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tv   Squawk Box  CNBC  April 19, 2021 6:00am-9:00am EDT

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good morning bitcoin bouncing back after a weekend plunge that saw it fall nearly 21% from last week's record high. all in a week's work for the crypto vaccine milestone. half of u.s. adults received at least one shot and the cdc will meet this week to determine whether to resume the use of the j&j jab. a safety agency warning parents to stop using peloton's treadmill immediately. not warning the parents to stop, but alerting the parents of possibility of issues with kids and small pets peloton is calling the report misleading and inaccurate. it is monday, april 19th, 2021 "squawk box" begins right now.
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good morning welcome to "squawk box" here on cnbc i'm rebecca quick along with joe kernen and andrew ross sorkin. record highs for the dow and s&p and nasdaq equity you futures here red arrows nasdaq looks like it will open down 11 points s&p down 8.5%. this comes after very strong weeks. new highs set again on friday. the dow now has been up four weeks in a row look at what is happening with the treasury market. at least at this point, the 10-year is at 1.561% yields have come under pressure. this is a big week we are
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warning for earnings let's check out the "squawk stack" this morning. one name in the "stack" is coca coca-cola. earnings due out at 7:00 a.m the third of the dow is expected to report this week. coca-cola indicated down by 0.2% the other issues we are watching, dow future and nasdaq and the 10-year and bitcoin which is rebounding after the big moves. we'll talk more about that in a moment >> okay. we have a milestone taking place. great news in the fight of covid. half of all adults in america have received at least one dose of the covid vaccine 32% of adults are fully vaccinated president biden asked states to open eligibility to all american adults as of today separately, the cdc plans to meet on friday to talk about safety risks of the now paused j&j vaccine. we will give you an update about
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all of this from dr. scott gottlieb at 6:30 a.m. eastern time the idea appears to be signaling that the j&j vaccine may get back on the market with certain restrictions joe? >> big piece in "the journal" over what to do. they were worried the way doctors would react to people who had it might be confusing. they said let's pause it we will see what happens today. a shift from china and this came after nebulous reports that u.s. treasury was looking at bitcoin after that action with coinbase i saw it go as low as $51 and change that gets your attention at 64 it is like 20% plus. in the blink of an eye
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in whine a speaking at a panel hosted by cnbc central bank of china's deputy governor called bitcoin in his words an investment alternative. he said china was thinking about regulatory requirements that would prevent some of the risk to financial stability industry watchers called the comments, a loaded term, progressive. the shift comesnearly four years after whinechina cracked n on crypto trading. saw it dip nearly 21% from last week's red cord high. coinbase is up this week >> joe, the comments from china are almost in line if you believe the peter thiel version of the world that the chinese are hoping ultimately to destabilize or takeover the u.s.
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dollar anything that can do that, he's made the suggestion and others made the suggestion that china was supportive for a long time of the euro in hopes of a second, you know, second world currency of sort we'll see. >> that's a cynical view yeah >> it's 6:00 in the morning on monday >> as long as you don't like the dollar we are urging you. have some. that's an interesting perspective on why as an addendum to destabilize the dollar, you think? >> who knows who knows? we have other breaking news on gamestop. let's talk about peloton i own one of these treadmills. we have breaking news just out involving video game retailer gam gamestop george sherman stepping down effective as soon as a successor
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is found no reason was given. the company noting it has been evaluating executive leadership to ensure the right skills are in place for a changing environment. that stock up now about 6% on that news alone. the gamestop saga does not end i think a lot of people thought that ryan might take the role. it sounds like he is not going to they are on a path to changing the dynamics of the company. i'm not sure what the company will look like >> $10 billion market cap now. >> right >> when you look at coinbase -- is coinbase worth 100? maybe gamestop is. i don't try to figure anything out anymore in terms of valuation. there are quite a few companies that i barely know what they do.
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at least i know gamestop there is one near my house i can touch the brick and mortar at 400 40 billion now 10 billion is that it is ryan calling the shots with the new ceo? maybe that is not crazy. sorkin >> you want to look at the recovery trade i was listening this morning 80% of the s&p 500 is now trading at least 10% above where it was pre-covid you are looking at a lot of rebound. not just bouncing back from the stress we saw when things shutdown, but most of the stocks are doing much better than they had been doing before covid. you wonder if that's something that makes sense and something that can last or something that can get ahead of where we maybe
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should be on some of the issues. something to watch out for i'm not saying the market will crash or anything else happening. it makes you wonder how much room there is left to run with that situation >> nothing fazes us any more that is when you get worried we keep looking for something. i don't know maybe that is building the wall of worry to keep going if this is all said and done and people can't say we weren't trying to figure out what was going to be. we said that the straw finally -- what will it be? the crazy dogecoin and, you know, nfts steeple? beeple what's his name? >> beeple. >> this is worthless
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you are spending money on something that you have no idea if it has any inherent value we have been talking about it. as long as jay powell is happy, i guess, and not concerned, maybe that's what's happening. >> you saw jay powell talking about the article over the weekend on what he mentioned on seeing some of those homeless tents and encampments popped up on his way to the federal reserve. he drives by it every day. he talked about how that really loomed large with him and how it makes him wonder what they have not been able to fix >> as if they're the ones to fix it that's the scary thing >> yeah. >> that's the old saying the fed can make things look better, but can't make anything actually better. that's got to come organically from policy and economic growth
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and everything else. hopefully he's not taking it how youdoes he sleep? a lot of the income inequinequay >> he says it keeps him up at night. >> i can't speak for all those people in general, the asset holders are doing well with zero interest rates i'm not talking about retirement retirees are not the ones we are talking about. >> 33% increase in the billionaires tagged by "forbes." they are doing well. tale of two cities i want to bring you up to speed on another story two men died in a tesla crash in spring, texas on saturday night. local police told nbc they believe no one was behind the wheel when the car slammed into a tree they believe the car's auto pilot system was activated they have not finished the investigation. tesla warns drives ir's manual a
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they should require supervision. the fire took hours to extinguish they had to call tesla to figure out how to put out the blaze because the batteries kept reigniting phil lebeau will be with us later in the show. it makes you wonder if anyone wasn't in the driver's seat. how do they put that autonomous feature into play? if i put a heavy purse on the driver's side of my car, and i don't latch the seatbelt over it, it dings it knows there is something heavy sitting there. something heavy enough to signal it should be a person wearing a seatbelt i don't know how the driving feature works. i won't call it auto pilot you think if there was no one in the driver's seat, that maybe it
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would alert it or be aware of such a thing >> wondering what you have in your purse >> bowling ball. >> i think in this case -- you can't speculate. it sounds like the folks who did this were doing it on purpose. clearly had set the car up so they could do it i don't know what that requires. i don't know if it means putting a seatbelt on or something on the seat it sounds like it was done -- we don't know we have to wait. again, this goes to the larger argument which is, you know, i think there are two arguments. why is tesla doing the things it is doing and have the features when it clearly can be used in such terrible ways and why the government has not come down on this in a more meaningful way.
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that's the part that -- it doesn't surprise me that tesla wants to push the envelope i get that i don't understand where the government has been on some of the features not just in the naming of them >> how far do you push out driverless cars? we had people say it will be sooner than it actually will be. don't you think? there's some things that need to be ironed out. >> they have been coming on the show in 2015 and they said 2018. in 2018 -- we can pull shots of elon musk starting in 2015 talking about this forever i'm not saying it won't happen or push us forward and be great ultimately you like to think in the meantime there would be a safe way to implement some of the features so these types of things don't happen. what can i say
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we should tell you about peloton. peloton shares are plunging. u.s. consumer products safety commission issuing a warning on saturday telling parents with small children to stop using the tread plus immediately this comes after 39 reports of small children injured and one resulting in a death the safety commission reviewed the reports of children trapped or pinned or pulled under the rear roller of the tramp peloton called the report inaccurate and misleading. there is no reason to stop using the tread plus as long as all warnings and safety instructions are followed guys, i own a tread plus i have to tell you that we now had, not with the children, we had sort of two very strange and
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scary incidents being on the tread. if anything gets under that treadmill, the rotating wheel is exposed on the bottom. if a child was under there or if a toy gets under there or if anything gets under there, you can see how it can really rip things up. we had that happen twice, not with my children, but with things that have gotten in the way. it is dangerous. we literally about a month ago became slightly crazy about it now take all of the -- stop it unplug it. so during the day, if there are any children, nobody can get near it or use it. i have to say -- if you have one of these things, be extremely careful. so many children have died because of treadmills. mike tyson's daughter many years
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ago. there's lots -- treadmills are dangerous. the way this treadmill is set up, does not seem to be ideal. i will say that as somebody who owns one i'm surprised that peloton is pushing back as much as they are. i would like to think they would put out notices similar to the government and also perhaps tending consumers' versions or safety features on the side or back of it or under so these things would not be something to worry about. >> becky has a cat you have cooper. you have a little bunny rabbit does he hop around the house unsupervised >> i haven't worried about that yet. >> why i have a maltapoo. someone said it could be shredded >> the way the treadmill is set
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up i never had another treadmill. i can't tell you completely. it is like a woodway treadmill with slats on it it is like a band going around in circle is different it has slats to pull things. i jumped on it a couple of times. there have been toys or other things stuck under there you, yourself, could get jolted off the thing. there are lots of things. >> there are lots of things to throw you into the wall. scary if you are standing on the side and you step back on and you are not totally ready. you have to watch what you are doing on those things. >> that's the peloton news for those folks out there who need a word of warning. there are those magnets. take the magnets off
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it's not useable be careful with those. coming up when we return, we will get you ready for a busy week of earnings ahead with ten dow components and 72 s&p 500 companies set to report. the action kicking off at 7:00 a.m. when we start to hear from coca-cola and later hud secretary ben carson has strong records for delta ceo ed bastian. dr. carson joins us in the 7:00 hour "squawk box" returns after this. >> announcer: this cnbc program is sponsored by baird. visit bairddifference.com. the aflac post-pain show! aflac! what a day of upsets. ha ha. jill is certainly upset with that unexpected bill from her back surgery.
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welcome back to "squawk box. a huge week for earnings we will hear from the biggest companies coming out this week joining us for portfolio picks is chief executive officer of defiance etfs good morning, sylvia let's talk earnings with what you are expecting before we hit the picks. >> sure. good morning, andrew thanks for having me i think i'm expecting this earnings season to come out strong given the amount of liquidity in the markets and fiscal mondetary support for th markets. i expect this season to be stellar and feed into the idea
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we are going to see an economic recovery three of the names i'm looking at are johnson & johnson and united airlines and verizon for sta starters >> let's drill into each united first that, obviously, is a get back to work play and universe and the world is returning play. the question i ask is why united over the other airlines? >> so i think i actually like the airlines in general. united has been quite beat up. they are expecting 6.91 eps loss first quarter. united has a lot of work to do in terms of getting out of their debt crisis. it will be priced at quite a low. it has room to run toward the $90 price range. with united, what we are looking forward to is bookings and air travel we have international travel mostly closed or not fully reopened in terms of traveling
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around the globe from country to country. domestics bookings are picking up not at all-time highs. once we get people out there, pent-up demand is strong and vaccinations are incredibly strong that will propel the airlines. united has been depressed compared to delta airlines that is the place to look. >> the consumer that will lead the way on this? you are not thinking businesses are coming back faster the conventional wisdom is business through 2022 is slow going? >> i think business is slow going through 2022 i think the consumer is dying to get out of the house with the confidence around the vags vaccinations we are starting to see the bookings coming out. that will propel the airlines. >> you have johnson & johnson. we will hear from johnson & johnson on tuesday what is the rationale there?
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>> johnson & johnson is expecting $21 billion in revenue. if you look at johnson & johnson, eps for the year is expected to be 9.53. it should be trading around high 190 or low 200 it is about 160 and change they had succeed with the immunology drugs that will payout in the first quarter. medical devices have suffered because of covid a lot of immemedical proceduresr shutdown that will pick up in q1. the vaccine will be a q2 number. the macro overdrop aging baby boomer population health care sector picked up in performance over the last week with the s&p johnson & johnson surprises with an up side. >> hit me on verizon it has earnings reported on wednesday. what is interesting to me is you
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like the stock because it will turn into a growth stock explain that >> i do. a lot of people hate verizon i think that 1.29expected. $32 billion in revenue expected. this is getting into 5g now and payoff in trade. they won half of the spectrum auction. there is now a $2.3 trillion bill in infrastructure we are talking about that. that is supposedly going into 5g and connecting rural and urban america. i think the growth play is really the focus on the 5g build out. they are trying to land contracts with microsoft, amazon and drones for u.p.s i think this and the 4.53% dividend this is a growth stock i think it will do nothing for a while, but invest in 5g now. it will pay later sdp >> contrary plays.
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we will watch the three companies and earnings this week and hope to talk to you soon. >> thank you so much have a great day >> thanks. joe. andrew, thank you. coming up, automakers fighting for share in electric vehicles we will take you live to the shanghai auto show with the latest offering from the big players other than tesla. as we head to the break, the biggest s&p winners and losers in the pre-market action we're coming right back. >> announcer: "squawk picks" is sponsored by wisdom tree the modern alpha pioneer (vo) nobody dreams in conventional thinking.
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shanghai auto show shaping up to be a battleground for automakers looking to be the next big ev come petitor to tesa we have eunice yoon with us. hi, eunice >> reporter: joe, many companies unveiling ev gm and cadillac. it made the debut with the ev lyric. ford featured its mustang mach-e the chinese version. it will make the chinese version in china for the chinese market. this is what the company said. >> ford has been around for 118 years. the industry is going through a pivot. we feel that we are going to be as relevant in the future as we
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have been in the past. >> reporter: the chinese ev market as you know has been growing very fast. it has been powered mainly by chinese carmakers as well as chinese start ups following the beijing policies tesla is a dominant player here. outside of tesla, the foreign players have been hesitant to jump in on ev because it is not convinced that beijing electric drive would be met with consumer demand now, beijing is pushing more policies and measures and also the market has become much more mature when it comes to evs. we're now seeing more and more foreign companies jumping in and that could shape the ev market here >> important market. not big numbers anywhere right now for ev we talk about it a lot based on
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the -- i'm not going to call it hype -- but the future is bright obviously. what is the number it must be smaller than here in terms of ev percentages in china. eunice, do you know offhand? 1% 2% >> reporter: in terms of the entire market? >> yes >> reporter: the ev market has been growing very fast we don't know the numbers. ford is talking about trying to compete on the high-end market which is where we see the competition. they have an ev called the territory which is more mid level market gm has an interesting strategy they have the cadillac and going after the luxury market. they have a low-end model which looks like a golf cart at the same time, it has been selling really well. it's a mini that costs around
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$5,000 so far, that car for the past eight months has been out selling the tesla model 3. >> eunice, thank you you kept your concentration with that nice, calming music in the background >> reporter: kenny g >> is that it? >> reporter: they are trying to cue to wrap up that is what the venue is doing. >> thanks. i thought i recognized that. when we come back, the j&j vaccine remains halted in the united states. dr. scott gottlieb joins us next with an update. and later, coca-cola and dow are set to report. we will get you the latest on wall street eaahd of that. stock down 23 cents. "squawk box" will be right back. >> announcer: executive edge is
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vaccination milestone. half of the united states adults have received at least one jab this news comes as the cdc is meeting to talk about the pause of the j&j vaccine dr. scott gottlieb, the former commissioner of the fda is here with us now. he serves on the board of pfizer
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he covers the role of the regulation as the rollout of the j&j vaccine remains on pause good to see you this morning let's starts with the good news. half of american adults have received at least one of the vaccination. that is good news. what is the latest >> we will start to see the p pandemic rollover with craases coming down. we will see some increase in parts of the country you will see cases come down as we get into may. partially as a result of the seasonal backstop. the fact we are getting into the warm months and people are getting outside. the large factor is the vaccination rate if you look at san francisco, it has 62% of adults over 65 vaccinated they are recording 30 cases a day in san francisco and the metro area they have about 20 people
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hospitalized cases have come down dramatically in san francisco. it is a function of warming weather there and also the high vaccination rates. >> that's incredible we hope that continues to happen here throughout the united states when you look at the pause of the j&j vaccine, that is a bit more concerning. you have a nuance look at this you take a perspective most persons say okay, the authorities, the government says this is on pause and we shouldn't be doing this right now. you point out it is the cdc, not the fda, that is overseeing this you have concerns about that what are they? >> well, the fda took the action to pause the use of the vaccine while investigating cases. they wanted to illicit more reporting. i think they will have a picture this week on the true number of cases. we have not seen that many more cases emerge there is speculation as much as eight cases. we are not sure. we will get a better picture on friday when they present it before the cdc they want to give advice not to
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treat patients with heparin. one thing that was getting patients in trouble was they were treated with a blood thinner that exacerbated with the blood clots. the challenge is the fda is not in full control of the decision. they oversee drug safety they should be cdc has asserted control over reviewing this before the advisory committee that advisory committee makes recommendations of immunization schedules. they make recommendations what vaccines children should use and what they should get before that go back to school. i think this would have been better handled inside fda and if fda needed to seek outside advice from the committee, they could have gone through that to oversee safety the agency wanted some role for
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itself and add judicating this question this complexity has slowed down the process. >> scott, i know this is something that generally happens two weeks after the people get the shot it is particularly in women underage 50. how concerned should women who got the shot, let's say, a month ago or longer? i think about people in new jersey a lot of teachers got the shots. they became eligible as j&j was rolled out if you got the shot a month ago, can you relax a little bit >> i think so. i don't think people who are outside the window should be concerned about the side effect. if this is related to the vaccine, it appears to be an immune reaction of the viral vector of the coronavirus genome if it is an immune reaction, it
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will manifest shortly after delivery of the virus. we see this immune platelet disruption happening from other drugs. it is a drug side effect in this case, it seems to be induced potentially by the viral vector if it is causally related, it is rare i think people outside that window, that immediate window, can be relaxed about the risks associated with it at this p point. >> how you quickly will the vaccine be reapproved or stated to go ahead and use again? >> i would expect by this friday they will go to the committee with some understanding that they want to reach a decision and bring this vaccine back. perhaps with just some additional warnings about what doctors should be alert for when they do identify the cases in rare circumstances, they treat it appropriately and not treat
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with heparin i think that will be the most important thing to do. just make sure they step up the reporting that they have better vigilance to capture these events if they continue to occur. i think the fda is doing they are look at electronic medical records and things that are subtle they is a robust system in place, the fda >> the j&j vaccine and astrazeneca vaccine are seen as incredibly important especially for other countries in need. undeveloped countries. is this going to create problems just in terms of appearances to say we will give you the
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vaccines that we have had problems with? they will take this with open arms >> i don't think with the j&j vaccine even if a causal link is established. you will have a low rate of side effects. i think the vaccine will be back on the market in the u.s. and find a role in the u.s there is a challenge in other markets getting the mrna vaccines in the markets because of the increased storage requirements and handling requirements the cold chain it is required here for the shipping with the j&j vaccine. once the j&j vaccine gets into the provider's hands, it can stay out of the freezer or fridge we have to do more do create the infrastructure to get the mrna vaccines in the markets. i think the ju&j vaccine will be
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in the u.s >> thank you, scott. a big win for spacex and the race to take humans back to the moon. and coming up, arthur brooks will join us about the biden infrastructure plan and much more we're coming right back.
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the moon beating out blue origin to build the lander spacex flies astronauts to and from the international space station. in the musk-bezos battle, this time around, musk has won. becky. thanks, andrew when we come back, we will talk about bitcoin. it is up slightly this morning after a huge drop over the weekend. when we say huge, we are not exaggerating we're talking 20% plus check it out up $750 to $56,525 we will take a closer look at those moves right after this ♪ ity keep you tuned in all day long. so when something happens that could affect your portfolio, you can act quickly. that's decision tech, only from fidelity.
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bitcoin recovering a bit this morning it saw awe sharp drop over the weekend falling below 52,000s. the rumors were circulating
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online that the u.s. treasury department is planning a crackdown on cryptocurrencies. joining us is kristin smith. kristin, you point to things that happened in recent years. a broader acceptance, between gary dengensler who nose a lot about blockchain you've got gentzler on one side, what can you tell us about the innuendo and what we've heard about treasury can you fill in the truth whether there are any rumor to that rumor on twitter? >> yeah, i don't think there's any truth to that rumor on twitter. especially unnamed sources but the treasury department
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isn't the one that brings charges down on companies. janet yellen hasn't there been been enough to bring down the cases. cases take years for anti-laundering cases to be developed. those cases dumb from doj, not treasury there there's a lot of rumor that hopefully i believe has been put to rest at this point. i do think it has impact on the markets which tricks people a little bit >> obviously, not everyone feels the same way about bitcoin for every gensler or others. you heard the comments from yellen and powell, you said there's more education and understanding how it actually works. eye point out there's not just a list of finance.
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there is an argument that maybe can be made that it has inherent value, i'm sure bitcoin believes that but i'm not you're yell y sure janet yellen believes that. >> the organization has grown, the industry has grown and they're putting more reseniorses to play in washington which is a fantastic thing. so, you know, with bitcoin, bitcoin is the fairest digital asset. there will only about 21 million bitcoin. there are a lot of tauot of peo find that valuable i think over time, those people in government that don't yet understand digital assets will, we're working to get to as many as possible. more importantly, now that we have coinbase, a publicly listed company, the markets are
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validating the idea that crypto is an industry that's growing. and is something that you know, 56 million users and coyne has access to. so, i think we've turned the corner and going forward, it's not going to be in a sort of deal denial space and what can i learn about this >> and how do you do china and their plans? is it on the one hand, we've heard that they actually want to support bitcoin because it destabilizes the dollar. but then, they're also going to have perhaps their own digital currency are 33 good for bitcoin? bad for bitcoin? it doesn't matter what they are, bitcoin is going to stand on its own? >> bitcoin is going to stand on its own regardless bitcoin is a different type of currency than a central bank currency bitcoin, even though it was
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conceived as electronic peer-to-peer cash, it's really sort of an investment, say, a hedge against inflation. central bank digital currencies i think are really designed to facilitate payments and modernize the out-currencies there are so many different types of cryptocurrencies out there. all of them have different functions. for purchasers of those investing in cryptocurrency, they need to look at what is the underlying network, really, of the currency, that is going to dictate, you know, which part of the economy it makes sense to -- which part of the market it makes sense to use that cryptocurrency. >> certainly, the same thing in which -- it's kind of you know, sort of a wink and a nod with the whole arena. but, you know, last week, watching it, and you know,
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green-based investor -- i don't know, it's all -- >> i mean, people see, you know, they're willing to pay for novelty. i think that's what we're seeing with this right here >> got to hit a dollar by 4:20 the whole rationale behind it. thank you, kristin if i live long enough, i'll see just about anything, i guess andrew thank you. joe, we've got earnings just crossing in coke coal lal profit adjusted 55 cents per share. five cents above shares with wall street and forecast margins improving from a year ago. sara eisen willcome on and tal with us, two hours after "squawk" right after the break is that how you hold a mirror? [ding]
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♪ stocks coming off a week of gains thanks to strong earnings and economic data. we'll take a look at what could drive the markets this week. that's straight ahead. paying for the president's plan harvard's social scientist and author arthur brooks talks about
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how to pay for it. plus, no one behind the wheel, the fiery tesla crash that left two dead after an investigation continues. that's straight ahead as the second hour of "squawk box" continues right now. ♪ good morning and welcome back to "squawk box" right here on cnbc i'm andrew ross sorkin along with becky quick and joe kernen. let's show you u.s. equity futures ahead of this open about 2 1/2 hours before we get there. of course, another big earnings report coming. the dow about 90 points off. s&p 500 looking to open off about 12 points. will round up or round down. and then the nasdaq, we'll call it 42 points right now got a couple headlines, federal regulators telling
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consumers with young children or pets to stop using peloton treadmill. it reviewed dozens of injuries, p p peloton saying the warnings are unsafe and i own one of these treadmill, i'd urge people to be extremely careful if you have children or animals in the house. we've had our own incidents, not with animals or children but with toys and other things that could throw you off the treadmill. please be careful. you could always unplug it and take the magnetic things off that shuts it down meantime, officials in texas are investigating a deadly tesla crash over the weekend they say they are nearly certain no one was behind the wheel. what's so unclear, whether tesla's autopilot system was engaged at the time. we're going to try to get more information about that later
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one of the stocks we're following is coinbase, following the big debut last month cakrcathie wood's funds. and brian armstrong sold about $292 million in shares on coyne's first day of trading lots of folks looking through who was selling. the cfo, mark andrewson sold a friend, co-founder wilson sold having said that, the way the direct listings works the people who own shares have to sell, because there are no new shares being sold that is how it works i know there's been a lot of chatter on reddit and twitter over the weekend about that. meantime, breaking news in the last hour involving the video game retailer gamestop check out the shares right now the ceo george sherman is
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stepping down as soon as a successor is found they say no later than july 31st given the s.e.c. filings to evaluate the executive leadership to make sure the right skills, they say, are in place for the changing environment so the transition which is what the investors of gamestop has been hoping for seems to be moving at a pace, nonetheless, moving. i know many investors are hoping for a transformation joe. >> hey, andrew, i was going to look at the "squawk stack," i asked them to put the "squawk" coin in there. >> oh, nice. >> i don't know if becky has seen the new and improved "squawk" coin. she somehow is like -- is immediately went above us and sort of looking down over us i think they -- do you notice that >> i didn't have anything to do with that.
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>> it's like we got to watch ourselves. i don't know -- it's not really trading yet. i don't know how to actually launch this thing. do you know how to mine this, sorkin >> absolutely. we can do that during the commercial break, honestly, joe, that's how easy it is to launch these things now that becky is on the value has clearly gone up. >> already going up. doggy coin, becky, did you see that slim jim's? i use the term loosely -- those meat sticks. >> oh, i know of them. >> they had a meme that got doggy coined -- doge coined, that that couldn't, we got to find one >> i also don't want to be on something that drops 25% or 50%
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on a day or two? >> well, if it goes up 10,000% and drops 50%, good, becky -- okay, we can make it a stable coin would you be happier we'll tie it to doge coin? dow component coca-cola out moments ago. sara doesn't have her own join let's get to the sara eisen, i know were you thinking, wow, becky is lucky >> i would i'd like a competing coin. as far as coke numbers, if you're looking for -- if you're looking for a read on the pace of vaccinations globally and the reopening of economies look no further than coca-cola this is a company that gets half of its business away from home restaurants, movie theaters, stadiums it just came out with a really good quarter a beat five cents on the top line a beat on the bottom line.
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6% organic growth. i just talked to the ceo he called it super encouraging. not only the progress but the progress that the world is making towards reopening he also called a good quality beat and he did tell me we're not through the horizon of the pandemic as a one-year event it doesn't appear that way. he pointed to cases skyrocketing in india and new lockdowns in europe which this company is certainly feeling. the volumes, importantly, that's a way to measure how many drinks or beverages are back to 2019 levels this company has made progress they've done that by focusing more on the at-home, buying groceries. he did say they're not raising guidance they're keeping it on chain because there's still so much uncertainty about the pace of opening around the world and he calls it aasynchronous
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one-third of the business is fountain drinks and that's still hurting. he pointed to examples good to see reopening where people in the evenings are going out to restaurants. they see that with what they're purchasing but with so many offices still closed, they're not getting the lunch business they're not getting the business they traditionally see from people going to the deli and that kind of thing obviously, business in china is very strong and back to levels before the pandemic but he warns they're not fully back in terms of level of business from cinema, movie business and concerts and also a lot of the mom and pop stores have closed and there's been an adjustment where coca-cola sells things i would point out a piece of news, on the structural point that is coke is announcing an ipo in africa coming next year
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this follows a series of steps that quinncy has made. they've been spinning for a while. he said that's going to be an exciting company to have headquartered in africa for the bottlers and the growth project. back over to you >> the stock has turned around it's now up by 25 cents or 30 cents. it was down by 20 cents before we heard any of this news. what, i guess, came as the biggest surprise to you, sara? >> the biggest surprise is how strong the business is, given the fact that a lot of europe is still locked down. and that the recovery is pretty bumpy. i think.f the fact they can abl to get 6% growth shows they're executing really well. i think the question quincy will get on the conference call is why didn't you raise the guidance you're putting out a quarter like this, and what he'll play there's a ton of uncertainty, but what they've seen so far is
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encouraging. he said they are growing share in the place where is they're open for business. and it really just depends on the degree of lockdown which is very much out of their control >> yeah. so, maybe a bit of caution there in kind of describing and not wanting to pin themselves into anything but great news overall >> sara, thank you, great to see you. check with in with you later >> yeah, you too joining us to talk about where the markets are heading next after four straight weeks of gains is anastasia aamorosa you say we continue to see new highs? >> yeah, the strength in earning for the markets. we saw this last week, 81% of the companies got beat by the way, they got beat by a
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significant percentage, thanksgiving like 30% with earnings supplies while the typical earnings supplies is 6 or 7%. what continues like 6% for q1 may be even higher than that i do think this is supportive for the market, but at the same time, i have to look at what happened mechanic ecally you still have parts of the market, like the relative strength indicator, though we know some of those hedge funds have been adding to their exposure and now the equity exposures are highest in two years. and then also trading at peaky levels i think all of that mechanically makes us more susceptible to a potential pullback in the market it's hard to see what causes it imminently, certainly, i don't think it's earnings. there's a couple things.
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as good as the earnings this quarter and next quarter, they're going to start to come down sequentially in q3 and q4 and then also, things are going to be looking really good for the fed over the summer because the economy is going to be really growing at an exceptional pace so, i think you're going to see some talk about tapering pick up and that could be one of the catalysts that the market looks at as a catalyst itself as well. >> anastasia, i heard a similar step this morning that gave me a little pause 80% of the s&p 500 are at least 80% precovid if you want to build in the trade or whatever, we're doing much better before covid showed up however, like you said, it's going to be a little while and maybe third and fourth quarter you don't see the same sort of sequential growth that we've seen to this point i'm just wondering if you're
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somebody waiting to invest, do you wait for that? if you wait for the 10% pullback, is it 15% higher from here and higher prices i think that's what a lot of people are wondering? is it too late to jump in? do i wait for the pullback do i miss the gains? >> there's definitely two or three parts of this, for investors looking to invest at the two-year horizon plus. i don't think you wait to be in the market i think you wait dollar cost average in based on the market susceptible and pullback but you need to see what's on your shopping list when you do have a pullback. you need to be prepared of when we're going to actually buy on this particular pullback but with that said, i think a lot of people have exposure to the equity market right now and that exposure has been going up. i think one of the most critical
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pieces of advice, we want to stay with this market because of great fundamental support we have look at the vix. vix has dropped to prepandemic levels trading at 16, 17 now so when the vix is at that rather low level of volatility, the buying tactical hedges becomes a pretty nice proposition. it is not that expensive so, i think the biggest piece of advice i give to investors, stay long pick your favorite names, pick your favorite exposures. but layering a little bit of a tactical protection or whatever the catalyst may be that takes us down, say, 5% >> i know that you're overweight u.s. stocks right now. but you're also keeping an eye on the emerging markets. and there are things that would make you say, okay, buy into those markets, too what are they? >> yeah, emerging markets i think is going to be an interesting place to add to in the next couple of quarters. to be fair, we do expect q3 and
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q4 are quarters of emerging exceptionalism emerging markets is going to be half of what the market is going to grow in the next two quarters it's not going to be overly attractive in terms of outperformance when you see selling of emerging markets we'd actually be adding to them. because emerging markets tend to outperform when the growth is in their favor. as i mentioned that's not going to be there for the last two quarters, but for q4, you want to be buying things along the way. emerging markets all in, should all go earnings at 38% this year, above and beyond what the s&p or the developed market index there do when you look at the relative evaluation of emerging markets, they typically do have a discount of 20%. 26% discount today so, we'll be adding to those names and typically some of the secular growers in emergent
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funding. >> anastasia, thanks we'll see you soon okay coming up when we return, toyota making a push into the electric vehicle suv space. phil lebeau is going to be a bring a nice on cnbc interview with one of toyota's top executives as we head to break, take a look at stock you need to watch. bmo, from zynga, the leading player in the games market which is the fastest-growing segment of the video game industry "squawk" returns right after this
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♪ still to come this morning, toyota is ramping up its push into the ev market with a new suv. a top executive from the company joining phil lebeau right after this break with the details of all of that and much more. first, though, check out bitcoin, a shift in tone yesterday from china, speaking at a panel hosted by cnbc. the central bank's deputy governor called bitcoin an investment alternative and talks about preventing risks industry watchers called those comments progressive and do it tbioin is rising afte
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dip of 19% from last week's record high. "squawk box" will be right back. everyone wakes up every morning to a world that must keep turning. the world can't stop, so neither can we. because the things we make, help make the world go round. they make it cleaner, healthier, and more connected. it's what we build that keeps things moving forward. so with every turn, we'll keep building a world that works.
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cal: our confident forever plan is possible with a cfp® professional. a cfp® professional can help you build a complete financial plan. visit letsmakeaplan.org to find your cfp® professional. ♪♪ toyota says it's ready for the ev race. let's get to phil lebeau with a
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special guest. hi, phil >> hey, joe. let's bring in bob carter. he's the vp for sales for toyota north america. on a very important day as the shanghai auto show is going on, bob, you guys are essentially worldwide saying here we come when it comes to electric vehicles let's talk about the concept you unveiled overnight this is the bz-4x, what is the idea here and when we might we see this in the united states? >> phil, thank you for having me here and it's griet see auto shows back after the pandemic. bz means beyond zero, we're entering the full bz market with both brands. we also announced the product for the lexus division we'll have two pull electric
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vehicles here in 2020. >> one of the first things, out on the market, the phyfirst question is why doesn't toyota have an electric vehicle why did toyota wait so long to say, okay, shhere comes our pus of fewer electric vehicles >> phil, when you look at our alternative vehicles, hybrids, pure cells, we sell more vehicles around the globe onner oemrs combined we introduced rav4 back in 2007. and they entered the market prematurely. we think the market at this time is at the tipping point where consumers are ready for full
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battery electric vehicles so we're adding to to our portfolio. a full battery electric vehicle may not be the right choice for every consumer that's why we're approaching the market through a portfolio of offering hybrids, plug-in hybrids, fuel cells, as well as bevs we think that's a way to meet it >> to be clear, hybrid electric vehicles or electrified not pure electric vehicles, they outsell the fewer electric vehicles. but one thing that toyota has long been pushing is the idea of hydrogen fuel cell vehicles being that next horizon. where the growth is going to kick in over the next decade have you based too much on side hydrogen fuel cells taking off that okay, it's going to take
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off but you guys are way too early on things like the marai and other things you've been watching on. >> it is a great technology. it offers over 400 miles quick refueling. zero emission. the only thing that comes out of the tail timpipe is a few dropsf fewer water. but in the state of california where we offer mirai and we have other commercial vehicles on the market, today, there's only about 45 locations where consumers can refuel their mirai. we are advancing that distribution system. we've signed agreements with air la teague and shell oil that will continue to expand that hydrogen distribution. again, we think it's a very viable technology that will take
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some time to get hydrogen distribution throughout the united states. more to come on that >> bob, one last question because we're pushing up against the break right now. the market right now is a 39-day supply here in the united states do you expect it to stay this tight over the next few months through the summer selling season >> it will stay tight, phil. there's two reasons for it the demand in the industry right now is near record pace. we just had an all-time record first quarter and record march and april showing up the same way. but the supply chains coming out of the pandemic, they're tr fragile. in our case, the lexus brand, april and may look like good months, but the supply chains for months of june and july, we're working on that right now trying to firm up that availability but overall, i'm very optimistic with the way 2021 is shaping up. >> bob carter, vice president of
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sales for toyota north mechanic. bob, thank you very much for joining us this morning. joe, this is a big deal for toyota beyond zero is the public brand for these pure electric vehicles they're rolling out and they plan to make a big push over the next couple of years >> they've got a lot of clout so that makes a different we'll see you later in the show, phil, for details on the tesla crash that we were talking about over the weekend >> yeah, okay. >> before we go to break, andrew, you know, i'm not sure becky's on board but there's a lot of -- on twitter people want to buy this coin, i'm not kidding. >> have an interest. >> who are we to say there's not demand now, becky -- >> are you kidding me? >> no i'm not kidding you. >> this is real. >> we could list this thing. >> we really could >> we really could who are we to say that we are wrong. and becky, the much said it
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would be better if you were on it it would be worth more if you were on it >> what about a "squawk" mug -- get with the nfts -- listen, other shows are going to do this, like the wolf coin or the blitz coin or the "morning joe" coin no one has done this yet >> we can do this during the break, literally that's how easy it is to do. >> what about the supply what do we do? 10 million >> i think we ought to keep it more limited than that >> becky, what do you think? >> i agree >> scarcity. >> the nft beeple -- the picture of a picture is worth something. this is going to be worth something. i am telling you i am telling you people are going to write about this, this is going to be a day that lives in -- no --
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>> -- infamy >> maybe, maybe. i think it has merit i'm not kidding you. >> okay. we'll work on the coin maybe we'll even issue the coin. i don't know if we'll issue the coin today, we'll have a "squawk" special for the issuance a ribbon cutting ceremony, if you will >> don't make it some frivolous thing, look at that, worth $50 billion. >> there's nothing frivolous about a "squawk" coin the real question, we have to figure out the use case when we come back, maybe arthur brooks will have answers, he's going to talk about president biden's infrastructure plan and taxes and maybe the "squawk" coin and then after that ben carson
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welcome back to "squawk box. i'm dominic chu. here's your market minute. we want to take a look, first of all, with what's happening in the market in the last six months we've seen reversed and trends over the last six months the best performing stocks, in the s&p 500, a sharp reversal. it's been an underperformer. the s&p 500 goes up about 7% and the in stocks ace massive outperformer, over that span also playing out in that growth versus value trade these two etfs track that part of the market. the white line is a growth etf and the orange line is the value etf over the last month.
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you can see again, growth has again reasserted itself in terms of the big predominant theme as the market driver. also watch what's happening with bitcoin prices a huge tumble on some concerns about possible government regulation on the heels of turkey's move to ban cryptocurrencies last week watch those particular stock again, check out these names, these particular stocks, coinbase, micro strategy, square and riot blockchain, keep it right here on "squawk box. we'll be right back. wealth is your first big investment. worth is a partner to help share the load. wealth is saving a little extra. worth is knowing it's never too late to start - or too early. ♪ ♪ wealth helps you retire.
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worth is knowing why. ♪ ♪ principal. for all it's worth.
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♪ ♪ i see the new horizon ♪ welcome back to "squawk box" this morning our next guest has said that the outlook for the markets and economy is positive overall, there are five miscues to watch, bob diamond joining us from atlas. job, it's great to see you though, i'm concerned that you're concerned about
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potentially some risks in the market, given where we are right now. what are you worried about >> listen, andrew, it's a very good environment right now the stimulus packages that we've seen over the last year are certainly having an impact i think we worry about could -- with all of the positives of the vaccine rollout, could we see something stronger in the covid variant. could we see see fatigue in terms of how people are behaving around it? i think there are worries out there, potentially, around inflation and yields i guess the biggest concern for me is really a longer term which is the potential for asset bubbles. but with all of that said, it sounds like i'm very negative. it's just a great environment right now. we just have to be conscious that there are risks and that down the road, some of the stimulus has to taper off.
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>> how do you think about owning the big banks right now? versus, perhaps, some of the fintech companies that have really been on a tear? frankly, both have been on a tear, but there's a bit of a rotation back and forth now. >> there is. listen, let me take the big banks first. the earnings have been very strong i don't think any of us are surprised. think right back of provisions, very strong trading numbers, particularly around equities and within equities, particularly around some of the retail activity that's been going on so, in the environment that we're in, andrew, this is unsurprising and actually very positive that the banks are quite healthy and continue to build their capital base one of the questions you have to ask yourself is why are the pe ratios of the big banks, even at these levels, even with these earnings right now, trailing most other sectors of the economy? and i think one of the reasons is the longer term outlook is
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that the banks are still going to be challenged by their business models. they're becoming more national they're becoming more concentrated they're becoming more correlated with the local economies i think at the same time, we're seeing a real invasion of some of the most profitable areas of the traditional banks. just as you said, by fintech or by specialists whether it's market access or in the trading platform businesses. or so many of the fintech companies that we've seen go public recently. you know, when you look at the market cap of conventional banks, ten years ago it was 95%, to 96% of the total market cap of the sector. today, it's kind of high 60s, low 70s, as we're seeing more and more of the business go to the fintech. >> so, bob, the question i'd ask you, as someone who sin vesting in this space all the time is would you prefer to own a
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jpmorgan, or would you prefer to own a paypal or even a coinbase that just became public? >> we definitely think there are better opportunities in special effort, monolined, particularly those without a technology angle. without picking a specific one, we're looking at a number right now, we're very focused, kind of away from the conventional banks which we see as a much more stable environment but we see continued growth in the more innovative, technology-based specialists for sure >> i wants to get your thoughts, if i could, given that you've lived through a crisis or two, about how to think about what happened with archegos capital, and some of the folks, either minding the store or not minding the store, that allowed that to happen >> listen, i think it's a big thing. you know, it harks back a little
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bit to too big to fail, andrew we had a very, very specific case with archegos of lending against extremely large, extremely concentrated, highly speculative, highly volatile positions. this was not main street lending. this was not lending into the economy. these were a number of large financial institutions with guaranteed deposits in this business and i think the question starts with, is this a business that the larger conventional guaranteed deposit institutions should be in or not? and then you get to the second question of why was -- why did it appear that the regulatories were not aware of how much concentration or how much risk. >> right >> both around the single-name stocks, but also the positions of these they're fair questions
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>> the other big head line i wanted to ask you about has been a head line basically every day for several months, though it does seem to appear to be cooling off. just when you think of spacs long term, i note that jammal that began this trend all over again, calling it ipo 2.0, he now has five spacs all of which are underperforming relative, even the spac market, relative to other things. it's a reversal for him. and it's a reversal for the whole space right now. >> listen, we actually think we've learned a lot over the last year, in atlas merchant capital, my partner david seamus and i a year ago starting think about spac and investment
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ser services some of it, through services or the fund if it's not is it out of the fund or funded separately from the fund one of the decisions we made at the time if we're going into this business of spacs that's not a one-off, we need a full-time ceo and a full-time team and we did that, we have a full-time ceo and we issued more and what we found it's an absolute in synergistics, at the were public and private funds, our focus is financial supervises, developed economies and having access to spacs to do funding is just a natural extension. and what we're finding is a number of things that we looked at in the spac space actually turned out to be well too early for being publicly listed. >> right okay
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>> and we're looking at them as potential investments in the private equity funds we have a number of things in our private equity fund where is the exit may be a spac so, we have found the space to be very synergistic and very consistent with what we're doing. >> bob, we want to thank you for your perspective i also want to note, new york is back, baby i can see that you're in your office this morning. i love it. >> new york is back. i love your instagram jogging around the park. well done. >> thank you, bob. i'll see you soon. >> see you, andrew >> you bet joe. all right. coming up, paying for the president's infrastructure plan. we're going to talk to harvard professor and author arthur brooks and tomorrow, we're talking to mike jackson, procter & gamble cfo jon moeller, and
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united airlines cfo scott kirby will be joining us we'll talk to the winners and losers we'll be right back. dave doesn't need a posh virtual receptionist, because he cloned himself. while his clone watches the phones, dave can work on his code. and lead his team. dave trusts his clone like he trusts himself. so, in summary, we're going to sell the company. who's in favor?... perfect. but if cloning isn't an option for you, just get posh. virtual receptionists who can answer and transfer your calls, because you can't be in two places at once. keeping your oysters business growing
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but is it secure? sure it's secure. and even if the power goes down, your connection doesn't. so how do i do this? you don't do this. we do this, together. bounce forward, with comcast business. we're going to talk about battle on capitol hill over the big infrastructure plan. $2 trillion. how to pay for it. but we're going to talk about a
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lot of things with arthur brooks, president of americas. and also with harvard university a contributing writer with "the atlanta," host of pod cost, arthur brooks. and an authori of "love thy enemy" was that published with "the onion" how is that working? >> hope springs eternal, joe this is ancient teaching, of course it's the balance of mankind, love your enemies. >> i now, it's not -- we were supposed to -- i think the hundredth day is coming up how is that unity? are you feeling united i'm not feeling a lot of unity okay, the infrastructure you basically say everybody is
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for infrastructure the democrats won the election but classifying every longtime progressive agenda come as infrastructure is probably not a great idea, if you want everyone to take it seriously >> yeah, well, not only that, it's not honest. and the basis actually running your country is speaking to people honestly. as opposed to trying to get everything you always wanted and being devious about it i understand politics. i've been in washington, d.c. forever. and you've been watching it, too. republicans, shove it into one package and hope that nobody notices. right now, it's more crucial than ever that we speak frankly with the american people, especially coming out of the coronavirus pandemic we have $400 billion in child care, we call that infrastructure and $174 billion in creating incentives so people will drive
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electric cars. we call that infrastructure. look, just say, we want federally funded child care. because that's a progressive thing. we won the election, that's what we're going to do. but don't pretend it's bridges and roads. that's ridiculous. >> do you think when it's all said and done that the two sides get together with some sort of a compromise senator cornyn said republicans do $800 billion for bridges and roads and airports probably even high-speed internet i guess you can throw that in there now, a few things you can classify as modern day infrastructure >> right >> do you think we'll end at 51. vice president harris makes it 51 and they reconcile the heck out of everything that includes everything >> i think it's even odd it's going to one of these two directions i do know the republicans want infrastructure but they're not going to put up with something that's not infrastructure and calling it infrastructure. so if democrats insist on that, then they're going to have to
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force something through with 51 votes. not very much of it will get done over the next few years house and senate at some point will flip and so will the white house. it will ping-pong this thing back and forth again if you want actual progress, you have to make compromise. and that just doesn't look like something they want to do. >> you played the french horn for the symphony in barcelona. >> yes, i did. >> but you don't want to sock it to corporations? you're like an enigma. you say if we pay for it going 28% -- i think i'm quoting you -- it's going to hurt in that it's going to lead to less investment and slower growth and we'll lose -- even lose jobs >> eventually, yeah. i mean, 25% of corporate taxes, according -- to the best nonpartisan estimates. 25% of corporate tax increases get passed right through to workers in lower wages that's a problem right there
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you know, the unemployment rate is too high. for all of the reasons we all know about perfectly normal reasons coming outside of this horrible epidemic it's the wrong time to create disincentives to create jobs, number one number two, the whole idea of de deincentivizing to give more to offshore stuff is the wrong time to do this once again, we lie to the american public and we say, oh, there will be no cost to this. because we can look to some point in american history where there was a corporate tax increase and say it wasn't so terrible then so it won't be so terrible now it's just a risky thing to do. >> do you think we go to 25? is that what the end result looks like it's going up one way or another. what else? would you deficit-spend the rest or try to do a usage fee or raise taxes on wealthy how would you do it?
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>> personally, the first thing i would look at is starting to sell federally owned properties. the federal government owns so many trillions of dollars in stuff that we actually could start talking about putting in private sector hands to make them productive and release assets that's a conversation that's been off the table for a long time the deficit spending is a huge problem. the interest rates are historically low rates we all know there's a one percentage point increase in interest rates that's going to result in 300 to $400 billion in debt services for the federal government so, there's just not an easy way out of this. we have to find a way, a., compromise, b., more bencomprome to actually get through the comprom compromise >> hey, arthur, andrew here.
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we don't have an innovative and technologically able irs, i guess, to really collect properly the amount of revenue that, frankly, the government is due. this is people -- this is not just people who are skirting things legally, this is effectively people who are doing things that are genuinely illegal. >> right >> i've asked many times of a number of republican politicians who have come on and said why don't we fund the irs with more money for every dollar you put in, you're going to get multiples back and invariably, the answer is, no, we don't want to do that and i don't understand it. because i always thought if we could actually collect the money that was due potentially, we wouldn't necessarily raise taxes, just enough to raise revenue and getting the money that's already supposed to be coming to us >> yeah. totally. you're completely rightabout this this is not a question of tax
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avoidance. this is a question of tax evasion. and that requires that we have an irs that's equipped and armed and has the expertise and funded adequately to go after people. here's the problem here's the paranoid fantasy that everybody has when they think about the irs. that the irs has a lot of money but they don't necessarily use it to do that. we don't have to think back very far that irs was actually -- apparently, to what a lot of groups thought was selectively, you know, figuring out how to the 5014 c or conservative organizations could be delayed in the tax status. there's evidence that suggests that can actually happen until there's more confidence of the american public towards the irs to actually decide that they can come together to get the money they actually need to do what they need to do >> aarthur, thanks for the time.
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love you >> love you, too we do have another big hour of "squawk box" to come, mamohed el-erian is joining us plus, former housing secretary ben carson "squawk box" will be right back. esg is responsible investing. who's responsible for building esg into your investments?
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good morning futures pointing to the lower open as earnings roll in and we makes our way towards the opening bell more record highs last week with the s&p on its longest weekly winning streak since last august and bitcoin rebounding after a sharp drop speculation about a possible crackdown by u.s. authorities appearing to pick they are currency apart over the weekend. at one point it was pent% off its record high. and it appears that no one was behind the wheel of a tesla that crashed over the weekend killing two men. we have the latest details on this developingstory as the final hour of "squawk box" continues right now. ♪ good morning welcome back to "squawk box" here on cnbc i'm joe kernen along with becky
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quick and andrew ross sorkin u.s. equity futures, this morning, there's a little bit of pressure for the entire premarket session shut down. i think down 100 at one point on the dow. now down 83. nas dangerindicated down 58 or so s&p down 12. record highs that we saw last week and then interesting action in the ten-year which we have watched which is now -- it heads back off, remember, getting off into the high 16s. we were at 1.56 earlier today with 1.185 right now, becky >> thanks, joe let's get you caught you on the stories that investors are going to talk ago be first off, coca-cola out with earnings this week with earnings and revenue and operating margins improved from a year ago coke a's top lines and beats with continued pressure of restaurants and home sales because of the pandemic. the company didn't raise its
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guidance for the rest of year just yet the stock, though, up by 1.2%. we will also show you shares of gamestop, that company at the center of the reddit rebellion announcing that its ceo george sherman will step down that will happen on july 31st or earlier if a successor is found before then. and we'll also check in on shares of coinbase two pieces of news here, the first, cathie woods arc shares and regulatory files shows that coinbase ceo brian armstrong sold more than 200 million shares of the stock on the first day of trading drun andrew >> thanks. booming retail sales and higher cpi numbers and the best jobs claims since early days of the pandemic steve liesman joins us this morning with cnbc's exclusive
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rapid update tracking economic forecasts on the street steve. >> yeah, andrew, hot off the presses. we just finished the last calculations this morning. and forecasters believe the economy boomed in the first quarter will boom more in the second quarter, and will stay strong into the third. only gradually winding down beginning next year. here's the cnbc rapid update quarterly estimates at 13 economics cnbc, an average on the street, a growth near 7% at least in the completed first quarter. above 10% in the current and growth of 7% and 5% in the second half of the year, not too shabby greg daco from oxford economics writes the consumer boom is only beginning. a strong start to the year means that consumer spending growth could approach 10% while rising 8% but john ryding worries there is a valid issue as to whether the
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economy can meet it. on annual basis, economists don't see a return to trend growth, until 2023 the economic contraction in 2020, you can see down in q4, gives way to a sharp rebound 7%, 4% for 2022. and then back to year 2023, we only have half dozen estimates that's more towards trends growth in two years from now the massive government spending and the rebound from the pandemic, it's very difficult to separate the two for now, only once we get past the impulses in the economy do we get an under how the underlying economic growth is doing. andrew >> question for you, is there anything anything you can look at now to see whether it's just a sugar high, or if this is sustainable? >> you know, i think it's early yet, andrew. there's no perfect experiment in the economy with these two
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massive impulses coming through, the rebound from the pandemic and all of the government spending you also have to wonder how much of the infrastructure plan, given the conversation with arthur brooks in the last hour, we don't know how much of that comes through and how much is built into the forecast. that's eight years of spending that would be out there, along with a tax hike along with it. so there's no perfect experiments out there. the thing i'm going to watch most closely, andrew, is business investment. how much confidence there is for buying new equipment building new plants and those sorts of things. that's the best gig you can get. for stock investors i'm not sure how much they care if it's sustainable or not remember, what we're showing you is the pie here. that's the gdp pie it's the extraction from that pie that is profits. andrew >> steve, thank you. we're going to continue this conversation now about what you just talked about and more joe. >> yep, joining us now for more on markets in the economy,
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mohamed el-erian of allianz, and president of queens college in cambridge. mohamed, we had hot economic numbers like retail sales. some inflation numbers got people's attention yet the ten-year year fell 6% all the way to 1.65% is there something amiss is there? is there something dislocated? who's right? >> good morning, remember we came from 1.47%, right at 1.7, at 1.6, the market attracts a greater influence for people looking to match liabilities and for foreigners looking for interest rate advantage. so, that's why it's happening. i suspect years are going to go higher from here, because growth is strong. because inflation is going to be going up and importantly, because europe
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is improving, that's the big story. europe is improving. we're going to use some of our yield advantage. >> europe is improving we're improving. more reopening all of these things are happening. is it purely technical like you just described. or is the market validating the fed's view that inflation spikes are going to be transitory does the market believe that and is it telling us that the fed's right? >> so, the markets for now are respecting the fed's view. not believing, respecting. and it's respecting it because the fed seems very intent on maintaining policy as is, despite all of the economic indicators assigned it like many more that we've cited. and the market is respecting the fed. for it to believe it for that we have to wait for more data because it's early yet
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>> for as long as you've been coming on, you like certain fiscal plans you've looked for fiscal authorities that take the baton and sort of fed the hand it off. and a lot is based on infrastructure you would love a good infrastructure plan. how much of the $2 trillion do you like and classify as infrastructure do you throw it all under one umbrella or be more targeted as to what we classically think of infrastructure >> i think a more holivholistic. physical, technological and human. and the idea is to ensable physical resources, technological resources and human resources to do more i think infrastructure much more holistic than you do so it really depends how you think about it knew view, what's $2 trillion isn't accepted but i can
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understand those who take a human view from the index will take that and accept it. i take a more holistic view, joe. >> is there any progressive agenda item wish list that we've heard of that you wouldn't call infrastructure >> sure. you know, that's part of the political process -- >> like what >> to note -- >> child care is infrastructure, mohamed? >> yes, yes. >> what would not classify climate, all of that is infrastructure, what would not be infrastructure, give me one thing. >> so, let me say why child care is really important. we need to get labor participation back up. part of the labor participation story is to enable women to come back into the labor force. child care helps a great deal. so, yes, i do view that as infrastructure look, i haven't gone enough through every single detail of the bill to give you stuff -- i'm sure there's stuff in there that you and i don't think
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should be in there but unfortunately, that's part of our political process >> becky >> earlier in the show, we heard about the tent city, one of them that popped up in washington, d.c. right by the federal reserve. the one that jay powell has mentioned several times about keeping him up at night because he drives by it on his way to work b but when you look at low interest rates i can't tell you how many times i've refinanced my house over the last few years money helps me when it's cheaper and easier to get. what needs to happen in order for those tent cities to get dealt with it's probably not something that jay powell himself can fix >> that's correct, becky that's not something he can fix, even by running the economy hotter, it's not going to help to the extent that we need help. that's all about targeted assistance and about enabling people in tent cities to get productive jobs. that's not motnetary policy.
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monetary is being pulled into so many directions. it's being called into the equality debate, and it's dangerous that monetary policy tries to do too much with too little >> all right they're telling me we're going to end it. do you worry some day that infratrades go up a point. we'll have another $500 billion infrastructure expense that would hold down growth, right? a lot of this is deficit spending we're not going to cover this either, mohamed >> look, you and i are on the same side to enable the private sector we need to avoid inflation i thought of one thing not infrastructure keystone is not. child care, yes. keystone, no mohamed, thank you good to have you on. i knew you'd like that
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and you're going to be one of the first people to wind a "squawk" point they have chocolates inside, becky and andrew, i think that's a good idea to give inherent value. that might have chocolate inside that might actually be worth something, huh >> it would be like -- >> exactly when we come back former presidential cabinet member dr. ben carson is highlighting what he sees as corporate hypocrisy around georgia's new voting laws. we'll speak with him an updated story on the tesla crash. that story is next as we go to break, here of the top covid headlines. the government says at least half of americans have received one vaccine dose one-third of adults have been fully vaccinated this comes as johns hopkins university reports covid deaths
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worldwide have topped 3 million. and dr. anthony fauci decided whether or not vaccinating americans with johnson & johnson vaccine should come by friday. federal regulators have been looking into the idea whether a small number of blood clots were caused by that shot. stay tuned you're watching "squawk box" and this is cnbc
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authorities in texas are looking into a tesla crash over the weekend that kills two men it appears no one was behind the wheel of that car. phil lebeau joins now with more on the developing story. phil, good morning again >> good morning, becky take a look at this video, this comes to us from spring, texas, just outside of houston. this was a fiery and deadly crash according to tesla, they do not believe anyone was in the driver's seat during the crash the investigators have not yet determined if the vehicle's autopilot technology was engage brd ed before the crash. that's a big question mark but this crash comes on a weekend when tesla was releasing its autopilot report
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see loneelon musk tweeting out a with autopilot engaged now approaching ten times lower chance of accident than average vehicle. not everybody thinks autopilot should be tested publicly. robert sumwalt, he's been vocal in the last couple months saying the beta version of autopilot should not be tested as it currently is with some people on public roads again, we don't know if autopilot was engaged with this accident in his opinion, autopilot, as well as other autonomous drive technology to sshould not be ted on public roads. however, the ntsb does not regulate what and what automakers should not do on public roads the ntsb reached out to tesla and nhtsa. we have not heard anything
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nhtsa has launched 27 investigations of tesla. not all of those revolving around autonomous technology 27 investigations. as of right now, tesla is allowed to continue to test self-driving technology on public roads as other automakers this raises a big question, guys, for sometime in the auto industry, what should be allowed for the public to test in their vehicles before it is officially signed off on. because nobody truly signs off on it. it is ultimately incorporated into the technology of vehicles. >> so, that's what i was going to ask you we've been talking about this for a long time, about whether companies should or should be able to do this kind of testing on open roadways nhtsa's issue with this is they have given approval for this or they just have not given disapproval? >> no, no -- correct, they have not given disapproval. that's the issue here. what nhtsa will often do, if a
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piece of technology, separate from autonomous vehicle technology, any technology in a vehicle, if it is defective, they will launch an investigation. and they determine that it's defective, they will then say to the automaker, look, you either fix this take tit out of the vehicle, fix it in some fashion or we will sue you and force you to fix it. that's how nhtsa works you don't go to nhtsa in advance and say, hey, will you sign off on something that's not how it works. nhtsa is post, after it is incorporated in a vehicle. that's the problem that some people were with driver-assist technology they do not believe it should be tested out in the public a number of automakers do not test with the public they have test drivers and on public roads but in this case with tesla,
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beta version has been in some vehicles not all vehicles, some vehicles and they're continually updating the beta software for the autopilot. let's be clear, becky, tesla has said time and again, you must stay engaged autopilot is not 100%, take your hands off the wheel, take a nap, do whatever you want to do, the vehicle will steer itself. tesla has never said that. tesla has said you must stay engaged. the problem is some people take the word autopilot and say, great, i don't have to do anything while i'm driving. >> phil, will nhtsa or other agencies, state or federal, decide to say, look, you need to change the name of this. can't call it autopilot anymore. >> that's a great question >> or you'll have to create technology effectively that makes it clear that your hands are physically on the wheel otherwise the car doesn't move >> right, right. >> or other types of
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technological innovations. or as i said, maybe even around the marketing or phrasing, they could do that, no? >> they could. they could >> what do you think has been the resistance thus far? >> well, two things. to my knowledge, and to a certain extent here, i don't know this 100%, andrew to my knowledge, nhtsa has never sat down with tesla and said quit calling it autopilot. now, if they did, tesla might come back and say, wow, we think that's proper marketing of it. we have plenty of warnings here. we made it clear you must be engaged. and now you get into the question of how much pressure can the federal government put on one automaker and we know its immense. look what happened with general motors and toyota's unintended
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operation of the brake pedals and accelerator pedals. they have that knowledge for the last four years for nhtsa, they have not put that pressure on tesla to change the term autopilot or not testing beta versions of some of these vehicles >> phil, we've got to run. do you have any idea how hard the resistance has been? >> what's that >> no, the resistance from nhtsa. >> i think nhtsa's taken a hands-off approach, andrew that's been very clear over the last four years. very hands off approach, not just tesla all automobiles. >> phil, great to see you. great reporting. thank you. >> you, too. >> joe >> thanks, andrew. coming up, two big interviews you don't want to miss first, former housing and urban development secretary dr. ben carson joins us to talk about the evolving response to georgia's new voting laws. and then we'll talk markets,
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get this, do not miss this key proxy vote issues, yeah, that the chairman and kraef of new berman george walker, newberger berman and the bmo initiates zynga with outperform cingti analytics. stay tuned you're watching "squawk box" on cnbc ♪ ♪ ♪ ♪
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welcome back to "squawk box" this morning georgia passing its controversial new voting law in late march on the day the bill was signed delta air lines in atlanta phrased the aspects of it and then later saying more work is dneeded and then a week later, the ceo offered this elaboration. >> we knew there were concerns when we saw not only what the concerns were, but we heard from our african american community here in the state of georgia, remember, we're the largest private employer in the state. and we've got a very long employee base that's black hearing their frustrations expressed, we felt compelled to have to express those concerns >> former secretary of housing and urban development dr. ben carson is now calling
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mr. bastion a hypocrite. dr. carson joins us this morning. he's the founder and chairman of the american cornerstone institute. good morning to you. dr. carson, why do you think companies like delta should not be speaking out? >> well, first of all, you have to recognize that the election laws in georgia and in many other state where is they're working on them, they're trying to codify early voting because this has become something that is very large in our society recently and you need to have consistency in the way that it's done. it can't be done on the fly by, you know, every secretary of state and governor, who has perhaps thing that are impacting the way that they want to do things and, you know, identification requirements that should be the same as in-person voting that's what it's all about now, you know, i assume that
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delta and other companies have read the law and, you know, have listened to the statement but people like president biden. which, quite frankly, are not true, when they say the voting ends at 5:00 p.m. for early voting that's not true. the law says that 5:00 p.m. is the earliest that one of these places can close but they can stay open until 7:00 p.m and anybody in line by 7:00 p.m. can vote >> dr. carson, i -- we can relitigate the issues in georgia. and i would just point out to you, i'm going to read from a memo from microsoft here that in fulton county, putting aside the issues of i.d. just straight up in put itten county where most microsoft employees live, likely would see an 80% reduction in drop boxes from 40 during the 2020 election, to only about eight moving forward
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also cuts the being able to get an absentee ballot -- literally, cuts the window effectively in half look, there are 700 companies and ceos that signed the letter last week. walmart has come out and said, look, there are some things good about these laws but he also said there are things politically motivated about these laws >> well, i just look at the facts. how many people were in fact able to vote and isn't that number actually increasing dramatically? so, it really makes you wonder about that and what about the value to say it's opposed to the value -- what about the value about eninterstate travel whichs guaranteed to american citizens. and they don't protest the fact that the government requires a photo i.d. in order to do
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interstate travel. so why would you be against photo i.d. what about election like every public -- >> dr. carson, we've had ore we've had ken chenault on and ken frazier together 72 of probably the most prominent black americans in america signed the letter condemning this bill what do you tell them? >> i tell them to be objective >> you think they're -- you think that black americans throughout the country don't understand the laws themselves >> well, listen to a moment to what i'm saying. they have elections. every year stakeholder elections. only the people who are present and entitled to vote are allowed to vote. they have registration lists voter registration lists for
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delta. that closed on april 30th, 2020, for an election on june the 18th so why are they opposed to a time frame when in their very own elections they have one? if you want to vote outside, you have to have a chrome number and a personal identification number and if somebody's voting for you, you have to have proxy documents. and those documents have to be in before election day all of the same things that they're protesting, which are good for them, and ensure that only the people who are entitled to vote vote, and yet, they don't want votes for something like, you know, state or national election. i think they need to explain the difference. >> in fairness, in fairness, if you were a stockholder and you have every access to vote. there's very little question i've ever heard about investor access or efforts to minimize
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investor access, every investor has access. >> yeah, but if you -- >> and beyond that, talking about a different issue which i think is the larger question about democracy, and whether people are ultimately going to believe in a democracy because people will have the access to vote isn't that what this ultimately is about >> the rules for corporate voting is there to ensure that the voting is done properly. why would not nbe just at interested to make sure the voting is done in your state or nation >> dr. carson, i don't think anyone is disagreeing. we do need rules i don't think those 700 executives or 700 companies and executives who signed a letter are against rules. i think the go is, how do you make sure that as many people as possible can vote and create opportunities for people to vote, rather than create restrictions for people to vote.
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especially when it appears to be politically motivated and targeted >> and how -- i've yet to have somebody explain to me how those rules that are there to codify early voting and make sure that i.d. requirements are met, how are those restricting people from voting? how is that happening? someone has got to explain that. >> dr. carson, it is a longer conversation, a longer debate. i hope we can have it and have you back because thi think this is an issue, obviously, it's not going away four to seven states around the country have new laws that are being proposed as i said, a debate that's continuing we'd love to have it with you in the future great to see you this morning. >> thank you. >> you bet bec. >> thanks, andrew. when we come back, much more on the markets as we get set to kick off the trading week on wall street.
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we'll tell you why investors will want to stay on their toes even as the rally broadens stay tedun you're watching "squawk box" and this is cnbc labradoodles, cronuts, skorts. (it's a skirt... and shorts) the world is going hybrid. so, why not your cloud? a hybrid cloud with ibm helps bring all your clouds together. that means you can access all your data, modernize without rebuilding, and help keep things both open and secure. that's why businesses from retail to banking are going hybrid with the technology and expertise of ibm.
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lead story in the journal, current market rally, bull run in stocks widening nearly all stocks in the s&p 500 are above the 200-day moving averaging. the journal indicates that's more strength. more egains ahead. time for investors s to be cautious do you disagree, mike? >> i don't disagree. first, let's take a look at the s&p 500. obviously, extremely sturdy trends definitely a steeper angle right here just to point out the distance between the indetective an its 200-day average is 16% it's pretty similar to where we were back in january, june of last year. it doesn't mean it has to come in from here, but often, it's a setup for some flattening of the rally. take a look at that flip or pattern of what we've seen going back 20 years. here you are, over 90% the other times we were across
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90% was late 2009 and 2010 and 2004 what does that mean? is hey, just a year after a market low, pretty early in a multiyear run. the implications tend to be pretty good but both of those times when we saw extreme peaks it was a time when you had short-term givebacks both of those periods the market didn't do well on a net basis for months and months afterwards we'll see if that holds. then more recently, one month of the s&p 500, equally the broader s&p 500 you see the mega caps opened up a lead breadth on the small cap indexes and nasdaq peaked about a month ago so it's not exactly the same story as the s&p 500 a broad line, broad market is better than a narrow one, typically, implications for returns but means things are a little overheated in the market. >> yep, it's a rorschach
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>> yeah. >> as to many things pointing to different things some people say a broadening rally means -- if breadth is bad, it's definitely a sign. is that more near term or long term >> usually, it's bad look, we talked about it last summer the rest of the market did fine. it recovered relatively quickly. yeah, it's kind of what are you wishing for here you don't necessarily want an indiscriminate market where everything goes up a ton that's not what's going on the rotations have been constructive you have specters that have been able to rest and pullback and something else takes over. like you said, pretty much eye of the beholder stuff. >> thank you, mike santoli becky. >> thanks, joe a historic day in space. nasa marked the release of
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ingenuity in space the helicopter weighs four poundspoun s and flew to an altitude of ten feet it hovered and touched back down and it was a photo with the navigation camera. the eningenuity called it nasa's first flight on mars andrew the special ceo manager neuberger berman, george walker is with us in just a little bit. quk x"n bcg e're watchin "sawbo ocn
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as companies hold annual meetings, large shareholders increasingly are using their proxy votes to try and force change, in some ways management doesn't like for the second year in a row, neuberger berman with proposals. berth shi berkshire hathaway and kellogg's and asics. joining us, george walker. you've made definitive decisions and that's what you want to
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health on, correct >> yeah, that's right, becky so, we believe that the system will work better when owners behave more like owners. and engage so what we've tried to do is to, you know, be the first large asset manager which is preannouncing important proxy votes. sharing not only our vote, but the rationale afforded that vote and, you know, in an effort to, frankly, help companies perform better and to hold management teams and boards accountable >> so, let's run through the companies that we just mentioned. with berkshire hathaway, you're voting against some of the proxies. voting against management. do you want to explain >> sure. we've been -- most of these -- these are companies that we like berkshire is a company that we've owned for a long, long time we, like you, revere the
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management team there. we believe, generally, that you should separate the chairman and ceo title. and if you don't, we believe, for example, you should have a lead director. we discussed this with the company over a number of years and have asked for that change we haven't been successful and so, we're now announcing that because of that issue, we're voting against a number of directors. directors who we think are terrific, by the way but we think the company will be better with a clear lead director likewise, we'll be voting against them on key climate disclosure issues. where we think they can do a better job, and, frankly, follow some of their peers in having better reporting similarly, on diversity issues so, these are issues that are material to the company. we're not -- you know, we're not
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trying to throw management out we're trying to behave like owners and shareholders and help make the company better. >> lead director would that be someone who is currently on the board? or you would look for someone from the outside >> we'd be very happy with many of the directors who they have on the board as being the clear independent lead director. >> all right we don't we talk about the next one this is hca health care. in that case, you're voting with management what are the proxy issues that bear here? >> yeah, so what we're trying to do is call balls and strikes a little bit and to engage -- engage early before the vote takes place, frankly, so that you and others can highlight these issues and folks can -- folks can discuss them in the case of hca, there's a
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shareholder proposal that calls for them to better link compensation to health care outcomes in the hcadoes a terrific job. they run great hospitals we've spent a lot of time looking at their compensation plans. and we believe they do, amongst the best jobs of doing precisely that so, we think that while that proposal may be appropriate for some of their peers, it's not for hca. so, we're trying to call balls and strikes. and we think -- we think it would be a mistake to vote for that proposal. >> with kellogg, you're going to be voting for a shareholder proposal that goes against management as well what's your issue with kellogg >> well, our issue is that we would like, generally, for us the number is 20%, 25% of shareholders to be able to call a special meeting. and so it's on -- it's on that narrow issue and, again, on each of these,
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these are issues that we think are material these are issues we've discussed with the company often we've discussed with the board. and we think that proposal would make -- would make the firm better and bring them into line with best practices and governance >> how long have you owned kellogg shares >> i don't know exactly when we owned, but we've been a long-term owner of each of these firms. >> what about asics? that's another situation where you're not aligned with management what's your problem there? >> asics back when steel partners was engaged in japan, a while ago, asics put in place a poison pill which they have -- had talked about removing. we don't think it's constructive we've talked to management many times about it we'd like to see them remove --
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remove that bipill we talked about -- perhaps they said -- last time they said perhaps this is the last time we'll do it. so, we voted in favor of it the last time. but yet, they put it back in so, we think that's a mistake. we thing removing that pill isrg that is in the best interest of shareholders so our effort isn't just focused on the u.s it's global effort you will see us engaging with other japanese corporates, for example, on capital structure issues in the states, you might see us in some cases telling companies we think they have too much leverage in japan, i think you're going to see us a couple of times telling companies that building these cash hordes is not optimal. so these are material issues, real issues, they're issues that we've engaged with the company on, and we think we'll strengthen the firms
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>> talking to investors all around the globe, what do you fear right now just in terms of how cautious they are or how bullish they are when it comes to the markets >> i think generally folks are fairly bullish the world is going to have a pretty remarkable, a pretty remarkable rebound i would say most investors, you know, generally, as they look in the, not in the intermediate term but they look longer term, they are struggling with how they're going to earn rates of returns pers peck tively that they've been able to earn historically so lots of investors looking at adding additional credit risk to the portfolio, certainly there are many investors who are looking to private equity, and private debt, and i'd say these esg issues are becoming increasingly
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important to investors, and frankly, to companies around the world. >> george, thanks for your time today. again, george walker of newberger bermen. >> thank you, becky. >> we're going to get straight over to cnbc headquarters. jim cramer joins us now. lots to talk about a number of big earnings this morning. coca-cola obviously on the list. we're going to be getting j&j later this week. verizon. what are you looking at? >> look, i think coca-cola was better, you often find that companies that are on prem, where you go to buy coke at mcdonald's or chipotle, they should be, where james quincy pulled it off and has done a good job and one of the exciting products i'm excited about is a hard seltzer, 20% share in texas in two weeks that would be remarkable if that can keep up.
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introducing new products a pure play in africa. not going to trade here. generally making a lot of money with what i thought it was going to be a perilous time, andrew. >> i got to tell you, i am a bubbly guy which is a pepsico product but i have also become an ah-ha guy, if you have known about ah-ha, a bubbly drink. my ah-ha question for you though, is do you buy the bitcoin dip? >> no? >> or is it a dip or is it something else >> no, i think the bitcoin base peak has deeply affected things and let it come in, there's no hurry to it, i saw that time magazine by the way, andrew, is accepting every single cryptocurrency and not transferring it into dollars. so i think there are people who are starting to believe in everything i'm not. i mean i just think you take some profits periodically. i know i'll be hated for saying that and investigated by people who think i might be somehow in league with other people who want to take it down, but i
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don't know, i mean i got a mortgage with it you know, traded bitcoin for a mortgage >> you wait to win. >> excuse me >> if you buy the dip, if you're a long-term believer - >> well, you wait, bloomberg this morning, when he comes back on, i'm with, the fourth appearance is when i am going to buy it count the novogratz appearances. he's a great guy four and cathie wood, no. and my partner david faber is back and i got to tell you when i look at him, i think he is about to say that cathie wood mayhave no clothes, i mean emperor. i mean how do you put that, david? >> i will be watching to hear about the emperor with no clothes this morning >> clothes from ross dress for less how about that >> i think there's a lot of emperors with no clothes when it is all over but it may take a
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while. >> gamestop, sherm en is out. >> yes >> maybe your big opportunity is coming maybe you can transform the company the way you want it. >> the one issue, the sheet i get called wall street bets, i think, they want to put a man on mars, with gamestop, with -- >> opportunity everywhere. >> you nonfungible token you >> we're going to be selling our nonfungible tokens sooner or later. top stops to watch as we head to the opening bell plus this soccer story is outrageous, what is going on in europe and jp morgan is in the center of it, and plus gamestop spiking this morning after the ntepngowment about the curre cestpi dn. back after this.
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welcome back to "squawk box. perhaps i would argue the biggest business story of the day actually globally is this, a massive shakeup in the world of soccer a dozen of the world's richest teams have formed a break-away european club competition that could up-end all of the traditional leagues, super league, real madrid, barcelona, manchester united, liverpool,
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now jp morgan is at the center of this, they are now confirming reports that they are financing this league, the glazer family which you know owns the tampa bay buccaneers, they also own manchester united, john henry of course from fenway, by the way now involved with lebron, those guys own liverpool, you got stan's involvement this is a huge thing you have macron now screaming about it you have boris johnson out there saying this is a power grab. and you can see all of these names are about to get involved in what i think is going to be one of the largest global debates. there are hundreds of billions of dollars at stake here and communities all over europe that are going to be affected because of how this will change the world of soccer, the local teams, the way the money flows, it is something that is, it has people throughout europe on edge, and it's going to become a political debate as well >> so excited about a sports
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story. i'm just so excited that that -- what's it mean for ted lasso >> hundreds of billions of dollars. >> you've never seen anything like it. this is going to happen, people are going to be throwing arrow, the drama, the soap opera of what is going to happen next is unbelievable. >> it will be interesting for the sports aspect of it, too, not just the money, right? >> futures down 50 we'll be back tomorrow be sure you join us. "squawk on the street" is up right now. good monday morning, welcome to "squawk on the street." i'm carl quintanilla with jim cramer and david faber slowly working our way back to normal this morning with jim and david on set together for the first time post-pandemic futures are a bit slow out of the gate after the first four-week win for the s&p, since august, earnings of course kicking into second gear coke and harley, ibm tonight, our road map begins with this crypto rollercoaster, of bitcoin recovering some of its heavy losses from the weeken p

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