay for. >> squishy is interesting. i don't like duck. eunice yoon, thank you. i hope you enjoy the fries. coming up on "worldwide exchange," a bullish back drop for stocks. our next guest says things are bouncing back after a rough few weeks for the markets. stay with us.

welcome back to "worldwide exchange." time for the morning call sheet. micron being added to the baird outperform list. positive trends unfolding. micron shares up 3%. morgan stanley has the price target of united steel up to overweight. morgan stanley says the transformation into the flexible steelmaker is on track. shares up 2%. ubs is cutting johnson control to a price target of com neutral. shares are down just over 1%. time for the global briefing. we start with xi jinping in paris to kickoff the europe tour and looking to stabilize the relationship with the region.

this is xi's first trip to europe in five years and it will be spent in hungary and serbia. shares of hon hai precision on a record high after they posted the strongest monthly sales growth since 2023. the come puting segment increas most with the air mac launch. swedish private equity company eqt is buying perficient for $3 billion. the deal is expected to finalize in 2024 and will take perficient stock off the nasdaq.

shares are up 50%. coming up on "worldwide exchange," a big weekend for berkshire hathaway and what warren buffett calls one of the most important stocks in the market. we're live in omaha coming up. by these promises. as a fiduciary, i promise to be the financial steward that you and your family need. i promise to put your long-term financial well-being above any short term transaction. everyone has a big picture. my job is to help you invest in yours. [announcer] charles schwab is proud to support the independent financial advisors who are passionately dedicated to helping people achieve their financial goals. visit findyourindependentadvisor.com wall street forecasts over $100 billion in sales for weight loss drugs known as glp-1. even with unliked and inconvenient injections, dehydratech processing of a glp-1 drug demonstrated improved blood sugar reduction and reduced side effects. more human study results for lexarias patented

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exchange." we have becky quick in omaha after the berkshire hathaway shareholder meeting. >> good morning, frank. good to see you. you are right. warren buffett disclosed on saturday that berkshire hathaway sold 13% of the massive apple stake. that is 116 million shares. even with that sale, apple is still berkshire's largest holding. it makes up 30% of the portfolio. come nair to the next runner up which would be bank of america. that is 10% of the portfolio. you are still talking about a massive stake in apple. warren buffett said the sale wasn't because the views on the company changed. he said it is extremely likely apple is the largest stock in the portfolio for the year. later, he said it is likely unless something really strange happens, that it will still be the largest stake when he hands things over to greg abel. buffett suggested he sold for tax purposes. >> we don't mind paying taxes at

berkshire. we are paying a 21% federal rate on the gains we're taking in apple. that rate was 35% not that long ago and it has been 52% in the past. the government owns -- the federal government owns a part of the earnings of the business we make. they don't own the assets, but they own a percentage of the earnings. they can change that percentage any year. the percentage they've decreed currently is 21%. i would say with the present fiscal policies, i think that

something has to give and i think that the higher taxes are quite likely and the government wants to take the greater share of the income and they can do it. >> apple's ceo tim cook was in omaha this weekend. i asked him about news. he told me it is a privilege to have them as a shareholder. he learned about that the day before, the selling of the stake, when he met with warren buffett. frank, we will have more on the meeting and including the growing pile of cash berkshire hathaway accumulated. we will talk more about it on "squawk box." it was a weekend with a lot of news. buffett has pared it back. he speaks to shareholders once a

year. >> becky, i want to ask you two questions. what was the sentiment? the first of the meetings without charlie munger and warren buffett made news where he hopes greg abel will manage the stock portfolio. what was the reaction to that news? >> let's start with the mood. there were questions coming in about this as charlie munger wasn't there as he passed away last year. they started off with the movie which looked back at everything charlie has done through the years. the wit and funny lines from past meetings. there was a standing ovation at the beginning of the meeting. at the end of the meeting, there was a standing ovation for warren buffett. recognition of these two gentlemen and what they have given to the shareholder base. there were well over 40,000 people here.

i have been coming 19 years, frank, and i have never seen as many people crowded in the room and a hush over the room as they were talking. i can't imagine another company with an annual meeting like this. the question on capital allocation. what happens with capital allo allocation. it wasn't the stock portfolio. the question is will he be responsible for capital allocation? the answer was greg abel will be sp responsible for all capital allocation. will that be him running the entire portfolio? between the operating companies and portfolio, the portfolio is $370 billion they are managing in terms of stock portfolio, but then you have all of the operating companies and trying to stay on top of that. the view is there needs to be

one person to go to acquisitions and one sitting on the dry proud powder in the keg and make an acquisition. is that money that goes to treasury bills or a safe place or if it is something that needs to go into stock allocation? he said he would evolve his thinking in it. that got people thinking about what it means. there will be one ceo and all decisions are filtered through that person. >> becky quick, thank you. i know you will have the highlights coming up. thanks for joining us. coming up, the word that every vinvestor needs to know today, but the bidding w war enters a new phase an.

and how old schultz breaks his silence on the company he once ran three times a ceo. stay with us.

and they're all coming? those who are still with us, yes. grandpa! what's this? your wings. light 'em up! gentlemen, it's a beautiful... ...day to fly.

welcome back. it's time for the "wex wrap-up."

the bidding for paramount global is on as sony and apollo are at the negotiating table. shareholder services is looking for boeing investors to vote against the pay hike for david calhoun. and howard schultz should fix operations after the biggest sales miss in years. and musk elon musk is looki invite warren buffett to invest in tesla. and youtube is looking for people to jump to the popular part of the video with a.i. here is what to watch this week. earnings from 55 s&p companies and one dow is coming up tomorrow and we're on central

bank watch with the big apple event tomorrow. looking at futures in the green. the dow is hitting the highs of the morning and looking like it could open up 100 points higher. joining me now is gunjan banjeri. good morning. how do you see the day shaping up? >> good morning, frank. my "wex" word of the day is momentum. we had a powerful rally on friday with the lockstep rally in stocks and bonds. it will be interesting to see if that continues, especially on a week which is light on economic data. you mentioned we have earnings and we do have fed speakers. on friday, we saw a lot of mania creeping into the market with gamestop shares rallying around 30%.

i'm really curious to see if that momentum continues. >> we talked about it with the s&p and nasdaq coming off the best day in two months and following the softer than expected jobs report. 25% below estimates. has this settled the argument whether it is earnings or the fed driving the market? does it seem like it is the fed? we saw the stock pop. people thought we may be closer to a cut. >> frank, i think it is both. what investors are telling me is the back drop is still strong with the earnings we have seen. best growth since 2022. they have the goldilocks thesis which is still in tact. looking at futures. futures are tied to the russell this morning up 70 basis points. that is above the gains for the s&p. the dow's economic recovery and that trade is still underway this morning.

>> we have fed speakers this morning. is this morning of the earnings which are 10% higher year over year which is driving the market? >> i think it is both. it is important to remember the game of chicken investors have with the fed and investors keep losing. we're now down to two or zero rate cuts. that doesn't seem to move the needle thefor stocks. we see it go higher despite rate cuts priced out. >> okay. part of that is the consumer. you are watching the consumer. i have looked at this quarter to date. they are out performing the broader market. what are you looking at with the consumer? what should investors be aware of here? >> there have been warning signs with the consumer. it has been a strong earnings season. take starbucks and the disastrous report last week saying americans are growing discerning where they get their

coffee. mcdonald's saying people are turning to the grocery store more. >> i want to correct myself. discretionary. gunjan, thank you. that does it for "worldwide exchange." "squawk box" starts right now. good morning. warren buffett making headlines at the berkshire hathaway meeting. we have the take aways from what is known as woodstock for capitalists. howard schultz giving advice to star bucks after the miss lat week. and dozens of protesters arrest on college campuses over the weekend. we will bring you the latest on this monday, may 6th, 2024. "squawk box" begins right now.

good morning. welcome to "squawk box" here on cnbc. we are live from the nasdaq market site in times square. i'm andrew ross sorkin along with joe kernen here at the nasdaq. becky quick is live this morning in omaha after an eventful weekend with lots of headlines. we will go back to becky in a moment to get them. nice to see you. u.s. equity futures at this hour is 99 on the dow. nasdaq is up 15 points. treasury yeeields with the ten-year note sitting at 4.475. the two-year note at 4.789. now for the star of the weekend. becky quick. joe, it is good to see you. i get feedback