tv Squawk Box CNBC April 18, 2022 6:00am-9:00am EDT
companies before week's end. love me tender that is the message from elon musk was he teasing for his play in twitter or just listening to elvis on a saturday afternoon? nobody knows china reporting surprising first quarter growth, but those draconian covid lockdowns are not fully baked in it is monday, april 18th, 2022 today is tax day "squawk box" begins right now. good morning welcome to "squawk box" here on cnbc live from nasdaq i'm andrew ross sorkin and joe kernen becky is off today let's show you the futures on monday morning three hours before we set to
open we would open down if we opened now. nasdaq off 24 points treasury yields after the three-day weekend. the 10-year is 2.258%. for you looking for inversions, 2-year is 2.494% we are talking musk. so i know, is it three hours of musk what is your thought >> over the weekend, i was like a cat. the first couple of times, the jump >> just a nerd to the concept? >> i am. you know what i came up with there are days i'll not do twitter again. it is weird. it is not that big a part of anyone's life. >> it has become that. especially for the media-rotti
>> who wants to be one of them >> and here we are >> i'm back to -- i can't get ukraine -- i just can't believe the countries still do stuff like this. go into a neighboring country and level it i don't understand that. some editor at "the wall street journal" said interest rates are going up bond prices. they wrote the article biggest route for the bond market in ecades 2.76%. if we're feeling pain now, there could be more pain ahead >> we have a risk off trade. >> we always talk about bitcoin holding 40 that is what katie stockton said we argued about when do you hold it is 38 and change today.
there is a risk off trade. i see where you are going. elon musk. >> let's talk musk >> you can tell me whether the poison pill is fair or shareholders should be upset or if it holds or if musk is serious. whether he looked at it and said i have $250 billion. i certainly can't get my hands on that any easy way 40 plus. the only guy that could do it. he could if he really wanted why would he do that >> let's talk abou what happened over the weekend wha what is the phrase >> will you love me tender because it is the two of snus. >> we will talk about elon musk's battle for twitter. he wrote, "love me tender. he tweeted that saturday
afternoon. he included the musical note emoji. adopted a limited duration shareholder rights plan of poison pill to fend off potential hostile takeover under the rights plan, if anyone acquired 15% of the twitter common stock without board approval, other shareholders would be allowed to buy additional shares at a discount. the rights plan will reduce the likelihood that any entity, person or group gains control of twitter through open market accumulation without paying appropriate control premium or providing sufficient time for taking action that are in the best interest of shareholders. on the subject of the twitter board, musk tweet. wow, with jack departing, the
collectively board owns almost no shares. musk replied with a single exclamation point to one twitter user one board member never tweeted it appears maybe he has a burner account. i don't know what do we think >> that reminds me a lot of the great gordon gekko speech in "wall street." all these guys behind me all these board members own less than .50% of outstanding stock i now own. they know their interests are not aligned. that was his big speech. everyone remembers greed is good greed is great all that other stuff the point he was making is that shareholder accountability or management accountability to
shareholders should be p paramount. if you don't know own, why do they care? >> is $54 a fair price take elon musk out of it remove him >> $54.20. >> remove him from the equation. you are right. what happened over the past several days is this becomes a bizarre question about politics and people talking about whether he is for free speech. >> town hall public forum. >> that is because he said so. what are the other interesting parts is this is not an economic bet. he has no economic interest in it that makes the other part of this interesting if he were to tender or partner with folks in there and he might partner with silverlake. a board member is on the board of twitter who runs silverlake who voted for the shareholder
rights plan. if you partner with somebody else, how does that economic interest work. he is not interested in economics. why should anyone else he believes and wants at the ted talk last week that he wants current shareholders to stay roll their shares into it. that is also interesting if your goal is not to do this as an economic venture -- maybe this is a not-for-profit venture. all of this is possible and maybe okay i don't know >> i wonder if he says look, i tried to do what's right for the world in terms of providing a free he and open public forum for everyone to air. right now, he is not necessarily doing it for himself it is like he is doing it in a philanthropic way. >> there are other people --
>> if he gets rebuffed too much, he will say, all right, forget it >> there are fair questions to ask how he would run it. >> he said a lot of that at the ted talk that's the article here's what he would do. he outlined. >> i understand it we talk about free speech. again, people have different versions of free speech. >> they do now. >> a young man tracking elon musk's airplane on twitter for a long time. >> he didn't like that >> he rhated that is that free speech? that is a legal and public piece of information i think it is complicated. the other part of this is you have twitter which is a delaware company, which is important because your fiduciary duty and people talk about stake holders, is in the end to the shareholders this goes back to the stake holder capitalism and
shareholder capitalism situation. are you supposed to take care of your employees he said he wants to remove 12 floors do you see what i'm saying if you are a board, i don't know what the responsibilities are, but component parts of this. >> we talked before the show calmly i just made the point that my entire life i've associated liberalism with free speech. to the point it used to bother me when the william kuntzlers of the world would be terrorists or the march somewhere and the left say they have the right to do that now the left is the party of what they are calling content moderation the amount of hair on fire over the weekend because of this was surprising to me i want to read one thing
i'm a classical liberal. this is what -- >> you are saying you are a classical liberal? >> it is a political ideology and branch of liberalism and free market and civil liberties under the rule of law with limited government and economic freedom and political freedom. >> okay. >> don't ever look at me and call me anything other than a classical liberal. that's what i am that goes along with free speech it is very weird the tribal nature of what we are seeing now. when did it happen when did the left become the party of -- >> the question is when did this become free speech elon musk is a political enigma insofar as a guy up until a
month ago with the views on climate change which he is clear about with the exception of his temporary view of releasing oil today just given what is happening in the world he spent his career working on the climate that's basically what all of this for him has always been about. unless you think he is an opportunist. that is what he says tesla is about. he is using the tesla money to finance getting off the planet he is worried about climate change that's his story. >> we are talking about the planet we will use all of our resources eventually that argument has been used. it didn't happen with peak oil we need to transition away i don't know if he is as co2 phobic as he says. he said a month ago drill, baby,
drill. by the time we move to mars, there will be a lot of reasons three times as many people living here. we depleted. it is not there are more hurricanes >> all i'm saying, here is a guy who believes in climate change and paris accord and carbon taxes. all of these things are his view >> now you are implying you might be cynical and espouse those views because they go hand-in-hand with tesla. >> i had not had a chance to talk to him about this situation because i think it is such a unique microcosm of these issues >> he said okay, i'm still not taking issue with bitcoin.
>> we still have three hours. >> we are not going home we are going to have bank of america earnings coming out today. later this hour, we will talk about it and break it down for you. we drive into the business side of elon musk play for twitter. can he finance the bid that is the question don't go awhe.nyer "squawk box" is rolling on after this >> announcer: this cnbc program is sponsored by truist securities experience, expertise, execution. is the planning effect. this is how it feels to have a dedicated fidelity advisor looking at your full financial picture. this is what it's like to have a comprehensive wealth plan with tax-smart investing strategies designed to help you keep more of what you earn. and set aside more for things like healthcare,
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a barrage of companies telling us how they did in the last three months today. every three months is different from what we have seen before. it will be interesting over what happened in the past and what they say about the future. seven dow companies will report before the friday closing bell joining us is sylvia jablonski and cameron dawson is here cameron, i wanted to ask you are you the new york dawsons or chippewa falls dawsons has anyone asked you that before >> you are talking about
"titanic" right? >> the boston dawsons. leo was the chippewa falls that is neither here nor there can the companies that report get us back into the risk on feeling or the fed and bond market keep us from getting too excited? what do you think? >> i think the fed and bond market are important here. that is the driver of valuation as the fed continues to fight even policy. we expect valuations to continue to come down it is interesting that starting this year, eps estimates have been moving higher they have gone from 8% to 10.5% with the market volatility all because market valuations are coming down. if we look at eps estimates and look under the surface, we see it is all driven by energy
estimates moving higher. those now are excpected to grow 95% because of higher oil prices this year. if you look at the rest of the s&p, we are seeing things get back-end loaded. estimates ar ss are cut for this quarter and hopes they will make up for the shortfall in the near term it is all about the forward outlook from the companies and less about a one quarter which is pretty strong and the added challenge of multiple compression. >> within the overall universe, the big piece -- i'd like to be an editor some day someone assigned to karen lan langley. would you buy the travel stocks or airlines or hotels?
you need to have part of your portfolio in companies that benefit or resistant to inflation, cameron >> so, we're certainly seeing reopening stocks i don't know if i put those directly in inflation benefitting camp reopening stocks are doing better because we are seeing a shift from goods to services look at the spread of performance between things like specialty retail which is down 20% year to date and airlines up 5% year to date. clearly there is the shift in consumer demand from goods to services the inflation benefitting areas like energy and materials are certainly holding up those are the areas where we are seeing the most eps revisions higher we see strong relative trends. in the market, you want to be buying names that are in strong trends on absolute and relative basis instead of catching a
falling knife. those areas are areas want to b. >> sylvia. start with the reporting season. who will do well who will forecast better times ahead? who will not do so well? >> i think if we take a step back and think about the macro environment, although coronavirus and war with russia and fed hikes putting pressure on the market. earnings is on deck here i think retail investors are very much looking for positive news out of earnings if we don't get that, it is a risk to volatvolatility to cameron's point, a lot of companies have continued to report solid earnings. strong cash balance sheets
some of the consumer discretion names look good. tesla and some of the large cap mega cap companies are beat up if they deliver on earnings and show strength, the consumer may be interested there. i love the travel stocks the open trade will be on fire hotels and cruises and airlines. this is the travel reopen trade that just hasn't happened yet because omicron and the next variant kept coming into the system increases in geopolitical risk and oil prices there is so much pent-up demand. january and february, domestic flying up 38%. travel is poised to be $1 trillion that is back up from the lows of the last two years looking like 2019 levels i think a lot of money will go there. as cameron said you are going
from goods to services $2 trillion in savings 7% wage increases. those are the names interesting in earnings season and good trades to look >> why are we hearing recession? some people you hear it from are not neophytes. what would cause it, sylvia? the fed is moving in an orderly fashion. we are really early cycle. why are we thinking there could be a recession >> you know, if you look back historically about a year or two years after the levels of inflation and the fed rate hikes and things like that, you have seen u.s. economy go into recession. i would also say during the rate hike years, you see the s&p up on annual rate of 9% or more you had a lot of headwinds you had coronavirus which has
not gone away. the closures in china. the geopolitics and lot of reasons to be concerned. i don't think that necessarily means recession. i think that means slow hedown again, you have resilience you have strong balance sheets and consumers. all of the savings on the side if the supply chain issues abate and we see the inflation naturally coming out of the system with the cars and housing space, it will make the fed job easier maybe you don't get the hikes. i think a slowdown and economic growth is reasonable i don't know we are in recession territory yet. not in the next year or so anyway >> great thank you both sylvia, cameron, i knew i was taking a chance with that. leo was a child. now he's this puffy 55-year-old
kate winslet is mayor of "east town." when was "titanic" out >> about 20 years ago. >> when you saw it, cameron, did you think of that? chippewa falls boston? >> big fan ' '97. >> king kof the world thank you, both. three hours. only two of us anything that pops in my mind. >> you are going with? that is different from any other day? coming up, more elon musk and the continuing battle with the three-year-old claim he had funding secured to take tesla private. it was over $420 a share now tesla trading this morning
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don't touch my piano. kick pain in the aspercreme. separately, separately, the federal judge rules that elon musk tweeted in 2017 that he was taking tesla private the court filing related to shareholders suing mr. musk to the tweets according to that filing, the court ruled on april 1st that the tweets were false and misleading asking the judge to stop the musk public campaign to present
a contradic tory campaign. >> if you make a settlement with the s.e.c., you have to not comment on and besmerch the settlement this is a settlement a private situation that might be something acceptable. >> right you agree to it. >> that's the deal do you think it is good or bad public policy? could the s.e.c. be allowed -- should the government agency be allowed to include such a provision in a settlement? >> the persons agreeing to the settlement they are agreeing to the settlement
it happens in the private sector a lot. people leave a company >> it does there are lawsuits now against the s.e.c. that may go to the supreme court on this issue. when you talk about free speech. curious where you land. >> i hope we can stack the court better by the time that comes up >> it is already there >> we need to get the right people on there. 16 or 17 of them >> i'm confident if it gets to the supreme court, the current justices would say such a settlement is illegal >> will clarence thomas still be allowed to be on the supreme court in your world because of his wife this is going to go off the rails. >> he is there it's a fascinating issue >> it is you are talking about settlements that both sides agreed to. >> then the question is if that is true and how do you feel about elon musk? >> which one
2018 >> he is clearly broken the settlement clear as day >> by talking about the settlement he said it was bogus i was forced into it >> he violated that. >> now if you are the s.e.c., what do you do >> i don't know. i'm glad i'm not a bureaucrat. >> you are also the government i think it is complicated. the government is in business with elon musk in so many ways in terms of defense department >> the s.e.c. doesn't have to think about that >> if the government is a business of sorts, you might say, okay, i made a deal with this guy >> the government is a business, we're all in a lot of trouble. >> corporations are people. >> there is no accountability. it is the anti-business. >> if there was accountability if you were the business, you made a deal with me, you broke
the deal i'm not doing business with you. >> you call the government a business coming up, the anti-business -- coming up, what should twitter shareholders make for elon musk's bid for the company? the stock trading below his offer price. as we head to break, you can always watch or listen to us live on the cnbc app st tedayun you are watching "squawk box" on cnbc unhinged >> announcer: executive edge is sponsored by at&t business at&t 5g is fast, reliable and secure need somet ifferent. oh, we can help with that. okay, imagine this. your mover, rob, he's on the scene and needs a plan with a mobile hotspot. we cut to downtown, your sales rep lisa has to send some files, like asap! so basically i can pick the right plan for each employee. yeah i should've just led with that.
it is in our stories and data that the answers can be found. i want effective treatment for the next generation. if you're a cancer patient in the u.s. and its territories or canada, you may be able to help science uncover the next breakthrough by sharing your patient data and unique experience with researchers. for our family. for our friends. for us all. join stand up to cancer, count me in, and patients already participating at standuptocancer.org/countmein. american airlines new boss is vowing reliability from the carrier as leisure travel ramps up from the company town hall last week reviewed by cnbc, robert isom said he wants to make sure passengers can count on american this summer and beyond he said people really need to feel like they have control of their itineraries and noted
other airlines are struggling. weather and staffing challenges caused disruption at american over the year. you highlighted eitinerary issues >> i did >> it is interesting think if you were an airline dealing with their crisis? >> the other complication on the cancelling front is it is not just the number of canceled flights has not increased immensely. what changed is a canceled flight used to look like to most customers a delayed flight of the toriginal flight. today, because had there is so much demand. when they cancel a flight, it is canceled you are not getting on the plane for 24 or 48 hours or whatever
the case the dynamic of the situation has fundamentally changed. we're planning on open road. >> you are >> yes it has been about a year over a year. again, it seems romantic and adventuresome. >> when are we >> we did that remember what haynes did we were in the crappy winnebego. >> we could do an air trip fire up the plane. let's talk about elon musk fire up a tesla. fire up twitter. the board adopting a poison pill plan for unwanted takeovers. elon musk is the potential shark. $43 billion in cash is raising
questions over free speech wall street wants to know if musk can afford to buy twitter in the first place joining us right now is the personal technology columnist. and we have jo anne here with us hop aboard jo anne, does he have the cash to do this is someone loaning him the money? how does this happen >> he said last week it was one of the funny parts of the ted interview. he said i have the assets. i can do it. if you believe him, there are lots of questions of when we should believe elon musk he seems determined and has a way to pay for the deal. he is worth more than the offer. that is tied up in tesla shares.
would he have to sell off more he told a lot in 2021. not enough for are this deal >> joanne, the idea of the bank, jpmorgan chase is the largest bank, has a terrible deal. they went to court over this is there a bank prepared to give him 30 some odd billion dollars in cash against the stock? i think there aren't banks giving him $40 billion cash collateral >> you could be right. i actually think he has been hedging his bets if he can afford it. last week, he said i have sufficient assets. he also said i may not actually be able to acquire it. he said he has a plan b. he hasn't said what the plan b
is he could be hedging his bets that judge last week said his 2018 quote about funding secured was false and misleading and wrec aa and reckless if he does go head, he has to borrow or sell tesla shares. and the fact he is distracted with twitter, that could have potentially as great or even greater impact on tesla and tesla value as on twitter. >> he could borrow them and use spacex as collateral the s.e.c. case might actually make it hard for a bank to make that loan because they he will have clients looking at all sorts of developments. joanna, can you weigh in i don't know if you were listening to the conversation about jo and i were having
misinformation and free speech and that dynamic and how this seems to have cut along political lines in the very strange way over the past week >> yeah. it is funny. i interviewed musk at the end of 2021 i have so many regrets over what i didn't ask i didn't ask about free speech my biggest question is the most pointed question is what would he have done about trump on twitter? this is riled up both sides. there is a question of how would policy and product and musk seems interested in both of those things as any leader of any social media company would be concerned with. how is the product going to work and what is the policy going to be musk talking about the ted i interview last weekend seemed lax about the policy that is bringing that up as you and jo were discussing the role
of free speech and who gets to say what i think the real question is what does he know about all this >> leave twitter to their own devices and the bad orange man is banned. the head of the taliban isn't banned that's why he started this whole thing in the first place he said something about a time-out like what we give to our kids give a time-out and it shouldn't be permanent at this point, enough people on both sides have had ruffled feathers from tesla. i have my own axe to grind there is no doubt that twitter is screwed up with content one person's content moderation is another person's censurorship
>> here is my question for joanna if you are the board and they are a delaware company the fiduciary duty is beholden to shareholders over many other stake holders. do you think the board is going to be taking into consideration beyond just the dollar figures, all of the other elements of this what elon musk would do to the company around free speech how many employees he would keep he clearly indicated he would fire a lot of people what would happen to the future of the business? he doesn't want to run it as an economic event, if you will. do those things, should those things come into any consideration for this board >> i'm sure the board is considering all of those things. obviously, the issue is if they decide on the merits of those issues that they want to deny him and prevent him from the takeover, let's say he then, you
know, takes his marbles and leaves and the stock tanks shareholder suits. you will have a huge problem if the share price tanks and elon musk walks away. >> do you think the board is not economically aligned with the shareholders they have directors and officers and insurance. they will get sued it is not like it will have any real world implication for any of them. >> look, the board has a fiduciary duty i'm not -- i'm not completely conv convinced. i see his point.vconvinced. they do have a fiduciary duty. they have to consider other issues like free speech. where would it go and what would it do to twitter there is an argument to be made if you did away with content moderation for example and turn twitter into more of a cesspool
than it is, you will destroy value. they need to consider those factors. >> jo and joranna, thank you. >> great to be here. coming up when we return, the last of the big banks reporting. bank of america is up next we will bring you those numbers an d instan nice suits, you t ys blend right in. you are watching "squawk box" on cnbc people have their money just sitting around doing nothing... that's bad, they shouldn't do that. they're getting crushed by inflation. well, i feel for them. they're taking financial advice from memes. [baby spits out milk] i'll get my onesies®. ♪ “baby one more time” by britney spears ♪ good to have you back, old friend. yeah, eyes on the road, benny. welcome to a new chapter in investing. [ding] e*trade now from morgan stanley.
america and leslie picker has the latest. >> $7.1 billion in income or earnings per sharks beating analysts by 5 cents per share. revenue growth was about 2% year over year. net income was down about 12% in the quarter, which we've seen with all wall street banks earnings were actually about 8% higher before taxes. lending out against deposits was up 13% in the release it was noted, quote, net income increase by 1ment $4 billion versus a year ago, quarter supported by strong loan depoits growth and with the current curve expectation of rising interest rates we are realize more of the benefit of our deposit franchise.
the loss ticked slightly higher, but it's less than half the rate it was a year ago, so these really evidence that the state of the consumer is strong despite pressures. three out of four grew revenue with the exception being global markets. there was record revenues from equities but a 19% decline in ffc f fct. you can see shares up, guys. >> let's bring in another guest, hightower chief investment strategist and portfolio and cnbc contributor nuanced, that would be a good one for wordle, andrew >> good morning. >> everything is nuanced,
stephanie. rates go up. it should be great for banks then you worry about the feds slowing the economy and you have credit worries so which is it it's like everything else. there's -- all these stocks, they're buyifurcated. are there good rates or do bank rates go up or do all do well. >> they should do well in general when rates go hire bank of america is very leveraged to interest rates especially on the fed funds and shorter term rates, wells fargo as well. in fact, every 50 bay shis-point increase for wells fargo equates to 16% in earnings and 7% in net income there's a lot of leverage points you have to step back, joe all of the banks so far post good numbers in terms of trading
and net interest margins and wealth management. the big question and what you're asking is are we headed into a recession and is housing going to roll over because clearly these companies have exposure there or is it a soft landing, a trend growth, and is consumer going to stay strong the one thing we have learned from companies so far is the consumer is so strong. jpmorgan talked about how the consumer is in extraordinary shape and the companies in general in terms of deposit growth and credit growth, it's up substantially the consumer's in good shape the question you have to ask yourself is can they stay in good shape i would argue i think they can. >> no easter egg hunts what were you doing? reading how many -- and you read it again, huh? >> i read it again. >> that is sad, that is sad. >> in between i play a little bad golf other than that -- >> that's good
knew a nuance you can't do six is too many. it won't work. >> i can hardly do five. fiord was a word, can you believe it, stephanie. >> fiord. >> will you go down to super regionals, which are really important, just looking at different parts of the country especially for investors i think you might be able to find more opportunity there. will you do that >> you hear that a lot from analysts there's plenty to look at. what stephanie was just talking about with regard to leverage to banks, these super regionals more sore. some look at wells fargo as a super, super regional just because of the way the portfolio
looks with the way things have been volatile. mike from wells fargo had a whole deep dive main street versus wall street banks and a lot of analysts are favoring main street banks in this environment given what's going on with the rates and given the fact you don't have some of the exposure, and so that's looking more favorable right now. >> what's your favorite super regional, steph. >> wells fargo i own it's my largest bank morgan stanley crushed it this quarter, so i look both of them. >> there's a six-letter world. word hurdle. thanks, leslie thanks, stephanie. should i stay what today's -- >> don't say the word.
i did it in four. >> i did too that's not that great. i average foufrmt. coming up, going private at the hands of the richest man what does that mean for twitter employees? they need a break. don't go anywhere. opportunity is using data to create a competitive advantage. ♪ ♪ it's raising capital that helps companies change the world. it's making complicated financial concepts seem simple. opportunity is making the dream of home ownership a reality... ♪ ♪ ...writing new rules and redefining the game... ...and driving the world forward to a greener energy future.
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good morning stocks looking to get back on track. futures not providing much hope or help. the latest on what investors should expect all coming up. and it's now musk versus twitter as he works ow his buyout with what seems like great measures. plus can rivian get back on track? the stock down 50% since its red-hot debut. we'll see if the company can turn things around as the second hour of "squawk box" begins right now. ♪
good morning and welcome back to "squawk box" right here. i'm andrew ross sorkin along with joe kernen. becky soughis out today take a look at the futures dow opening up at 71 points. the nasdaq looking to open down about 67 points, joe. >> let's get to dom. dom chu, who's looking at this morning's premarket movers morning. >> good morning, joe, good morning, andrew. first of all, let's talk about the big bank earnings season that will be driving some of that sentiment in morning shares b.o.a. shares a fraction of a share higher it. was just about 25,000 shares traded as i came to air here, but bank of america comes out with better than expected profits, revenues narrowly top
expectations they were trying to get rid of some of the accounts for loans they thought would go bad. those are not going to go bad. they're going to release them back into the earnings bank of america sort of winding down the big bank earning season those shares up one third of 1%. the twitter takeover battle is starting to pick up some steam, take on some heat. of course, elon musk offering to thank ta company private t twitter's board of directs is taking over in case somebody takes over a certain percentage of the company twitter shares up 3.5% as things pick up. then one other place to watching is what 's happening with ten
year note yields at 2.85% we're talking about the highest levels going to all the way back to december of 2018 so more than three years now at this point in terms of highs for yields that move higher, very sharp, of course, just the last couple of months big bank earnings, twitter, joe, i'll send things back over to you. >> yeah. crypto, they don't like higher interest rates either, i don't think. >> are they tied together? >> oh, yeah. the way this is moving, what happens when we get a three-handle that's not very far away we haven't heard three in front of a ten-year in a long time. >> not just that what i was looking at, i watch the papers now i used to watch the papers because i wanted to see what the per vaining mortgage rates were.
but this notion that you could start seeing five handle, which is still for a 30-year fixed rate mortgage still pretty darn good considering my parents had a 17% mortgage when i was young. but for a lot of folks who were used to seeing that, it's certainly a shock there. i'm very curious to see how long it takes for the housing market to cool off. for a lot of folks, if you're a homeowner, you've been getting tailwinds for quite some time. >> all right, dom. thanks. >> you've got it, guys >> let's talk about some of your top stocks for your portfolio. we have stephanie link back with us before we hit stocks for a second, steph, i'm getting a bunch of emails from folks asking about crypto this morning
because you're seeing the selloff. it seems like it's so correlated with the nasdaq. we've talked about it before but is it the tail wagging the dog or is the dog weighing the tail what do you think is happening here >> i think it's risk off you're right to correlate it with the nasdaq, but it's people willing to take a risk right now this is market that doesn't want to take risks it can't get out of its own way. we have massive inflation. i don't think they can unless they slow us down into a recession and then you don't want to own any risk assets. >> let me ask you this way if you were a long-term crypto investor and that would require you to be a long-term crypto bull, i would imagine, do you look at these prices the way
warren buffett would look at it and say, i love it, i'm going to hold it and ten years later it's going to be worth a lot more >> right now it's not trading on fundamentals right now it's impossible to actually value it. it's so small in terms of the investor base, so the volatility is going to continue if you can stomach the volatility, sure i wouldn't have any more than 5% of my portfolio, quite frankly if you want to take the long-term and see if it works out, you know me. >> i know you, but i wanted to ask the question let's talk about stuff you do love where we do know you. what does the value play in this moment >> i mean a value play, look at all the banks at this point. every single one of them have reported better than expected earnings except for wells fargo. i think the energy plays are still very attractive. you know we have been talking about reopen, reopen, reopen for
the past year and a half so those stocks are finally starting to catch up as they should because the economy is shifting from services and goods. and inflation just beginning >> talk about the airlines you do still like the airlines >> i'm not a big fan on the airlines, but i'm more of a fan kind of on hospitality i own hilton i like marriott. i'm a big owner of expedia it's very volatile, but they've been talking record books for the summer people haven't been paying much attention. i like those kinds of naples map group, not a great investment but i think they are clearly a reopen name, so i think you can pick your spots. >> did you watch that new tinder documentary on netflix it's an amazing documentary. sorry. separate entry -- separate item. about a guy who scams
unfortunately these women on tinder it's unbelievable. anyway, stephanie -- i told you. you said it. if it pops into our brain -- we've got three hours. >> even i think -- sometimes i -- >> you think about it first? >> i do. i do since a couple of times. >> steph, go back to the banks for a s.e.cec, if you could you mentioned wells fargo. that has been considered for a lot of folks sort of unloved but potentially valued play. is it still? and after all of these years, do you say this is where the opportunity lies or not. >> it's interesting, andrew. last year the stock was up 61% and this year it's actually outperformed all of the banks. it's a story here. it's a ceo fairly enough, a couple of years, and he's doing a really good job. but that takes a long time to
bring in new management. i think he replaced 18 executives that report directly to him it. takes time to get that synergy and culture in the right place we know the culture was in the wrong place before he took over. now they're focusing on cutting costs and growing their business if there's one highlight, they talk about expense being flat on the year that's a victory for them because people were thinking they were going to have to spend a lot of people, on systems, and they do. they have to spend a lot to see flat expenses, and then you have that leverage to net interest income, you get the operating story. i think it's pretty attractive. >> okay. stephanie, it's always good to see you. i wanted to talk to you about media stoucs actually. that was the other place i wanted to go with you. there was a big story about disney
is he long term? >> that's the -- "the tinder swindler." >> unbelievable documentary. >> $10 million he scammed total from swiping. >> i don't want to give it away. he would pretend to be somebody he wasn't. they would fall in love with them and he would get them to give money because they thought he had so much money. >> a lot of lawsuits. >> lawsuits. apparently he's free now in israel, the same guy anyway, it's a longer story. >> it is do we thank stephanie? we thank stephanie she's thanking us for being out of this conversation. coming up, covid has
consumers craving deep-fried food it's not covid it's in general. it's not just french fries before we head to break, let's check the market "squawk box" coming right back. >> announcer: squks sponsored by bitwise, the leader in crypto index funds. [sound of helicopter blades] ugh... they found me. ♪ ♪ nice suits, you guys blend right in. the world needs you back. i'm retired greg, you know this. people have their money just sitting around
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welcome back to "squawk box. bring along the fried chicken and french fries demand for deep-fried food is siz sizzling preparers of restaurants' deep fryers have doubled. now more than half of households own their own air fryers and the number of fried foods in restaurants rose 5% in the last three-quarters the demand for fried chicken sandwiches has boosted business everywhere ww international is down 6%. dieting is down 20%. while the health risk of fried
food is new trautrnutritional. adding oil is going to help reduce stress on the body and release more serotonin which can reduce depression. bmo is seeing something. the analysts downgrading wendy's citing challenges to its breakfast rollout. >> that's unrelated. >> there was an image that they just tried to show of me with a dou doughnut, which is my favorite it's sort of strange to look at myself eating that doughnut. >> a lady says fried ching satisfies her inner self and it makes her feel like a cat asleep in the sun
the one thing that you can measure, sorkin, is the fry attachment rate. i don't know if you know what this is. >> i don't. >> the fry attachment rate is the number of orders at a fast food restaurant that includes gimme fries too. it's gone from 22% to 24%. anybody orders fast food is ordering french fries with it. >> i'm watching the eating doughnuts situation. it doesn't look good did i tell you about rise toe nuts in connecticut. best doughnuts in the country. >> we have the best doughnuts here. >> no, no. >> bacon doughnuts >> whenever annual doughnut day s we're going to have to have them -- >> you look exactly the same what's so good about these >> like nothing you -- i don't know it's like heaven eating heaven. >> my body's transforming.
>> i see. >> you know what it's from >> no. >> running >> running. >> running that's the only thing that works. >> 750%, 80%. my fat body has to be off the ground ellipticals don't work >> i found if you just limit carbs after 6:00 p.m. >> you have to run. >> when i say carbs, processed carbs after 6:00 p.m. is the win. >> fat people don't run and people who run usually aren't fat. it's just a fact of life we'll be right back maybe. ings about life is that we keep moving forward. we discover exciting new technologies. redefine who we are and how we want to lead our lives. basically, choose what we want our future to look like. so what's yours going to be?
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fund co-founder and managing partner. chris, it's good to see you. i think of autism. one out of 50 vanillas born nowadays it's going to be a large number of people. i think about the unaddressed challenges that go from being born to being an old person, and it almost goes completely -- you're going to start at the beginning and go all the way to the end and try to address all those issues in a private sector way. >> correct thank you for having me today. yes, the autism impact fund is a for-profit venture capital model. it's not a diagnosing, treating, and living with autism we're the autism community arm and beyond it's one in 44 children atexted by autism, and for adults, the
unemployment rate is reaching 85%. so with those tragic numbers, we believe in the capital markets, the power of the private sector to be able to drive the transformational change that's needed. >> there are so many i want to talk about the individual companies that you just mentioned, chris, but even trying to standardize testing for who getting treatment and then how you reimburse that treatment and how you measure success, it's -- none of it has been de-lynn yalted. it's hard to believe it's been around for a long time in 2008 we thought it was one in 200 people now we know people who are actually on the spectrum, people you might not think of, for
example, elon musk. >> that's exactly right. we've found nine companies from diagnostics to therapeutics, services as well as tech services as of friday, we confirmed our tenth deal in a company called cortica, which brings together all of the services that a child may need, whether it's genealogy, genetics, pediatricians, behavioral help, speech help, all across the board. we look at this ecosystem we've built, tying our portfolio companies together another one, florio, is the first behavioral health therapy metaverse using a v.r. platform to deliver therapy, democratize access to get it in the hands of more people. that was created by the energy who volunteered or created amazon crime, and then autocron
is the global leader in i.t. and consulting services, and we recently invested with them. we're increasing that more sir richard branson is involved with that as well. >> in terms of reaching out to corporations to talk about the skill set that voijs the spectrum have, where is that what inning are we in the unemployment rate can be very high they maybe need a bridge or a chance or need some assistance. >> it's a great point. we're seeing it enter the late innings there. it's no longer a charity or feel good or sympathy individuals in the autism
spectrum don't need charity or sym sympathy they need acceptance and opportunities, and that's what we're all about. >>s they are amazing people god doesn't make mistakes. i think we all need -- it also concerns me the living arrangements because it's hard is there a company that can help with live skills do the average things, checking accounts, laundry. why do so many people on the spectrum need -- what do they need to live independently, chris? >> they need jobs. so autocon as i mentioned before gives financial independence florio teaches the life skills, to move, to do the things you mentioned as well. nutrition, being able to stay healthy. we've invested in a company
that's helping individuals with that as we view democratizing seats for care, that's why we were able to quickly scale them and help more individuals. >> you said -- i think therapeutics and diagnosis still seem like early innings and genetic markers. how many genes have been identified with the company and which one is working on, that chris, and the whole gut issue, it's confounding >> they're working on the health of the gut. >> it helps with therapeutics too. it's in clinical trials that it can alleviate some stress and anxiety and irritability that sometimes goes along with this condition. >> these correct
and biorosa is a chance to bring the biomarker down so individuals can get treatment sooner. >> chris, we have to go. i hope people are watching venture capital are seeding a lot of these companies i haven't seen it before it's unique and may be part of the puzzle we're looking for. >> i believe so thanks for the time. >> it's autism awareness month. >> it is it's important to know that. i learned that from you. >> you did. >> i did. >> okay. >> when we come back, we're going to continue our conversation about elon musk's $43 billion cash offer for twitter. employees of the company are uncertain as you can imagine about their future what takeover would mean. plus mohamed el erian on the earnings, fed, and so much more as we take a look at the leaders and laggards of the s&p 500.
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elon musk's $43 billion offer for twitter has employees uncertain about the company. many have reached out to journalists last week raising concerns what investors can expect from the twitter workforce as the board considers elon's bid senior associate of faculty and thomas, you through this was coming you've got guys like tom he wants all of his employees in if they don't work saturdays, there's no way they should show up on sunday he's told people that. if you're not coming in on saturday, don't even think about showing up on sunday in the tweet no, on-- no one's
showing up condi can't you see if you're on the slippery slope, people are going to think you're not doing anything. >> the thing about it employees at twitter as they see all the chaos musk is bringing, they have a new ceo, the world is unce uncertain, and they're thing thai we might take you private their job security has dramatically gone down, when he's promising the changes that he is, he's promising changes to mission and vision and people and culture and processes and structure. he's going to take a machete to twitter as we know today if you're an employee, you're scared to death. >> tom, you know, be careful what you wish for.
we've set you up as the guy who's the hard-line guy. you kind of -- you're not comfortable with that. >> he's an office monster. >> andrew, calm down joe -- joe, if i have to talk about golf with you, let me know ahead of time. we can talk about the masters for a couple of minutes. but in all seriousness, as we're looking at this, it's a change in culture, no doubt jack dorsey is a liberal, elon musk is a conservative elon musk builds companies as a manufacturing company. the days of paypal is gone we have tesla and spacex and things and jack dorsey is about ideas and doing those things i know he's not the ceo now, but he was going to work out of africa and evening would be remote and elon musk in the office you're not taking a machete.
you're not firing tlouss of employees. for any employee who's curious, if you go to a new company, you don't know what that culture is like either. >> it's a hostile takeover. >> not of the staff. it's a hostile takeover of the board and that side of things. the average employee making $90,000 a year, the board doesn't know who they are, jack dorsey doesn't know who they are. in fact, because the employees are in the office, they don't know who each other are, what i'm talking about now is a company that's coming in who's going to change direction. if somebody was there only because jack dorsey is a liberal, that's their choi and they should go somewhere else. >> tom, the two things that are interesting about this is elon musk has specifically said -- he's effectively said, i would say by implication, that there's too much staff at twitter.
by default he's going to cut the staff. he also said he doesn't intend for this to be an economic animal he's not buying it for economic reasons but other reasons. if you're on the board of a stakeholder capitalism, where flows fit as stakeholders in that discussion and debate if the board is supported to represent them if you believe that at all by the way, it's delaware company. technically the fiduciary goes to the shareholder as opposed to other stakeholders. >> that's exactly right. we cater to the employees and want them to have great experience around grow and learn. however, the role of a ceo on the board is to the shareholders without people who own the company, there's no company for the employees to work at
let's eliminate anything other than from from the get-go. other than that, in order to make a company successful, you need great employees and you need to build that but the number one obligation is to the shareholders who own the company, otherwise there is no corporate structure. that's really an important aspect we can't forget about. >> here's the thing. this is not a voluntary deal that twitter is executing with thoughtful strategies and business plans on how you lay things out this is a hostile takeover this is a deal around i'm going to create a noneconomic entity elon musk gets an a-plus in physics, innovation,and engineering. he's not the social leader for any kind of organization you may think employees will just go along with any leader, but in the world of great resignation, people have
choices, people want purpose, people want meaning. they're not just going to go and be led by anyone but the other thing, too, what does it mean for them eco econo economically >> i couldn't agree more it means employees have choice they can choose to stay. they can choose to leave again, he's not saying i don't like the engineering team, i'm taking it over he says, i don't like the philosophical direction twitter is going and that's why i'm taking it over the fact of the matter of having too much staff, that's a ceo and ownership condition. maybe this ceo would have done it over time ceos have to look at all of those things because he's doing a takeover doesn't make it any l
less. >> i agree with you. twitter today is a very diverse organization, pluralistic environment. 80% of their revenue comes from outside the united states. what elon is going to do if he shows up is destroy the current structure and do something completely different if you're an employee, there's a lot of uncertainty, securities, and risk for you. >> if there's one thing we know about mr. musk, it's that none of us know what he's going to do i respectfully disagree with the comment. there would be changes in the company, but that comes with any ownership change and any leadership change and any ceo, whether it's general electric or a new ceo coming to take it over and build it back up this happens every single day. >> just in defense of the o.m.,
let's say that -- you do think -- that's for office monster, tom. i never heard that >> not just tom. it's all of them. >> let's see -- you're running a meritocracy. i remember one of the things about you. if you were a crappy employee, they wanted to weed you out, they really did. can you do that if you're not watching someone day in and day out in the office, watching someone na's really succeeding >> absolutely. >> what about mentor and relationships and you're brought along by someone more seasoned in the business? none of that can happen remotely everything's going to break down eventually if you don't have
face-to-face -- >> listen, my friend hybrid has won the day what that means is it's a mix of remote and nonremote, and i want to take us back to the last couple of years. has productivity gone down has performance gone down? >> only a matter of time only a matter of time. >> after two full years? there is 30 years worth of data that shows that productivity goes up with working at home it doesn't mean they're not work so this idea that people are going to be hanging out and that performance will go down has been debunked >> i was talking with a ceo last week he said to a bunch of staff, the problem that we have is that we feel we can never get away from work when we're at home. it's overbearing, it's too much. he said, why don't you come into the office then. they shrugged their shoulders.
they shrugged their shoulders. >> that soumsd even worse, this hybrid thing yikes. >> it's harder, but it gives people what they want. people want work-like flexibility. >> i agree but i don't think the right answer is employees choosing -- i think there's a three- or four-day in the office, one or two days working remotely, and more tenure brings more trust. i think that's how it begins to work i agree with you, joe. the office has become a place where people congregate. we don't have -- i'm not religious at all, but we don't have places of worship that awe used to have or coffee shops the office is where people come together, different races --
>> technology offers tech n congregation. >> i like that rorschach behind you. it looks like a train going through a tunnel to me i can't really tell. it's good to have you on today we're going this again that's a great shot of -- >> cambridge there that's great. >> the people's republic that was kendall square, not harvard square. coming up, we're going to talk twitter and other stories we have a lot more and a callout for morgan stanley aiming amazon, google, and meta, as top recession picks. we'll talk a little biabt t ou that as well as squad rolls on after this
doris, did i tell you i got our car from carvana? let's enjoy the ride... i found the perfect car in no time. i thought online meant no one to help me but susan from carvana, she had all the answers. it was so easy. [laughs] we'll drive you happy at carvana. welcome back to "squawk. in less than six months rivian went from a startup darling to stock going down phil lebeau joins us with some
answers. phil. >> andrew, they're sloily improving for rivian we had a chance to go to their plant in central illinois. they have completely gutted it, added three different assembly lines, they're making pickup truck and r s. 1 and amazon delivery vans in there as well during the course of the day we walked around with r.j. and some of the executives, the production line, supply chains are improving. the expectation for production, much higher than they actually came in fourth quarter,ism proved dramatically this year the guidance, still 25,000, but r.j. says if you look at where we are and where the industry
is, he's confident rivian will get to a place where we see the tipping point when it comes to e.v. adoption. >> we're at this point where you can see the world where every vehicle on the road is electric. we're excited about it. >> he said, look, i'm not going to fall into that trap where we see a tipping point and seeing the majority of the vehicles being e.v. in this country there's no mistake we're seeing the conversion, very slow, from internal combustion vehicles take a look. their certioraris stand at 83,000 we'll get an update when that t company reports its q1 results
they had the pricing snafu really a bad point they said, we're going to have to raise the prices. once they got blowback on that idea, they quickly changed that and said you changed the price there's a higher price for people who subsequently placed orderings, but they say they have not lost orders from that reservation bank they've retrieved or gotten back as they will the interesting thing will be how the production rampis up for rivian. >> the journal hat another report talking about the looming battery shortage, which is an entry industry. >> and inflation and all this stuff. coming up, shanghai reporting its first official covid death from the omicron
outbreak in all of shanghai there's only been one covid death >> can you believe that. >> we'll speak with dthe doctor about that and later mohamed el erian stalks markets and the upcoming earnings season. "squawk box" will be coming right back ♪ ♪ bonnie boon i'm calling you out. everybody be cool, alright? we've got bonnie right here on a video call. we don't take kindly to video calls. oh, in that case just tap to send a message. we don't take kindly to messages neither. in that case how 'bout a ringcentral phone call. we don't take kindly to no... would you can it eugene! let's just hear her out. ha ha ha, i've been needing a new horse. we've got ourselves a deal. ♪ ♪
♪ ringcentral ♪ this is not the stallion i was imagining. my name is ami and when i financed my car with carvana they had questions about my documents. but i was at work. ♪ in a mine.l ♪ so carvana worked with my shift manager to get it all worked out. i was over the moon, even though i was underground. we'll drive you happy at carvana. 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. this is xfinity rewards. into strategies our way of saying thanks, with rewards for the whole family!
welcome back to "squawk box. "the wall street journal" says officials adopt a new message. it's your call what do you think of this advice we were just talking, by the way, during commercial break about this very issue. if you have it, if you haven't tested, if you go out, i'm saying if you have a cold -- the whole lesson from this experience is stay home. think about the billions lost every year for people who used to play jirned we'd come in, people would be sick, and that would be a sign of being some kind of hero. >> yeah, andrew, and how many, myself include, how many people do you know who have actually gotten a cold, nasal symptoms, thought i might have covid, had
to test, and even though i'm inquirying a mask and i'm at indoor spaces. you're right the productivity has completely flipped. we were getting more done when we were safe or however you define safe. my biggest issue with it's your call kind of theme that's out there. we don't do this in any other area i don't tell a person with high ldl cholesterol, you figure out what your ten-year cardiovascular risk is of course, they will talk about what their options are after i talk to them, but that seems like a poor way for a country who's been told for two years, here's what you need to do, how to do, and now tell them go to covid dove and cross their fingers and hope they can get
treatment? i think unfortunately this is going to come back and bide us they need to talk to people about boosters and other treatments >> doctor, here's a question if you want to protect yourself -- it's a choose your own adventure at this point, can an n95 mask on a one-way basis protect you for hours on end let's say you'rety who is shedding covid wild le and you've kwot your n95 mask on, are you protected? >> no. it's like a stale broom.
first of all, no one has an n95 fitting. what i'm going through is different than what u i'm doing on the weekends, throwing on a k in 95. if you have somebody that contagious, right next to you in that proximity, there's no way to avoid it. we're not trying to avoid it we're making sure we don't have the most negative effects from the illness. so no. if you're on a bus, in a car or uber right, you're less protected. >> if you can get the pfizer drug or there's monoclonals that deal with ba.2 directly, if you can get access to that early on, maybe people shouldn't be worried at all isn't that what the -- isn't that what effectively the cdc is saying >> exactly
that's exactly what they're saying i agree with you i would have enough supply to give it to patients. keep in mind not everyone can get it kids under 12 can't get it we're still in a narrow window. >> it's a longer conversation. we hope to have you back to continue it. >> thanks. >> let's take a look at the futures. we're going to speak to mohammed el area about what to expect "squawk box" will be right back. e making sure everything is safe. secure. consistent. so log in from here. or here. assured that someone is here ready to fix anything. anytime. anywhere. even here.
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checkmate, chess heads. girls, i said “bedtime”! here it comes. bank of america, earnings ramping up we're going to get a flu of s&p 500 results before the week is out. the next chapter in the elon musk twitter saga, title this one. we'll zplarchlt then we talk about what ownership for elon musk would mean for free speech, and with netflix streamer growth driving, how much would you pay to put yourself inside bridgerton or "stranger things?"
the final horde ofur of "squawk" begins right now. good morning and welcome back to squauks "squawk box" ri on cnbc at time market square. andrew ross sorkin along with joe kernen becky is off today we're down on the day. dow would open off by 50 points, s&p by half that, nasdaq about 50 you look at treasury yields up the ten-year, 2.73 joe, we're going to talk about elon musk. dan loeb tweeting, freedom isn't free neither is stock-based comp. >> okay.
>> we'll get to some of the story later. you think about it. >> that's our top story. love me tender that's what elon musk chose to tweet saturday afternoon of course, he include a musical note before and after, the emojis, so mike he was listening to that song of perhaps the greatest year in history, 1956 thai this came after taking a poison pill. if anyone acquired at least 15% of twitter's common stock without approval, other shareholders would be allowed to buy additional shares at a discount in a press release, twitter said it will reduce the likelihood that any personal or entity or
group would open without providing the board sufficient time to make informed judgments and take actions that are in the best interests of the sh shareholders another tweet from elon on southward, wow, with jack depargt, the twitter board collectively owns almost no shares he replied with a single exclamation point that board member bob zellic has never tweeted. who owns more? vanguard is the only one who owns more. >> i wonder whether bob has a burner account. >> i'm not familiar with what a burner -- >> account is? i think a lot of the guys have burner accounts. >> like what was his name? pierre delecto or that other
famous one. >> carlos danger. >> is that taken, do you know? >> you ought to get on that. we're going to get over to dom chu. dom is giving us the market movers this morning. you should see if that's available to you dom? what have you got there. >> carlos danger, i haven't heard that in a long time. all right, guys. first of all, if you take a look at what's happening from a macroperspective, we're seeing more of a demand especially in early trading, european trading as well. if you look at things like gold, up about 1%. silver prices up 2%. platinum, almost 2% gains there. palladium, up 1ment 5% a lot of folks choosing some of these metals just the save haven demand has
come back full force as the tensions on the war in ukraine have escalated further as they start to escalate a little more. you see those prices and precious metals starting to gain some steam also watching what's happening with the stock sheriff specific story especially when it comes to quick service restaurants, wendy's down 1.5% right now. this is due in part to analysts over at bmo capital market downgrading this it's the equivalent of a neutral rating that i cut their target price. they think that wendy's will be relatively less well positioned. they think other restaurant chains that have more established menu items that aren't on trial will maybe do a little better. they also think naples like wing stop and papa john's are still
efficient ways that's what's driving that stock. and a check on the most popular tickers that people looked on the website, cnbc.com. crude oil and the ten-year are still in the top ten, maybe not surprising given the over three-year highs twitter you just mentioned, still a lot of extraction there. people interested in twitter stock. general election and johnson controls are generally not in the top ten or top 50, but those two picks, joe, were names that our own jim cramer touted on "mad money." that's the reason why, guys. >> tout. >> he recommended them. >> recommended those names, those victim names that should go on some shopping lists if you're look for suppose ourn
that by the way, the rest is on my twitter feed at the domino i'll send things back over to you. >> you're going to have pay a commission to elon musk so. >> did you get >> i did thank you for sending that to me it's a visual medium. >> it's a way to see the world. >> do you want to explain it to the world? >> we were talking off camera how you characterize the person sitting next to you. shedding covid wildly. and i asked whether my n95 would protect me. >> i thought that was a look into your psyche. >> my soul i got t. >> i don't think that way. >> i'm a delicate flower. >> i know you are. it's a view of new york city,
and there are covid molecules everywhere, everywhere and the point was back then, if you could see it, would you go outside? >> if we were organized, we would do it. >> maybe we can get it. >> i sent it to you because you see it like that. >> i see it like that. >> dom, thank you. he's already gone. bank of america with bottom line results and leslie picker joins us with the details and the biggest takeaways from all the big banks. she does this with a smile, she says every time give me the banks to cover i can't wait then all of a sudden it's like every three months, leslie every three months. >> i want to see the video of her while we're talking about nonsense and she's -- i don't want to say -- >> i don't want to say it's nonsense. >> i still have a smile on my face listening intently.
bank earnings, nothing a good cup of coffee can't help me. >> a strong one. >> we'll revert back in a year's time bank of america, the last of the large six reporting earnings, this morning beating estimates it was largely a quarter of beats relative to mouted respects fees took a major slump with underwriting, essentially drying up during the quarter. sales and trading held up a bit mfrmt expecting stronger than normal activity there. some of the less volatile businesses, management held up city grurngs jpmorgan and also deposit growth around loan growth and they should benefit from rising interest rates in the future
it's just the way these banks work but the cloud that really hung over these results was the broader macro backdrop david solomon warned about the increased risk of stagflation and mixed signals on consumer confidence city i-'s jane fraser said macrooutlook for the year would be complex and uncertain and jpm jpmorgan's jamie dimon said there's almost no chance you won't have volatile markets. >> you've heard about the office monster? that's bank ceos who's the biggest office monster among the bank ceos today. >> what's the office monster mean i missed that conversation. >> they want every northbound
the always all the time. >> oh. i mean i think notably it would probably be -- all of them really god man sax, everybody's basically back in the office morgan stanley really wants people back in the office. jpmorgan announced it's building the new headquarters in midtown. they're all refurbishing their spaces, look cool, and win the talent war and get people back i don't know how many of those plans were prepandemic or post pandemic as a way to come inside the office >> monsters. remember they used to be called the goldman muppets. >> monsters inc. >> we'll talk more with mohammed el area. ian. elon musk is usually more flame thrower. >> there he is with his flame
welcome back to "squawk box. nasdaq off by 83 points. s&p 500 off by 15 points let's show you cryptocurrencies. they're on sale this morning, depending on how you view these things bitcoin off now under 40,000 about 39,107 eit ether off and solana you heard from leslie just a moment ago, bank of america finishing out.
joining us now, mohamed el erian, an economic advise e. good morning to you. i was watching your twitter feed and inflation and what we're seeing in terms of a labor market i'm hoping you can bring that tweet to our audience this morning. >> thank you, andrew basically the markets have understood that we have issues one is high and persistent inflation is with us two is the fed is way behind, and, three, the pathway for orderly disinflation is pretty narrow because of that you have growth. that's a meaningful numb 3w5erks% the big question is can we navigate this inflation growth
landscape that has become much more difficult and you saw that in the comments that leslie repeated from the environmental. >> do you want to speak crypto this morning a lot of folks are looking at some of these prices, especially when you look at the technicals. there's a view that once you cross some of these boundaries t lower boundary becomes quite bankful. is it -- >> what's really important is distance is happening at a time when gold is up and hitting almost 2,000.
there's a tug-of-war where liquid city is going out and attractiveness as a diversifier. so far it's the liquidity element that's winning out go ahead. >> what i was going to say, in longer term, is this an indictment of crypto or is this one of the great sales of all time >> i think what you're seeing across the board is a restoration of value that is a good thing we're adjusting to a paradigm where it liquidity is no longer abundant we're seeing it with quite a few assets. >> there are some people who want to know, mohammed, how much longer this restoration is going to go and because it means that
things are going to go lower, it sounds like, no? >> yes, and i've been saying this the last two to four weeks. i was very impressed with the stocks i said to you, now be careful because we're hitting some critical points. we have to price that in i would be cautious. >> do you think inflation has peaked out you see some things seem to get marginally better, whetherite ace toes, used and new, maybe on the lumber side. last week, and i was out in saes --
at amazon. >> base effects are going to be favorable. however, there is another inflationary impulse in the system it comes from the very high ppi we're having it's coming from a very tight labor market so we cannot declare inflation over expect core inflation. we're nowhere near the end of our inflation challenge. >> you think we're still -- what are you thinking about if it's 8 points -- that's still higher than where you want to be at 2%. i don't know where you think we're at at 4% what does it look like you >> we're not going to come off much and we may have another leg up later in the year especially if the fed doesn't get its act together longer term, we're going to get
back to 2% this year or next year, so the fed ee going to have a really difficult point. it's only a matter of time until you hear the fed talking about having to change its target. yes we have an inflation issue. >> now you're raising a tough one. what would force them to change their target, and what would that target be >> what would force them to change the target is the recognition of by being so late, they can't get to the target and the credibility is threatened. they would worry that by hitting the brakes too hard, they may push this economy not just into a short-term recession but longer-term recession, and they will be very tempted and lots of people would push them that's not going to be an easy way out and it's going to be increkcredibly controversial.
but that's what happens when you wait too long. we should have started qt last year we didn't. now we're facing the consequences >> mohamed f they do that, what happens to the fed and crypto? >> they both go higher. >> mohamed el erian, thanks. it's good to get your per speck tissue thanks so much. >> thank you. coming up, a lot more on "squawk box. i won't say everyone left new york city during covid some did now bidding wars are the norm in the big apple -- we're going to speak with howard lore ber with vector group after this. stay tuned you're watching "squawk box" of
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we want to know how long the sky-high numbers will be let's bring in howard m. lorber. have you noticed anything as mortgage rates move up, howard, or it's just gangbusters still >> it's still very strong. what technically happens is people come into the market when they see rates rising because they're afraid if they wait too long between mortgage rates and inflation, they're going to get priced out of the market it hasn't been a big thing for them up to this point. >> you know a cross-s of everything going on, there's luxury, there's doormen or door person buildings, nondoor person, rentals, co-ops, buy, all these -- everything's strong can you go over a couple of the
numbers? >> everything has gone up. this quarter was the highest number of sales for the first quarter in 33 years on track, so we know the direction we're going. that includes everything you said all types and residential classes. whether it's a luxury, middle, low end. it's all going up. and the price trend indicators were higher in the same period before than in the same period before the pandemic, so things are actually very good and i think a lot of that is this idea of everyone leaving the city you know what? i know a lot of people that left the city and moved to florida, but i don't know one of them that sold their new york city apartment. >> that's interesting. like so many things, howard, and we've pointed out, the elasticity of a lot of things in demand might be different because of the pandemic, and they may say, okay, it's going
to cost me a little bit more to do this, go to a vest restaurant, a little more for hotels, and they seem -- maybe they're comfort allegation that that permanent? >> i don't know that it's permanent, but a the world is opening up, people are looking forward to travel again and they're not worried about it people here traveling to europe and other places and then the international buyers don't forget, all these great numbers we have are basically the lack of any international sales, and that accounts -- generally in the last 15% to 18%. so we have a ways to go on the upside >> i'd be remiss if i didn't ask you. what are you hearing about office leasing
i can't imagine that this new work model hasn't damped the demand in that regard. >> what's happening when you see a lot of buildings being rented, those are the newer or redone, remodeled buildings, and what you have coming up in the next couple of years is a lot of existing leases that skpar and a lot are in older buildings, and i think that's where the problems are going to be as leases come due over the next couple of years. >> howard, we used to have you on we wouldn't talk about this earlier. we'd talk about former president trump as you're friends with him. when is the last time you spoke with him >> i was playing golf in palm beech and ran into him
that was about a month ago he's busy, i'm busy. >> do you think he'll want back on twitter >> i'm not even on twitter i'm not on any social need ya. >> do you think he's have something to say if he got back on >> if i -- >> not you, him. we don't care what you -- >> sure. i think he'd have plenty to say. i think that's fair. everyone should be able to say what they want. >> you're a free speech absolutist, is that too -- >> pretty close. you can't say i'm going to kill this important or that and go do this few you're talking about your views, what you like and don't like, i don't think that's too troublesome. you should be free to say that in this country. >> you always give me the look i'm a free speech absolutist in
the following sense. the fact is it's the message and anyone should be the one allowed to decide whether it gets to ten people or 70 million people. >> you could apply that equally a little better than twitter has. >> i mean that's the thing that's the fair question. >> >> it's a private company, they can do what they want, howard i know what you're talking about. the leaders of the taliban, you see the stuff that's there and the stuff they decide can't be there and it's just clear -- >> things that are outrageous should be banned but there have been a lot of things that have been sensored
>> they have a point of view culturally and they're allowed to do it it seemed to have -- we talk about real estate and these other things and we always do with you and he's always somewhere open and unafraid. [ indiscernible >> you are, you are. p. >> i'm afraid. >> i'm an anxious person. >> that's okay i go to bed anxious about something and i wake up anxious about something. coming up, some more anxiety. what changes elon musk would make with twitter. that has people feeling anxious. [ indiscernible
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"love me tender," elon musk tweeting that. was he talking about elvis or his next plan. musk had something to say about the board on saturday. he said, well, with jack departing, twitter board collectively owns almost no shares objectively their economic interests are not allowed with shareholders kevin o'leary, invest and venture capitalist, also a cnbc contributor. and adam i think i know where you stand
i don't know where ads am that comes from where are you at more content moderation or free speech absolutism. >> i'm not sure kevin and i are in agreement i'm definitely more and high on. i think it's important to live in a world where our kids are based on something we want tiadvertisers to feel same we're seeing the front end consumer seed, in the back end, there's a lot of hard work
>> adam, will you at least concede -- let's say where twitter is based -- someone characterized it with a school of fish that are all the same, take for example, cultural issues they look at content moderation through this prism they're absolutely true and everyone around them is nodding and it's an echo chamber, what about the fish on the other side swimming in an ensteyerly different skoochlt they're a private company and canapie to the other fish if you wanted a public town hall or public forum, you're not going to get it there. >> i think the krit cat decision here, joe s make smur there's no ceo or executive who can make independent decisions. >> how do you do that?
that's impossible. >> no. you do that be creating a policy you put it out there sfwheev seen the policy. >> you separate the moderators and human beings you want them -- >> the ones they picked were horn't, and i don't want them deciding for me. kevin, what do you think. >> the way i look at it, it's not unique to twitter. over the last decade almost ten years this company has been public, if you compare the performance, let's talk about investors. this is the most miserable investment it has totally lagged all its other competitors. never grew anywhere near as fast as google or instagram you have to ask yourself, the rotating suite of executives that come through this thing and
all the stock options have created virtually no value for the shareholder. now the best way to look at this, you gave them a decade why not get the whack stick out and just start all over again, and that's what elon musk is proposing. the biggest risk here is if musk goes away chl they're back in the same miserable place they are now. you know there's dante's hell. at the very bottom of that is twitter. it needs change and the whacking stick. it needs everybody cleaned out of there i think frankly if you ask about free speech, the reason this thing has underperformed is they've tried by canceling voices and losing millions of followers. >> kevin, i don't disagree that this is a company that's
underperformed he's actually been explicit about not running it for any economic purpose he's been explicit about it. at some level you have to disciple p if they would be closet that way. they would be littered with pornography, snuff films, terrible lain gj if you think these plays are a hello scape now, think about it. just think about it. >> andrew, all of that exists in annan cure rated way and people seem to be surviving all of that exists when you try to figure out who should have a voice and who shouldn't, you're stepping on the free speech of america. >> if you want to go online and
have a perspective oar view. the question isn't can you tutt. the question is does the distribution membership need to discontribute it to millions of people tell people, and nothing in between. >> if you decide to allow for it, it has to be ubiquitous across the entire internet the cost of free speech,cost to society is allowing the lunatic fringe to have a voice these always been the case ben you have to realize the lunatic fringe hant. >> i don't want my kids seeing
it. >> then you as you do now. you have those tells why dunld google do the same the point is you can't kier rate the internet you can provide tools. that's what twitter should do. it's horrific. i weep like a baby for them. i wouldn't touch the stock however, if elon musk gave me a piece of the deal, i'd back him because of executional performance on everything he touches. the rest of the board and ployle there are two different topics that both. the first question is do we a the people of the country. to push a message out which did
not exist 50 years ago and did not exist on the open internet facebook and twitter have the responsibility to moderate those. that's the structure that is different. let's put that aside the reason twitter is not as successful, if you compare amazon and facebook and twitter, there's a game there you have to ask yourself, can twitter solve problems and be as success elf if the answer is yes,ite's $55 billion company. in not, the answer is no it didn't matter it's a separate topic and a view for shareholders >> kevin >> there's no question there's an opportunity for cheryls, p.
i think you have to rebeam sth time hay've tried so many time tsds in temps of taosing dlrn all of this content put out is not seen on the twep you put it up on the screen, clough deck medic. they haven't grown a base they can moon tiez and that requires new management you made them famous when trump used to twig it out, nobody saw it on twitter they saw it on your network. elon musk would bring in people with fresh ideas i'd go along with him. you have to think about it, after ten years, yerk week
i've guy >> adam, would you try to level the playing field at all let me make an example you can watch one view of the world and have the people that like that world watch that view. then you can watch the other view of the world, and the other side likes that twitter can run it however they want. kevin makes the point that maybe that's one of the reasons for the underperformance, but do certain people have to go to a different social media outlet to get a fair shake is that okay if you alienate half the people with your
content moderators at twitter because they're all -- they all have the same m.o. and the same thoughtset at twitter? they're all aligned on one what's there for people on the other side >> it think it's a real challenge. there's a real problem i'm not suggesting that social networks would resolve that. i've talked about the chance of social networks and open labs and journalistism and free speech on the other side of it it's important to know how strong i feel about the other side i do think there's a problem there. all i'm saying is when it comes to safety and not so much about the echo chamber, tesla has a seatbelt, and you would never buy that car without a seatbelt, and that seatbelt matters. it matters wre
is that's all i'm saying i think there's a lot more to be done if that sbel goes off, there's a problem. >> it would g great to have favored algorithms, and we know the al go recohythm. it's a slippery slope. you let it fly, kevin. you crack me up. >> no. why does everybody fear change so much? who's wrong after you give someone a decade who can't deliver, you simply fire them? what's wrong with that that's a good thing. >> you all deserve awardings it looks like someone got a new
hairstyle. okay u.ose are actually leaves behind yo adam, thanks we'll be right back. just making. but i didn't wait. i could've delayed telling my doctor i was short of breath just reading a book... but i didn't wait. they told their doctors. and found out they had... atrial fibrillation. a condition which makes it about five times more likely to have a stroke. if you have one or more of these symptoms irregular heartbeat, heart racing, chest pain, shortness of breath, fatigue or lightheadedness, contact your doctor. this is no time to wait. welcome to your world. your why. what drives you? what do you want to leave behind? what do you want to give back? what do you want to be remembered for? that's your why. it's your purpose, and we will work with you every step of the way to achieve it. at pnc private bank, we'll help you take care of the how. so tell us - what's your why?
who's your rock? is that netflix? >> it is flnetflix and it is awesome. if you missed it, it is awesome. >> good warning for everyone there. everybody should watch it. >> i have not watched that show yet. i have not seen that show yet, joe. >> looking more broadly at netflix, subscriber growth is expected to continue to slow amid greater competition the last earnings called, et
netflix warned it would add 2.5 million to its subscribers with netflix's shares down about 37% over the past 12 months. the company is hoping experiences consumer products in video games will help drive engagement and drive revenue we took a look at experiences like this, bridgeton queens ball is happening in downtown los angeles. tickets cost between $45 to $85 for a 90-minute experience regency ball we spoke to josh simon oversees consumer products and experience for netflix. more than a million guests participated in netflix's experience last year and they plan to increase that number this year. >> revenue is an important
metric that we look at it is one and many we love to see the amount of conversations that these experiences drive. it builds a shared sense of community and fan across people love watching "bridgeton." >> "stranger things" experience launches injun june. netflixs want fans to feel they are the experience and designing these to make them the star of the show andrew, back to you. >> i think i would get bad experience >> yeah, i think -- >> yeah. >> i agree >> we'll see coming up, oil once again well above 100 $100 a barrel.
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falling. analysts have been predicting earnings of 84 cents per share let's talk about what's going on with oil prices. the biden administration says starting this week, it will resume selling leases of oil drills to land joining us right now for more on both of these stories, our strategy, cnbc's contributor this may answer or not, ultimately answer our answer of whether we'll see peeking inflation. what do you think of all this? >> it is not going to be significant acreage of drilling. we are looking at european down russian oil imports.
the question is who's going to make up for it total spare capacity right now at about 2.2 million per barrel. is russia going to see their growth coming off this market? >> i see which way you are betting. i want you to give me a price though >> i mean -- give me a price on brent and wti? >> are we going to retest level we saw this year if we get europe moving towards banni banning russian imports. what happens with this covid story in china that's the main drag on the oil market we have to watch for that. we just lost 530 hours of production we could move higher than the earlier highs this year.
again, there are these moving parking parts that we don't know how it is going to be resolved. >> real quick, you mentioned china, hanadicap that situation for us >> we are concerned of the lockdown position we already know we have lockdown in china are we going to see sanctions placed on russian oil exports at a time we are potentially losing other buys from countries like libya. >> always great to get your perspective. thank you for your time. we should ask act musk but we don't have time. >> about half an hour the markets is set to open it will open down. s&p 500 off by 13 points what do you think? does musk love me tender >> you know what -- i thought
a about it a lot i have no answer for monday this really went fast >> time flies when you are having fun, buddy. >> that can't be true, that can't be why >> that can't be why >> make sure you join us tomorrow the buddy thumb continues. "squawk on the street" begins right now. ♪ good monday morning, welcome to "squawk on the street." we are going to get netflix's ibm and tesla and j&j proctor all headed this week we'll get at&t as well and those set to report in the week ahead. >> plus, of course there is musk and twitter, that take over saga