tv Squawk Box CNBC September 22, 2021 6:00am-9:00am EDT
good morning welcome to fed day awaiting rate hikes and tapering what to expect straight ahead. an easing of tensions in the evergrande saga. working a deal with bond holders. calling fears of an eminent default. and democrats come up with a deal for the government but republicans squash it. it is september 22, 2021 "squawk box" begins now.
>> good morning. this morning, you'll see there are some green arrows at this point. the dow is indicated up. we saw that yesterday with the dow indicated up 350 points. by the end of the session, the dow had closed lower that is four days in a loss of the markets. we'll see if this holds. we get closer to the opening bell and closer to the closing bell nasdaq did end higher today but all three major averages closed below the 50-day moving average. a lot of things happening. things to check out and pay attention to i know you've been watching bitcoin. it fell below its lowest level
talking bitcoin down low yesterday but it has come back to 42.445. no real reason for the decline just keeping an eye on it always looking at the sectors, materials are now more than 20% from the natural highs up another 1% today. crude oil up by 1.4% not much movement in the note. they are higher today up to 3.29%. the stocks in china closed over the last sessions after all of this concern in evergrande and what happened. it looked like it was dealing with at least one of those notes coming due that did lead to some calm in shanghai and stocks picking up there. >> the journal picked up
with no value judgements about china. evil empire or company of the future it does matter for global gloej that is very important they are really going to switch it around they are trade offs and a billion people to bring up to the middle class. skbroefr all, gdp growth heard an analyst yesterday for every 1% and loss in growth for
the rest of the growth what happens here, we talked about when we sneezed here, the rest of the world would get a cold in september next year, so far about 30 million doses live at 7:30 a.m talking about that and everything else taking place with the new doses for children and where it is all going.
9/22/21. nice weather right at the beginning. not humid. i like it but it is ominous. supposed to spend around $6 trillion what about the infrastructure bill a huge issue if they get their way. progressives aren't going to vote for it. i don't know how from both sides. not only the first day of fall but fed day today. along with economic and interest rate forecast around 2:00 p.m. eastern time followed by a news conference at 2:30 the fed getting ready to
announce it is pairing back $20 million in securities and mortgage backed securities more coming up at 7:00 a.m. eastern. including some talk about when we'll see a change in interest rates. in an interview with cnbc today, jp morgan ceo said the exact time line isn't what matters >> obviously inflation isn'tso high everyone would have
practice. >> we never had them here. on india very hard to get them on "squawk box" here. it reminds me like brad pitt won't do a crappy commercial here but over in china jamie dimon will go over there jamie, we are here for you dude. >> basically there, we are the crappycommercial your message getting lost in translation. book him if you can get them on. >> coming up, tensions easing in
the evergrande saga. check out shares of adobe falling. this could be a case of good news already priced into the stock and shares up more than 40% in the past six months we are back after this jerry is here! j! mate, how are ya!? it's so good to see you. good to see all of you, yeah! why is jerry so... popular? it's been like this ever since we started using workday. what do you mean? it makes it easier to develop great relationships with our suppliers. now everyone, everywhere loves jerry. they sure do. they do. they really do. mmhmm. workday. finance, hr, planning and spend management for a changing world.
what if you could have the perspective to see more? at morgan stanley, a global collective of thought leaders offers investors a broader view. ♪♪ we see companies protecting the bottom line by putting people first. we see a bright future, still hungry for the ingenuity of those ready for the next challenge. today, we are translating decades of experience into strategies for the road ahead. we are morgan stanley.
sfloo we have an update now the main unit on bond holders and fears of an eminent default that we were weried about. >> that on shoer private property unity with millions of interest payments to the local bond the company said in a statement it was able to negotiate privately through this deal. that has lifted sentiment through the market still unclear what this might mean for the dollar bond payments and what it could mean
for a broader restructuring. as i said, that did lift the sentiment. those were reopened after a two-day break. chinese banks remained weak. a china central bank ejected $14 million into the system expectations could have been rolling. we could see a rate cut as early as next month. sign stop offering steep discounts
because developers wanted problems a conflict in the policies going on right now between the local government, national government and developers zwroo this effectively mean the government is on backstop across the board. >> that's what people are wondering. looking at the official statement we haven't had announcements about what the government's take is on the idea of too big to fail the government stepping in and what most people would say but at the same time, the pressure being put on banks or other developers to make sure there is some sort of managed
restructuring for there not to be a situation going on to spill over to the financial sector or other areas of the economy >> thank you we'll talk about more. >> joining us now this is a too big to fail story, it is not not a concern at least >> i'm based in chicago. a handful of things i can cite sothat this will not be a really big issue this seems
pretty low to me there will be some local issues in china third, beijing has the means to step in and make this orderly. i think they are likely to maybe not bail out the company but keep the markets orderly if this turned into the economic issue look at citigroup, they came out and said, they have no direct exposure this seems like it will be a bigger issue looking at the banks in general >> you are looking at it
narrowly and the question i would ask now is whether we think there were other developers possibly bigger and more of them that could default. what happens then, where that exposure is and by the way, what that says about the economy in the beginning of the hour about what happens if the chinese economy at large starts to faurlt not to suggest that a crisis is eminent but it does portend some kind of problems like becky said, if china gets a cold, we'll catch it >> they are not the biggest but certainly one of the biggest taking some comfort.
your other large property markets. and things are still working unless you are viewed as being unsound. thinking the rest of the sector will be okay turning this into a leeman event. it was a counter part, a g sit in the middle of transactions. that's not really wh where evergrande set in. one of the largest economies in the world has a slow down that could be good news i don't see how that reaches
retirement income is complicated. as your broker, i've solved it. that's great, carl. but we need something better. that's easily adjustable has no penalties or advisory fee. and we can monitor to see that we're on track. like schwab intelligent income. schwab! introducing schwab intelligent income. a simple, modern way to pay yourself from your portfolio. oh, that's cool... i mean, we don't have that. schwab. a modern approach to wealth management.
conference less than a week ahead. >> good morning, joe cautiously optimistic, i hate that term but it is really the best way to describe insights. investors are cautious because 76% believe now is the time to be very conservative despite 24% who believe it is time to get aggressive that doesn't mean investors thinks it going down only 5% said the s&p 500 would fall. the rest said it would be a little change. risk appetite but not expecting much in terms of down side risk. when asked where they are
increasing exposure, about a quarter said equity. others said some kind of alternative in private equity, hedge fund or real estate. saying energy sectors are set to outperform and utilities will be the big overperformers in the next 12 months >> if you dig deep in that, they are different. more optimistically cautious is slightly different everyone you would ask would say i'm not too bearish.
everybody would mention the fed. trying to get a beach ball down under water. talking about it today we'll have an answer to the fed. assuming they would be cautiously optimistic. >> i think you are right it has provided a sense in the market we did ask investors what they think they should do and about 71% said they do believe it is time to buy the bond buying program. as a result, they think it will go higher and don't think it would have too much of an impact to the equity markets
there for a long time. they'll add that back. asking whether the flood rates start to increase. until they do, you need the portfolio. >> when we come back, a restaurant tech company pricing an ipo today we head to a break looking at yesterday's winners and losers growing up in a little red house, on the edge of a forest in norway, there were three things my family encouraged: kindness, honesty and hard work. over time, i've come to add a fourth: be curious.
that 10 year was so well behaved in terms of the selloff if you really worry about the break, you'd see the 10-year rise or the yield fall toast rising its share well beyond its range of 34 to 36 valuing that company at $30 million combining payment systems with things like inventory management set to continue trading today u >> the first women founded and owned bank in the country will
open today to address the funding gap, ceo of the first women's bank good to be here and see you. >> you are launching today what problem are you working to solve? >> we'll be cutting the ribbon and also with us our advisor billy gene king and joining us, our mission partners they've joined us to support gender equality. if you put a bow on these and
close out our rates to close the gap. let me give you a sense of what that gender lending gap is there are about 30 million small businesses 13 million are owned by women. that's 42% women of color own 50% of women-owned business with all of that power and growth, this who sector will access about 16% of commercial loans. looking at actual dollar amounts, this is lower >> i know you come at this with some government experience on top. you were the acting
administrator, where is the government addressing these needs and where does private capital come in? >> it is really both that creates really morris being tolerance the bank can tolerate morris being and stand in for the collateral we can use the guarantee to start up morris being and acquisitions in a sense, it is another way it
is developing. not only does it make it more accessible these longer maturities create a capture. it is a program of what the government does do you mention some of the partners you have you mention wendys >> they are giving us overwhelming deposit support which is really helpful. wendys has a goal of bringing
more women-owned stores. we are so thrilled to announce it today >> you look at the pandemic. the number of women dropping out of the workforce has been phenomenal because of women quitting to take care of kids who aren't in school a business failing or women that might come back as entrepreneurs? >> both. women have taken a real hit. on a normal day, they have a lot of balls in the air. women business owners took another hit. there have been some women that have exited and other businesses
that have made it down turn. sml businesses among them looking for growth and startup capital. with money flowing freely and when they might start to turn that spigot tighter. if they do raise rates, how do you prepare to manage tighter liquidity times. >> liquidity is not our problem. corporations and individuals see
this as a unique opportunity honestly, rising interest rates are good for the economy because of our unique business model, we are the first bank ever to find those with lending deposits we are performing better as interest rates arise >> can aonly women bank here or can men too? >> we are all about equality, not independence banking with us is an excellent way to show support for women and the economy.
i welcome men to bank ere. we are open for your business. >> wish you good luck and we'll chuck in down the road >> when we return, stitch fix is up and more from our interview with chad platform ceo taking over social media watch us live any time on the cnbc app we are back after this sales are down from last quarter but we are hoping things will pick up by q3. yeah...uh... doug? sorry about that. umm... what...its...um... you alright?
[sigh] [ding] never settle with power e*trade. it has powerful, easy-to-use tools to help you find opportunities, 24/7 support when you need answers plus some of the lowest options and futures contract prices around. don't get mad. get e*trade and start trading today. wondering what actually goes into your multivitamin? at new chapter, its' innovation, organic ingredients, and fermentation. fermentation? yes. formulated to help you body really truly absorb the natural goodness. new chapter. wellness, well done.
clothes. shares of fed ex-earnings that labor did beat higher expectations it has been quite something. >> i think this sends a shot across the bow analysts started taking numbers down by near enough. the reason it is cited here with employees because they have to pay a lot more for labor if this is something you should read into the market in earnings
million. delays in the spread due to delta variant and problems in latin america. you need to look closely at it you saw our parent at one of these investment bank conferences based on the pandemic you don't normally see comcast go down $3 or $4 no anybody and everybody who wanted it signed up for things like disney plus and all of these
things those markets fingered it out. does zoom go up now with delta or down now? there will always be zoom. zoom is here to stay and uber yesterday in your conversation with dara and going through uber, they were able to turn a profit more than expected. >> i don't think dara liked when you said how are your prices on surge pricing? >> right they are not doing that to boost their margins. >> it is a hefty >> truly, trying to get across town once cost me $75. >> walk. good idea. it was pouring rain. i said to the driver, i hope you
are getting a big take on this of the $75, he said i'll probably get like $40. they were trying to balance it out. it is a longer conversation. >> are you impressed i was listening? >> very impressed. >> i have like six papers i could be doing >> busy boy. >> ahead here until 9:00 our next guest has three stock picks including ontoe p siesh security name that could benefit from the rise of hack attacks. we'll be right back. hey lily, i need a new wireless plan for my business, but all my employees need something different. oh, we can help with that. okay, imagine this... your mover, rob, he's on the scene
and needs a plan with a mobile hotspot. we cut to downtown, your sales rep lisa has to send some files, like asap! so basically i can pick the right plan for each employee... yeah i should've just led with that... with at&t business, you can pick the best plan for each employee and get the best deals on every smartphone. dad, we got this. we got this. we got this. we got this. we got this. yay! we got this. we got this! life is for living. we got this! let's partner for all of it. edward jones
. the delta variant, today's fed announcement, all cause for concerns, perhaps, for investors, but there are plenty of opportunities out there joining us now with a few stock picks is joanne feeney, portfolio manager at adviser's capital management we had an interesting discussion here with leslie about a sort of a surveying the cnbc conducted and there is some complacency out there among investors. not always great and we talked about a lot of it has to do with the fed we all love the fed. the fed is so generous, aren't they they're so generous with all this accommodation that the default trade and the market is higher it's hard to imagine a really
big break. is that a good thing >> well, you know, joe, i think there is certainly cause for concern how the monetary policy will play out over next year i think that if investor, look for stocks that can do well regardless of what inflation does and what the fed does, then, obviously, that will be a fantastic solution so one of the things we are counseling our clients to look for and putting in their portfolios are some of these really resilient secular growth names you hit the facts just before the break in cyber security we know these hacks will continue, this problem will only get bigger, so palo alto is a name we've owned quite a while for clients. we think that survives regardless of what the fed does. even if interest rates rise, we think palo alto has a sort of earnings growth and a potential to surprise to the upside because of the strong demand we think will only get stronger that's one place to hide from these concerns about inflation
>> that's interesting. you would have a basket of cyber security names you like palo alto best? they obviously have, they are niche players in sub-sectors of that industry. anyone else in that group? >> well, i know, joe, we like to earn 40-to-fist stocks and diversify across sectors with palo alto, you are getting a company that has a long base and firewallesers and is offering complimentary solutions around it. you are targeting a broad area with palo alto there are good companies we like that one the best. we want to leave room for other sorts of tech stocks, for example, whether it's a microsoft or a zebra or a broad.com, there are so many other names to put in client portfolios that we want to be
judicious in how we spread that money around. >> i understand what you are saying there there must be a lot of the inereds that will do well no matter what. in this case, it's chips i think they need to chase the symbol it's what i too confusing. >> the danger is i sometimes call them ivago i have known them so long but broad.com is a good example of a strategy we use for clients. half the clients are worried they will run out of money broad koik pays a nice dividend, about a 3% yield they tend to raise it every december so you get that income going up over time. it helps clients ride out the volatility of the market knowing they have a decent stream of income from some of their companies, also, of course, the secular drivers for broad koik are attracted, particularly now with the 5g cycle and their important roles on aphones and
high attempts and semi conductors they provide to cloud computing. right now, we're at the beginning of a few wave of upgrades in the speed of those data centers and broad.com is a key supplier there the software business is supplying higher margins and stability. we think broad com can rerate higher in terms of its multiple and that's another tail wind we think will be helpful for the stock. >> another one of our favorites, because are you one of our favorites, but wasn't it sarat that talked about thermo fisher. you like thermo fisher, too? >> we like thermo fisher a lot another place to get into secular growth i they fair bit of inflation protection because of the big drivers behind the need for better medical and analytical tools for medical, for farma also as you know they provider pcr testing for covid. while some folks thought those testing numbers were going to
drop precipitously what we are actually seeing is more and more schools and businesses instituting weekly test figure not twice a week at some of the universities i've heard of so that's a name, it's in healthcare so it gives you diversification. it's relatively low volatility the you pair that are adulent. big demographic providers behind farm pharma and healthcare. >> i have been following thermo. it used to be thermo electron. i knew the founder it's a $234 billion company. what a success a. 128 company. it used to be anyway, they merged with fisher jo anne, thanks. but i just looked at that market cap. it's almost a $600,000 stock thank you, good to have you on >> a big show stillcoming your way today. florida senator rick scott will
join us in a few minutes later, we have an exclusive interview. lots of questions. we'll be right back. girls... the chess club has gained an edge on our bake sales. we need more ways of connecting with customers, fast. i know some consultants with great ideas. can they help us improve our digital experience? absolutely. they've invested over $2 billion in tech. that could really help us manage inventory. and save us a ton of dough. then let's take back our market share. checkmate, chess heads. girls, i said “bedtime”! [slow electronic notes fade in]
[fast upbeat music begins] [music stops] and release. [deep exhale] [fast upbeat music resumes] [music stops] i promise - as an independent advisor - to put the financial well-being of you and your family first. i promise to serve, not sell. i promise our relationship will be one of partnership and trust. i am a fiduciary, not just some of the time, but all of the time. charles schwab is proud to support the independent financial advisors who are passionately dedicated to helping people achieve their financial goals. visit findyourindependentadvisor.com
fed meeting day two, investors want to hear from j. powell and this afternoon's press conference and what it means for the markets. pfizer expanding its agreement with the federal government and donations, for lower middle income countries. ceo joins us to talk about the deal and the latest on the covid boothers, expanding vaccines to young children and big tech setting up shop in the big apple google's announcement of a $2.1 billion purchase on the west side of manhattan, will other giants follow suit we will find out as the second hour of "squawk box" begins right now. >> good morning him welcome back to "squawk box" right here on c
nbc. u.s. equity futures at this hour we'll show you where things stand. ahead the dow is up about 197 points we'll round up and call 200 points for now the nasdaq up. s&p 500 up 22 points all of this ahead of the fed meeting day two. investors will be hanging on every word from the statement's news conference. who will be there? the 21 and only steve leishman will be there. he joins us now with more. steve. >> big day >> yes, virtually. still virtually. i will be there. the fed will issue its statement amid questions about the policy outlook and potential conflicts and investment practices a signal i say that it will announce its intent to wind down asset purchases while not actually announcing a month or day it will do so. as a result the fed will be continuing a policy that few
think is solving the problem it's intended to address more than 90% of our respond exhibits in our cnbc fed survey say asset purchases are not needed to help the economy or to help markets function. meanwhile, the fed says these asset purchases are made because it's not achieved its employment goals. john ryding writes there are 1.3 unfilled jobs per worker the fed's easing risks cementing in an inflation rate above 2% that would be costly to reverse while providing no benefit no job creation in other words, it's hard to see how they can help the job market more qe, it seems, would not fill unfilled jobs investors will focus on the dot plot or its own projections for rate hikes they currently only show seven of 18 members here in 2022 a few officials changing their
outlook to move the first hike into 2022. that could spook markets except, it's worth pointing out. the futures market and our survey already show an expectation for 122 rate hike. finally fed chair powell in the news conference, will also likely face questions. may make a statement, himself, about investment policies at the fed. powell announced he would review this when trading and holdings by fed officials andrew >> you had your questions set, steve, or do you change them as you listen to what he says >> i change them as i listen to what he says, because remember, he's going to make a statement -- we get the statement. he'll make a statement and what i try to do is well what is the thing that investors need to know most about? a lot of the times that question especially where you end up in the question order issomething that clarifies the statement or powell said about the outlook for policy a. lot of times you fought to think on your feet and
say what's unclear here? what after this press conference will i be sorry i didn't ask because it remains unclear >> richard fisher said it seems the dot plots are moving into 2022 for rate increases. >> right. >> wouldn't that be concerning or are you assuming that itself in the cards already >> i think it's possible, but this is one of those funny things where i'm not sure it's concerning our fed survey says 2022 for the first rate hike. the futures market is priced that way so it seems like everybody expects it but as you know sometimes when the fed does what it expects, it freaks out anyway. we had the first round will be 2023 how much do you want to get all
worked up about a quarter point in january 2023? i think the bigger question is, does the fed get spooked about inflation and hurry up and get the taper done and bring forward rate hikes that would be a real concern and something for the market to think about. but a single rate hike next year or late next year, early next year, 2023, is not something to be too worried about i suspect flu is said, survey says, did you hear yourself say that you just said that >> did i >> you did the fed survey says, and i speedily was going to like take another guess to try to guess. did you used to watch that >> they would come up with things ooutlandish and you'd go eh richard dawson. >> we all used to watch the same thing. i was looking at three channels. i was looking at a new york
crossword puzzle, it said saturday morning character four letters you, starts with a t. >> hmm hmm. it's toon. i was like, how many people today know that the cartoons were only on saturday morning, right? >> toon. >> toon. you can watch. >> it's a character. >> toon. saturday morning character was toon see that's what they do they know what you think and add something else we always used to watch the same thing sunday sniets was world and war, how about you world at war remember that black and white series every sunday night at dinner we used to watch it. >> you are bringing me back. i'm excited about getting up saturday morning because we'd watch cartoons. >> and eat cereal. >> becky, your kids watch
cartoons all day long? >> any time they want. unless i take away the ipads >> we used to cover a wide rage of the south parks of the world. >> if you like it, are you not allowed to say you like it too fliply incorrect >> apparently in britain it's too correct to say that. >> little george i read the critique or the criticism some said it's fabulous have been criticized mercilessly? >> really? >> yes >> i haven't seen it yet back to steve's point, we don't have time to watch anything any more and andrew's point, we have every channel. preventing a fost shutdown and extending the debt all republicans opposed the bill now it's headed to the senate where the republicans there are threatening to block it. senate minority leader mitch
mcconnell said they will stand for a stand alone bill and not the debt extension if the bill is blocked, it's unclear how they would perceive a federal funding lapse or a first-ever default on u.s. debt. i feel we have watched this movie so many times before, maybe we're all a little enured to the threat because it's hard to imagine the government allowing to default to the debt. >> i worry about a lot i haven't been that worried about it maybe some day we do need to worry. they cry wolf so many times i'm thinking the of human infrastructure how that all plays out there is no bipartisanship in the democratic party i'm not talking about the issues >> this threat coming and looming with all of that >> but with it so fractured. >> i don't know how you satisfy one side of the party without
infuriating the other side >> coming up -- republicans are still screaming about the obamacare. coming up, china's ever grand, china's central bank pumping more money into the system senator rick scott joins us, amid the looming fix in the u.s., "squawk box" is coming right back get decision tech from fidelity. [ cellphone vibrates ] you'll get proactive alerts for market events before they happen... and insights on every buy and sell decision. with zero-commission online u.s. stock and etf trades. for smarter trading decisions, get decision tech from fidelity. flexshares etfs are built with advanced modeling. to fill portfolio gaps and target specific goals.
evergrand negotiating a deal on the first of three closely-watched interest payments, to some extent of an imminent default >> good morning, joe evergrand's flagship property business says it will be able make a $36 million interest payment on a local yuan bond payment coming due on thursday in a statement, hyundai said it would be able to resolve the issue through private negotiations it's still unclear what this is going to mean for a dollar bond interest payment also due on thursday or what it potentially means for any broader restructuring. even so, the development was able to stabilize sentiment in
the chinese stockmarkets, which opened after a two-daybreak. property stocks rallied, but chinese banks remained quite weak this is especially those that are exposed to evergrand evergrand still owes $850 in coupon payments this year. a chinese bank injected $14 billion and left rates, a lending rate unchanged for september. though there is a growing expectation that the central bank is going to or that the chinese authorities are going to sanction a policy rate cut possibly as early as next month and this is because of all the problems we are seeing in the property sector, joe >> all right we will have someone that i think you know has some interesting comments about this and many other things. thank you. joining us for more on the china crackdown, the latest there and more, republican senator rick scott is also the former
governor of florida and senator it's always good to have you on. we've heard eunice's report. we have a lot to cover in terms of the debt ceiling and infrastructure and everything else what have been your recent thoughts on what's happening in china and how it relates to us here in this country >> well, first off, excessive debt catches up with you it does as an individual, as a family, as a business, as a country. we have a lot of businesses that have excessive debt. everyone does. it will catch up with them we've got to get our fiscal house in order here. we have a debt ceiling crisis coming up right now. we have almost 30 trillion of debt here. around the world, we've got to get control of the debt. i will do everything i can here to get structural change because this excessive spending, excessive debt is causing significant infloridaition in this country it's hurting our poorest families, people on fixed
income but the chinese government has decided, they decide what the rules are constantly so anybody that does any business or investment with china, you are taking a lot of risk >> looking at some of the things that president xi has done in recent months, what do you think the pivot means in china that we're seeing some more, we know it's a communist country but they have been flourishing for 40 years with kind of a hybrid capitalist model. they seem to be pulling back on that to some extent. is that troubling for the global economy? >> oh, absolutely. but i think you should always have expected this it's a communist country it's run by a dictator he's not a duly elected president. it's whatever he thinks the rules should be. they're cracking down on anybody that's had december there, on companies that have had success
there. on top of we know they don't supply with international norms, the wto. they have genocide against the wiggers. they still jobs and technology so if you deal with the communist government of china, this is what you deal with you take a lot of risks. chinese are taking a lot of risks. wonderful people they've got a government that doesn't care about them at all. >> what do you want to do with the debt ceiling here? how is that going to play out? you don't want to raise how do we make sure we don't default? how is it going to play out in the near term? >> well, first off, we should not default on our debt. we got to get our fiscal house in order, hyper inflation. all the pressure theries it doesn't make any sense. what we have to do is stop wasting money. when i became the governor of florida, we were in a financial crisis in florida.
over eight years, we balanced the budget, but fought borrowing money. the federal government has to say, we can live within our means. we don't to have this dysfunction and partisanship up here let's save our money the democrats right now, they, i mean, they did a 1.9 trillion bill by themselves in what april? now they want another i guess a 5.5 trillion billtaking our debt to 45 trillion. we're already spending over $300 billion in interest that does nothing for families in this country. we will take it to a trillion dollars in interest? how are they going to pay for this >> back quickly with china i want to read a couple quotes to you and tell me who said these, with the human infrastructure and everything. capitalism focuses too heavily on the single-minded pursuit of profit and individual wealth, letting companies grow too powerful, leading to inequality
and social injustice furthermore, there should be a goal of common prosperity calling for a more equal distribution of wealth achieved through more common intervention in the economy and more steps to get the rich to share the fruits of their skechltsuccess was that the current leadership or president xi? who do you think said those two things >> probably bernie sanders >> president xi. >> bernie sanders, what's the difference there is no difference >> right we hear that a lot here. i'm wondering whether we are converging i have a quick question, you did really well in the private sector, incredibly well and you are a part of the i would say the american dream, the amount of your net worth. we don't need to go into it specifically one of the things we do is monitor some of your financial disclosures. you have an interesting goal in etfs, both you and your spouse
have quite a bit of the etfs you are all over the place, obviously, because you have a lot to work with you talk about inflation a lot is that why you are buying gold etfs you are putting your money where your mouth is? >> well, i'm the kid that certain public housing got to build government housing i had gold, because i am very concerned about what j. powell is doing hanging the 5.3% cpi and 8% ppi, all we're doing is we're deflating our currency so i think gold is a great hedge and that's why i'm in it but i'm here in this job because i want to help vendors like mine growing up i watched my mom struggle with inflation and take put groceries on the table we don't have enough money to buy everything we have going on. that's what's going on with the poorest families in this country
every day right now, that's wrong. >> senator, help me with this. i think some viewers will say you are playing politics the reason i ask this question is because you go back and look in 2019, summer of 2019, the senate passed, as you know, a two-year budget and a debt ceiling bill i believe you backed i don't see any commentary from that period where you said, you know what, i'm not voting for this, because we need to control spending you know what happened to spending after that, in part, because of covid even if you look at the tax bill or rather the tax, where taxes were then and where revenues were then and how much spending, it was going up in, by maing my tudes. so explain the view in 2019 versus the view today? >> i have been there for years i have fought voted to increase the debt ceiling i will not vote to increase the debt ceiling unless we get
structural change that will stop this debt increase i didn't vote for it then. i will not vote for it now we have to get our house in order. i had to do it as governor of florida and as a business person, all americans has to do it our government has to do it. >> so just to be clear, you did not vote in 2019 in favor of that budget and the debt ceiling bill >> no, i have not voted for a debt ceiling increase since i have been in the senate. >> worrying about government spending, at this point, senator, what do you think if -- number one, it's probably fought going to be the whole 3.5 trillion or 5-and-a-half whatever you call it, i don't know what your colleague joe manchin on colleague sinema or what finally happened. but when do you think we grow government so much that we start to really see a dampening effect on gdp i know this sound like to
everyone out there, that isn't on your side of the aisle, they're saying what a softball question that will you agree with that, obviously. >> i'm here. >> we are going, the "new york times" and the headline crad to grave entitlements just like europe, which has had a much slower growth in gdp for the past 50 years because of the public sector. >> look at rality. americans are not going to vote for people that want to raise their taxes. i mean, some people might get elected. the reality is americans will not pay for this excess spending so anyone that goes out and sits there and buys our u.s. treasury, assuming americans will pay for this, i think they ought to stop and think about whether they're willing to increase taxes to pay for these things and increase taxes to pay for safety net programs. we need safety net programs, but from people that need it we don't need to make people
dependent on government. that's not how it's set up we have been set up in a country. we want people to go notgy government you can start out anywhere, it doesn't matter if you live in public housing you can do anything. that's the countries we want i will fight for our country it's not what we give our kids and grand kids, say again. >> what do you think this will do the trillion in infrastructure and how much in metaphysical infrastructure, the other bill how much do you think? will it end at 2 and will that go through >> i hope the 3.5 doesn't happen i hope we see no tax increases we got if figure out how to get taxes down, not up i will fight to make sure we don't do it. i will be hopeful. >> that might hurt your goal tbs if we don't do it. >> i'm worried about the future
of this country. >> i hear you. just in case, gold might be an idea maybe bitcoin, senator, thank you. we appreciate having you on today. >> all right bye. >> when we come back, group chat platform discord's latest funding round brings evaluation to $15 become. check out shares of pfizer this morning the company is announcing an expansion in its agreement with the u.s. government. it's also providing an additional 500 million dose of covid vaccine for lower and middle income countries. the ceo albert bourla will join us to talk about this news and the pfizer news we heard in the last week. "squawk box" will be right back. time now for today's aflac trivia question. apple is the biggest tech company by revenue, raking in $260 billion as of 2020.
who is number two? ...aflac policyholders the answer when cnbc "squawk the answer when cnbc "squawk box"ll if they're paying out billions of dollars to help cover unexpected medical expenses, what's the difference? coach prime. what... no smoke machine? [aflac!] looks like aflac is ready for prime time. [eh eh eh! h eh eh!] hey, coach to coach... what do i need to do to get one of those jackets? ♪ get help with expenses health insurance doesn't cover at aflac.com zblmpbls
question apple is the biggest tech company by revenue, raking in $260 billion as of 2020. who is number two? the answer, samsung with $197 billion. >> you may not know about this company. but i promise you, your kids probably do. we're talking discord. they raised recently $500 million in funding bringing the valuation to about $15 billion it might say a messaging service. i spoke with discord founder and ceo jason citron about the growth this company experienced during the pandemic, which is extraordinary. >> when we started this discord, we were focusedr on a place for friends playing before, during and after sessions and sort of had a hunch that maybe discord
would be useful for things and early on started seeing a little bit of that around open source software development kind of projects, but it was only in the last two years, starting into 2019 we seen it for more than gaming it's accelerated in the last year-and-a-half. now we have over 150 a month that come to discord to study homework or participate in communities that they love or on topics they are passionate about or hang out with friend online. >> given the average age range of 150 monthly users ages between 13 and 30-years-old, i asked jason what he thinks about safety and content moderation? >> discord does not have the news feed. things can't go viewerless, the nature of the content, if you will, gets chaired on discord is
quite different. you will be in a space, think of it as almost a group chat with 10 or 20 people, the common way people are at discord. those small paces, we leave it to people to side what is acceptable in their space in the context of our community guidelines if people encounter content that let's say the moderators in the space aren't using the guidelines, we have a trusted safety team that people can escalate issues too, because discord is not encrypted, although, we don't read people's messagess, if people refer them to our safety team, we will investigate and action communities that are violating our guidelines >> it was originally created as a tool for friends to talk live while gaming i asked a game hear what he thinks about screen time and whether to limit gaming for
kids >> i think it's good for everyone to think about their children and how they're dock and what the priorities are if each child's life and how much time to allocate to these things i'm probably not the best person to ask you know, growing up, i played more video games than you could have imagined. if you ask me how much time people should spend, i was going to say $3500 per week. clearly for me i channelled it into something productive and became a software engineer and write this company so video games today i think can help people learn a lot of great skills, especially online video games, you have to learn about cooperation, being a good sportsman or sports woman and leadership and trial and error and failure. there is a lot of great impact and life lessons that get caught in playing online video games.
>>' what do your parents think now? there had to be a point where they thought there was too much gaming going on? >> it's been a while since they've had that thought i'm sure they are watching this interview and are quite happy. >> i think his parents are probably quite happy you can watch more of that interview with discord ceo jason citron in the next hour, including how he thinks about the apple versus epics case, it was fascinating. plus, we will bring you an extended version on today's episode of the "squawk" pod. becky. >> thanks, andrew. still to come, our exclusive interview with pfizer's ceo albert bourla. that's straight ahead. plus, will congressional democrats scale back the tax proposals? we'll debate that with john o'brien and kevin o'leary. you are watching "squawk box," this is cnbc
doses for a not-for-profit price. let's go over to meg. >> thanks, my special guest is albert bourla, the ceo of p pfizer thanks for being with us let's start with the news of the day. 500 million doses add to the same number. they started shipping last month. they will continue over the next year we understand tell us about your expectation of what these agreements will do for the course of the pandemic >> i think it will enable way more equitable access of the vaccines when we started more than a year ago in the beginning of the pandemic, it was in our mind we would have a vaccine that would be available to all the first ting we had to do is develop the vaccine because now it's considered a given month i ago, nobody thought this could be done. second is manufacturing and with
very admirable speed right now at the end of the month, we will have a manufacturer to be diagnosed they will be gone. by the end 3 billion doses, one bill become of which will go to the lower incomes and the federal government wants to set the price, it will enable everybody to access. the price for the high income countries is the cost of a take away peel. but for the middle incomes, we are starting half of this price and the low income countries, we are charging a not for profit. the u.s. government wants more 1 billion doses will be donated to the pour orest, not the midd and low, the poorest it will be given not for profit price, it will be free the u.s. is covering the costs i think it is great news for humanity and great news for us, because we are very proud of our
vaccine. it will save the lives of people around the world >> how do you respond then to criticisms like from former cdc director dr. thomas frieden who has been pointing out on twitter the last week this is quote shameful he says focusing on selling expensive vaccines to rich companies, moderna and pfizer are doing nothing to close the supply how do you respond to criticisms like that in. >> i respond already we have received 500 million doses to low and middle income country we will receive a billion doses by the end of this year by the beginning of this year. we will do at least one billion doses next year and i think the facts are speaking for themselves >> is there more that pfizer could do there is also some focus on the infrastructure in developing
countries and there has been criticisms of the biden administration for delivering vaccines but not delivering the sort of cold chain functionality to be able to store and move those vaccines around or helping get vaccinators to be able to help rom out these vaccines? what more do you think can be done to expedite all of this >> clearly more can be gone for the poorest countries. so they can meet special conditions like i think this is something that the w.h.o. is doing. and this is something that we, ourselves, we are working to help although, it is not the direct responsibility to provide the vaccine, but we are working also on the last mile, how we can assist so that they can move eventually this vaccine. >> there has been a big focus on ramping up production of mrna
vaccines in these developing countries, so they're fought dependent on manufacturers elsewhere providing them you do say or your partner at by on piontek over the mid and long term it seems that is not a near-term goal necessarily, because does it take that long to build this up could scaling up these countries any faster than is happening already? >> oh, yes, it will take a very long time to be able to build infrastructure but it is able to handle this high level of technology this is not easy, this is not making any type of goods this is really really high end with regard to sophisticated investments but people are highly skillful will do that i don't say it is impossible to do that, to be done, but it will take time. >> of course, here in the united
states, we're on boosters, who will get their third shot and when, we're expecting an fda decision on that today or tomorrow the cdc will vote. how do you in this position of deciding where to take orders from and deliver things respond to the pressures you get from the world health organization, which is saying people shouldn't get boosters until the end of the year when more people have gotten their first doses, how do you weigh those pressures coming in >> i think the decision to provide a booster should be made from the married science this is not correct to say i will not give boosters to one because i prefer to give my dose to someone else. the second is as i said, we should fought resolve with a no, with with an end, boosters should be given and other doses should be given so this is the meaning of this disagreement today with the united states
i would say that the zoess for t doses for this year, everybody has their orders, first deliveries are coming out. so that will not securities & exchange commission even if the boosters would be, we will fought give more to the boosters we will give it to everyone. this year we lo do a billion doses to the low and middle income countries >> albert, on that point, we know the fda panel that met last week voted no on the original question that booster shots would be available on 16 and up, people ages 65 and up, who have co-more biditys and people maybe exposed at work because of the jobs that they do. but that still leaves a big gap.
if the fda eventually goes through and approves the latter question, not the opening. they said they didn't have enough science to prove that those ages 16 and up needed boosters. when will we see more science? what's the next step or are people left to fend for themselves at this point >> i think the time will bring data because everybody is collecting data so pretty soon they will have more data, so that they can have their recommendation it is the data we have seen and supported the technique to give broad recommendations. majority of the committee will be sold, this is not the right time for people who receive their pages. so i guess they will expect to see what is the right time i will say the pandemic, it's very difficult to come to the right one. are you coming to whoever they authorize. >> when you think about
efficacy, there seems to be different definitions of efficacy, the united states versus israel and people are measuring it differently in some cases it's hospitalization and death. in oughts, it's simply infection up front do we have to redefine what efficacy is and what it should if and what we're trying to avoid? >> i think science is everything we should make very clear, when we speak about efficacy, you can refer to efficacy against skefr disease or efficacy in general or infections and the data are coming from all three categories, it's not that they're coming only for mild infections they have seen a drop in infections against severe disease as well. >> do you have a view on why it appears that the efficacy of the pfizer vaccine seems to be lesser at least at the moment based on some of the numbers than the moderna vaccine
it appears in the case of moderna, it has a higher efficacy or more durable efficacy is that a function of the fact there is more of it, more vaccine put in the arm is it a function of the fact when the the first and second doze there is a longer wait period or the timing of what we've seen in the studies? a lot of people got pfizer earlier? >> no, i think that it is their own thing to started comparing vaccines, particularly in public nevertheless, i am not convinced one is better than the ought or it lasts longer than the other for the reasons we said. when they compare, they don't exhaust from the time of the second dose. they don't adjust from the fact pfizer was given to elder higher risk people so we are comparing
more months of receiving the first dose from pfizer and very different population again, i said that both of them are wonderful, i don't want to make comparisons, those that make comparisons, they are wrong. >> albert, can you give us an update where things stand for emergency use authorization for kids ages five to 11 we heard a lot it may be available by halloween. what does that actually mean our kids might get the shots by then will it be fully distributed i know you have to give different vial sizes, so as a result it's gearing up the spire process like we did at the dining of the year >> -- at the beginning of the year >> we will be ready once they approve the vaccine, to be able to distribute it and i know that we will submit our data pretty soon the data is posted
but that cannot recommend when the fda will approve it. they have to take their time and do the approval at the time that they are comfortable >> albert, you actually got do you that i think earlier than people expected in that age group 5 to 11. what are you expecting in terms of younger kids acting completely unbiased as a parents of a two-an-a-half years. >> we are always coming ahead of people's expectations. i hope they will not disappointed. >> so your cfo frank amelia suggested perhaps you are a month behind for younger children is that the timeline you are looking for down to age two or six months >> well, yes, that's one-to-two months, i would say. somewhere in there >> just to get to that booster discussion that becky was talking about, were you surprised that the panel voted to narrow the recommendation for
who should get boosters here in the u.s. as we are seeing them given so broadly in israel and everybody over the age of 50 in the uk >> yes, i was surprised. you know, this is not about being surprised. this is about a committee composed by a reknowned scientist. very high integrity and expertise and they came to this conclusion our scientists have high expectations they came to different conclusion, israeli, scientists, german scientists, but this is they have a responsibility to recommend and then they have the possibility to implement, but they are important and you know i think we should let the system work. >> with all of the countries that you just mentioned, is there one, albert, that has been the easiest to work with or the
most difficult to work with in maybe the administration, the bureaucracy that you deal with, what would you say >> i would say that all the countries have stepped up. they are wonderful frankly, i had the opportunity because of that to connect personally with state leaders and administration in many countries. and i understand their agony to do the best for their people they have to deal with very prompt decisions sometimes they get it right. sometimes they get it wrong. but they are all having the best of intentions. so i wouldn't -- to anyone on this >> all right albert. that's all the time we got we appreciate you being with us this morning we look forward to all of these updates coming up. >> thank very much, thank you. when we come back, thank you, mech. when we come back, linkedin co-founder and facebook investor reid hoffman will join us to talk new tech and discord and
much more. first, robert frank taking a look at big tech buying up real estate in the big apple. robert >> good morning, becky, it is the highest price paid for an office in over two years google paying 2.1 billion on the west side, raising hopes that big tech can maybe save the big apple. we look at the gwth roof silicon alley coming up after break. a careful steward of the things that matter to you most. i promise to bring you advice that fits your values. i promise our relationship will be one of trust and transparency. as a fiduciary, i promise to put your interests first, always. charles schwab is proud to support the independent financial advisors who are passionately dedicated to helping people achieve their financial goals. visit findyourindependentadvisor.com
well councilwomen back google taking over prime fork real estate one of several deals with deep pockets in new york during this pandemic, robert frank joins us with the latest robert. >> good morning, andrew, it's got river views, terraces and over a million views of space. buying the terminal building is the highest price paid in over three years. three tech firms hover over 8 million office space in manhattan. google brings it to over 3 million square feet. facebook has been snatching up space in hudson yard, taking over near penn station, it's at over 3.2ple square feet and amazon now up to about 2 million square feet, including that deal to buy the former lord and taylor building. now, tech firms have about 20,000 employees in manhattan right now expecting to add another 15,000 in the coming
years. but that does not mean the manhattan's commercial market is recovered. there is over 86 million square feet of available space right now. that's up about 70% from pre-covid he was the availability rate is 17% at or near report highs prices down 12-to-15% in the lowest level in four years with tech companies delaying back to work and shifting to remot work, it remains to be seen how much space they will need in the big apple in the longer term. >> so i think that's the question about the future of work everybody says we will move to a hybrid world then all of a sudden you have tech companies supposed to be leaning into a hybrid world. they're the ones buying up the real estate. what does this really say about the future of work is? >> well, i think it says, number one, that these companies all have a massive amount of cash on balance sheets look at google, they have over
$100 billion in cash maybe this is an arbitrage or option bet on new york real estate cheap prices are down about 15%. they think, even if we don't use it, it's probably a good deal to buy it if you look at the growth over the past few years even pre-pandemic, these companies have been adding thousands of workers a year so they might as well have it in case they grow that level. it is a big vote of confident when you bailed big purchase in manhattan right now, it shows, we had two straight quarters of increasing rate, it shows there is a recovery under way, we won't know until next year how much space these companies need. >> robert french, they're buying in manhattan not in amazon city, where that amazon deal went south >> thanks, robert. coming up, we're going to talk to john o'brien and kevin o'leary on taxing the wealthy
my mother passed away. after taking care of them, i knew that i really wanted to become a nurse. amazon helped me with training and tuition. today, i'm a medical assistant and i'm studying to become a registered nurse. in filipino: you'll always be in my heart. we see breakthrough medicines getting to patients in record time. at emerson, our automation software is empowering pharmaceutical companies to accelerate their production of critical vaccinations for the world. emson. consider it solved. . good morning futures are rising ahead of the bell investors will be laser focused with any guidance on bond purchases. meantime, fiscal cliff is approaching. the house passes a bill to fund the government, but it may go
nowhere in the senate. what's at is thatic? and new this morning, pfizer will supply hundreds of vaccine doses. this is the cdc getting ready to wave booster shots for americans. dr. scott gottlieb will join us once again to break it all down for us the final hour of "squawk box" begins right now in there good morning, welcome back to "squawk box. did you see this out yet u.s. equity futures at this hour, what is that is that a heck of a protest? i thought it was a protest no, it looks like people are happy. is that a sco"squawk" flag?
>> oh my god that's an ipo that is going. >> really? >> an indian company that is the indian flag. >> okay. >> a protest for a while do we have the police out? >> unless they're protesting the price range. how's, no, they're probably happy about the price range. a big ipo today. we don't alwayss have an ipo where they're outside. most of it is in -- maybe it's better it's being conducted outside. u.s. equity futures up 197 points, the nasdaq is up 51 and the s&p indicated up 23. but as far as treasuries 1.3 or so, we haven't seen a lot of 1.33, moving up a bit. >> meantime, we have breaking news, pfizer biontech bringing vaccine from the u.s. government
to be donated to low and lower middle income countries to 1 billion shots, in total, pfizer is expected to have all those delivered in about a year. they say the shots will be donated to 92 countries and 55 member states of the african union as pfizer says the cdc is set to meet today to talk about booster shots of the covid vaccine for americans. remember, late last week a panel of advisers rejected that plan to give pfizer boosters to everybody to those 65 and older. people with higher risk of severe disease as well and former fda commission dr. scott gottlieb will be with us later this hour to talk about all of these developments. >> in the meantime, the house narrowly passing a bill to temporarily suspend the debt ceiling. it is not at all clear the senate will approve the measure. the nation finds itself on the edge of a fiscal cliff once
again. elon, this is tricky, as we were talking about this before. we heard this threat before. it's hard whether to take this serious or not >> it's certainly messy, congress does not have a clear plan for how to deal with a flurry of legislative deadlines that could potentially rattle the markets and undermine recovery they have trying to avoid the twin per ills and a catastrophic default last month the house did pass that bill linking the two together it extends the debt limit until december 2022. the final vote republicans vow to block it once it gets to the senate instead, minority leader mitch mcconnell proposed his own and democrats opposed that deal. >> a tax increase if you let the debt ceiling expire. it's a tax increase because
local governments will pay more interest and have to charge their taxpayers more money from now, right now the two sides are in a stalemate and the process for democrats, broader economic agenda doesn't look much better. this afternoon, democratic leaders will head to the white house to talk to president biden about path forward the house is still planning to keep its promise to moderates and vote on that infrastructure bill on monday even though progressives are threatening to tank it unless the bigger social spending bill is complete, which it most definitely is not. we will see if he can break the log jam on all of these rights >> the democrats can stop this bill, the first bill you were talking about to raise the debt ceiling and go beyond because it requires how many votes? >> the republicans can block it because it requires 60 votes in order to prevent anyone if filibustering the bill on the senate floor so democrats will need 10
republicans to vote with them to concede consideration of the bill that has been the holdup in the senate republicans say they will not allow democrats to raise the debt limit with their help. >> within it comes to the bill the bipartisan infrastructure bill with that, if the progressives in the democratic party say they're not going to vote for that they will need even more republicans to vote for it i guess there the a lot of questions about whether kevin mccarthy is going to whip his republicans to vote against it this is getting complicated. the chamber of commerce definitely wants it to happen. so how do you see that kind of playing out in. >> yeah, this bill is so important to the business community and right now, it's not clear how democratic leaders will handle it they're saying that they will pass this with democratic votes. they say they are not counting on trub i on republicans to provide it to the finish line. at this point it's difficult to see how the leadership can make
good on their promise to progressives, which is that they're going to ensure there is a vote on the reconciliation bill as well it's just fought done. it can take weeks or longer for that compromise to be reached on the broader spending that can hold up this other bill, infrastructure bill that right now is so important to the business community and to president biden, himself from so if nancy pelosi holds a vote on infrastructure and does get it passed, we are hearing she can decide to table it and not send it to president biden for his signature just yet as a way of keeping it tabled, so you can get the rest of the big bill, the 3.5 trillion bill to tie it back together, but that going to satisfy the moderates and the democrats that will say, wait a said, you've held up your plan to go ahead and vote on this, by holding it back, you are not saying through the spirit of it of our agreement in. >> yeah, the key part of not sending it to the president is you do have to get it passed
first, you will have to satisfy both side somehow. there is a path to linking all of these different issues together and complicated that the whole thing could completely implode and that is the danger for the markets when you talk about the government shutdown on the debt ceiling and for president biden and democrats politically. because this now is all going to have to pass or it's all going to fail and so this is an all or nothing game, democrats, to sort of put themselves into >> thank you related to this the proposed 3.5 become, it's a social human infrastructure that democrats so far haven't been able to agree to fund and to talk about that and what it can mean for business an investors, john hope brian operation, founder and ceo and venture capitalist kevin
o'leary. john, good morning, in the past, one of the things that you say that i always noed to, because no one would disagree, you always say what we want to government to do is give people a hand up. not a handout. the "new york times" referred to this on the front page piece, this $3.5 trillion bill as cradle-to-grave entitlement, basically. do you consider that to be a hand up or a hand out? does this pass muster with what you think we need to do for what are you a software upgrade for so capitalism >> what you just said might be relevant are, if we were at war. if we weren't dealing with, my wife says we are chasing a ghost that wants to kill you if we aren't dealing with historic infrastructure that is, puts us 13th in the world, 13th
in infrastructure in the world they say it will cost the average americans 3700 a year, the crumbling infrastructure starting right now meanwhile, warren if you have fet says he pays more taxes than his secretary. amazons we pay more taxes, it's ridiculous we got to decide do we want to be netflix or blockbuster. blockbuster says, we're cool with what we have. everybody loves videos we got a market. we're growing. everybody loves us on friday night and netflix cleans the clock. so i think we need to make the investment, joe, whether it's [ inaudible >> john, philosophically, we need to decide whether we're what we used to think of as sort of the entrepreneurial vidalistic aspects i'm going to read something to you. i've read this a lot people are tired of it the democrats like are nuts some on the far left. who said this?
we should have a goal of common prosperity calling for a more equal distribution of wealth, achieved through more government intervention in the economy and more steps to get the rich to share in the fruits of their success. now, we know about the seismic shifts in china, that's president xi talking about how they want to shift the economy in china it's verbatim what i hear from els warren and bernie sanders, aoc. is that where we want to head? there is no downside to cradle-to-grave entimements? >> let me say there's lots of downside, lots of downside you know the best way to look at this is try i to take the political rhetoric auto of it and think about the competition between the nations. the majority of the global economies is captured with the g-20 so we should compare ourselves in terms of our competitiveness with the g-20. we are competing with the g-20,
there is no way around that. currently, it doesn't matter which administration did that. it's policy that matters we're in the middle on taxation, right in the middle of the g-20. biden's proposal to pay for this $3 billion package, socialist spend, takes the united states to the top of the list in terms of taxation. so all of a sudden our competitiveness and our ability to compete with other country you bought to remember, capital has no political bias. it has no nationality. it goes to the path of least resistance always. always has, always will. so taking the united states to the top of the tax lists corporately is probably not a great idea but what's extraordinary for this time in history you can find examples of countries like the nordic countries or the swiss, for example, where they basically raised personal taxes but not corporate. you will not find anywhere a country that raised personal taxes and corporate taxes to the highest levels globally ever
it's never been done we've also never been able to find any country, including the u.s. that's spent $3.5 trillion on social programs there is a certain madness to that, a certain insanity to it because you can't find one case study anywhere in history and go back to the times of the british raised taxes to 92% in the '60s, where they had a mass exodus of people at the same time, we're proposing that now that's a little crazy. so pick one. either raise corporate tacks or personal but you can't do both. will you put a place in history in the united states where people in new york, new jersey, massachusetts, california, are the highest taxed people in the world at the same time the companies that operate in those states will be paying the highest taxes in the world that's just insane that's completely insane i doubt it's going to happen somebody in there in the political from i is going to say, wait a second, what are we
doing to ourselves this is madness. >> don, you think it's worth it. the deposit that we know, you think that they're going to take that money and it's going to be effectively spent and we will get our bang for the buck, how we raise those taxes you think they can do it where it's going to help in. >> the short answer is, yes, we have been here before, it's world war ii it's called the marshall plan. infrastructure we are talking about investing in now, if you put it on par with the largest countries in the world, it can't compare to anybody else, it was in relation after world war ii that creates a white middle class. call it social if you want to, apprenticeship for a new job, you call it social if you want to i call it economic and remorse for a new home that created what got you here kevin, what got you here, joe. we're talking about doing this now an resetting for the new
economy. we can do this smartly i don't think it was going on in california and new york. we agree with kevin, it's sustainable at a local level i think, though, at the federal level, we have got to knock it off an reinvest in the bottom of the pyramid, every republican president, republican and democrat that has done that and reinvest it and increase taxes, the gdp has gone through the roof the economy has green we have got to reinvest in what has delivered the golden goose i think you can do it smartly, intelligently. we have been talking about this 40 years, infrastructure roads and bridges are falling apart. ist i was in jackson, alabama. the roads are falling apart. p cars disappeared in a pothole. >> you are jumping back and for forth between the infrastructure bill an conflating and calling it all infrastructure. that's setting it up where you are expecting people to disagree with you we need to fix our
bridges. no one is going to disagree with you. we might disagree that we need to raise taxes to the extent o'leary is talking about to pay for the 40 years, and you are right, 40 years of democratic wish lists for entitlements and social programs is now being including into an infrastructure bill and they're calling it infrastructure when it's not >> i'm sorry, job training for the future is not an entitlement. i'm sorry, i disagree with that. >> these aren't entitlements i don't know what the end result is, what comes out from it do you think that these are not entitlements, kevin in >> no, i think what you have to ask yourself philosophically is, we do have 3.5 trademark or 3.2 trillion would you rather leave that with the pfizers of the world and the tech companies in america or would you rather give that to the government who is better at spending that money? the answer for that in the united states economy over the last 100 plus years has been the
private sector that's why we enjoy gdp growth twice of the europeans there is a lot of insufficiency. it's worth having a debate i argue every dollar spent by government 33 and a third cents are wasted that same put into a pfizer creates vaccine innovation and technology and all kind of things that create jobs. i would never want to give that much money to the government it's unprecedented because i know over time a third will be completely wasted. that we can debate but it's unprecedented to go and take that back out of the economy in the form of taxation. it's never been done before. i don't know why anybody would think the outcome would be good. it would be crazy to think a u.s. economy and all the companies and 11 different sectors in the s&p 500 do a worse job than the government. they do a way better job i'd rather give it to them than the government that itself the decision you have to make that 3.2 trillion somebody has to pay for and that
is going to be through taxation. so basically, you are taking it away from innovation you want to see what happens, look at europe there is no innovation there gdp growth is under 2% we do not want to go there, we do not want to change our social fabric in a way that makes our country in tops in terms of mediocrity that's real debate would you rather have companies spend that money or the government i've already made my decision a long time ago. i'm an investor. i believe in the private sector and all the jobs it creates. giving $3 trillion to the government, a really bad idea. >> kevin knock it off the only reason you can talk about this is the stockmarket went up by is the government hello opened itself up and said everybody don't worry. that's the government. by the way, i'm a examist just l -- capitalist. you can't spend it like a soert socialist, i'm with you on that.
these cowboys and we create the economy on our own and the government is bostonch of idiots the government is sometimes republican and sometimes democrat when it's republican, you tend to like it but it's the game same government by the way, when republicans raise money, you think it's okay this is ridiculous we have the best government in the world, the best economy in the world and best country in the world. we got to reinvest in it period. in order for you and i to continue to profit >> i don't care what the politics are i'd much rather leave money in the private sector tan give it to either party. there is no accountability, john, in the government. there is no individual that cares about the p&l of the government that's obvious now they can't spend within their means. here we are with a debt ceiling again. there is no way you can say any politician has account any they don't care they'll keep spending. that's obvious to everybody. now we have to make this tough decision >> we've done it before, thanks.
>> when we come back, we will speak exclusively with rei'd hoffman the co-founder of linkedin and announcing a $500 million fund raise first, though, as we head to a break. check out shares of stitch fix they're surging after the company reported a surprise fourth quarter profit. that stock right now up by more than 12% stay tuned you are watching "squawk box" and this is cnbc >> where technology helps doctors provide more precise care... leading to faster, better outcomes and puts improved health in all of our hands. because seeing a healthier world isn't far in the future. we're building it... now. ge building a world that works.
(vo) this is more than glass and steel... and stone. it's awe. beauty. the measure of progress. it's where people meet people. where cultures and bonds are made between us. where we create things together. open each other's minds. raise each other's ambitions. and do together, what we can't do apart.
. welcome back to "squawk box" the communication service discord a popular gamers as well as millions of other users recently raised $500 million in funding ranking number three on the disruptor 50 list and is valued at $15 billion. in an exclusive interview, i spoke with discord's founder and ceo. i asked him his reaction to apple epic games and wait means for them here's what he said. >> our take is that the app store has been a phenomenal boone to the world you know like companies like ours get to come to market and start selling services in a way that consumers have been you know trained to understand, it's safe when i go and they can, you
know, know that when they spend money, like if something goes wrong, apple will be there to help make sure that they you can get your money back. that's actually a big, big benefit. on the flipside, though, i do think that it's interesting to see how this conversation around what margin is acceptable is evolving because when you do have a fixed 30% margin on every transaction that takes place, some businesses just have less flexibility to innovate and to bring services to market you know, for us, it's fine. but i think about you know a lot of folks thinking about like the greater economy and how much and how because of the way that the app store papers works, it makes it challenging for companies to offer monetization support for independent businesses and creators because of that 30% margin so it will be interesting to see as it changes, what sort of new innovation and flexibility gets unlocked in the marketplace. >> as you think of nitro and other services you might layer
overtop over time, could you imagine trying to create a more direct relationship with the consumer other than leverage the ap or in app payment by apple? >> if it end alternative payments are supported, i suspect we will offer them today we also have a very popular windows and mcintosh app that a lot of people use and they pay us directly you know there via credit card, paypal. we already offer it on other platforms, it's quite popular. >> issues that confronted facebook i also asked jason whether he thinks all of this has been a benefit to discord >> the scale of the problems that they're operating on are substantially larger than ours they're also different you know, with refought a social network. i think it's important to understand you know for those of you out there around sure what discord is discord is not a social network.
there is no news feed. things don't go viral. we don't sell ads. discord is a communication service where you create a place you come together with your friends to talk and hang out i think the nature of the way that we'll use the services is quite different. do i think there is a general reaction to social media and to these ad powered business models, people are starteding to realize, maybe this stuff isn't so great for us. so our focus on building a business is very much about creating value-ad services for people, where we make something great and we sell it to our commerce and they buy it, that's how we make money off our nit t nitro service. i think there is an awareness that advertising models can have unintended side effects, it's definitely shaping what people think about what services they choose to use. >> right now with us is someone that helped fund discord early
on he joins us to talk about startups, tech and so much more. reid hoffman, the co-founder of linkedin i do want to ask you about discord. because you were an early investor in this company and they've had remarkable success >> yeah. discord is amazing exactly what jason was just saying in that interview, it's a community. it's a kind of a place where friends get together and talk a a platform where they can share multiple experience with obviously a high focus on gaming and the progress the company's made, obviously, the pandemic times where people want this ability to come together in a community has been just stunning >> i got to ask you, reid. you were also an early investor in facebook. i had asked jason whether they have become beneficiaries of the challenges that facebook is now confronting. what do you think of those challenges that facebook is confronting right now? >> well, you know, obviously, i
have been reading the same fuse that other people have the notion that you could say, hey, we have a bunch of internal reports about things that are ill health for society and not decisively acting on them would be disturbing in any circumstance so i don't know any of the truth of those americanisms. i do think the question of when you get to a certain large scale as a network and you have to think of society as a customer as well as the individuals and you have to think about what itself the right dialogue by which you're in society? this is one of the things i wrote about flip scaling and i've written about a bunch on linkedin saying, hey, make sure that you are talking to individuals and to society about what you are trying to do to be better for society and be transparent about that you should be transparent about your challenges, too then feel will trust you more. obviously, i don't know the details within the recent reporting, which parts are right. which parts are wrong. but, obviously, the pattern as
true would be disturbing >> what would you do if you were running facebook >> well, i think, you know, one of the key things here, i think all of these kind of tech platforms is you have to establish trust. because one of the things that you know put a lot of energy in the linkedin to make sure we were doing and clear about doing kind of what our rules are and how it works and why we think we're better for society in the things that we are doing i the i that communication and that revelation like for example. if i were, you know, under as much you know question as facebook is, say, look, here's, we're going to start publishing some dashboards that we're going to have audited by our auditors about what is actually happening within content patterns. what is happening in sentiment analysis or you know ability to kind of deal with questions about, for example, you know anti-vaccination campaigns or other sorts of things and to communicate transparently, look,
we are,ing who on this this is how we're doing it this is how we are making progress >> i also asked jason, i am curious about your apple epic case specifically the 30% commission at the app store it is a miracle to some degree what apple has created yet se same time you can arguer that success is so great, they have a remarkable influence on business >> i think by the way you put it very well. look, i think a part of the question vurkyou have when you e such a dominant kind of emotional platform is well you need to allow kind of free innovation within the apps and security and safety is good and all the rest and it's super important and a part of consumer choices but it's one of the things where it's actually very difficult for start-ups to get traction outside of like communication and outside of games or gaming platforms like you know kind of discord, in this environment
you know, the simplest way to say, well, how do -- how do kind of third-party developers have the same kind of openness that you'd see on the internet, that you wouldn't see on other platforms like windows, ios and enable that kind of freedom of developer and creation together with safety and controls where consumers can say what they want to see and what they don't want to see like on other platforms. >> reid, you do have some news this morning your firm is raising another $3500 million for seeds, specifically investing at the seed round what do you see happening in the valley right notice? and maybe we shouldn't be talking the valley maybe it's the country, depending on whether or not you will invest in austin or other places how do you see it to the degree that people are wondering whether we are in a bubble given the high valuations across the board? how does it change the investing landscape? >> well, i think what you see in the investing landscape is everyone knows that technology
continues to be the future, just like we've seen during the pandemic, a huge acceleration of digital transformation when people said, what itself the technology of the future well, it's artificial intelligence and crypto currency and ar and br and synthetic biology. on and on, enterprise software, cloud, all of the mobile, all these things happening so that's a part of the reason why so much capital is going into it. and when you look at that as the kind of the venture side, we say, well, if you are high company builders that you know we at grey lock are, you say, what itself the best way to be from the first check to building massive companies to scale well, we should you know double down on our historic focus of being the, you know, one of the first checks in, the partner from like work day and palo alto networks, the companies were founded within greylock all the
way through becoming ecoand system transforming. that's also true how greylock has been investing it's a way of saying let's double down on that, focus on that, communicate. because there is so much capital, the real question is not capital. the real question is help and doing. >> reid. you are always trying to find early entrepreneurs. we talked about entre newers and in china all of a sudden there is a remarkable crackdown taking place specifically on the technology industry even more broadly than that. i am curious how you perceive that what you think that mportends fr some of these big tech companies and also big tech companies in the u.s. who for a long time used to tell the government, you know what, you can't regulate us, because we're competing with these big guys over here if they're getting chopped down to size what does that do no
that a t that argument? >> if you look at what's happening in china in china it's a question of sources of authority, power of responsibility within china. i think the chinese government does not like to have, you know, other kind of pulls of places of influence to the society i think the chinese government is perfectly happy for tech companies to compete globally. that i want to maintain that domestic control they've had for many decades, it's important i actually think it's one of the things i like about the western system hey, we try to live in a multi-polar society, where, yes, the government reconciling lates the entire marketplace and there's things that need to happen in regulation and things that are good for society. but actually, in fact, we want to have multiple offerings we want to have freedom of enterprise, consumers and i think that that doesn't per se change the competitive landscape for the u.s. tech companies,
because you know china has an enormous amount of innovation and smart entrepreneurs and tech companies. i think it changes the landscape for the chinese tech companies, themselves sorry. >> i guess we're out of time here but one of the things that was fascinating in that piece about president xi the other day was that he watched in horror as facebook and twitter kept donald trump off the platform he saw that as a threat to him over there, big companies. -- are you okay with the which that's being led or is it a work in progress, the way these companies are learning to deal with what is okay to put out and what isn't are we doing a good job there? >> it's clear lay work in progress i mean, look, the u.s. circumstance is, i don't like having a leader of you know a democratic-elected leader you know kind of you know kind of
shuffle off a platform on the other hand, the question was you had all the incidents around january 6th and this question, is this insurrection, promotion of events so i had a very difficult and very unique circumstance so i think it's a work in progress per se. >> reid, they're playing music i have to ask, if you were early on crypto, what do you make of fight between the coin base and sec over regulation in terms of these interest products, should it be regulated as a security or not? >> ah, huh, in a bullet, i would say, it needs a new pattern of regulation, but i don't know how much time we have to actually go into where the parallels in security work and the parallels where the security don't. >> you know what, reid, that's a great tease for the next time you come back. >> perfect >> congratulations on the funding for seeds.
when we come back, jim cramer's first take on the markets and the trading day ahead. then an update that pfizer will be supplying hundreds of millions of coronavirus doses to poor countries more from our fda mmsicoisoner dr. jscott gottlieb will weigh in >> save time, schedule online. no wonder cvs pharmacy® is america's choice for vaccinations. i'm so glad you're ok, sgt. houston. this is sam with usaa. do you see the tow truck? yes, thank you, that was fast. sgt. houston never expected this to happen. or that her grandpa's dog tags would be left behind. but that one call got her a tow and rental... ...paid her claim... ...and we even pulled a few strings. making it easy to make things right:
that's what we're made for. usaa. what you're made of, we're made for. get a quote today. the pursuit is on. usaa. what you're made of, we're made for. the pursuit of outperformance at pgim. with deep expertise to outthink across multiple asset classes, actively managing investments in the world's public and private markets. outscale, with the resources to serve 1,500 clients in 52 countries. and outlast, with long-term conviction that looks beyond today's volatility. join the pursuit of outperformance at pgim. the investment management business of prudential. that building you're trying to buy, you should ten-x it. ten-x is the world's largest online commercial real estate exchange. and it's fast. if i could, i'd ten-x everything. like our lunch. (laughs) amazing! see it. want it. ten-x it. in the romo household we take things to the max oh yeah! honey, you still in bed? yep! bye! that's why we love skechers max cushioning footwear.
they looked att patients at high risk of disease, similar for the monoclonal anti-body they found when they give it by iv for three days, it reduces the risk by 87% and saw a reduction in medical visits a month after given the treatment by placebo of course the monoclonal anti-bodies have seen massive increase in use as we seen that surge in cases across the south. this is three days of iv treatment. it's not as ease for going in once so gilead is up less than half a percent on this news. >> ramdesivir is the drug you have to start right away to have the best reaction to it. so it stops before you build up so many, before the virus can replicate quite as much and that's a tricky question who wants to sign up when they're not that sick yet f. are
you a asymptomatic or lightly symptomatic, yes, i will get three days of an iv infusion in a hospital or hospital-like setting? >> yeah. that is the question how long will it take? how easy will it be to do that we have seen the monoclonal anti-bodies start to get used, six times more in this most recent surge as the southern states have prioritized making them more accessible now we're starting to hear about controlled distribution dithe government some governors complaining they're getting rations of these drugs. so if there is a need for another drug, will gilead ram des ramdesivir fit in? it's not sure with the paradigm. >> with the rations and shortages of the monoclonal people say i don't want to get the vaccine. i will get the monoclonal and it's a better reaction for me.
but what they're doing is not rationing. i guess it is rationing. they're going to give each state only so much based on population i believe and maybe that doesn't work as well where you have more people who are unvaccinated who would rather use this instead of a vaccine. >> well, actually, the way that they are doing it now is, they're allocating the drug to states based on their case rates and how much of the drug that they're using. so it's a change of how they originally controlled it, which was based on population. as they started to see, these states predominantly in the south where vaccination rates are lower start ordering the majority of the supply, these monoclonal anti-body drugs, the federal government did take control again to ensure if other states needed access, there wouldn't be hoarding essentially in some states that's led to a big outcry among the governors who have been depending on this and the federal government would, of course, like to see vaccination being pushed a lot more than these drugs. >> meg, thanks very much
>> thanks. joining us right now is dr. scott gottlieb, the former fda commissioner and cnbc contributor who serves on the boards of pfizer and illumina. he has a book covid-19 spread and how it crushed us and how we can beat the next pandemic can you tell us about ramdesivir and how useful it has been this is hard to pick up traction, it is difficult to go for three iv treatments. have you to be in a hospital setting. if you are not all that sick, that may not sound all appealing. >> yeah, look, this is the beginning i think of a broader counter attack against the virus. we will have a viral replication in an outpatient setting to prevent progression to more severe disease, especially in high risk patients ramdesivir has been a viral. we have monoclonal anti-bodies,
there are drugs to be taken as pills. i think you will see a steady drumbeat of new innovations. pfizer has one for the company i'm on the board of. there is merck, this drug in development a little further behind by roache. high risk individuals vaccinated and have breakthrough infections or those that choose to get unvaccinated and get infections, there will be therapeutic options. >> is this the beginning of this year, next year or later than that in. >> i think there is a potential the drugs by merck and pfizer are in advanced stages of clinical development there is data maybe by the end of the year. roche is a little further behind the drug looks promising as well the studies are hard if you try to demonstrate you prevent the aggression of severe disease if an outpatient
setting, first of all, most patients don't proing to severe disease. second of all, a lot of people have been eater infected or vaccinated against covid, so your pool of patients who are vulnerable disease is small. so it's harder to enroll those vulnerable patients. in many outside the u.s. a this point >> i guess the confusion that kicks in here, these would be things that would be easy to prescribe, easier to give, not taking place in a hospital setting? is it just a pill or something >> potentially the drugs are being formulated in the ways they could be done as pill. you could eventually have a tamiflu-like drug.
just like we have a drug for influenza in the form of tamiflu, we'll eventually have one for coronavirus. one or more of these drugs will work, if it's not one of these, there's a lot of money going into innovation across the biotech industry to look at ways to inhibit this virus. again, this is not a wily virus. all the components of how this coronavirus replicates in other settings, we have developed drugs against those targets. >> i've known a few that used tamiflu. first, you have to confirm quickly what it is you have to have a doctor prescribe you tamiflu. will the new options for coronavirus, could it be easier? >> i think it could be easier to get, that can help stall the
progression, even compared to what we have with the influenza. influenza is a shorter incubation period. although with coronavirus it's highly variable. also, the old paradigm was we didn't have home diagnostics you had to get to your doctor's office so the period was long some doctors would prescribe it prophylactically or describe it on exposure, but many doctors would wait for a confirmed diagnosis. now we have the advent of home testing for covid, and i think we'll soon have it for influenza also that should help a quick quicker diagnosis. so as a prophylaxis is, if you're exposed to coronavirus and you're at high risk of having a bad outcome if in fact you become infected, if the
drugs prove to be safe and effective, they could be used in that way as well. >> dr. gottlieb, appreciate your time once again, his new book is called "uncontrolled spread. jim, again and again you point out that a rally the next day will not typically hold, and the dow closed down, though the nasdaq stayed positive what makes it -- what heals the initial break? is it time or more down side, usually, that you're working for. can it work itself out the next couple days? both >> these are very historically very weak days anybody who bomb near the bottom on monday, because they realized these are johnny come latelies, and blew them out. today the problem is we note the
reporters want very much to trip of jay that's really what they do they sigh, let's keep peppering him, make him look bad, and by the end of the q&a, you want to sell stocks. reports don't say, jay, you're the best he as got to get rid of the press conferences. all they do is make a mockery of a really good servant. if you want to buy wait until after they make a mockery of him, and then buy. jay created this monster it's time to get away from the press conferences. all they're going to do is say how come he butte that stock and when are you going to taper? aren't you worried about inflation? isn't inflation persistent why does he put himself through this punishment?
i don't know. >> yesterday i was thinking about you from the day before, when you were talking about we don't need to, i guess, enable china to do some things it does because we need them for global growth really, the good guys, people in white hats, whatever you want to call it, if it hurts global growth, so be it because of some of the things done in china that we just don't think is okay. do you still feel that way >> yeah. >> you do? >> yes. >> president xi clearly overreached. he screwed up on this evergrande it's not lie the or rend out attacks on tv, it's not cutting back video for teenagers it's destroying foreign investors in evergrande, but bailing out the people who bought the apartment and the local investment offers, but it's 29% of their country. he's not president for life yet.
there's seven guys, or women, i don't know, who will vote for him. he just moved someone over to disrupt taiwan you have to read david ignatius in "the washington post," to realize how desire the situation. the heck with them if the economy is slow slowing, so be it the attack on human rights, you know, everybody in europe -- they have more apartments vacant than half the countries in europe, if they decide to put them all in, but everybody wants to sell into there, and it disgusts me. have some dignity. i'll follow you on twitter to see the ongoing saga. >> they're out of broke.
when they were riding high and tall, but now it's like the bronx zoo. i have to help the apes. >> they're engaged apes. >> they don't make money making fun of me. that does not make you money. up next, what to watchn o the way to the opening bell on wall street. "squawk box" is coming right back we see access to fresh food being the global norm, not the exception. at emerson, our cold chain software and technology keep perishable food at proper temperatures, to assure its safety and quality.
emerson. consider it solved. i became a sofi member because i needed to consolidate my credit card debt. i needed just one simple way to pay it all off. it was an easy decision to apply with sofi loans, just based on the interest rate and how much i would be saving. there was only one that stood out and one that actually made sense and that was sofi personal loans. it felt so freeing. i felt like i was finally out of this neverending trap of interest and payments and debt. ♪♪
before the open. it looks like the do you may be up a couple hundred points meantime, make sure you join us tomorrow nice to see everybody. "squawk on the street" begins right now. ♪ good wednesday morning david fair, premarket pretty steady here, risk-on sentiment being driven by headlines on evergrande fed decision at 2:00 p.m cajun fears ease, and as -- >> plus media is in focus. disney warns of subscriber headwinds.