Skip to main content

tv   Squawk Box  CNBC  November 15, 2021 6:00am-9:00am EST

6:00 am
later today the president is going to meet with china's xi jin jinping. plus news out that royal dutch shell is dropping its structure and saying good-bye to the netherlands. it's monday, november 15th, 2021, "squawk box" begins right now. >> good morning, everybody welcome to "squawk box" here on cnbc i'm becky quick along with joe kernen, andrew is off today. why don't we look at your money. going to check out first with the u.s. equity futures. green arrows aross the board dow futures up about 128 points s&p up by 12, nasdaq up by 34.
6:01 am
all the major averages, all of them broke a five week winning streak last week as you saw some declines that came earlier in the week if you want to put it in context, you are talking about the major averages not far from their highs. i think the s&p is about 1.25% from an all-time high. nasdaq is about 1.2% and then the s&p is only about .75% from an all-time high and you are looking at green arrows once again so the trend to the upside continues. you've been watching treasury yields this is interesting ten year right now yielding 1.553% the yield pulling back just a little bit but this has been the conundrum stuck between 1.4% and 1.6% and every time we think we're going to break out of the range there's pressure that pushes things back down. >> tapering, tapering. >> higher inflation. >> once that starts i think
6:02 am
maybe -- i don't know. it's been forever. i was thinking about what to talk about, and i was only thinking about one thing -- >> crypto? >> no. no no that i was able to bet on rutgers now. and they genuinely now belong in that conference. >> thank you >> did you notice? >> yeah. they've been doing incredibly well this entire year. it's not an embarrassment. >> they're not pulling up the rear there >> thank you. >> and the bengals had a good week. >> that i didn't see, congratulations. >> they didn't play. >> oh. there you go so they didn't lose. >> they were unable to lose. >> we'll take byes. >> crypto back to 67 i was just listening to brian talking about the nft world again. and, you know, i've got people just badgering me about different nfts, and i don't
6:03 am
know, becky. i really don't i don't know how the supply is limited. you can draw anything you want of a -- i'm not even going to mention them anymore, you can draw anything you want is that going to be worth something, do you know >> among certain classes, sure i wouldn't pay for it. >> keep drawing, do you know how many apes. i can keep drawing bored appes i'm not good at drawing but others could ape the plumber, the roofer. >> part of it is keeping a limited supply the more you have, the less valuable it all becomes. >> so it's all okay. it's all okay. >> there's a lot of liquidity out there. there's money sloshing around and people looking for places to find a new thing, to find something different, find art. you see it in every one of these markets. we've talked to christy's, all the auction houses. >> he didn't know what to say.
6:04 am
you can't dismiss nft. then i said you know what, maybe i would like a bored ape more than a rothco. >> i would prefer a rothco and that's saying something. but at least he picks pretty colors. >> are you having turkey do you know it's coming? it's a week from this thursday. >> i have a lot to do. >> you didn't know that. >> i was thinking two weeks. >> how do you do that turkey there's a way you can get it ready to go in the oven, you know >> what do you mean? >> just get it -- >> prepare it. trust me i do know of these things i work always the day after, so it's a one-day rush to do everything we can. we get help with that. >> do you ever get the turkey out of the oven when it's done and pull out the paper stuff. >> you do that before you cook it. >> i know. but have you ever done it where it's like -- >> my mother did her very first, she was like 21, her first
6:05 am
thanksgiving that she cooked. >> you can leave it in there and forget that's what i mean. >> i learned my lesson from here do you have any food items in the squawk stack today >> i don't although i was just hearing today that thanksgiving turkey prices and the entire meal price the highest ever you think every year you have higher prices but this is up 20% from what we've seen you're talking serious foot inflation. we are looking at gold, the highest settle since june but year-to-date still down 1.6% compare it to crypto up by about 2.8% this morning, talking about 65, almost 66000 year to date, up 127%. so just that trade from what used to be the inflation hedge, gold having a good year but nothing like we've seen with bitcoin. gold having a decent few months but nothing like bitcoin over the year to date look at the dollar, best week
6:06 am
since august last week, and then the dow transports mentioned they broke a five week winning streak about 8.1% off the highs that's the index furthest from the highs. >> time does fly i don't know what year it was when we used to -- what a mistake that was remember when they used to make us make predictions about things >> yes very tricky business. >> yeah. terrible because it -- predictions about the future are the hardest ones to make. >> tricky. >> yeah. i just remember one of them was everyone said gold would go over 2,000. i said gold is not going to go over 2000. i'm trying to remember how many years ago it was it's awful similar in price to where it is now. i think it was at least five years, and maybe even longer, which is staggering. staggering to people that is -- >> that may explain the nft action, too. >> staggering -- >> there you go. >> not quite
6:07 am
we're closing in on -- there are people -- i wouldn't mind if they wanted to say stay gold but they were trashing crypto the entire time, and they still do they're still like -- i've blocked them, i don't want to have anything to do with them on twit er. but do you ever say i'm an idiot. i have no idea i should have admitted it but i can't because it'll kill me to admit it and i'm sticking with this that's fine. time for a washington update president biden will sign the $1 trillion infrastructure bill into law last night he assigned mayor landrieu to make sure the money is used for how it was intended. how democrats return this week
6:08 am
to pass the social bill. centrist democrats said they'll vote for it as long as cost and revenue estimates from the cbo line up with the administration's pay for figures. we'll talk to josh gottheimer at 7:45 p.m it goes to the senate then which won't be for a couple weeks. totally uncertain future it's going to have in the senate at this point the bill is going to get signed, the infrastructure bill, but i don't know, these republican -- none of the republicans, becky, that signed it are showing up for the signing. mcconnell he said i'm glad we did it wh, but i've got other things to do. >> they've been targeted >> and mccarthy said don't sign it >> i think the targeting has been really kind of outrageous
6:09 am
and frightening, though. the idea they're getting death threats. >> you saw former president trump said that ryhinos are just -- you're just ushering in -- something to be said that it does -- maybe good things in it not all the trillion -- >> president trump every week was infrastructure week, remember >> not everything is for roads and actual physical infrastructure but broadband might be important but they make the case it's sort of like a gateway drug to the social spending plan that sort of ushers in a much greater chance that that finally happens. the republicans that put it over the finish line because it would not have passed, the infrastructure, without republican support. >> yeah. although i wonder if those holdouts from the democratic party, the six who voted no, would have been able to vote no if there was so much pressure that it wouldn't have passed the republican votes actually
6:10 am
gave them cover to go back to their base and say i said no because of what i promised you on these other things. hard to know with all the -- you never know the unknowns and what might have been the other side of things. but yeah, it does bother me the level of attacks that have come on people for doing this -- >> are you up to speed on the morning show have you seen the latest -- >> i'm behind. i started the season but i'm not up-to-date >> it sort of goes through what happened last year and one of them was south carolina and president biden when he wasn't president, he was not at that point leading. remember who was leading, bernie sanders was leading. and the party was petrified we have to find somebody else so they got biden but then biden turned into bernie sanders, basically. not into him, but everything bernie wanted is the center of the democratic party now
6:11 am
so they put in the stocking -- >> catered to the guy who brought in such numbers in the primaries. did you see the elon musk tweets back and forth >> yes, i did. i don't like ageism but i love elon i can't believe he has the -- >> audacity. >> the ability to say that and not get cancelled. it's hard to cancel the world's richest guy but to say are you still around, bernie i was thinking of it in the context that, you know, supposedly the democratic party realized that was not the center of where the country was with bernie and he'll never get elected but then we went there anyway, they went there anyway and biden became the stocking horse. bernie is in charge. >> they put him in charge of the committee to draw the stuff up and the progressives have 100 votes in the house so i -- thapgs why you see the most split and divided party you've ever seen you're bringing together some
6:12 am
pretty polar opposites trying to convince them all to vote for the same legislation. >> biden has been around for a long time. i don't know why he doesn't have the sense to be who he used to be but it's not going to happen. >> we'll see we have some news just out in the last hour. royal dutch sell said it's scrapping its dual structure and move its headquarters to britain from the netherlands they've been in a long-running tiff with dutch authorities over a dividend withholding tax they've also been hit by a dutch court over climate targets the dutch government said it was unpleasantly surprised by the news but maybe they shouldn't be money goes where it's best treated, so do companies royal shell shares up. when we come back, ge and j&j announcing breakups last
6:13 am
week we'll target three other companies that could be poised to split up their businesses that's next. later we'll talk crypto prices with binance, the world's largest crypto exchange. "squawk box" will be right back. so, you want evs, you have come to the right place. is that tom brady? yeah. he comes in to recharge, get software updates. you know. let's go!
6:14 am
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.
6:15 am
6:16 am
6:17 am
electric and johnson & johnson surprised the markets with the news they were splitting up. what other companies are potential breakup targets? joining us with a few ideas is kerry firestone. she's a cnbc contributor and, kerry, let's talk about this first with ge and j&j. you have different views of these splitups not all splitups are created equal. i think we're having a problem hearing qkerry. give us just a moment we'll try to check in again and make sure that's working she's set up and ready to go and these deals we saw last week were very different. general electric came first, j&j came next. and you were explaining what you think between the two which one you like better. >> yes i think j&j makes more sense
6:18 am
there are two businesses -- well, really three there's the health care business, drugs, medical devices and then the consumer business they all evolved naturally out of the same company but when you develop a drug and it becomes tylenol and gets sold at cvs it's not the same where you have to invest hundreds of millions of dollars into developing a cancer treatment so there's capital allocation differences, there's problems with branding. there's how you market these types of different new brands or drugs. and evolution occurs which is natural in the market has trouble differentiating in what they want to invest. who are the analysts that follow those companies who want to buy those investments. therefore it is the logical conclusion to split them up and have different companies the market interestingly did not change the price of j&j much to
6:19 am
reflect this and ge, similarly, even though there are a lot of side by side business that is didn't have a lot in common, the market moved the stock up somewhat but showed it's been efficient about thinking about these very, very different companies, and the fact that as conglomerates they haven't worked the way they might in the future but the pricing didn't change car considerably that was interesting in our opinion. >> 3m could be a candidate, why is that? >> 3m is in the scotch tape business and industrial businesses they do anything that has to do with adhesives, but beyond adhesives, types of chemicals that address cohesion and even imaging and the way to see things in a medical, health care, industrial, and consumer sense. these are not businesses that
6:20 am
really fit together naturally anymore. again, different capital allocations, branding, advertising, marketing, again a consumer product would go in a different type of fund sometimes followed by different analysts it's confusing to the marketplace if you have industrial and health care and consumer in one company as with j&j. so yes, definitely 3m would be natural to break up. >> why go ahead and move with the breakup if both johnson & johnson and ge were cheered by the market and then gave back those gains? in if the market is not going to give you credit for breaking things up anyway, what's the point? >> but this is two or three years from now so eventually i think the market will recognize that there are entities that should be looked at differently, they'll have different types of measurements to value them. when you think about consumer brands, that's a very different style of investing than a drug that's an early development that
6:21 am
could be worth, you know, billions of dollars in a few years, but takes capital and commitment and many years where you have to sort of discount the value and think through how the market would price that. so definitely over time you can put higher values on very clear defined entities where the investors can make those decisions. so yes, we think that these will be valued very differently in the future and they will be enhanced gains interestingly, if you think about your parent company, i've always wondered how the roller coaster ride of the stock market is sinner gist you can with roller coasters. >> so comcast could be another target and alphabet. we're almost out of time, run through both of those quickly. >> comcast, great cable company has bought a lot of content over
6:22 am
the years and is in the theme park business, universal studios, and could be the theme park has spun out. you have streaming as a business in content or the broadcast side of the business and then eventually just back to the -- all the cable systems, disney, wow, disney has got everything in it. google has got streaming, it's got serge, it's got youtube and the other businesses people might pay a lot for. >> let me ask you quickly about comcast. we talk about toy companies only doing well because they can kind of sell their stories into media, they want to be more and more media companies than anything else. if you spun out the parks or the content, all of those synergies supposededly there would go by the wayside. is this where we're dealing with fickleness on wall street, where what they like now is what what they liked a few years ago and
6:23 am
may not be what they like a few years from now. >> there's been a mania to own content and no one can predict what content is going to be valuable you can license it and apply it, it's just not clear that the capital investment and content is worth the price to investors, particularly those looking for a steady stream of revenue and earnings that they see as predictable. yes, it could be that it's a change in style or interest, but if you look at the numbers, it's not always the right investment. >> karen, i want to thank you for your time today. good to see you. >> nice to see you, becky. joe? coming up, did you hear from your boss over the weekend can you imagine? becky, no. you didn't, did you? >> no, i did not >> oh, god that would only be something bad i think if that were to happen if portugal that's now against the law. that's a law i can get behind.
6:24 am
as we head to break, a look at the market's winners and losers in the s&p 500
6:25 am
new projects means new project managers. you need to hire. i need indeed. indeed you do. when you sponsor a job, you immediately get your shortlist of quality candidates, whose resumes on indeed match your job criteria. visit indeed.com/hire and get started today. so, you want evs, you have come to the right place. is that tom brady? yeah. he comes in to recharge, get software updates. you know. let's go! i'll shoot you an estimate as soon as i get back to the office. hey, i can help you do that right now. high thryv! thryv? yep. i'm the all-in-one management software built for small business. high thryv! help me with scheduling?
6:26 am
sure thing. up top. high thryv! payments? high thryv! promotions? high thryv! email marketing? almost there, hold on. wait for it. high thryv! manage my customer list? can do. will do. high thryv! post on social media? hash-tag high thryv my friend! get a free demo at thryv.com. tv: mount everest, the tallest mountain on the face of the earth. keep dreaming. [coins clinking in jar] ♪ you can get it if you really want it, by jimmy cliff ♪ ♪
6:27 am
[suitcase closing] [gusts of wind] [gusts of wind] [ding] so here's the new law that joe teased up for us before the break. this new law in portugal is going to make it illegal to contact employees after work hours. companies could face financial penalties for breaking that law, including being charged higher rates on gas and electric bills.
6:28 am
it's part of an appeal to remote workers to come to portugal. the company is also considering other regulations around work from home, including a law to offset loneliness which requires a face-to-face meeting with the boss every few months and the new rule would give parent it is right to work from home without giving advance notice. you can move to portugal but what's to keep the company keeping you olyemployed if you o that >> the cure to loneliness is meeting with your boss more? >> face-to-face time. >> if you heard if you're in a hole -- >> stop digging? >> yes >> i've heard about that so you don't want to hear from the bosses >> i don't complain about not hearing from -- i would love to hear something nice. >> if you don't have anything nice to say don't say anything at all, it's bambi, right?
6:29 am
>> not holding my breath so so it's better, let sleeping dogs lie. >> i guess it was thumper's mother who said that. >> let sleeping dogs lie i'm fine the way it is portugal seems beautiful very pretty shots. >> it is when we come, president tr trump. when we come back, president deand president xi are preparing for a virtual meeting tonight. squawk will 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.
6:30 am
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 smart phone.
6:31 am
6:32 am
good morning, everybody. welcome back to "squawk box" here on cnbc it's a monday morning and so far futures are looking up when you're looking at the equity markets. dow futures up by 137 points s&p up by 13 nasdaq up by 37. it was down week last week but you did have higher trading on all three of the major averages on friday. on this week's squawk planner. the retailers reporting, home
6:33 am
depot and walmart tomorrow then target and lowes on wednesday. and alibaba and macy's on thursday we'll get retail sales and import prices tomorrow housing wednesday and jobless claims on thursday president biden is preparing for his first virtual meeting with china's president xi jingping i don't know if it's like in the metaverse but i guess we are headed that way. among the issues expected, trade, technology and the u.s. position on taiwan eunice yoon i believe the physical eunice yoon joins us now with more. hey, eunice. >> reporter: hey, joe. so there are a couple of different key points that i think investors are going to be wanting to look at that are going to come out of this virtual meeting. and the first and most important is that taiwan is going to be a major priority the chinese have been messaging
6:34 am
this with several editorials saying that taiwan is ultimate red line for china and that president xi is going to warn president biden to, quote, step back from any perceived support for an independent taiwan which china sees as a breakaway province and that the u.s. upholding the one-china policy would turn up the brightness on ties a senior administration official also said that president biden would reiterate the u.s.'s long standing one-china policy. so that could potentially be good news. nothing likely to be resolved. but this issue of taiwan, as you guys well know, has been a nonfinancial tail risk for investors. so the fact the two sides are coming together to have this conversation over this important issue could actually help to ease tensions. another point that has come out of this meeting is that the economic issues arelikely to
6:35 am
take a backseat. the senior administration official said that supply chain issues as well as tariffs are not on the u.s. agenda, even though, of course, trade as well as industrial policy of china is going to come up as issues the chinese state media have also referenced tariffs saying that tariffs are more of a u.s. business problem and that biden is the one who's under the pressure because the tariffs are going to put more strain onto a lot of u.s. economies, stoking inflation perhaps and so, in other words, the chinese don't or at least openly are saying that this isn't so much of a major priority the chinese have also been down playing the deliverables out of this as have the americans now whether or not you see this as a positive or negative, i think really depends on whether or not you're a half glass full person or a glass half empty
6:36 am
person so half full you can say that's great because economic policy isn't going to be super disrupted. we're not going to see any major changes, but if you're a glass half empty person you're likely not going to see a lot of relief on certain issues like tariffs or sanctions guys >> a lot on this latest glasgow. the journal has an interesting piece -- it's "the wall street journal" but implying that the united states kind of got played by china they're going to continue, they made a few concessions they may or may not live up to, going to continue to build up coal plants while we agree to cut our emissions in half and china doesn't mind if the u.s. punishes itself with higher energy costs because that plays into its hand as well. and china can get other concessions on the other issues you're talking about by pretending to play along with
6:37 am
this other stuff, eunice i'm glad i don't have to figure this stuff out i'll tell you that much. >> i mean, we definitely see the chinese trying to shift the conversation away from some of these bilateral issues that are important to the u.s. and that other countries actually have with china such as human rights, for example, so anything that has to do with uyghurs or, you know, taiwan, hong kong, things that the chinese believe is a domestic affair, but they have been trying to steer the conversation to climate change and pushing back, even though the americans say they don't want these two issues to be linked. >> we better build some semiconductor foundries in this country. i don't know how long we can count on taiwan semis. coming up, bitcoin prices rising again this morning. the ceo of one of the world's biggest exchanges joins us live
6:38 am
after the break. plus don't miss the interview with the ceo of frontier airlines on the new airbus order. a mier yrendou can listen to us any time on the cnbc app. so, you want evs, you have come to the right place. is that tom brady? yeah. he comes in to recharge, get software updates. you know. let's go! at calvert, we know responsible investing is hard. if you're concerned about the environment and climate change,
6:39 am
how do you find companies that are driving the right outcomes? if you care about economic equality and social justice, which firms are addressing it in their workplaces and their communities? for nearly 40 years, calvert has delivered competitive returns by investing in companies making a difference. because we see value in doing good. talk to your financial advisor about investing responsibly with calvert. your shipping manager left to “find themself.” leaving you lost.
6:40 am
you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates matching your job description. visit indeed.com/hire finance the world's largest crypto exchange has shown
6:41 am
unbelievably expensive growth in crypto in the past year. a new report from "the wall street journal" says each day binance is trading $76 billion worth of cryptocurrency more than four of their largest competitors put together joining us now to discuss more is binance's ceo great to have you on i'm trying to see if we know where you are cz, because that's been a -- something that you've been talking about for years are you in singapore >> i'm in singapore right how. i was a paris the last two weeks and then in dubai the month before that. >> your story, it -- i see why you have almost a conult-like following. your story is amazing how it happened but i think you agree you're at a seminal point in terms of welcoming, i don't know, more regulation maybe more clarity
6:42 am
about how everything is being done just because it's gul tuysuz -- done just because it's getting so big now, there's no point around it, you're not centralized, domiciled anywhere where you can be subject to regulatory agencies. so just to concede that's coming and to be part of doing it instead of against doing it is in your best interests right now? >> absolutely. i think right now we -- as a pivotal point and we need to change from a technology company to a financial services company. we started this process four or five months ago and we have done a lot since then it's clear for centralized exchange we need a centralized structure. so we are setting up headquarters, offices, regional offices, branchs et cetera we have physical location, we have real entities, et cetera. so that whole -- when we started, we started decentralized organization but as the industry gets bigger the regulators are looking at
6:43 am
the industry and the centralized organizations, the regulators don't know how to work with centralized structures so we're setting up the structures now we believe regulations are good for the industry right now good for adoption around 5%, 450 million people around the world have crypto for the rest of the 7.5 billion, they probably prefer some kind of regulated entity with more structure. we think this is better for the industry to grow >> there was a cache to the way you did business prior to what is going to become a reality, i think, cz, because, you know, crypto is decentralized, you were decentralized crypto is anonymous and there's a cache to the privacy involved. but it can't continue. you're just too big. i don't know what happens with the binance usa. you had a former regulator and
6:44 am
brian is now gone. if you were able to do an i.p.o., i look at -- i look at the kind of money that you could raise or i look at what -- what do you think binance is worth right now if you were able to get all your regulatory ducks in a row? 300 million? >> well, people have talked about the number, valuations are very subjective. i think basically we should be one of the very -- one of the most valuable companies in in the world. and i think we built something that's very valuable and we fully want to embrace regulation to that point we have released a bill of rights, and yeah, so we hired many exregulators, exgovernment officials brian brooks did leave us but we have more joining us than leaving. there is turnover on the team,
6:45 am
inevitable but we have way other senior people we have senior people from the u.s. treasury. senior people from uki,senior people from uk so we have many senior people joining s. also in the crypto industry it's not black and white. there are groups of people focused on decentralized technologies, structures, et cetera most of those projects are relatively small today if we look at where all the wealth is, most of the wealth is the traditional financial systems we need to build a bridge between those tw and binance wants to be the bridge and so we need to be fully licensed and have centralized structures because the finance centralized exchange has a structure, doesn't mean the whole crypto has to be centralized. we invest in portal calls, game fie nfts, sports fan tokens, et
6:46 am
cetera there's a spectrum of things one of our largest businesses, the centralized exchange is large enough it has to be regulated. >> i think about the promise for the 98%, 97% that you're talking about, those are going to be the beneficiaries of crypto, cz. and you do need to make it so that, you know, know your customer and make it safe and secure and make it in terms of privacy. it's almost like you have to go in -- i don't know you're going to have to domicile somewhere. you're going to have to to change because you can help fulfill the promise of what this could be to the unbank, the people living in countries that have inflation rates where they work hard and have nothing left. so we're almost out of time. did it matter that china took those draconian steps, cz? >> china affected the china
6:47 am
market so we were out of that market since 2017 it was blocked by the china firewall since 2017 so we weren't able to service that market since then. so it didn't have an impact this time so china just blocked itself from the sort of main stream crypto industry. and for us, we already taking the steps to be fully compliant. that's already happening >> we want to -- we're going to need to talk to you -- i hope you come on a lot on "squawk box," cz and update us it's moving so fast. and it's hard to go from the wild, wild west to, you know, to being regulated and above board and decentral -- all these different things it's going to be somewhat painful, the growing pains but we want to get updated how it goes for you. >> we have always been above board, we just getting regulated. >> we couldn't find you. you were like, i don't know
6:48 am
somewhere interplanetary. >> i gave you the two month history where i was, singapore, paris, dubai >> i got it. >> thank you for having me, joe. >> you're welcome. thanks for coming on i want to see you again, cz, hope we can do this frequently. when we come back, food prices on the rise the price of meat, fish and dairy jumping 11.9% from a year ago. up next talk to a major grocery ceo. s "squawk box" will be right back. i'm so glad we did this. i'm so glad we did this. i'm so... ...glad we did this. [kid plays drums] life is for living. let's partner for all of it.
6:49 am
i'm so glad we did this. edward jones so, you want evs, you have come to the right place. is that tom brady? yeah. he comes in to recharge, get software updates. you know. let's go!
6:50 am
6:51 am
ready. if you've been to the grocery store lately, there's a good chance you've experienced sticker shock. the price of groceries is 5.4% higher than a year ago
6:52 am
why the concern over rising food prices the global food retailers brands include fresh direct, giant and more this is a pretty concerning time for grocery store shoppers you hear 5.4% overall but that masks other areas. chicken up and steak up almost 25%. huge sticker shocks for us and i'm sure it is for you too >> thank you for having me this is more inflation than we saw last year. we measure in the northeast and cpi of roughly 3% in september we think inflation will moderately grow over the next quarter. our role is to negotiate those prices down and make sure with our companies we talk about what
6:53 am
is legitimate and what are realistic price increases. we have seen 30% in the u.s., 30% private label and 15% in europe with he know this is over raw materials, packaging, energy, the components i think we are on top of this to make sure we give customers the best prices. >> i was impress when you said you raised prices on the full year that is a statement when you are dealing with all of these items. do you pass this down to consumers or how does that price takeoff? >> it is a great question. we are roughly 150 years in priz so experienced dealing with
6:54 am
inflation. it is crucial. we are well informed in our economists and we know what we can expectnd what the legitimate price increase we can also convince customers when we see prices going up for meat and eggs and fish, then we can pass on those prices when we are real and realistic we think in the coming first two quarters will still be there but go down after that but will do so with the global market. our job to work on that. at the same time, with he sioux see we have a lot more online shopping coming out of the pandemic people eat more at home, work more at home most of the people would like to eat healthier. that's what we learn you had out of the pandemic.
6:55 am
the u.s. and europe, we still far from out of the woods from this covid-19 pandemic the super market sales are pretty strong. the consumer is also supported by that. a strong consumer in the u.s i think we are pretty confident by the last quarter of the year too. >> we've talked about inflation in the united states and how there are a lot of places seeing inflation. you are so strong in europe and the united states, which categories are inflation that are global and are there other areas that are more u.s. or european centric >> in europe, we see pasta going up everywhere. in the u.s., you have already indicated meat, dairy, eggs.
6:56 am
for the year end, we have already bought turkeys in the summer that is already secure we did buy some forward buying so the east coast of the u.s. can have a decent holiday season and christmas or hanukkah or christmas with their families. >> what about wage inflation that said 37% of front line workers in places like food, hospitality wanted to quick because they are working too much and not getting paid enough >> in the u.s. is a challenge. the availability of labor. a lot of people worked very hard during the pandemic.
6:57 am
that means in the market but i'm very proud of our people we are not out of the woods. we see a shortage of labor and a challenge supply chain in the u.s. in trucking or colleagues in our industry that is not easy and we've seen gig workers as well. >> thank you for your time we hope to have you back soon. >> all the best. stay safe. coming up, congressman josh gottheimer this is your guy expected to play a pivotal role in the build back better bill. he'll join us in a couple of
6:58 am
minutes. be right back in the nasdaq market site when we return
6:59 am
watch: serena williams... wonder woman.... serena... wonder woman... serena... ace. ♪ ♪ get your tv together with the best of live and on demand. introducing directv stream. so, you want evs, you have come to the right place. is that tom brady? yeah. he comes in to recharge, get software updates. you know.
7:00 am
let's go!
7:01 am
>> the president expected to sign the infrastructure bill today. a virtual face to face the president and china's xi jinping preparing for the first one on one we'll layout what is expected to be discussed the federal appeals court freezing the covid mandate we'll talk to dr. gottlieb and the possibility of an up tick of cases after the holidays good morning welcome back to "squawk box. definitely a monday in time
7:02 am
square already 7:00 along with becky quick, i'm here andrew is off today. u.s. futures are bouncing back a little had a down week across the board last week. that's been rare broke a string of five s&p up 12. dow up 118 nasdaqup crypto is up the 10-year is about 1.5 >> you were talking all the b's. build back back. now i have paula abdul b, b, b, bye do you love me stuck in there >> tesla shares are falling
7:03 am
after sliding mo than 15%. news elon musk sold almost $7 million shares he said he would sell even more ifs that what bernie wanted. we'll see. that stock down 2% offering workers new incentive to avoid a repeat of last week's cancellations. flight attendants and pilots could receive as much as $1,400 if they work at least 36 days between now and through the holidays same foreground crew as well deere workers to reach a pact. workers have been on strike and
7:04 am
rejected both previous agreements thanksgiving just over a week away a week from thursday besides food, it is the unofficial start of the holiday shopping season. i don't like shopping. i like food and pie. >> you probably like receiving gifts. >> nothing i don't have. what do you get the guy who has everything >> someone who knows how to bet on football games. go ahead >> that could be helpful to finally win your fantasy draft. the first big forecast for the thanksgiving week shopping
7:05 am
stretch. master card spending expects total retail sales to grow 10% over last year 12.2% compared to thanksgiving in 2019. black friday sales increased 20% year over year shoppers expect to return to snap up in-store door busters. what is old is new again many retailers closed on thanksgiving those factors have changed stores are going back to traditional turkey day traditions and staying closes. growing 17% from 2020. so many consumers just shopped from the safety of their homes thanksgiving week compared to nonpandemic thanksgiving week. p e commerce will be 50% higher.
7:06 am
luxury highest fraft to grow 92% with aware at 56% and department store sales growth more than 40%. those department stores are getting another shot toimpress consumers, they better not blow it back to you. >> and christmas is coming we've done thanksgiving and how much is that going to cost the seven dancing ladies and geese a laying what is the price of that going to be? every year, we add up how much it would cost to put on that christmas carol. we haven't done that yet >> i bet we will i bet it is in the cards somewhere. >> have you heard we really shouldn't be worrying inflation
7:07 am
because we saved up so much money over the pandemic? did you hear someone say that? not to worry >> obviously inflation is going to hit consumers the most. those are probably those the hardest hit during the pandemic. i was just looking it up the 12 days of christmas in 2020 was $16,168 which was down 58% i'm trying to figure out what dropped so much. >> interesting >> here is why nine ladies dancing, 10 lords a leaping. they maxed those out at zero
7:08 am
because of covid and said you couldn't do any of that. >> there you go. they are all back. some is of them are back we'll see. we'll see what is costs for 2021 we'll get an out look the prices for 26 and what it means for oil stocks before we head to break, we are seeing green ar owes nasdaq up by 37. "squawk box" will be right back. . uh carl, are there different planning options in here?
7:09 am
options? plans we can build on our own, or with help from a financial consultant? like schwab does. uhhh... could we adjust our plan... ...yeah, like if we buy a new house? mmmm... and our son just started working. oh! do you offer a complimentary retirement plan for him? as in free? just like schwab. schwab! look forward to planning with schwab. so, you want evs, you have come to the right place. is that tom brady? yeah. he comes in to recharge, get software updates. you know. let's go!
7:10 am
7:11 am
welcome back to "squawk box. couple of headlines royal dutch shell says it is going to scrap the structure and move headquarters and drop royal dutch part of its name they've been in a long struggle
7:12 am
and shifts from oil and gas to renewables says it was unpleasantly surprised. hedge fund mantle ridge taking a stake in dollar tree wanting to use that stake to force some changes including replacing some board members checking on the shares of dollar tree, you can see responding positively up more than 6%. bitcoin up over the weekend. a big deal for the world's popular cryptocurrency allows for greater transaction and will unlock potential for smart contracts and will eliminate middle men from the transactions as a result, up by 2.5%.
7:13 am
when we come back, problem solvers cochair on the infrastructure spendinplg an the steady rise of covid infections we'll be right back. at pgim, the pursuit is on for outperformance. as active investors, to outdeliver with customized strategies, integrating esg best practices into our investment decisions. as asset managers and fiduciaries, to outserve, with our commitment to better esg outcomes. join the pursuit of outperformance at pgim. the investment management business of prudential. what the world needs now... is people. people who see things... just a little bit differently. who go out of their way to find a new perspective and a new way forward. because seeing a smarter, healthier, cleaner world isn't something that's far in the future.
7:14 am
it's something we're building... now. ge. building a world that works. this is hannah, she's a posh virtual receptionist at the ready 24-7 to answer your calls and assist your clients. you can't be in two places at once. let posh answer. posh virtual receptionists.
7:15 am
what does the future of strength look like? ♪ it's a personal trainer that assesses your strength and adds weight as you progress. it's dynamic weight that adjusts for you in real time for a more efficient workout. c'mon! and it's a roster of coaches that motivate you to get stronger, faster. the future is strength you can feel and results you can see. and you can only experience it... (sigh) ...on tonal. ♪
7:16 am
airbus shares popping after receiving an order of 255 new aircraft from indigo partners that owns front year, and jet smart. airbus shares up 2.4%. ceo of front year will join us live at 8:15 a.m. eastern time check out shares of evgo that stock off by 7.7% that stock over a week ago
7:17 am
that tells you the storythere. barry diffle not the build back better bill >> am i a page in your history book >> i don't know those lyrics that well. did you see paula abdul. she did it the same moves on that famous video. they look identical. >> no. go girl. paula abdul. remember when she was on and
7:18 am
listened to steve liesman. she has taste. she wasn't she was like yeah steve. >> i thought she started howling. >> that was you. disney's "eternals" topped the box office the film's take dropped 51% from last week. is any of that film not cgi? second place went to "clifford the big red doing". >> definitely not cgi.
7:19 am
brought in $16.4 million over the weekend. still to come, the $1.25 trillion infrastructure bill what it means for the economy. president biden and president xi set to meet virtually. wael hear from a former national sec security about what to expect. we'll be right back. so, you want evs, you have come to the right place. is that tom brady? yeah. he comes in to recharge, get software updates. you know. let's go!
7:20 am
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.
7:21 am
7:22 am
welcome back to "squawk box. it is a monday morning dow future up by 112 points, nasdaq by 31 and s&p by 10. still, we were talking about this earlier this morning. all of these are pretty close to striking distance of new highs
7:23 am
too. take a look at what happened overnight in asia. green arrows for the nikkei, hang seng as well. look at what happened in shanghai more of the same in europe green arrows as well dax up and cac up by half a percent. ftse is down treasury yields. watching that too. the 10-year is yielding 1.555% kind of range bound there but we are not at the levels we had seen early last week gold had a high week last week
7:24 am
year to date down by 1.6%. not the case when you are considering crypto more the inflationary health we are seeing today crypto up by 2.5%. up by 127% where the real gains had been found. looking more year to date, you'd be seeing higher gains $65,744. there's a reason most things are reopening. yet, the fed isn't really reacting to the reopening like it would if it thought it was totally out of the woods staying totally easy and we are in the middle of a really strong
7:25 am
reopening with all the jobs we have >> we are below 5% again in terms of unemployment. >> 4 million more job openings than people looking for jobs right now in china, president biden and president xi jinping set to
7:26 am
meet it is great to have you on, general. what is the temperatures right now. how would you describe it. when you go to bed at night, can you sleep? >> sure, joe i think it is pretty good. we have finally acknowledged we are in a competition we assume cooperation and engagement with china with change china china would play by the rules. it would liberalize its economy and form of governing. now we know for sures that not the case and we have to compete. we have to do everything we can to compete effectively and build
7:27 am
a better future >> the people who haven't gotten the memo are on wall street. i don't think they've factored in the risk. all we have to do is pay attention to what xi jinping is doing to business, his own people and internationally as well i think we have to wake up to the fact that chinese communist party is determined to wake up and become more and more effective externally and compete more effectively and stop underwriting our own demise.
7:28 am
the flow of funds into china to allow the chinese communist party over return investment we are strengthening the party's strategy >> it is almost the forbidden market you can't tell starbucks or nike to ignore the 3.2 billion people it is this weird thing where we almost have to get in bed with total tar yanism i don't know if the government will have the spine or backbone to deal with it. you saw what happened in
7:29 am
glascow. what did they promise compared to what we promised. talking the net zero emissions building 50 to 70 coal fire plants a year. the biggest emitter and is doing nothing to help in the area of global warming and emissions this should be the number one esg issue. how about genocide should that maybe be an esg issue. maybe it is time for businesses to take an oath. firstly, do no harm. first, don't help the chinese
7:30 am
communist party to gain an advantage over us military or gain an unfair advantage to the global driven economy. second, don't help the party extend and title its exclusive grip on power through the establishment of this technologically abled police state. and finally. this is really important for businesses don't help the chinese communist party drive you out long term. we've seen this with so many companies. for the market to compromise and transfer property and know how they take it and subsidize these companies that then use your stolen and transferred property. dump goods on the international
7:31 am
market and low price to drive you out of business and reduce the market globally as well. this has happened so many times now. let's not continue to repeat those errors >> you probably still have good security clearance do you know things i don't know about what is going on with taiwan how long do we have? we heard president biden say, yeah we'll be there to defend taiwan. what will happen does china know we probably wouldn't would we do anything >> you don't need a security clearance. you have to look at what's happened lately since the pandemic china forced covid-19 on the world. they attacked and persecuted
7:32 am
anybody. they added insult to injury. they've bomb more and more aggressive blujonning indian soldiers to death. building and weaponizing islands in south china sea this huge campaign of economic coersion against australia the sustained campaign of es pea espeonauge we are in a race to establish deterrence by denial to help the taiwanese and more to convince the people's liberation of army
7:33 am
they can't accomplish their objectives in taiwan without a use of force we are entering a dangerous period and next year, xi jinping will be anointed basically. they have a fleeting window of opportunity to accomplish the objectives in taiwan sadly, they think we are weak now especially after the draw from afghanistan a very dangerous time from the winter olympics i think the party could act. i'm telling you, joe what we should tell them is your
7:34 am
access to the dollar economy is really what's at risk. we have military deterrence that is digestible. i think we ought to tell xi jinping, listen, if you attack taiwan, you are done financially and economically >> okay. that's why i asked how you were sleeping i'm going to take your word for it, general. great to have you on stay tuned we'll have you back hopefully. we'll see how it goes today on this virtual meeting >> thanks, joe into president biden will sign the $1.25 tril flion infrastructure bill. with us, the cochair of the bipartisan problem solvers
7:35 am
caucus thank you for being here this is a bill that passed with bipartisan support every state and district will have some money headed its way for insta fa structure how soon will we see the money >> it is a huge win for the country. for democrats, republicans for every state. we are talking roads, bridges, rail, transit, broadband, water infrastructure in jersey, we'll get the gateway tunnel that is over 100 years old currently crumbling. we'll get that replaced. on every front, this will be key to not just fixing the crumbling infrastructure that is not competitive now and create 2 million for jobs in the next decade >> what comes next with the
7:36 am
second bill. this is the one where there is not democratic con census and one you've been kind of holding out on you said you would vote for this if they show it is paid for. what are you anticipating that number and what happens if it is not paid for >> we've asked to make sure we see more data from the budget office on revenue side and obviously on the investment side we expect to get that data and for it to matchup from what we receive from the treasury department and white house to be able to move forward becky for northern new jersey, build back better is critical. one of the things we've talked about a lot to get tax cuts for people here in northern new jersey it includes critical investments for things like child care,
7:37 am
universal pre-k. we have been working on it for months to get more target in focus. good for jesse we wanted the time to make sure we look at it and analyze. doing that over the last week to feel good about where it is at and we can move forward. >> senator joe manchin thinks they are playing with numbers here the link has been shortened. if the score comes back and says this is too expensive and salt is part of what pushes that over the line, what will you do salt and part of this or getting any deal done? >> i've always said no salt, no dice that salt is actually paid for in the way it is structured. that's not a concern part of why we have asked for more data is to look at this and analyze it and make sure as joe
7:38 am
said that we analyze it properly i thinks that a responsibility to take the time through every page to go with it i think it is a great pill in terms of reinstating the taxes to make things more accountable. just like the infrastructure bill, which the president will sign today it took a long time to get democrats and republicans together to agree. we got there now we can get to work and get these resources out and helping our communities. >> there was a lot written and speculated in parties right now. the squad members might have voted against it we have help from problem solver republicans that came along to
7:39 am
do the same thing. we helped write the bill in april. democrats and republicans in the house and senate did the things the way they should have the resources, roads, bridges and rails and ports will really help in the end by doing it that way. obviously, there was disagreements in the democratic party but we got it across the finish line. >> what did you think of the results in new jersey in that squeaker of a raise. you saw his opponent concede about three days ago it took him more thand a week and a half you because the vote was soclose.
7:40 am
they want to see us get it done and to talk about it and explain it there hasn't been good action on that front when i go around this week talking about diners i get a lot of them. people want to know how they are getting salt back, making life more affordable and fixing potholes if we don't complain that to them, then shame on us not just the election. you are seeing 65% say where the
7:41 am
government is doing too much forecasts for next year might be the worst in 50 years. maybe not buts that what is indicated. not because it is built back better what is he doing signing on which basically uses the slight of hand to get to $1.4 trillion. americans i always hear how popular. the tax increases and the move forward is so popular. first of all, 58% support the
7:42 am
build back better. in jersey we are getting tax cuts we are taking taxes lower. >> that's a whole different issue all the increases, you are fine with all of those other increases because the constituents that crazy. >> in new jersey, it is working class, middle class families here it is the cop and the teacher getting a tax break. i'm for lower taxes. if you want to raise them in northern new jersey, that's on you. this bill will lower taxes in my district in new jersey that's what i'm focused on >> great to see you guys great to see you becky, i hope you'll have me back soon.
7:43 am
>> i'm here too. disappointed again >> don't be. we are getting salt and the bipartisan bill signed today celebrate. celebrate unity, joe come on. >> all right, josh thank you. a big week for retail. we'll hear from home depot walmart and lowes and home dotep on thursday. they are up as usual we'll be right back.
7:44 am
so, you want evs, you have come to the right place. is that tom brady? yeah. he comes in to recharge, get software updates. you know. let's go!
7:45 am
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
7:46 am
a more than $10 billion deal announced. american tower acquiring core site realty. the price $170 a share in cash closed at 156.59 on friday this morning, up about 2%. shares of oatly tumbling they did report a smaller than expected quarterly loss. faced a number of covid-related challenges that stock down by 14%
7:47 am
when we come back, dr. gottlieb will join us about the uptick of covid cases and freezing the federal mandates put in place by president biden. av> thanksgiving is next week. trel time and front year's airbus order you are watching "squawk box" on cnbc didates matching your job description. visit indeed.com/hire
7:48 am
so, you want evs, you have come to the right place. is that tom brady? yeah. he comes in to recharge, get software updates. you know. let's go! small businesses like yours make gift-giving possible. now, comcast business has an exclusive gift for you. introducing the gift of savings sale. for a limited time, ask how to get
7:49 am
a great deal for your business. and get up to a $500 prepaid card with select bundles when you switch to the network that can deliver gig speeds to the most businesses. or get started with internet and voice for $64.99 per month with a 2-year price guarantee. give your business the gift of savings today. comcast business. powering possibilities.
7:50 am
western states including colorado and montana seeing an uptick of covid cases. joining us now, dr. gottlieb, cnbc contributor and serves on the boards o illumina at this point in time where are we in the dealta phase of the pandemic from the other side of it, that you were predicting, but we see some troubling numbers in pockets around the country >> look, some -- if you're in the south or southeast, things look good and are likely to say that way, if you're in the pacific northwest things are looking pretty good. in the plains states, some of the mountain states, cases are coming down quite sharply, but
7:51 am
if you're in the southwest where there 40 to 60 cases per 100,000, in the great lakes states, in colorado, parts of nuns, like new hampshire or vermont, things don't look so good this delta wave, likes all the prior waves, is hitting different parts of the country, but there are parts of the country that are just beginning to see the delta infections pick up those happen to be populated states we could see the national numbers go up, and also states with big media markets, so that could affect the mood. i city think we're going to be cases pick up -- just to put this in perspective, one final point we're at 24 cases per 100,000 per day. things are picking up, but
7:52 am
picking up slowly. cases are up 9%, but hospitalizations are down 10%. i think that's a best-care scenario i think we get a month, six weeks of a flattening, and then after we get through the holidays we start to see cases decline again. >> alarming and some, i think -- two alarming headlines out of europe, in germany, austria, and then the intimation this could be a possible future for us. what is happening over there is it something that we can expect here or dread to expect here >> well, first of all, put germany in perspective they have about 33 cases per 100,000, we have 24. they're not in much worse shape than us. mostly in the old eastern part
7:53 am
of that country, and there are regions very under-vaccinated. we know that delta finds its way into pockets of vulnerability. germany has big pockets. vulnerability. overall, the vaccination rates look pretty good, but the people who are unvaccinated tend -- germany has had a lot less prior infection than the u.s we need to account for the fact we've had big waves of infection. germany is nowhere near those levels they have largely controlled this better than us historically even though their vaccination rate is higher, their overall level of immunity is probably substantial lower than ours. we have earned a lot more immunity the hard way. >> any variants on your radar right now? there's a new one, i saw, but
7:54 am
they haven't seen it much, even since october. it's unclear whether it's more or less contagious anything that you know there >> nothing that we have seen the variants emerging are mostly win the dealt ra lineage, so it speaks to the question we're talking about, whether delta will rob the -- there's sub-mutations, sub-lineages of delta. we haven't seen anything that's more contagious or seems to have a competitive advantage that defeats the vaccines or mutates, that's encouraging it's going to be hard for something to come along that's substantially more contagious. you worry about something that
7:55 am
escapes the immunity by prior infections and vaccinations. that probably will happy over time, but hopefully you don't see a dramatic shift. >> so, scott, in three years, what do you see? possible annual shots? do you see therapeutics being in pill form, so that we feel much better about our options if, you know, we do see it come every wind do you see a lotof people stil wearing masks walking around outside? driving alone in their cars? >> look, i see this being something that's managed like the flu. a lot of people have already had it, there's a high level of immunity we have effective vaccines, effective oral therapeutics. we change our practices not only because we're still fearful of covid, but the twin risks each
7:56 am
winter forces us to be more cautionary around respiratory pat pathogens, i think when this delta wave has sweeping across the population, this will become far less fearsome. you will still see cases every day, but hospitalizations and deaths will fall, and this is something that's still deadly, but manageable, we have the tool to manage far more effectively than in the past. >> so it's going to be around. it is different in different places new york there's not a lot of mask requirements. in philadelphia, everywhere you go, masks indoors. >> western pennsylvania is having a big outbreak right now, as is upstate new york we don't focus on those regions. there's pockets of the country
7:57 am
that have a lot of infections, but it is unvaccinated >> it's mostly dense regions of unvaccinated people, so pockets. we're not seeing wholesale reinf reinfections the cdc isn't looking hard for that, so we could be missing it, about you if it was happening on a widespread base, we would be seeing it. thanks we're going to talk about former tesla president john mcneil on the future of the industry and barry biffle will join us. you're watching "squawk box" and this is cnbc
7:58 am
firefighter maggie gronewald knows how to handle dry weather... ...and dry, cracked skin. new gold bond advanced healing ointment. restore healthy skin, with no sticky feeling. gold bond. champion your skin. with no sticky feeling.
7:59 am
today, your customers want it all. you have to deal with higher expectations and you have to lower wait times. with ibm, you can do both. your business can unify apps and data across your clouds. so you can address supply chain issues in real time, before they impact your bottom line. predicting and managing operational issues that's why so many businesses work with ibm. so, you want evs, you have come to the right place. is that tom brady? yeah. he comes in to recharge, get software updates. you know. let's go!
8:00 am
good morning it's infrastructure day. president biden expected to put his signature on the bipartisan agreement at a white house ceremony, but he'll have more work later this evening, biden and chinese president xi jinping are slated to hold a virtual meeting, theirs first as leaders of their
8:01 am
respective countries we'll bring you details. the president is expected to name his pick for fed chair soon we're going to take you through the arguments to the two top contenders the final hour of "squawk box" begins right now. good northern. welcome back to "squawk box" here on cnbc i'm becky quick along with joe kernen andrew is off today. this morning we have seen some green arrows the dow futures up, s&p up, and when it comes to the treasury market, the ten-year has been yielding above 1.5%, but below 1.6% joe?
8:02 am
>> for more on the markets, let's get over for senior markets commentator mike sa santoli. mike, 25 years we have done this show without a jacket. 25 years 25 years >> yeah. >> 25 years. you and wapner what was the story there >> you know, we wanted to accentuate the fact that we were mere fill-ins and weren't sure we were qualified for the job. [ laughter ] >> yes, you're right, we did shake up the look there. becky was not there to enforce pro protocol. >> jack et if you want to. >> thank you pretty orderly, resilient response, i would have to say to last week's hot inflation numbers, s&p down about a third of a percent
8:03 am
the stock was actually break even the market did cool off a bit. one week ago we suggested things were getting a little overheated, things like that, you know, a week of flat is not necessarily bad in that context to actually calm things down the high intraday, so we're in the zone a lot of times the seasonal effects, the upside inertia maybe will overtake what still looks like a bit of extended sentiment and positioning. everyone thinking we're getting the year-inderally, but for now the market looks like it's in pretty balanced footing. the fact that it does seem to break out above a multimonth range, you see how it was doing almost nothing a shot higher, we definitely have given a bit of it back, but
8:04 am
still above where we were. and then, you want to look at some of the cyclical sectors here, semiconnectors here. they look pretty similar in the year-to-date performance so gold has perked up. >> the yearend stuff, do we need to know what will be in the next reconciliation bill? do we know to know what tax policy looks like next year? as we go into december >> you know, i don't -- first of all, right now it doesn't seem as if a lot of the game-changing
8:05 am
tax measures are really in play. to me it's as though the market has seized up with concern about those things you know, a lot of times what happens is whatever the big concern is at the end of the year, you know, whether it was tariff stuff a few years ago, or whatever it might be in the fed, usually -- they often kick it -- the yearend inertia takes hold, and then in january you have more focus on that by the way, people have disincentive to sell and realize capital gains at the end of the year, so all of those things i think are in motion. i wonder if there's one thing -- if -- if we had a playbook for what was going to happen, it would be nice to know what oil does brian sullivan earlier talking about people buying calls at $200 not small amounts of money,
8:06 am
either >> look, i'd like to see that. if everyone feeling there's no way to go but up -- we haven't had a high in a few weeks. >> keep our fingers crossed. thanks. >> yeah. the current fed chair, jay powell, and fed governor lail brai brainard kayla >> becky, the power of the fed, the number of seats available and terms spanning multiple administration has putthe chai as position at the front of -- proponents of powell says he a's charted the economy through a pandemic a renomination would -- but he's
8:07 am
a registered republicans, which progressives say is a nonstarter they largely back governor lael brainard and that would allow democrats three more picks this term for fed seats. both candidates have twice both bipartisan support gop leadership has not been rallying members against brainard, and two sources believes she should get. senator bernie sanders actually voted against brainard in 2014 janet yellen over the weekend suggesting both candidates are still under consideration. president biden personally interviewed them in recent weeks and is set to make a decision. kayla, i want to ask you about tonight's virtual summit with
8:08 am
president biden and president xi jinping. this is a big deal. >> the president is trying to manage expectations for what if anything could be achieved during this videoconference. a senior administration official says the conversation is expected to last several hours into the evening, but there are no deliverables expected president biden initiated the request for this videoconference, simply to manage the relationship between the two countries and make sure their competition does notlead to confrontation president biden is expected to raise concerns about china's behavior on the world stage some of its economic and human rights packages, and we'll see what beijing wants out of conversation let's get over to steve liesman here he joins us with what a lael brainard-run fed would look like
8:09 am
in contrast to jay powell. >> if you're looking for a dramatically different policy, you won't see it where there are differences he they mostly concern policy on digital currency brainard has never dissented to policies, but has dissented on easing some of the dodd/frank legislation. she has generally supported a central bank digit at currency, but she's not from the progressive wing of the democratic party that seems to be championing her chairship she's been at the board since 2014 previously she had been
8:10 am
undersecretary of state for international affairs when he traveled the world for the g7 and g20 hearings there may be differences between them only at the margin. helying to me, brainard has appeared to set a high are bark for what constitutes maximum employment that could be true it's also true that a chair has to steward an 18-person committee, looking for minimal dissent and tack responsibilities for inflation and employment outcome so brainard as chair could be different from brainard as governor >> let me ask you this, it did seem there was a pretty significant change of messaging from janet yellen. she said, there are two very qualified candidates here.
8:11 am
in the past she has steered away from that, and did make people wonder is she testing this out, this idea of not being jay powell to see how the market reacts >> you know, that's a clever question, and a good observation. last week, they brought both in there, and my understanding is there was a lengthy conversation between biden and brainard i asked several former white house officials how they would advise the president if the market was going to freak out. most people said no, they wouldn't it looks likes they're out there kind of testing this pot to see if the president has the optionality or the flexibility that he would want i think the answer so far is yes. is the market does not seem to have reacted much. in that sense, the policies
8:12 am
gived flexibility. remember, president trump got rid of -- in favor of his person >> the political position offed fed, though, that's what we're talking about, and every administration brings in their person. >> that appears to be where we're at joe? >> just down to real brass tacks, when the controller of the currency -- >> without the jacket, joe >> no, i know you like to wear it, too. >> when we had that discussion, you said, yeah you were a bit confused or puzzled about who really has this administration's ear on the certain issues, and that might have been an elizabeth warren pick or something. will biden push back again that side of his party?
8:13 am
do you think he will renominate a republican, knowing that the part of the party that i think he's appeased coddled and sort of swung towards, much more than we thought he would, that would indicate he might do brainard, that he might fold to the pressure from that from bernie and elizabeth warren in your heart of hearts, do you think it's possible he won't have the backbone to renominate powell because he's a republican >> where's kayla when you need her, joe >> no, i'm talking to you. >> i thought we delineated the responsibilities on this reporting. listen, you see where you're going. i floe there's been a lot of over centrist democrats who have supported biden in the election, are surprised at how much he's
8:14 am
leaned toward the progressive side of the party. i don't think he wins any points from the centrist side that if he's reappointing powell i think it's a toss-up i don't think it really matters in terms of policy >> but you're trying to hard you would be shocked, wouldn't you, if jay powell was not renominated? and that's a possibility >> that's why we did this. we woke up, i guess, thursday or friday, they're trotting out brainard as a real possibility here that's why we've come forward with this series >> that would be weird,ally total appeasement of the left. after the break, we'll ask
8:15 am
the form ever president of tesla global sales plus thanksgiving is next week, a big airbus order from frontier s. barry biffle i love that name you're watching "squawk box" on cnbc
8:16 am
8:17 am
8:18 am
president biden is set to sign the infrastructure bill today at the white house included in that bill is money for ev charges stations. shares of charging companies sisters up big since the start of the month, as is quantum scape. but with the growth of the ev sector comes new questions about whether the company should be backing it this much with public funds. joining us is john mcneill, the former chief operator officer at lyft and former president of global sales delivery and service at tesla john, you've been watching this for a very long time
8:19 am
you know this industry, and you see where the valuations are headed what dunk about rivian, first of all. >> good morning. it was fascinating to watch. unlike tesla which essentially was competitor-free for years, they face intense competition out of the gate. the key watch is is the ford lightning and the tesla, but with $12 billion of cash just raised rivian with weather the storm for three or four years. what's this overriding question. the question is always which could now you have a lot every mo players getting a lot more
8:20 am
money. >> the first is with higher consumer subsidies for unionized manufacturers verse lower subsidies for non-unionized. so that's one way, is the consumer subsidies historically those have been around $7500 per quarter the additional subsidy is a 30% business tax credit for any purchases by companies that's a huge benefit for companies like amazon. this might incentkrcent tesla tl its product of a truck forward >> what you just said makes me think about hertz and the purchase they are making
8:21 am
is this based on the same sort of fleet sales >> that may be the case. i think hertz also sees that it needs to electricry fit its fleet, and early refresh its brand. it was a smart move by mark fields and hits team in one fell swoop to really hit the headlines with electrification of their fleet that deal had some bumpiness, it sounded like, if the first few weeks, but maybe both sides would be benefitting from this we had them on and were trying to get a straight answer it sounds like just based on what you're saying, they could be paying full price >> yeah, i have no doubt that elon is right. he as a real discipline at tesla around no discounts for anybody. not even a discount for his mom,
8:22 am
he used to say. >> that's harsh. [ laughter ] but at the same time hertz could be right that they're getting a government subsidy as well. >> john, you look at all these new players, and inevitably people will say can the market sustain all these players? last time you were with tuus, y don't own tesla. >> it's still the case every esg fund needs to own them, in addition to of s&p 500 index needs to own a tesla there's two things happens here. first off, evsed ev market can
8:23 am
grow by 25 times i think they're the ev manufacturer have more of an apple-like model, but they get rekurt -- so they sell a car and they could make a few thousand dollars a year for the ownership of that car. that's some -- you're talking about entertainment and like apple has you locked in? >> tesla may a lot of headlines about 18 months ago in
8:24 am
california, and then again in texas about a month acwhere they had they will score driver, and actually charge the. >> with the connected car, they can see all kinds of things, how fast you drive, what time of day you drive, how hard you brake, how hard you corner, and how much you pay attention. >> and all of that goat into the ac >> it's a potential significant advantage. >> jon, quickly, you said something about all of the esg funds have to own these stocks
8:25 am
do you think that's setting up the problem the rug may get pull out from under them at some point? we saw this last week, and the stock ran up for a few days but they tend to be long holders they don't have a lot of inventory to choose from so my guess is this demand will be staged. jon, it's always great to talk with you. we'll see you again soon great to talk with you too, becky. thanks. we always talked about that before, a car keeping track of every single thing he goes, do you know why i pulled you officer? >> well, what diagnose do wrong?
8:26 am
is that all? >> no. >> we are live with the ceo of frontier airlines, and adam wyden. the name sounds familiar if his last name sounds familiar, it's probably because of his famous father, oregon senator and finance committee chairman ron wyden we think this is an interview you will want to see we'll talk about what thanksgiving will be like for that family. stay tuned u' watching "squawk box" on cnbc
8:27 am
this is ashley. she's a posh virtual receptionist. she'll make sure you never miss a call or an opportunity to grow your business. you can't be in two places at once, let posh answer. posh virtual receptionists. so, you want evs, you have come to the right place. is that tom brady? yeah. he comes in to recharge, get software updates. you know. let's go!
8:28 am
at vanguard, you're more than just an investor, you're an owner with access to financial advice, tools and a personalized plan that helps you build a future for those you love. vanguard. become an owner. reducing our carbon emissions to net zero may be our biggest challenge yet. there's no single action that will lead us to carbon neutrality. but there is a single source of essential sustainability intelligence. s&p global sustainable1. uncover risk scenarios, reveal transition pathways, and optimize your net zero opportunities with our unparalleled data and insight. accelerate to zero with us. frontier airlines announcing
8:29 am
a major -- >> let's bring in barry biffle, joining us from the dubai air show, where you announced a big purchase of 93 a 31 neos, and what does this mean for the next few years? >> this means we could have 12% growth through 2029, which enables you to triple the size of the business. we do 00 miles per gallon today per seat that makes us the greatest in america, but you know, that compares to some big airlines the difference is huge what it enables then to do is do what tesla has done for the
8:30 am
automobile it's truly the cheapest option in space, so we'd like to call it the democratization of green. yet we're just show your chart right now. i know that airline stocks have struggled as to a certain tect -- extent, but you don't seem to be getting the benefit you think you would get. why is that? >> i think in our industry there's a lot of green washing out there, and i think it gets lost lots of times
8:31 am
i think it would mac a big difference in our financials >> barry, what are you expecting over the next couple of years? wire seeing what we saw earlier in this year with the delta variant. so now that delta variant has gone away, we feel very good with the work from home, it's more flexibility we expect demand to continue to rebound and far outpace 2019 the costs are just too high to
8:32 am
operate at some airports are you confident you'll be able to with large metropolitan areas be able to find the airports and the pricing that you need to effectively compete? >> oh, sure. we have a lot of airports, and what we look at, we look at at alternatives there's plenty of other options. they could be nearby barry biffle, thank you for joining us today from dubai, where they announced a big
8:33 am
purchase with airbus 93 a-31 starting in 2023 back to you, becky. >> thank you very much. when we come back, we're with adw capital's adam wyden. u n'wa to mitts this interview. "squawk box" will be back after a quick break. so, you want evs, you have come to the right place. is that tom brady? yeah. he comes in to recharge, get software updates. you know.
8:34 am
let's go!
8:35 am
♪ ♪ wow, we're crunching tons of polygons here! what's going on? where's regina? hi, i'm ladonna. i invest in invesco qqq, a fund that gives me access to the nasdaq-100 innovations, like real time cgi. okay... yeah... oh. don't worry i got it! become an agent of innovation with invesco qqq
8:36 am
elon musk was on twitter again, calling out bernie sanders -- i keep forgetting that you're still alive. he asked sanders if the senator wants him to sell more of his tesla stock. last week musk insulted oregon democratic senator ron wyden on twitter, after he called for a billionaires tax, and then wyden's son came to the defense of musk, saying since most legislators have never built anything in their lives, it's easier to happen hazardly try to tear stuff down.
8:37 am
joining us with his side of the story, adam wyden. any plans for thanksgiving with the familiar, adam, or you may stay down there in low-tax florida? >> i'm actually having thanksgiving with my in-laws >> i think that we have learned one thing from the recent three, four, five years, and that's that families differ i'll bet you still love your father, your father still loves you, and you agree to disagree, and i can't nominate anyone for "time" man of the year, but i have to admit, when i saw that, who was this guy that was a pretty blunt tweet you sent out why does he hate us, the american dream, so much, referring to your father, and then actually saying him and his
8:38 am
cronies have never really built anything, and you might be able to actually compound your growth faster than your dad and his cronies can confiscate that. dunk before saying that, and have you heard from senator wyden, your dad? >> we have a mutual respect for one another and there's a natural separation between church and state the comments were made a bit tongue in cheek. it's a platform to get a discussion going, but the reality is that i have enormous amount of respect for my father. he's done a lot of great things for this country, whether it's for senior citizens, disabled, environment, net neutrality, but obviously this is an issue that hits very close to home. i started nigh fund with $400,000 on the second of my mother's home. i got my education paid for, but i built everything brick by
8:39 am
brick. it's clear to me the people making thinks policy decisions have never experienced the up-and-downs of running a business they don't understand, you know, what it takes to build a business i'm obviously fearful of the culture of innovation and building these world companies, about it's float flicks, google, tesla. we are the envy of the rest of the world. people come to this country to build amazing businesses i want that to continue moving forward. >> i don't know what elon will pay in taxes on the stock he's already sold i have an idea eventually it will end with a "b." then i think about bernie sanders, and i guess bernie has contributed to the dialogue in this country, but just in terms of contributing, the overall well-being, do you think it's even in the same ballpark? that's why i don't understand
8:40 am
the sanctimonious smugness that -- there's exceptions, mark warner and others, but most of them haven't built anything. they go to thanksgiving dinner, not bringing any apple pie or anything look, i think the dialogue needs to get to a higher level, and i think people in places of power need to discuss, you know, things that can help engender capitalism, as opposed to vilifying it. australia, it's governmentally mandated that investors have to buy into a 401(k) and gives meanian house holds to invest. it's call a my friend has
8:41 am
authored a white paper, which helps build wealth among medium income households. we think this is a way to engender wealth creation so there are ways to do this and fix this people just need to listen and the discussion needs to come to a higher level >> people say you just are transaction fees, money, sort of -- you get your cut of money moving around, but you should explain the way you operate your business you're not a you nurture companies to begin and flourish, and make something of them long term there's one company you talk about in particular that took years to come to fruition, but it's generating great returns. >> yes, for everyone and for
8:42 am
society, so we made an investment in par technology in march of 2018. the company was on its hind legs, but made a really interesting acquisition in a cloud point of sale company, and we got very close with one of the board members, who is just a remarkable individual and just a force of nature. you know, we partnered, put together an aenda. had to -- his family is in upstate new york the company has grown from about $8 million to over $100 million of recurring revenue it's the leading enterprise restaurant point of sale platform they're verticalizing a spac look it, there were a lot of different discussions and, you know, constituencies that needed
8:43 am
to be convinced. you know, ron shake from pa tern era just put in a bunch of money to fund a company called bunch it's super exciting. i think it speaks to the point building great companies takes a long time. if you create a paradigm, where you tax unrealized appreciation, you know, whether it be precious or not, you know, you create short-term incentives that may be bad for companies trying to hire or retain employees, making sure the executives are focused on building businesses, as opposed to trying to pay for their taxes. >> what would you do, adam as you say, he genuinely wads to try to address some of the problems we have in the country, income inequality, and obviously paying for what i know legislators think will be a positive for the country
8:44 am
they're trying to do the best they can what would you do differently, in temples of narrowing the wealth disparity, in temples of raising organically the bottom >> it's a great question, certainly an issue i deeply care about. i'm just a finance guy, not a legislator, but if it were up to me, made the entitlements need based -- i've been very fortunate, but in the event i need social security, if i need it, it's available to me it's like unemployment insurance. if we made these programs need based, i think that would go a long way toward paying for some of this stuff. i would also say that, you know, closing some of the loopholes, changing the way we handle estate taxes, is fine. i plan to give the vast majority of my money to charity
8:45 am
i would like to allocate that capital while i'm alive, but i think there's stuff we can do on the estate tax front i'm happy to pay more capital gains. look, obviously in the current iteration there's a surcharge. if that's what they need to do, that's what they need to do, but what they need to do is make sure that people, while they are building their businesses, are not getting disrupted and challenging the formation of capital. what that i can this country great is that guys like elon musk and jeff bezos, for that matter, you know i. their companies almost went bankrupt a couple times if they sold to tesla on gm, they wouldn't be the companies that they are. this is a wonderful country built on creative innovation, and we can't challenge that. >> adam wyden, i appreciate it thank you. we enjoyed having you on today
8:46 am
thank you. good luck at thanksgiving, too, with the in-laws this time that could be problematic too, right? in-laws. >> thanks, joe i would like to hear his thoughts on a broader market when we come back, jim cramer's first takes on e th markets. and a big week of earnings still to come. we'll be right back. all day long.ep you tn so when something happens that could affect your portfolio, you can act quickly. that's decision tech, only from fidelity. [coins clinking in jar] ♪ you can get it if you really want it, by jimmy cliff ♪ [suitcase closing] [gusts of wind] [ding]
8:47 am
at cdw, we get how to achieve calm amidst the chaos of a hybrid workforce. google chrome os orchestrated by cdw brings you built-in proactive security with no reported ransomware attacks ever and simplified management with fast deployment and zero touch enrollment, so that nothing disturbs your peace.
8:48 am
for built-in security and fast deployment, trust chrome os and i.t. orchestration by cdw. what's strong with me? what's strong with me? what's strong with me? what's strong with me? what's strong with me? me? with me! let's get to the cnbc bureau in san francisco, where we find
8:49 am
jim cramer today i watched what the score run up, and i was like, wow, what was happening? >> best first half we've had in about ten years. all right. what are you watching? what are you doing in san francisco? >> well, we're seeing a bunch of great companies today, twilio, five9, affirm, you know, i'm trying to figure out how come everything has gone up here. you know that. everything in the tape in the morning, here goes metaverse, here goes -- every single -- nvidia, amd, so we're getting to the bottom of this >> i was going to ask you something and i space on it quickly, jim oh, oh, jay powell, bipartisan praise for how he's guided us through all of this. i'm starting to think that maybe
8:50 am
whoever made some of these, maybe it's president iden, maybe he's got people in his ear, but you think there's a chance powell doesn't get renominated at this point, jim >> i don't think so, but i think he gets renominated, but he's one of the i think he's been unbelievable it would shock me -- you know, he's been about as -- >> he's a republican he has a scarlet letter in this current milieu, don't you think? >> i think he would, if he wasn't has been as easy as he's been i don't know who else could possibly be better i know ms. brainard is talked about, but to me it seems like powell is in good shape. >> hey, jim, we spoke with steve
8:51 am
and kayla earlier about this very sort of matter, and it does seem like there's been a bit of a shift, say there's two good qualified candidates, that brainard was being -- for either chair or vice chair. are they testing things out with the market to see if the market gets spooked by the idea of not having powell? does the mart not consider that an option? >> i think the market -- what do they know about the market president biden? >> no, but i wonder -- would the market sell off? >> it would definitely sell off, but i don't know if they understand the stock market. maybe janet yellen does. i don't know if president biden does i don't know if he cares remember, president obama doesn't care it doesn't seem to be on the radar screen other than the fact
8:52 am
of the capital gains a little. i think because he wants his own people in there, but it will be jarring, but then i think it will even be more left wing. the market lovell that, because it means easy money. they want me to wrap, jim. we'll see you in about eight minutes. we want to remind you of the new cnbc investing club. you can find out more at cnbc.com/investingclub or just point your phone at that thing right there, and it would take you to the investing club "squawk box" will be right back.
8:53 am
so, you want evs, you have come to the right place. is that tom brady? yeah. he comes in to recharge, get software updates. you know. let's go!
8:54 am
[crowd cheering] i'm not a coach, but i invested in invesco qqq. which gives me access to next-gen statistical analysis software.
8:55 am
become an agent of innovation with invesco qqq. welcome back to "squawk box," everybody. on friday reflecting ongoing concerns about inflation this will renew questions about whether the fed should move earlier. jay walthauer is here, also liz young, and liz, let's start with you on inflation inflation picking up, getting lots of concern out there, yet
8:56 am
the market keeps going higher, sitting right at new highs who wins out >> we're still looking at who's the winner, the transitory camp or non-transitory. when you look at what's driving inflation, goods inflation is really the ohm thing going up. the services inflation isn't going up as much it's actually lower than ten years ago. so that's sort of the argument for transitory, that could happen, it would coop off, but consumers rules the roost and they're being hit hard >> jay, you say that you're in the say camp as lee cooperman, whether you're a fully invested bear how much of that is because of the inflation picture? >> you would say the number one driver is my concern about inflation. i am not in the yellen and
8:57 am
powell camp. i do not think that the causes behind inflation are transitory or temporary, and related to the covid-19 pandemic. i happen to think there are structural issues at play that are impacting inflation, one of those being over the course of the last 30 years, wife seen amazing industry concentration that's given corporations an opportunity to flex that are muscle to implement pricing power, and we're starting to see that come through in the consumer price index if you look at the banks we're down to five if you want toilet paper and diapers, there's two places to go so i happen to think there are structural issues at play here that will prove the fed behind the curve on inflation
8:58 am
we've been having this conversation all morning about whether it matters if it's jay powell or if it's lael brainard. how do you feel about that >> i don't think it really matters who is the next chairman of the fed i want to focus more on the data the data that we have coming in front of us. this week we're going to see retail sales numbers, housing numbers, earnings reports from lowe's, walmart, home depot, which gives us a good barometer. i really think it's much more important that we pay attention to this data and how the fed reacts to the data and how the market reacts to the data than who actually will be the fed chairman i actually don't think it will have that much of an impact on the speed at which this decide to implement tapering and tightening. >> liz, you've made good point about what happens if inflation
8:59 am
stays at or knee these levels. if this happens for the next quarter or so, what does that mean for bottom lines? it's been impressive to see companies stay ahead of the game can that continue? >> well, look we're at record high profit margins, which has allowed companies to absorb more of that. the big question between both companies and consumers is how much stamina do we have? how much stamina do consumers have to continue to pay the think daily prices if we get through the second quarter and haven't seen a relaxation, you'll start hear being in margins, bottom lines and you'll see the consumer start to pull back >> liz, jay, thank you guys. we'll talk soon. very quickly a final check on the markets before we hands things over. you'll see the futures have been
9:00 am
in the green all morning the dow futures indicated up by about 145 points, nasdaq up by about 65, s&p indicated up over 16 the ten-year note still useding just at about -- actually picked up a bit, 1.527% see you tomorrow, do it all over again? >> yes, looking forward to it. right now "squawk on the street." good monday morning. welcome to "squawk on the street." i'm carl quintanilla with david faber. cramer is out west at one market in san francisco for a big week of tec coverage. the president signs the infrastructure bill, house is back from recess, and some cooling in the oil market. we have crude below 80, afternoon gasoline futures 10% off the highs. our road map

73 Views

info Stream Only

Uploaded by TV Archive on