Skip to main content

tv   Squawk Box  CNBC  September 6, 2022 6:00am-9:00am EDT

6:00 am
the charity auction stolen details straight ahead it is tuesday, september 6th, 2022 "squawk box" begins right now. good morning welcome to "squawk box" here on cnbc we are live from the nasdaq market site in times square. the gang's all here. i'm rebecca quick along with joe kernen and andrew ross sorkin. we have ready to get back to school kids first day back to school. >> summer's over >> i'm kind of here. >> physically we're all here >> it's raining out. it's not even real summer. >> i got in at midnight, sorkin. >> when does summer end? >> september 21st. >> enjoy it. >> are you listening
6:01 am
midnight i went to bed at 1:00. >> you may be grouchy? is that what you are suggesting? >> business. a lot of happening i know if you have questions about the slate of oscar contenders, i'm more up on that. >> okay. >> bardo i was in telluride. >> hanging out with the hollywood stars. >> they all come >> scott >> scott i got to meet all of the people. summer -- i don't know october is coming. i don't like the market action >> you will see the u.s. equities are higher. all of the headlines late on friday dow futures up 180 points. s&p futures up 24. nasdaq up by 83.
6:02 am
of course, this comes after the down week for the markets last week the nasdaq was down by more than 4% dow and s&p down 3%. if you look at treasury yields, the 10-year treasury is sitting at 3.252%. 2-year treasury below 3.5% at 3.462% guys, the energy moves have been something to watch you have that in combination with the china lockdowns conflicting stories. >> that's where we go right now because of the surprise news over the weekend from opec and partners came yesterday. deciding to cut production by 100,000 barrels per day. analysts expected them to maintain the current levels. last month, opec agreed to raise j output as 100,000 barrels which was widely considered a rebuff
6:03 am
to president biden's visit the move being viewed as a slap in the face to the west. you are looking at wti crude down marginally. i thought it would move more $86.69 by the barrel >> the issue is the china covid lockdowns. the new york times with that story. 60 million people with lockdowns. there are cases in every province at this point >> offsetting that bad news. >> other than recession, it is hard to understand crude especially yields are back up as well did you read this? this is eird did you read about the oil leasing? the raw numbers. the fewest leases in recent years by a president was 4.4
6:04 am
million acres by nixon leased out 4.4 million acres at this stage in the first term president biden at 126,000 versus -- >> i don't understand. >> a fraction. is my math off if you want to talk about airline issues, i have serious complaints i know you like to do that when you have a problem my flight gets canceled. >> we can talk about it. >> i had been sit in the front of the plane i was middle seat three hours after that >> also the fuel price and cost of the seat? >> you know what is related to the fuel cost is the sanctions are hurting poor vlad. he can't fix nord stream he doesn't have the equipment or the labor? >> out of canada onand the eu fr that they are using it as a weapon. if you are supporting ukraine in the war, we will hurt you in any
6:05 am
way we can the airline problems and how many are based around florida because of the schedules around florida. the faa issues there issues i didn't realize. the planes there cannot fly over the ocean because they don't have rafts and the space launch has shut things down >> did you see the original icarus bill broward has talked about that a lot the director should have him on. it is a snapshot in putin and what he is about it has a lot to do with it. >> thank you for the segue there is other energy news going from oscar news to energy news ru russia's gazprom announcing the nord stream pipeline will remain shutdown to germany indefinitely russian regulators notified a leak of engine oil in one turbine which was a safety hazard
6:06 am
europe gas prices surging 25% before those gains yesterday look at the european stocks. they fell yesterday. dax falling 2.2% euro falling below 99 cents. setting a 20-year low before recovering yesterday that's where you should have gone the last week of august if you are looking for a summer trip >> a pretty nice place i will say that. telluride in the summer. gorgeous this is weird. i'm talking oscar movies and you are talking oil and gas. it's like we're -- i'm complaining about the airlines it is like i don't know. it's weird it is like fair is foul and foul is fair, is it not do you know when a computer gets messed up on a plane, do you know how they fix it >> same way we do ours. >> turn it on and off. >> they do that was their fix it didn't work the first time.
6:07 am
we de-planed after being out for an hour. they did it again. i guess they waited longer does that give you confidence? >> what airline? >> this was -- this was -- skies were not so friendly the skies were not so friendly i'm here i'm here sort of. shares of the widely held chinese tech stocks falling as beijing ramps up covid restrictions dealing a sharp blow nearly every province has reported new infections in the last recent days leaving 60 million people on lockdown and more on edge over what to do with measures still to come. you would think with all of that government money -- >> i knew you would come around. right? >> not really. look, they got us here
6:08 am
middle tseat >> i'm glad after all that tax money and ticket price >> middle seat. >> do you get a refund on the difference in the seat >> they said no. we're sorry. your middle seat someone was in my beautiful seats in front where they actually give you orange juice before you takeoff >> did you pay for the seats or were they miles? >> there were four of us some of them were miles. >> if it is miles, too bad >> you can't get diddly. you are lucky the miles are good for anything >> talk about a currency that is devaluing. >> i want bitcoin miles. liz truss. the uk you know who is on today. >> an lo lot of people >> he may say what he's thinking uk conservative party chosen liz truss to replace boris johnson
6:09 am
she served as foreign secretary of johnson's cabinet and not part of the crew that led to his departure. she will meet with the queen in scotland and she have her work cut out for her in terms of the worst economic conditions since thatcher >> you are talking about energy prices expecting to rise 880%. >> a recession almost without question given what is happening with energy in europe -- >> they were talking last week how incomes for families are expected to drop by 10% or something. >> $4,000 energy bill. >> unless they heavily subsidize. >> she is talking about price cuts which probably won't work >> they usually don't. >> talk to nigel about all these
6:10 am
things you want to stay tuned for that. we have deal news this morning. cvs health reached a deal to buy in-home health care company signify health for8 billion. cvs is paying $30.50 per share in cash. the wall street journal reported that the company was exploring alternatives, including a sale sa amazon was said to be a bidder it provides in-patient health care you see the deal price for signify at $28.90. >> it may be a good deal for cvs. this part is less clear which is will it be good for customers and bringing down the price of health care? ultimately, the more integrated
6:11 am
these companies become, the higher the price becomes part of the issue is cvs has a gross margin under 20% roe is about 10% in life, if you want health care costs to come down, those numbers have to come down. the point of putting a deal like this together is for the numbers to go up not to go down. you have to start to think, okay, you add these doctors to the system and cvs will say putting them together they will lower costs because the doctors get to you earlier and you will not take the medicine. the truth is, the conundrum we face is all of the these guys are too integrated one reason there is too little competition because there is so much strange integration or lack of integration that prevents the price from actually coming down. you see what mark cuban is trying to do with the drug
6:12 am
prices if any of these companies were serious about this, they would take down prices in a different way. this actually does a different thing. it may be great for the stock and company, is it great for the consumer i don't know >> what about amazon involvement? what would amazon do to the price? >> i always thought amazon -- they looked and played and haven't landed the plane i'm talking about planes i don't know you would think one day with prime service and the scale they have, if they really put their mind to it and wanted to play the game, they could i also think they are a little anxious about playing that game for real if you think -- it is hard and if you think they are under regu regulatory scrutiny now? >> as someone who is an aetna
6:13 am
customer and cvs customer, they found ways to cut costs and make it better around the edges i don't know the claims if they have gotten better or worse because i'm not an aetna customer anymore they have streamlined it in ways the goal is to get return on equity and investment higher >> amazon -- back to my world. the latest movie from this gentleman. amazon is buying the entire place. bring it all back. they may. >> for warehousing or shipping? >> i think they think it is a great investment down there. that is the investment of the thing you will see and tell me about when you see it. i don't know you might not make it through the three and a half hours this is a revenue guide.
6:14 am
>> this is not a two thumbs up review >> if it wasn't quite as long -- it had its moments where you need to suspend any logic. a lot of dream sequences, andrew >> i think i'm out >> he's a very intellectual. >> she heard three and a half hours. that's all she needed to hear. we have sad news from over the weekend with bed bath & beyond the cfo arnal dying but sueicid on friday. he had been one of the few senior executives to stay in his role at the company after a management shakeup that started in late june arnal joined the company in 2020 from avon. he also spent 20 years at p&g. he was 52. the company is expected to report an interim finance chief. in the meantime, the stock is
6:15 am
down 16% >> a terrible story. look, nobody knows and everybody is speculating the stock down thing truth is, call a spade a spade. people are speculating they are cooking the books or something happened was he under pressure? i don't think we have any of the answers. i know a lot of people reporting, including myself, who could not get to the bottom of what really happened you don't know what was happening in his personal life >> anything beyond personal life is a leap to make if you have nothing to go on with that the company has been in the news a lot. there are all those questions. that's a drastic -- that sounds like to finally come to that point in your life, i don't know >> it has over many years so many cases where people have issues with the books or issues with the personal money. he sold $1 million of stock.
6:16 am
was renting that apartment i don't think we know. >> right meantime, we have a big show coming up. debate kevin o'leary and jay clayton will talk about the future of work as companies begin to mandate the return to offices. it is all starting now today. this week. that conversation at 6:30 eastern time this morning. tomorrow, i'm live in seattle for the exclusive interview with the founder howard schultz and the new incoming ceo laxman narasimhan >> announcer: this cnbc program is sponsored by truist securities
6:17 am
another busy day? of course - you're a cio in 2022. but you're ready. because you've got the next generation in global secure networking from comcast business. with fully integrated security solutions all in one place. so you're covered. on-premise and in the cloud. you can run things the way you want - your team, ours or a mix of both. with the nation's largest ip converged network. from the most innovative company. bring on today with comcast business. powering possibilities. how will your business adapt to change? you could hire an office full of peyton mannings. what's up, peyton? good morning, peyton. hold for peyton. they'd huddle.... welcome to the peytonverse.
6:18 am
such a visionary. game plan... you go. no, you go! and call audibles... double our investment in omaha! omaha! omaha! omaha! or you could use workday. omaha. the finance, hr and planning system used by over half of the fortune 500. for a be-agile-like-an-mvp world. workday. for a changing world.
6:19 am
6:20 am
everybody, welcome back on this monday morning. you watch the futures and things are looking bright for the bulls. dow futures up 220 points. nasdaq futures up 107. the s&p up 30 points let's talk with anastasia omarosa. the news we heard since friday with the concerns of the u.s. is going to do with selling taiwan missiles and concerns with russian gas shutting down nord stream and opec cutting prod production you might add that up and see red arrows why are we opening up this morning? >> good morning, becky no shortage of negative over the weekend. we saw a pull back over the last couple weeks it was a very quick 9% because of the reset, that is why the markets are looking up this morning
6:21 am
here is what i would say i the markets are prone to reversals. i would not read too much into the open we are seeing right now. that can change with the course of the next few days and weeks becky, we have significant event risks still on the horizon between the ecb and fed and the nord stream pipeline shortages and whatnot. significant event risk at the same time, the technicals that were supportive over the summertime, they may exacerbate the down side. i would probably not get too comfortable with the green open we're seeing. >> what are the technicals that concern you? >> if you think about what has driven the summer rally is low positioning ratcheting up across the board. the technicals that concern me are corporate buybacks corporates are the largest buyer
6:22 am
in the market. we know what happens in the earnings season. they will start to go into the blackout windows and you take the largest buyer in the market which is no longer there in size and that is comparing some air pockets. the system strategies have been adding risk. they have been adding equity beta they added it and now we tested the 200-day moving average and rejected that. we are now below 100-day and 50-day a lot of these trend followings will go back and reverse again and reduce the equity beta becky, seasonality, september i one of the worst months. you add that together and hedge funds could move to capitalize on that and go short these are the technicals that
6:23 am
are not supportive >> you would not be a buyer right now. what would convince you? how much further of a pull back? >> i would not be a buyer right this moment. i think if you get back to that 3 3,700 or 3,800 from here, that where i would be interested in buying certain things. i say that because if you get back to that level that gets us to 16.5 times forward multiple on the s&p, it is not cheap, but it doesn't have to be. it sayis a multiple which is consistent where the fed has been before 2019 that is an interesting entry point and also if we get to 3,800, we clear the overbought technical levels we have seen and i think that would be a more compelling point to step in. for now, the message is you want
6:24 am
to be patient in september, but put together the shopping lists of things you want to buy as we get down to the 3,800 level. >> anastasia, thank you. coming up, all date on the new law in california that going to appoint a council for fast food wages. and later, bill ackman will join us with his partnership with tennis with the prof professional tens ays soatn.nipler we'll be right back. ge ice bat what do you mean? these straps are mind-blowing! they collect hundreds of data points like hrv and rem sleep, so you know all you need for recovery. and you are? i'm an invesco qqq, a fund that gives me access to... nasdaq 100 innovations like... wearable training optimization tech. uh, how long are you... i'm done. i'm okay.
6:25 am
okay season 6! aw... this'll take forev—or not. do i just focus on when things don't work, and not appreciate when they do? [dog groans] so whatever is at work to pull all this off, it's working. as are those earrings. ♪ ♪ even work works! i just booked this parking spot... this desk... and this conference room! i am filing status reports on an app that i made! i'm not even a coder!
6:26 am
and it works!... i like your bag! [people cheer at concert] real-time ticket upgrade! meaning....i get to meet my childhood idol. that works. i named my dog joey fatone. co2 levels-- if i may! all this technology is helping the world work, so you can focus on making the world work better! so i say...lets work! ...or i think that's what we're both saying. when your digital solutions work, the world works. that's why the world works with servicenow. hey! whats good your highness?! medium latte, half-caff, no foam. quite the personalized order. i know what i like. i've been meaning to ask you, carl. does your firm offer personalized index investing? hmm? so i can remove a stock that doesn't align with my goals. i'm a broker, not a barista. what about managing gains and losses to be more tax efficient? not a wizard either. looks like schwab personalized indexing can. schwaaab!
6:27 am
learn more about personalized indexing at schwab today. power e*trade's award-winning trading app makes trading easier. with its customizable options chain, easy-to-use tools, and paper trading to help sharpen your skills, you can stay on top of the market from wherever you are. power e*trade's easy-to-use tools make complex trading less complicated. custom scans help you find new trading opportunities. while an earnings tool helps you plan your trades and stay on top of the market. in an update on the story we told you last week governor gavin newsom signed the fast recovery act to appoint a government council to set wages for fast food workers. the council could increase wages for those workers by as much as
6:28 am
$22 per share -- per hour, gosh. the current minimum wage is $15. many fast food companies lobbied against the bill some were considering adding table services which would exempt them from the law >> it is weird picking this as a random group and wondering what it means from the inflation perspective of what you pay teachers and every other category. >> other thing i would think they would do is restaurants would serve bread. bread was part of the carveout >> table servers >> the far left last week. i said that would mean these places would not stay in bus business, probably some would say that is a good thing. it causes obesity and is a bad thing. >> people losing their jobs.
6:29 am
>> i heard it is called the fast recovery -- they call fast money. sometimes you put one word there. when i heard it, it is the opposite for a fast recovery they are talking about fast food recovery it reminds me of the inflation reduction act. funny. it could be the opposite >> all cars have to be ev by the year 2035 which you don't think of the unintended consequences how do you have the charging stations i understand incentives for ev to mandatorily say this is going to happen is short sighted porsche ipo. >> i'm closer on that. there's a runway a 13-year runway to get to 35. this is a whole different operation. this is like a tomorrow situation. this is a transition that --
6:30 am
>> not everyone is sold on evs >> this is not going to stick. they have to change it 13 years and change the entire plan. >> maybe it is long enough to change attitudes people are not totally sold on the idea especially on longer journeys. porsche wants to cat apult into the future >> $$85 billion. >> that is the biggest ipo in a while. that will help >> they are all moving that way. that's where the -- that piece of it is where customers genuinely want to move >> i have to store cate blanchett's car. these are things -- you will tell me these things >> if i talked this much about
6:31 am
movies and hollywood stars on tv oh, what a day >> you didn't listen to anything i said about evan. you saw it you said -- >> you were right. >> you need to listen to me. >> announcer: executive edge is sponsored by at&t business at&t 5g is fast, reliable and secure -ery. oh, i can tell business is going through the “woof”. but seriously we need a reliable way to help keep everyone connected from wherever we go. well at at&t we'll help you find the right wireless plan for you. so, you can stay connected to all your drivers and stores on america's most reliable 5g network. that sounds just paw-fect. terrier-iffic i labra-dore you round of a-paws at&t 5g is fast, reliable and secure for your business.
6:32 am
6:33 am
6:34 am
good morning welcome back to "squawk box. we are live from the nasdaq market site in times square. look at futures this tuesday morning as the world gears back up the dow opening higher after a tough slog until now we will see. dow up 219 points. nasdaq up 102 points s&p 500 up 30 points this is going to be fun. many wall street banks and other workplaces are asking employees to return to the office this week for a closer look, let's bring in former fcc chair jay clayton and cnbc contributor and kevin o'leary. venture capitalist he goes with the flow. cnbc contributor kevin, you are like hip to the way things are done now.
6:35 am
you listen to some of these people that think it is like this forever you are fully for it jay, don't you need to look over the cubical and see whether people are totally -- you can't do that if they're at home they can screw off for hours at a time does not commuting make up for all of the great things that go into being with your coworkers, jay? can that be done and there's a new normal and never going back to people showing up in the office >> joe, the short answer is no we're talking today about back to school. i think we all know that school remotely didn't work very well you can translate that to the office environment in many ways. one you talked about was accountability and fairness. do you feel as an employer you have accountability? do you feel as an employee there is fairness? there are more important things than that.
6:36 am
that is the sense of the common mission. i really believe we did much better than expected going to remote work because we built up goodwill in our large organizations over the years people pitched in and had a common mission in 2020, march of 2020, when we all went home and the markets functioned, something we all know well -- that was the result of technology. it was more of the result of the goodwill and relationships built up over the years. >> exactly kevin, that will run out when these people, you know, are at home and there's no one minding the store. you really think saving a little commuting time makes up for people that are -- i don't know -- no way you can be as productive if you are at home. you need a boss, kevin you need a tough task master >> here is why that thinking isn't going to work. you think about good times, bad
6:37 am
times, recession times, slow down in the economy. companies are pursuing the best talent that they can get at the end of the day, you have to ask that talent and hr departments. what does it take to win you over good times or bad times? let's walk down the list of why i don't think this will change i have lots of hr people and lots of companies and investments in all 11 sectors. i want to pause for a second before i shred jay in the debate and say thank you for your service. i worked under you in terms of being an issue and securities. you were the mosti pragmatic regulator we had thank you very much. let's get back to work number one i didn't make this stuff up. these are the top nine issues we are facing number one, i don't want to increase the world's carbon footprint by commuting to work every day. number two, i do not want to
6:38 am
live and work in a high-rise where the air is poison. that's new we never used to hear that a couple of yearsing ago that is covid based. that's true. the buildings have old hvac systems. number three, they can work remotely and productively and been doing it for two and a half to three years they are raising families. number four. they want to do it in affordable communities. they don't want to change. they are getting great schools many members are working in other counctries. you can hire in dubai and india and europe and get productivity out of them. there is the whole thing of cities like new york, chicago, san francisco, l.a they're war zones. people don't want to go there and get their watch stolen or assaulted. such as what happened recently people are stealing watches in los angeles this afternoon i can't wear one anymore there
6:39 am
they are not interested in paying the cost of commuting they even say lunch costs them an extra $150 to $200 when they have to buy downtown they would rather make at home what do you say to that? if you want to hire that person, you have to give them answers to every one of them starting with the carbon footprint brand new one. hard to dispute. >> kevin, those things are things you cannot ignore you can't also ignore the fact that team work and being part of the team makes everyone better we have all seen that. i'm lucky enough to look out at the trading floor. you can see the buzz you can see them working together are we going to go back to, you know, five days a week or 40 or 50 or 60 or 70 hours in office i don't think so are we going to isolate from each other going forward definitely not
6:40 am
i say this to people out there young professionals. if you can do your job remotely without interacting with other people, somebody can do it from somewhere else in the world where you don't have the benefits you have in america you have to think about that right now, america is in the best possible position relative to the rest of the world we responded the best to the pandemic we have, you know, a lot of strengths that other places don't have including energy and the like. if we go into a choppy time period, the leverage that employees have today, it goes away we are talking about very highly paid and highly skilled employees who are essential, but when things pull back, they're high cost. i would caution to young people who with want to be professionals the rest of their lives. get in and get mentorship. we have an apprenticeship economy. you learn by watching people do
6:41 am
your job and you learn well. you better access that kind of opportunity. i know, myself, that i would not be nearly as successful had i not had the opportunities to watch women and men who came before me. >> kevin, since last week, those new things you came up with are just -- really commuting? you think everybody is worried about it no one will ever leave the home? we're going to the metaverse p people are not leaving their house? are you stop flying? people are not going back to work because of the carbon footprint? you said crappy heating and air conditioning in the high-rises you didn't have those last time. jay, did you hear what he said what did you think, jay? were you going who is this guy go ahead what are you >> i basically called up the hr
6:42 am
people and said what is holding us back from hiring 24-year-olds if you are 50 or 40, you experienced that working together and collaboration you guys are pining about. those years are over it's over. technology now that let's you work together and collaborate. if you are 24 and hot hand over the keyboard and coming out of m.i.t. and you are an engineer, there is no way in hell you are working in a cubical in a high-rise with crappy air. you don't have to do that. you're the hot hand. >> is this technology and trying to find the really talented programmers? >> no, no. we have an insecticide company and we are trying to get people to come back we have commercial kitchens. we have wireless charging tech companies. we cannot get the watchmakers back to the benches any more
6:43 am
>> kevin, i know what you are saying is anecdotal and is evident across the economy a sttheme we have seen is we ha been too late. the fed was too late this was too late. i'm really concerned we're going to be too late going back to work >> i'm not worried about that at all. the productivity is proven that is the problem, jay, with the argument it's already over. it's already done. it's already proven. you walk into m.i.t. and try to get the men and women to come and work at a desk behind a keyboard at a screen and you w want those people. the hottest hands out there. they want to work on the blockchain they want to work in different countries or live on a caribbean is island the predecessor has taken over all of the strong engineers are leaving the united states. i'm trying to hire them. we need you back at the desk, my
6:44 am
friend, in the office, putting out good policy like you used to >> i tweeted when i was out there. it would be nice to come from colorado i tweeted that out, kevin. i start to agree with you. people want us back together don't you think it is better >> i think there are certain jobs where you have to be on the job physically >> like this one >> like this one we can do it like this if someone has a something where i'll be in seattle tomorrow. the way we did it the last 100 years. no evolution and no technology change is coocoo for cocoa puffs. >> people have to work they're just big children. >> most of us. >> they need direction they need oversight. left to their own devices. >> younger children. older children maybe not.
6:45 am
>> adults are younger children that's the problem all right. jay and kevin, thank you. >> we have not resolved this we will bring you guys back. thank you. when we come back. crypto hack. $200,000 of crypto stolen from bill murray's crypto wallet. and coming up, jeff currie will tk oualabt the surprise opec move over the weekend "squawk box" will be right back. bubbles so many bubbles! as an expedia member you earn points on your travels, and that's on top of your airline miles. so you can go and see... or taste or do absolutely nothing with all those bubbles. without ever wondering if you're getting the most out of your trip. because you are.
6:46 am
another busy day?
6:47 am
of course - you're a cio in 2022. but you're ready. because you've got the next generation in global secure networking from comcast business. with fully integrated security solutions all in one place. so you're covered. on-premise and in the cloud. you can run things the way you want - your team, ours or a mix of both. with the nation's largest ip converged network. from the most innovative company. bring on today with comcast business. powering possibilities. welcome back actor bill murray's crypto account was hacked last week it came after the closing of the auction that raised $185,000 for charity. murray's wallet and security team stepped in to move to a pair of safe house wallets
6:48 am
the money raised in the auction was stolen, a runner up donated the money that was lost. ch chive charities. crypto is up across the board. bitcoin and ethereum up as well this morning. >> another example of how ridiculous this stuff is i want to call jpmorgan chase. >> you are less likely to have a problem -- >> the private wallet exposes you more more to come when we come back, the first family of tiktok, if you know, you know >> charlie, this is why we don't let teenagers in the office. >> mark will join us next to share how he is building a social media empire and a
6:49 am
reminder, you can get the best of "squawk box" on your favorite podcast or app and listen a rhtyte. wereig back with the demilio empire this is not just laundry. this is laundry that's smarter than the dial, with ge profile smarter wash technology. more care for your cashmere. more power for your workout gear. this is smarter sensing and dispensing. fully optimized cleaning, no more guessing. getting the best out of everything that goes in. ♪♪ this is smarter cleaning. this is ge profile.
6:50 am
your record label is taking off. but so is your sound engineer. you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates matching your job description. visit my dad was a hard worker. he used to do side jobs installing windows, charging something like a hundred bucks a window when other guys were charging four to five-hundred bucks. he just didn't wanna do that. he was proud of the price he was charging. ♪♪ my dad instilled in me, always put the people before the money. be proud of offering a good product at a fair price. i think he'd be extremely proud of me, yeah.
6:51 am
6:52 am
. welcome back to "squawk box. the d'amelio family is one of the most followed and most lucrative social media empires with 200 million total followers between charlie and dixie. the sisters are the two highest-paid influences or tiktoks, and they are announcing a brand-new business venture joining us first on cnbc, not on tiktok but right here on "squawk box," marc d'amelio. good morning to you, and thank you for waking up so early nice to see you. >> good morning. >> what's going on here? i know you've partnered with so
6:53 am
many brands over the years, but now you're creating your own >> yeah, it's been the natural pr progression. we started with charli, and now we've started this brand company where we're going to go out and create a bunch of different brands and own the ip. and we took on a great of investors, and it's a little bit surreal, and it's very exciting. >> okay, we're going to back up for a second so you've done deals with puma, valentino, dunkin' donuts. what were those price, just to put it on the table. how much is a tiktok post worth these days >> it's, it's six figures. >> six figures a post? >> yes, yes. not for me i'll do it for very cheap, but my, my daughters get a decent
6:54 am
amount of money, so. >> in terms of creating your own ip and brand, is this going to be your own brand? is this going to be clabs with other brands what does that look like >> currently, we're doing 100%-owned brands that we start, create, get the trademark, get the ip and go out there and do everything that it takes to create a company >> and what kind of spaces are we talking about and separately, related to that is correc does that mean you won't take on other brands that compete with your own >> we're definitely segmenting it where we're picking companies that are larger companies that we really think aligns with our family brand and then we also, interestingly enough, we uta, which is our
6:55 am
agent, invested in d'amelio brands, which makes, which is great for us, because we feel as we, if we move things from normal endorsements other to the brand side, uta has been great to us, comes along with us >> who is the model for you in all of this? >> there's plenty of model the out there that, there's been tons of celebrity influencer brands i think one of the things we've done is people often say, oh, that, they started and that brand came out of nowhere. but there's all this planning that goes in my background is in brands i've been in the garmin center my entire career and, but i think this is the first time where we've actually gotten, or one of the first times that we've got seed money with the idea that we're going to create these brands, and it hand pretty quickly, and, as you know, andrew, we have a lot of really incredible investors.
6:56 am
>> so a lot of folks watching us are invested in a lot of big social media companies that you spend a lot of time on so just, i'm curious how you think about them, either both as a consumer of them or investors might want to think about them, you know, where do you put tiktok today where do you put an instagram, which of score part of meta. how are you thinking about youtube in terms of short form which is of course owned by alphabet, google >> yeah, social media's here to stay i'm not telling your viewers anything they don't know particular tok has been incredible i think, as they start to get involved in doing more ads, and can you link shopify up to it. it's going to be a revenue stream for big creators and small creators instagram's doing a great job. we work with triller who's going to be going public soon, and i don't really have -- we don't have favorites
6:57 am
they're all kind of different, and they're all kind of working in conjunction with each other. >> five years from now if we're talking about a winner in all this a real win center. >> tiktok seems to be one to figure it out. wha whatever your interests are it seems to find you. instagram is doing that with reels, and youtube's doing it with shorts, but the algorithm with tiktok is just incredible >> mark, want to wish you a lot of luck. we appreciate you joining us so early, waking up early on the west coast coming up, we're going to talk about the gas prices in europe and the potential impact of opec's surprise energy cut
6:58 am
n'ck dot miss tonight's special "energy emergency" coming up at 6:00 p.m. eastern. ♪♪ it was my dream to be an entrepreneur based upon the examples that i had growing up. and that was important for me because you can't be what you can't see. the ey entrepreneurs access network
6:59 am
has a tremendous impact on my business and other african american and latino entrepreneurs across this country because they give access to networks, business opportunities and capital.
7:00 am
good morning futures rising as traders aim to short a holiday-shortened week on a strong note oil on the move as opec slows output jeff currey will join us
7:01 am
and big ackman joins us for an exclusive interview the second hour of "squawk box" begins right now. good morning and welcome back to "squawk box" right here on cnbc we're live from the nasdaq market site in times square. i'm andrew ross sorkin with becky quick and joe kernen the gang is back >> i want to slow everything down >> take a look at u.s. equity futures. we do have green on the screen right now. the dow up 205 points. the s&p 500 looking to open about 28 points higher right about now. also show you treasury yields,
7:02 am
looking at the ten-year note you're looking at the ten-year as we flip the board around at 3.237. we'll take a look at what's going on in russia wti crude, 86.26 we were talking about crypto hacking when it came to bill murray's charity efforts, but bitcoin sitting just under 20,000 $19,908. making headlines this morning, volkswagen plans to spin off its porsche business in an ipo the offering could value porsche as much as $84 billion the porsche family heirs who own a majority steake in vw, this is
7:03 am
about raising money to transition, and i like the looks of it. does it displace anyone who really wants to buy one of the high-end teslas? is it as good? the software as good >> i don't know. what's the pricing >> they're both expensive. both 1%er problems the perception is that no one's really gotten the ease of use and simplicity and everything else >> questions about the interior, how tricked out it is. >> teslas aren't tricked out at all. that seems to be part of the attraction >> i'm just waiting. apple has this big announcement tomorrow about the phone but i'm so super excited about what they're doing with the car display, which is going to be in so many different cars that, i think is a game changer. >> people are afraid to come to
7:04 am
work because their watch is going to get stolen. that's the solution. wear one of those crappy iwatchs. who's going to steal one of those things nobody you stopped wearing them, didn't you? >> i morwear it occasionally i don't wear it all day. my aura ring is the thing. >> how were you last night mine is bad. >> this is like coming back to school i was anxious. >> you >> i was thinking we're all going to be back you know, the sprint begins. here we go >> my kids -- >> you got to be kidding me. >> could not sleep didn't sleep a wink. >> you were worried about coming back to us >> yes my readiness 6 66 it says give yourself a break. i hope you'll give me a break.
7:05 am
>> you've been on a break for six months the uk has chosen liz truss to replace boris johnson. shy was not part of the rebellion that led to his departure. she's going to formally assume the prime minister's title today in a meeting with the queen in scotland let's talk about bed bath and beyond because its cfo died friday by suicide, just days after the restructuring efforts. courtney reagan has more on this shocking story this morning. >> the tragic news on september 2 does add to the company's turmoil. the board chair confirmed the cfo's death noting that the focus is on supporting the family and team and that their thoughts are with them during this difficult time. it leaves open another executive seat mark trenton resigned in june.
7:06 am
large layoffs, store closures and financing to shore up liquidity. it expanded the credit line and $375 million first and last out facility with j.p. morgan and sixth street partners were final identified september 1st b volatility is high shares are down about 14% this morning. in august, investors filed a class action lawsuit accusing cohen and arnott of artificially inflating the stock price. they said they were evaluating the complaint and believes the claims are without merit and would not comment on litigation.
7:07 am
quiver kwaunt show it is isthe most-mentioned name. they recommend holding tune bed bath and beyond shares or options >> we'll dkeep our eye on bed bath and beyond. beijing is ramping up covid lockdowns. eunice yoon joins us from beijing with more. covid lockdowns, god help us i hope we're finished here but obviously not there. eunice how you doing? hello, eunice? >> hello >> i'm not sure. >> just gotter her audio did you check her in
7:08 am
eunice thank you >> come back to you after this break. in the meantime, we have goldman's jeff occurey joining us and 'lwel be joined by the ceo of ptpa. squaungs will be right back.
7:09 am
this? this is supersonic wifi from xfinity. it's fast. so gaming with your niece has never felt more intense. incoming! hey, what does this button do? no, don't! welcome to the fastest internet on the largest gig speed network. are you crying uncle ed? no! a little. only from xfinity. unbeatable internet made to do anything so you can do anything.
7:10 am
at xfinity, we're constantly innovating. and we're working 24/7 to connect you to more of what you love. we're bringing you the nation's largest gig speed network. available to more homes than anyone else. and with xfi complete, get 10x faster upload speeds. tech upgrades for your changing wifi needs. and advanced security at home and on the go to block millions of threats. only from us... xfinity. this is xfinity rewards. our way of showing our appreciation. with rewards of all shapes and sizes. [ cheers ] are we actually going? yes!! and once in a lifetime moments. two tickets to nascar! yes! find rewards like these and so many more in the xfinity app.
7:11 am
more developments in the european energy crisis after friday's market close, russia's gazprom announcing that the nord stream one pipeline to germany would remain shutdown indefinitely they notified them that a leak of engine oil in one tur pbine s a safety hazard, at least that's what they're saying. european gas prices surging more than 24% before pairing those gains yesterday. wti actually down by 50 cents to 86.37. brent price also down by 3%. and a surprise from opec plus, the group deciding to cut production targets by 100,000 barrels a day. joining us, jeff, why don't we
7:12 am
start with the situation in europe we kind of knew that putin was going to weaponize the gas flows and try to punish europe as much as possible. how much of a surprise is this and what happens next in next >> very little of a surprise most people thought once they announced that maintenance program it was going to evolve into something like this that said, it's important to remember that even with 100% closure of nord stream one, inventories are relatively high, and our models suggest prices lower, somewhere around 215 euros per mega watt-hour i have lived through many energy crises in my life. a lot of these things are usually buy the rumor and sell
7:13 am
the plaque and the reason for that is the system always adjusts. you get adequate increases in supply, but more importantly, you already see the demand adjustments beginning here i'm not going to say it's going to be painless and prices are going to be high and volatile. but the risks are beginning to shift more to the down side because the system is already starting to make the adjustments. >> when you say you're not concerned, you think the risk is to the down side, you're thinking purely in the commodity prices, not in the broader economic questions >> i'm going to say watching this, this is identical to what happened to the u.s. in the winter of 2000, early 2001 and yes, you ended up losing a lot of industrial activity that went to places like europe and stayed there however, the forecast for as
7:14 am
cataclysmic type of event occurring never did. and one of the key reasons, the system finds many ways to adjust and get through this for one, actually, when you look at oil prices, they're not adequately reflecting the potential for gas to oil substitution remember, can you truck the oil in, whether it's diesel, jet fuel, combined cycle units i remember in the u.s. in 2000 2001, the biggest complaint was how gummy all their equipment got from burning jet fuel and diesel in the different, in combined cycle units so i tend to expect to see the same thing here. so i'm not saying it's not going to be difficult. but i think the forecast for how cataclysmic is going to be are probably overdone. >> so you are surprised by lower wti prices both in the idea that some of the natural gas would push additional demand into
7:15 am
crude oil, and also by the cut in production that we heard from opec >> well, actually, i think that the price cap is probably the more bullish of all the different news items we've seen over the last, you know, five trading days in particular, is, you know, when you look at the west, they imp imported 5 million barrels per day of russian oil before the invasion it is down to around 3.5 right now. so you took 1.5 out. but to redirect that 1.5, you lost a half million barrels a day of rye production. redirect 1.5, you wh lose 500,0 barrels a day. we're going to lose another million barrels per day, more
7:16 am
likely than not, by just redirecting what was going to the west elsewhere in the world. just because you cannot redirect it all due to the frictions in the system and the other one is don't underestimate the oil to gas substitution that needs to curri occur year-over-year the push back i get to that view is, well, we're not seeing evidence of it right now well, you wouldn't see evidence late august, early september, because that's the big lull in demand there's a big drought going on in europe. so the demand for diesel fuel for for harvest is less. >> which means what in terms of prices for crude oil >> we're still sticking to our $130 per barrel number for
7:17 am
bripts and $125 a barrel for wti as the end of fourth quarter we see a lot of upside here. >> one of the things you mentioned as a positive, price caps do price caps work because most of the time we've seen they fail >> they're, it's the system in which you allocate available supplies, and so by, you know, you know, what this is going to add t' add, it's going to add difficulty on who gets the splice wsp supplies when the u.s. went through this, the governments did step in. and i remember it was in detroit. they didn't allow gas to go into detroit to send into homes you're probably going to see something like that. but nonetheless it does distort
7:18 am
that and you don't have the clear mechanism of rationing and, you know, also in terms of trying to think about bringing on new supply sources, it, i will say this. when we look at where, you know, the caps are likely to be in places like power, it can be applied there, because they're more local markets as opposed to gas and things like that that are more global markets where you end up with bigger problems. >> so you still see oil prices running to $130 in the not too distant future what about natural gas prices, since you think most of the market has played out, most of the risk has already been played out. >> for european gas we see down side to our target, 215 euros a mega watt-hour, and that was one of our key scenarios that we saw with the outage. now the situation with the u.s., you know, the risks are to the
7:19 am
upside you have a real cold snap because the markets running relatively tight but the fundamentals as a base case would be bearish, however, i could point out, the system always finds ways to adjust. export more coal out of the u.s., of course more coal, the gas substitution in the u.s., export more chemicals. take it out of refinery system the system always finds ways to adjust and what's going on in europe is pretty significant and it's going to find ways to bring that gas into europe, just like when we look back to 2000, 2001, when the u.s. went through it, they found ways to get oil-type products into the u.s >> jif, eff, thank you as always, it's great to see u. >> great, thanks for having me coming up on the other side of this, bill ackman will join us with the ceo of the ctpa.
7:20 am
let's get a check on the markets right now. it looks like we're going to be in the green when things open up if things stay this way. nasdaq looking to open 81 points high, erthe s&p 500 looks like that will open about 27.5 points higher skauk coming right back. power e*trade's easy-to-use tools like dynamic charting and risk-reward analysis help make trading feel effortless and its customizable scans with social sentiment help you find and unlock opportunities in the market
7:21 am
with powerful, easy-to-use tools power e*trade makes complex trading easier react to fast-moving markets with dynamic charting and a futures ladder that lets you place, flatten, or reverse orders so you won't miss an opportunity businesses have to find new ways to compete in order to thrive in an ever-changing market. the right relationship with a bank who understands your industry, as well as the local markets where you do business, can help lay a solid foundation for the future. pnc provides the resources of one of the nation's largest banks and local leaders with a focus on customized insights to help your business achieve its goals. that's how we make a difference. ♪♪
7:22 am
♪♪ hey dad, i'm almost out. i got you. any questions, chris? all good, thanks maura! healthier is managing all your family's prescriptions in one app. your shipping manager left to “find themself.” leaving you lost. you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates matching your job description. visit beijing ramping up covid lockdowns. eunice yoon joins us from
7:23 am
beijing, we hope, with more. hi, eunice >> yes hey, joe, yes, i am here wer you were talking about the stock market traders don't like uncertainty sw 65 cities are at least in part in lockdown. so mega city chengdu has extended its lockdown until september 7. and guy yang imposed a lockdown over 132 cases it is a production base for a tesla supplier the numbers are heading todown chengdu had 90 case.
7:24 am
and gay yang reported three cases. a magnitude 6.3 earthquake hit the area and building managers have not been allowing residents to run out of those buildings president xi jinping said there should be an all-out effort to try to address the rescue effort for the earthquake authorities have also, here in beijing imposed restrictions for travel, because of the concerns over covid now beijing says that you cannot depart or return to the capital from any district or county that has reported one case in the past seven days, so it make it is difficult to travel with an important holiday, the mid autumn festival this weekend >> all right hoech everything improves over
7:25 am
there. it's been a long, long road. in the meantime, cvs striking a deal to buy signify health >> it marks a big step in cvs' ceo's strategy she said the company was looking to acquire assets that came with a strong technology platform as well as strong management. analysts say that is what the pharmacy giant is getting in signify health which uses in-home assessments and analytics to help insurers like aetna develop value-based treatment programs now the price at $30.50 a share, not a huge premium over friday's
7:26 am
closing price for signify, but its share are up like double since june when the company discussed the potential of a sale amazon and u amazon and united health group showed interest. united health didn't make a bid. united and humana are among the biggest clients. increasingly the major friends are becoming frenemies cvs and signify expect their deal to close in the first half of the year. regulators will probably look at this closely >> what is the theory that the company's given, why they need this and what they do with it? >> one of the things is you've got 10,000 clinicians, cvs is trying to build out its primary care strategy. you create this virtuous circle. you have people go in home,
7:27 am
assess what's going on with patients, patients that may have chronic needs that may not have been met yet to try to keep them out of the hospital. also when they leave the hospital to be able to make sure that they follow procedures so they don't go back in for extra care over all, in the grand scheme, this can help reduce costs i did hear andrew's discussion earlier in the year, and that is one of the things that regulators are looking at, whether all of this consolidation is actually helping produce greater competition and greater cost and savings for squeeconsumers as ws the companies. when we come back, billionaire investor bill ackman going to join us as of break, along with the ceo of the ptpa to discuss the deal, the markets and so much more as we head to a break, take a look at the winners and losers
7:28 am
in the s&p 500 this morning. we're coming receipt back after this
7:29 am
♪ ♪ i was having relationship issues with my old bank. it was just take, take, take. so i moved to sofi checking and savings. get 2.00% interest, and earn up to $300 when you set up direct deposit. sofi. get your money right.
7:30 am
welcome back to "squawk box" this morning billionaire investor bill ackman co-leading an investment in the professional tennis players association to represent the players' interest with a goal to create more opportunities off
7:31 am
the court. joining us is bill ackman and the executive director of the ptpa i want to talk tennis. we're here in the middle of the open, a heck of an open so far, but i didn't know about your investment in this i didn't know what this was all about. how did this happen? and what are you trying to do? >> sure, so about 15, 16 months ago, novak djokovic and a good friend of mine met and she called and said look they're putting to the something to help the players, maybe you can help. and i viewed this as a purely philanthropic thing. i love tennis, and i understood the plight of the player i actually backed a guy. >> who was that? >> his name was mattia
7:32 am
propopitch i think is the correct pronunciation. he wanted to go on the tour, but the economics make it impossible unless you have a trust fund or a backer, and i was like, fine, i'll back you. and he was shocked i learned about tennis and he spent about $350,000 a year, travel, hotel, coach, couldn't afford a physio but from all that he went from nothing to 200 in the world the fastest ever i thought, okay, i've really got something here, and then he got injured. during that entire period, he might have made $20,000 in prize money. the reality is, if you're not hundred in the world or better, you lose money on the tour you make less than minimum wage. and the result of that is it's a sport for affluent people. >> what do you need to do about that is the, you see it in tennis
7:33 am
>> for sure. >> look, i've been fortunate enough to work with professional football players, baseball players, mens and womens soccer players. and a lot of the luxuries that they have and the economics of those respective sports don't exist in tennis. so a big part of the focus is to bring the learnings, what to do, what not to do, from those other sports and bring them to tennis, even though it's an individual sport. it's a very lonely sport >> what's the model? >> the model is to really create a players association that is an independent voice that provides value to them. as a group of athletes, how do we help them on the court, off the court, support them, make their lives easier ton tour. >> is this more about sheaaring the profits at the top is it about, what are we talking
7:34 am
about doing here >> all of the above. that's the easiest way to answer it tennis global shly is a more popular sport than american football and baseball. >> what do you make of novak n terms of him as a leader of this group, yet has a, dare i say, mixed reputation at best, given what's happened over the last year related to vaccination and coming into the country and telling the truth or not telling the truth. you know where i'm going with this >> actually, novak deserved credit for setting up the ptpa he stepped back after i got involved and popacil has been leading the charge for the ptpa. but what i quickly realized is
7:35 am
we wouldn't make this organization work as a philanthropic organization we recruited, actually, it's interesting, a number of super talented people in professional sports wanted this job, because they we saw the opportunity ahmaud is part of the process. we're returning the capital to people who put up capital to start the ptpa and the idea -- >> and you want to distance yourself from him or not that's what i'm trying to understand >> this is not about distancing. novak need thiss this the least he started it for legacy reasons. he a backer early on without that he wouldn't have made it. >> what do you make of, and i don't know if this is similar at all. what do you make of what's happening at liv golf in terms of creating competition, potentially creating a new model for players?
7:36 am
>> competition is a very good thing. >> is it a good thing? >> it's a very good thing. the analysis of what happened to tennis is you have a couple of monopolyists players have to sign up. >> you would like to see a wildly successful or wildly wealthy benefactor, whether it's from the middle east or some other country come in and create a separate competitive league? would you like that? >> i think what we're trying to do is make sure the players have a well-financed seat at the table and someone who knows a lot of sports and who can add additional revenue stream so players can actually start to make a living. we're not talking about launching a competing tour we're talking about revenue. >> just on the liv tour thing, what's interesting about that and fascinating to me is whether
7:37 am
you are like tiger and rory and stayed on the pga tour and reaffirmed your dedication or you're a phil mickelson to join liv you're better off that's kind of the point he think bill's making in terms of competition. there's a lot of lessons as a players association we represent all the players. if you look at golf, the golfers are fractured. that's not something we want to encourage. we want to represent all the players. in terms of growing off-the-court revenue, group licensing has that word group in it it doesn't mean necessarily to team sports. so bringing video games and trading cards to tennis is total growth for the support >> tennis is said to be the fourth most popular sport in the world, but in terms of economically, it's like 1.2% of the economics of sports. why do you thaink that is?
7:38 am
>> pershing's strategy is to make them more successful. u.s. taupeopen tennis generates something like 450 million and makes a profit of $150 million but the problem is it's not a great outcome for the players. the players get very small percentage, about 12%, 13% of that revenue in other sports it's like 50 >> you would think it would be higher >> massively higher. it's exploited economically as a business that's the problem when you have monopolyists when you have a little competition and new ideas, this should and much, much begigger business think about the sponsorship that's not happening, and all the individual stories that are
7:39 am
interesting. netflix is doing a series on tennis a bit like "drive to survive", you know, the f 1. >> f 1 >> which drove support for the support massively. >> i do want to pivot the clfx and se the conversation to the economy. you talked about how the fed needed to raise interest rates, they doing that. the market is having a tough time as a result what do you think happens this fall what are you doing >> so we own the seame companie we've owned really beginning of the year, absent a new investment that was very short dated in netflix, because we think ultimately, if you own good businesses can you ride through it our biggest fear was inflation that's why i wanted the fed to
7:40 am
raise rates quickly and soon. >> do you think they have to continue >> i do. keep them there for a reasonably extended period of time a year or so, and then hopefully inflation starts couto come off. >> if we had this conversation 12 months from now, what do you think is a realistic sense of what inflation could be in this country? >> i think it's come down a lot. i think it's come down a lot >> what's the number to you? >> it's 4% >> 4%. >> 3.5%. hopefully. on its way down. >> and where are equities as a result of all this >> i think once people realize the fed doesn't have to keep increasing rates and will soon be taking rates down, that's sort of a buy signal for markets. how far in advance does the market predict that kind of outo
7:41 am
outcome. you start to see a powerful trend and people will expect the foed ease. w fed to ease. >> final question for you. both of you, we're all here in person together now, post labor day, school starting, a lot of folks are going back to the office in some cases for the first time even. there's a massive debate rage mg this country over whether that should be the case, will be the case, needs to be the case what's going on in your world? >> so ptpa doesn't have many employees. so they're probably together but the sort story is pershing july and august we gave everyone work from home everyone loved it. believe it or not, i believe everyone's excited to come back to the office. >> is that a five-day a week situation? >> a five-day work situation
7:42 am
if you have the slightest bit of a cold you're not coming in. you're working from home we've always been a firm where if someone has something important for their kids or otherwise work from home that day. >> and you think this is for all industries? finance in new york people are trying to bring people back. >> i think it's important. i think it's very hard to build a culture and maintain a culture as an organization virtually we were able to operate very effectively during covid because we had the opportunity for 18 years to build a culture if we were just launching our company, the other big problem every ceo has to think about, if you exclusively work from home you have to change your e-mail address and can you switch to a new employer so frictional cost of switching are so low that i wouldn't have that much confidence in a virtual firm, and i'm sure companies are really seeing that just literally turn off your monitor, wake up the next morning, you're working for a
7:43 am
new company. you don't even have to clean out your desk. it depends on the business >> what are you doing tomorrow >> given that tennis is such a crucial sport, we're trying to recruit the best people where ever they are. >> joe, back to you. coming up, an update on the blank check company that's agreed to buy donald trump's social media company and a programming note for you right here on "squawk box," an exclusive interview with starbucks founder howard schultz and incoming ceo laxman nar shimmen. follow squawk pod on your ri app and listen anytime. "squawk box" will be right back.
7:44 am
this is not just laundry. this is laundry that's smarter than the dial, with ge profile smarter wash technology. more care for your cashmere. more power for your workout gear. this is smarter sensing and dispensing. fully optimized cleaning, no more guessing. getting the best out of everything that goes in. ♪♪ this is smarter cleaning. this is ge profile. to adapt in the changing world, you could hire a professor of theoretical mathematics. we all know this equation, right? he'd crunched numbers day and night. that's it. to maximize profitability. morning. i have quarterly numbers that are beautiful.
7:45 am
and forecast revenue from every corner of your organization. is that important? or you could use workday. the finance hr and planning system that helps cfos make better decisions faster. for a solve problems like a genius world. workday. for a changing world. 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 and get started today. go. go green. go wind turbines. go gorgeous reliable grid. go emerson software. go science people. go breakthrough meds and safe science. go space age welds for super silent cars.
7:46 am
go big. or go home. from software that delivers new cures at warp speed, to technology that makes clean energy reliable, emerson innovation helps make the world healthier, safer, smarter and more sustainable. go boldly. emerson. the blank check acquisition for donald trump's social media failed to get the backing for the extension. >> reuters is reporting that regardless, there is that high-stakes vote taking place today around noon for shareholders of digital world acquisition corp that's the group seeking truth
7:47 am
social as you mentioned, the spac is asking shareholders to vote in favor of a one-year extension for the tie up this extra time is paramount because regulators are still probing a number of issues righters reporting that dwac has already failed to get enough support, causing shares to tumble logically speaking, shareholders should vote overwhelmingly of the extension. a large portion of dwac is held by retail investors who tend to have lower turnout and the spac needs at least 65% of holders to vote they need a pretty sizable turnout. without hat, dwac will have to
7:48 am
lek wh liquidate if they don't get it done by september 8. that is the deadline but given what's going on with regulators, it's very unlikely it will take place a special meeting will be held at noon to see if the spac has garnered enough votes. the reuters report citing people familiar with the matter, not looking great. we'll know for sure come gnoon today. >> all right, a little over four hours until we hear something. if you hear anything before then, let us know. >> i will. absolutely >> thanks. when we come back, we are going to talk about the markets. in fact, on this first trading day after labor day, this is back to school, back to business dow futures still indicate up by 172 points off the highs we saw earlier in the session when we closer to 220 points above the
7:49 am
value. but gains this morning after losses last week for sure. s&p up by 20 points. the nasdaq indicated up by 50. "squawk box" will be right back. charging something like a hundred bucks a window when other guys were charging four to five-hundred bucks. he just didn't wanna do that. he was proud of the price he was charging. ♪♪ my dad instilled in me, always put the people before the money. be proud of offering a good product at a fair price. i think he'd be extremely proud of me, yeah. ♪♪
7:50 am
at xfinity, we're constantly innovating. and we're working 24/7 to connect you i think he'd be extremely proud of me, yeah. to more of what you love. we're bringing you the nation's largest gig speed network. available to more homes than anyone else. and with xfi complete, get 10x faster upload speeds. tech upgrades for your changing wifi needs. and advanced security at home and on the go to block millions of threats.
7:51 am
only from us... xfinity. an xfinity rewards special offer. xfinity customers join xfinity rewards and get an early access code to play the open beta. early access begins september 16th, first on playstation. visit futures trying to hang on to some early morning gains, 156 now on the dow s&p up about eight or so
7:52 am
joining us, cnbc contributor, i'm trying to decide, and the market loves to confuse us with false starts each way. is this, is this something where you think weakness is a buying opportunity at this point? or where any strength you see should be used to maybe raise cash or nobody knows. has it changed at all from the first half of the year we in a better spot? >> look, joe, i think the common theme that i keep hearing from investors and traders is we do not trust this rally we seeing a little bit of green after the long weekend and into the shortened trading week, but think traders coming back from summer vacation are incredibly pessimistic. and that hasn't changed from the first half of the year it's pretty striking when you look at s&p 500 futures short position they're incredibly, incredibly high people are yanking money from stock funds. so i think people are kind of
7:53 am
gloomy going into the rest of the year, and it all comes back to the fed and the wakeup call that we got over the summer from powell >> i think we used to think of a kind of a 3600 to 4400 range in the s&p, and that's a pretty broad range. do you think that holds right now? do you think, we're indicated up a little today i was optimistic or hopeful that we move it up to maybe 3900, 3850 would be the low. and we don't have to go below 3600 what are people thinking at this point? h has range been moved up? >> i think a lot of people are afraid we're going to retest new lows that's a big fear out there right now. it all comes back to how this old playbook is just not working anymore. we've seen that over the summer how we had this inincrcredibly t
7:54 am
rally and it went away it put a lot of people on edge that we could be heading in the wrong direction. it's made people scared to trust these rallies. think about friday we started off so strong. major indexes started surging after what seemed like the perfect jobs report, but the gaining couldn't hold up so i think the old playbook does not seem to be working anymore and we are in an entirely new regime for stocks and bonds with both asset classes in a bear market right now >> there are a lot of things to be concerned with, obviously but i'm trying to think of anything that isn't front and center we're well aware, i could les o list off the things we're concerned w and i think the average man or woman on the street could come up with it what is it that could make it
7:55 am
get much worse and i understand give and what's happened in europe and we're talking about the uk and the economy over there, but these are all things that are well-known >> i think one of the big concerns out there is this hard landing, and we haven't seen that yet you know, a lot of the economic data has kind of retained hopes of a soft landing, including the jobs report friday so i think that's one of the big risks out there, that we just can't grasp quite yet. what does this landing look like and what does the economy look like a few months from now after a few more rate hike and of course as you mentioned, europe is still this big risk. we don't know what's going to happen there the war is still ongoing, there are still these unknowns out th there. and it's making people kwaushs
7:56 am
go cautious. >> think of if you weren't as attentive to what's going on a good jobs number, that's exactly what we want, but we look askance at that, because it means the fed has to go further for its intended goal of slowing things down. if you told someone that on the street, they'd say, really that seems like a pretty lousy way to do things it's a good number >> it was, as you pointed out. and i think it's been an upside down world the past two years where bad economic data was good news, good economic data was bad news i think it's a balancing act for investors. >> you got the job market holding up both of those would be good. you should buy stocks when it all goes down and jobs stay strong but they're both bad >> earnings weren't as strong as
7:57 am
expected so i think you're totally right >> good to have you, see you later. much more on the energy crisis california's potential rolling blackouts and much more. amos hochstein will be with us. take a lk ooat futures we in the green. "squawk box" coming right back after this this... is the planning effect. this is how it feels to know you have a wealth plan that covers everything that's important to you. this is what it's like to have a dedicated fidelity advisor looking at your full financial picture. making sure you have the right balance of risk and reward. and helping you plan for future generations. this is "the planning effect" from fidelity.
7:58 am
(vo) give your business an advantage right now, with nationwide 5g from t-mobile for generations. unlock new insights and efficiency,
7:59 am
with leading ultra-capacity 5g coverage. t-mobile for business has 5g that's ready right now.
8:00 am
good morning energy emergency we're going to talk about the surprise opec move over the weekend and the crisis in europe straight ahead,en and the uk has chosen liz truss as its new party leader. we'll talk to nigel faraj. never one to hold back or hold his tongue and for many worker, yes, today is return to the office day. we'll talk about what to expect when you get to your cubicle the final hour of "squawk box" begins right now good morning, and welcome back to "squawk box" here on cnbc, live from the nasdaq market site in times square. i'm joe kernen with becky quick and andrew ross sorkin and u.s. equity features have
8:01 am
picked up. s&p could be inching its way back up toward 4,000 far below that friday at the close and treasury yields have indicated that either the fed is going to continue or things aren't quite as bad as the oil markets are telling us about the economy. but we've also got, you know, one-offs happening in terms of nord stream and opec that's two-off, i guess. >> we keep thinking they're one-offs, but they happen again and again, which makes them no longer one-offs, and they start to add up. cardinal health will add new independent directors to its board, including elliott's steven bang. in deal news, cvs health has
8:02 am
reached a deal to buy in-home health company signify health for about $8 billion cvs is paying $30.50 a share in cash signify provides technology and analytics to help with in-patient care. signify unchanged at 2877. even though the deal is cash, $30.50 and, in china, the chinese tech stocks falling over the weekend as beijing ramps up covid restrictions some 60 million people are under lockdowns and some restrictions were extended. mike santoli joins us for more watch the green arrows this morning. >> we are. the u.s. markets sit out a very rough day yesterday, both the european and asian markets, we got the opec symbolic production cut and able to get a little bit of s&p 500 upside bounce this
8:03 am
morning. part of that u.s. markets responding to a little bit of an oversold position. we were down 9% or so in the final two weeks of august. if you look at it on a longer-term basis, this market has spent very little time out of this range between 3900 and 4300 we did have this big stagflation fear that did get concentrated around the june lows we did talk about last week kind of losing half of the rebound rally off of june. it's clearly an in between, offsetting currents type of trading environment. but today getting just a little bit of relief. the u.s. dollar. this is one thing that's unambiguous, which is the uptrend in the trading of the u.s. dollar. here's the u.s. dollar index, just a very, very aggressive uptrend. the fed signals it's going to keep raising rate. the u.s. markets are a haven
8:04 am
dollar goes up should restrain inflation all things being equal and also mute the valuations of risk assets. this did hit 110 at some point at least yesterday if not this morning. take a look. we have this apple product event. apple's the biggest tech company. the market treat apple as something different than a pure tech company over the last year, apple trades right along with berkshire hathaway big quality balance sheet, steady, predictable. that's what the market sees in apple as opposed to being a gadget company or something that's a disruptive technology because here's where the s&p and the s&p tech csector have saided just a little diverse gence. >> thanks, we'll see you later data from friday's
8:05 am
employment report shows out nation is rebounding from the pandemic but also how it reamain very much part of the workforce. >> at the same time that americans look to be slowly returning to the office, hundreds of thousands more than normal are remaining out, calling out sick 10.3 million americans teleworked due to the virus. that's down from nearly 50 million. you can see there when the data was first gathered in may 2020, down almost a million from july t was it was kind of stable june to july suggesting that we'd reached a more steady state. b but more companies are ringing the bell and calling them back to the o at
8:06 am
number of workers are calling out sick it doesn't sound like much but look at the comparison it's a half million more than called out sick on average from 2009 to 2019 in january and february that is during the height of normal flu season. and it's almost double the ten-year average for a typical august 1.5 million versus 870,000 so while there may not be lockdowns at least for now we're kind of living with a permanent flu in the economy went up in january, but it's much higher in this august compared to others that's not to mention the estimate that from 2 million to 4 million people may be out of the workforce due to long covid. all of this challenges the ability to get the economy back up to potential growth it could reduce potential growth and challenges productivity and could help drive inflation >> i was wondering, steve. i was trying to come to grips with those numbers in terms of where we are in the pandemic right now. and i was ready to write it off
8:07 am
to a behavioral change, that people are that much more willing to call in sick after going through it but you're saying there's something to this in terms of either long covid because the rates of covid right now, and especially serious covid cases, that hasn't gone up to account for 1. -- what did you say it was? >> 1.5 million. >> we're not there in terms of a resurgence of covid itself >> pandemic. >> are we? >> it was interesting. it was interesting to hear mr. ackman speak in the last half hour, joe. remember when he said, if you have the sniffles today, you call out sick. everybody's doing it and i think that number, those kind of actions, now what's really interesting is on the one hand, let's say you have a job where you have to be in the office or in the restaurant or it's a, what do they call it, a consumer-facing job. but some people, they have the
8:08 am
sniffles, they can work from home there's this offsetting issue when it comes to productivity. the numbers are higher we're still having like 90,000 new cases a day. 87 i think was the number i saw this morning so it's still out there and people, whether they have covid or not, they're going to call in sick, i think the culture has changed in a way >> hey, steve, i have a related question on this in-office, work-from-home situation a lot of people still look at the amount of disposable consumer income out there, and i wonder if you think any of that money is a function of the fact that they're spending less on commuting, their sandwich at lunch, whatever you think the attendant costs of being at a physical office are and whether they're then taking that money and that becomes disposable income that they're using for other things >> i've not seen any studies on this, but andrew, what you say makes sense. it's in my personal ligfe
8:09 am
i'm not driving 50 miles every day. it's going to be hard to tease out the data it's interesting in the sense that it tends to be wealthier americans, middle to upper income americans who have the ability to work from home, so they would be the ones to benefit from this and would show up the least if it were on lower income americans. it's really interesting, andrew. there's so many things to think about. think about a job where you have to be there. shouldn't there now be a premium salary involved in that job? if you can work at home, you should probably be getting less. >> ah-oh >> this is what some of the big tech companies were talk b less talking about. definitely out of state. >> should you pay people who continue to commute into the
8:10 am
office more? >> right well, that's what steve's saying >> there are some really interesting changes afoot. and who pockets the surplus, andrew, is an interesting question, which you raised if you're getting a little bit more or your expenses are down from staying home, i know they're playing us out, guys, but these are fascinating topics to discuss meantime, when we come back on the other side of this, energy emergency we've got one. brian sullivan has the latest on two big stories moving the oil and gas markets. plus we're going to talk to the white house' point person on energy issues right after this remember this? but i spoke to our advisor, and our vanguard investments are on track. “we got this, babe.” so go do what you love. thanks for being our superhero.
8:11 am
only at vanguard, you're more than just an investor—you're an owner. giving you flexibility to follow your dreams. that's the value of ownership.
8:12 am
this? this is supersonic wifi from xfinity. giving you flexibility to follow your dreams. it's fast. so gaming with your niece has never felt more intense. incoming! hey, what does this button do? no, don't! welcome to the fastest internet on the largest gig speed network. are you crying uncle ed? no! a little. only from xfinity. unbeatable internet made to do anything so you can do anything. with xfinity internet, you get advanced security that helps protect you at home and on the go. you feel so safe, it's as if... i don't know... evander holyfield has your back. i wouldn't click on that. hey, thanks! we got a muffin for ed! all right! you don't need those calories. can we at least split it? nope. advanced security that helps protect your
8:13 am
devices in and out of the home. i mean, can i have a bite? only from xfinity. nah. unbeatable internet. made to do anything so you can do anything. welcome back to "squawk box. want to talk energy, because there are two big stories, and they're happening literally right now. first, russia has shut off natural gas flows to germany indefinitely they want the western sanctions on oil lifted and opec now reversing an earlier increase, effectively cutting production, something brian sullivan reported on was likely to happen over a week ago right here on cnbc, and for this conversation, i want to bring brian on to talk about both of these stories and where we stand, brian. >> you will a great conversation coming up. let's get into the news. you can get the reaction number one russia cutting off nord stream one. as you noted, they want those
8:14 am
sanction lifted. remember, the full european sanctions don't kick in until december 5th will they hold over time natural gas prices have come down a bit, but they're up from a year ago. german storage for the winter is ahead of schedule more than 80%. ho however, germany has never existed on storage alone they've always had a flow plus storage. we'll see how they do if they have to rely just on storage there are two smaller russian pipelines bringing some natural gas mostly through southern europe into turkey t' here's the thing russian natural gas flows are now down 89% from last year, according to rye stat energy and yes, that will hurt vladimir putin and it will hurt russia. it's not just about natural gas.
8:15 am
we talk a lot about natural gas, but not only is it used to make fertilizer but electricity actual electricity prices in germany and other places in europe are hitting record highs in the last 24 hours all the focus has been on germany, guys, we get that the nord stream, uk is likely in worse shape than germany they're talking about bailouts or freezing energy bills with the incoming prime minister liz truss. all in all, we could end up with hundred of billions of dollars worth of aid packages. opec plus cutting production slightly, reversing their 100,000 barrel a day increase. they're worried about demand in months ahead in china, the lockdowns, et cetera keep in mind, guys, we've got millions going back to work in the united states over the next week or two. thespr does need to be refilled and we have been very, very lucky with the weather
8:16 am
in fact t, it was only third august in 60 years with no named storms or hurricanes in the atlantic the weather in terms of hurricanes has been a blessing i heard your interview with jeff currie the next leg of the story, what is it? will this turn into an economic and/or banking crisis? today an executive at the huge firm that used to be called stat oil said 1.5 trillion may be needed to backstop margin calls for oil and gas. that is trillion with a t. the euro's been talking about the dollar and now chatter about whether the british pound could hit parity, one-to-one, with the u.s. dollar. you and i covered the housing crisis, sub prime. your book, your movie, what have, "too big to fail", we'll find if they're too big to fail. >> brian, thank you so much for that report.
8:17 am
we'll see whether they're too big to fail. and can you catch brian on a cnbc special tonight "energy emergency" at 6:00 p.m. eastern team > time let's welcome the coordinator for international energy affairs let's talk about what brian just laid out this idea of where we stand with nord stream and what it means potentially for prices here. what do you think? >> well, first, becky, thank you for having me and listening to brian, sobering report on what's happening in europe and he's right about a lot of those points russia has dropped all the pretexts they used to give all kind of excuses that they have to shut down pipelines for maintenance or all kinds of imaginary disruption and we've always known that russia lies about those issues,
8:18 am
that what they really are is using energy as a weapon and they ultimately have done that and have removed all pretext and declared a using energy as a weapon against european citizens the reality is the united states has been warning about this. germany in particular has been preparing for this and the storage levels at this point are fuller than they have been in years and have pretty much reached full storage by the time the heating season starts. unfortunately, that is not enough to carry through the winter, and we are working hand in hand between the united states and european leaders to identify what we can do to make sure that europeans are secure through the winter but ultimately, becky, this is going to hurt russia, russia's revenues and russia's cred the as a supplier and reliable supplier at that, are completely
8:19 am
destroyed, not only for now during theis conflict but for th i have long term >> we've certainly seen the plans put in place over the long term, but those will take years to kind of make them come to fruition i think the bigger question is almost what happens, how resolute are we in terms of making sure we help our european allies if the prices go up here. there's already been talk of potentially stopping lng exports from this country. because we don't want prices to go higher here and affecting consumers here what's more important? helping our consumers or helping our allies being hurt by the war in ukraine >> we want to do both. we want to make sure that europe and the united states stand resilient against the attacks of russia on ukraine.
8:20 am
the united states price for natural gas as you know rose a couple dollars and we're now at $8 and change, compared to europe at $80. i think it went down a few dollars to 70. but that just shows you the disconnect natural gas is not a global product and commodity. and it need, requires a lot of infrastructure so there is, we are exporting right now at our maximum limit, knowing that, taking into account that one of our facilities in the united states was damaged by fire and had to go, was, went down so that's 20% of our exports are down and won't come back for a while >> to be clear though, this administration would not support any calls to limit lng export, even if it means prices go up for sqconsumers. >> becky, i don't want to go into any hypotheticals
8:21 am
prices in the united states have remained stable. let's handle that question if it comes to it. but for now we've been committed and the president himself signed an announcement with the president of the eu commission on march 25 that talked about increasing lng imports from the united states and other places we' we've done that we have significantly increased the exports. but it's capped at our infrastructure limit but have made sure to prioritize europe, and we've also maid de sure that there is additional natural gas and lng from other parts of the world that can be avail technology europe. and that's how wife' filled the storage and we're going to continue to do that. >> the u.s. has pushed back on those that say the biden administration has not done everything it could to lower energy prices. there's a story that says
8:22 am
leasing is down exponentially under the biden administration versus the trump administration before it. i believe down 97% for leases versus donald trump just in the first 19 months of this administration they say there were only 126,000 acres liced thr acres leased the second lowest was under president nixon, that was 4.4 million. s substantially, substantially higher than anything we've seen to this point. >> as we stand today, the u.s. industry has plenty of age raj acreage the administration has encourage the oil companies in the united states to take their record profits that they showed at the end of the second quarter and invest those into additional
8:23 am
drilling there is no lack of acreage or lu leases for companies to be able to increase production at the moment and we've called on them to do that in fact, production is up in the united states and continues to go up, which is both natural because the price environment and our encouragement. and price, as you've noted, with all that has been said, the price of oil has gone down almost $30 sense the $30. y you, so that is a dramatic decline in prices. i don't think the problem now is that the oil companies don't have what they need to increase production and we continue to call on them to increase that production, to increase and
8:24 am
maintain the high levels of refining capacity that we've seen >> almost it's the president, as a democrat, one of his, you know, campaigning, he pledged to stop drilling on federal lands as a candidate when you go from harry truman, we didn't know how to do any deep water drilling back then. that's the last time you were anywhere near a number like this i just don't see how you can attribute that to they've already got enough you go from the lowest ever, 4.4 million acres under president nixon. you're at 126,000 eracres. every single time it's that there are plenty to do and they're sitting on their hands 4.4 million acres to 162,000
8:25 am
you don't think that is, prior to the energy crisis, that was something that democrats bragged about. we've shut down production of hydrocarbon. now you don't even admit it. >> joe, what i'm trying to say is, if you divert your eyes away from just, or expand your vision to the broader context here. it's not just about how much leases and i haven't seen the article yet, but how many leases have been given this year, but look at how many leases are available right now in the hands of industry. they have what they need when i meet with -- you know this i meet with the industry regularly. i don't get complaints from industry, i get more from media and outside groups, but not from industry that they are trying to get more acreage they have what they need to increase production and they are increasing production. we nearing record production in the united states. you keep talking about the
8:26 am
energy crisis. i would say prices under this administratio administration, we had to deal with a war in europe, a resurgence in growth in demand and as becky said earlier, millions of people coming back to work, driving more. driving season was healthy the labor day weekend had a huge increase in gasoline dooemt de demand and yet we've seen a drop in porice at the pump and in the oil industry they have what they need at the moment and we are open to have a conversation with the industry to understand what do they need now. >> 85's not great. and you know hasn't been from an increase in supply opec's actually cutting, and it's been on recession worries and slowdown worries and
8:27 am
recession coming in europe and probably in the uk so when prices come down, that's not from any efforts from the administration to increase supply that's just, that's unfortunately, you know, the negative side of things, and 85's not great that's double what it was, you know, two years ago. >> so, joe, a couple things. one, you and i agree on one point, 85 is not a good price, and we'd like to see go lower, but the idea that, i'm saying it's great to reduce prices from 120 or 117 to 85 you and i can agree that's better come on. but we want to see it lower. but the state of the administration, that it's only on fears of recession i think is unfair the administration released a million barrels a day since may, an enormous increase in supply
8:28 am
coupled with an increase in supply from the rest of the world to the tune of 60 million barrels. that's an enormous increase in supply while the opec did a token up or down yesterday, the libyan conflict stable ilizing a little bit, allowing more to come on the market since mid july that is cjuly we just a few days ago saw the numbers looking back at august, that there was a significant increase in supply coming out of opec during august so there has been a supply increase onto the market and an increase in the united states. and you're right, there are
8:29 am
kearns, e concerns, every time i come on your show, somebody asks me about chinese lockdowns. they have been struggling with covid, with interesttheir econo demand is down there the story is a natural gas story. we're very worried about it and working closely with them. in the united states it has been much more about gasoline, and there we've brought the prices down as we've said, from $5 to about $3.70 or so on average so i think it's a mix, but we're doing everything we can, i promise you. >> the special coordinator for international energy affairs, has his hands full with everything that's going on around the globe we appreciate your time today. >> of course, thank u. coming up, a potential breakup brewing in one of the big four accounting firms. plus we're going to talk to brexit party leader, nigel fara
8:30 am
about the new uk prime minister. and can you get the "squawk box" on our daily podcast follow squawk pod and listen anytime. we're coming right back. 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
8:31 am
ever wonder what everyone's doing on their phones? they're investing with merrill. think miss allen is texting for backup? no she's totally in charge. of her portfolio and daniel g. she's building a greener future and he's... running a pretend restaurant. and phil? phil has questions, but none of them are about his portfolio. digital tools so impressive, your money never stops working for you with merrill, a bank of america company. oh, that's wrong. what's wrong? your swing. that's terrible... you gotta put your knees into it, put your knees into it. that's too smooth. too smooth? watch this. ♪♪ you try it. ♪♪
8:32 am
better. ♪♪ oh, you gotta move your feet. charles. alright, alright, i'm going. i'm going. ernst & young's leaders are expected to approve a plan to split its auditing businesses. the decision is expected this week everybody else has done it, basically. when we come back, brexit party leader, nigel faraj is going to be weighing in on the conservative party's cichoe on prime minister "squawk box" will be right back. t would be the last thing on my mind. hey mom, can i go play video games? sure, after homework.
8:33 am
thankfully, voya provides comprehensive solutions and shows me how to get the most out of my workplace benefits. what's the wifi password again? here you go. cool. thanks. no problem. voya helps me feel like i've got it all under control. because i do. oh she is good. voya. well planned. well invested. well protected. businesses have to find new ways to compete in order to thrive in an ever-changing market. the right relationship with a bank
8:34 am
who understands your industry, as well as the local markets where you do business, can help lay a solid foundation for the future. pnc provides the resources of one of the nation's largest banks and local leaders with a focus on customized insights to help your business achieve its goals. that's how we make a difference. ♪♪
8:35 am
welcome back to "squawk box. right here on cnbc we're live from the nasdaq market site in times square, and on this first trading day of the week you are seeing some green arrows s&p up by 21 the nasdaq up by 51 after a down week last week where the nasdaq was down more than 4%. the uk conservative party elected a new leader liz truss will take over from
8:36 am
boris johnson as the country's new prime minister as the country's facing sky high energy prices and potential recession and new over the weekend, gazprom has halted production through the nord stream one. how far back do you go with the new prime minister she's had some evolution over the years, and people -- is that an understatement? >> yeah. >> she was a remainor. i'm not sure she was an espouser of reaganomics do you believe that is what she is now >> you're quite right, of course, she wanted to get rid of the monarchy, get rid of the queen, get rid of the nuclear deterrent. she was a real lefty she was a remainor
8:37 am
she's taken over today just been to see the queen as our prime minister, i will give her the benefit of the doubt, because our economy is on the edge of a precipice, as is our currency so i want her to carry out what she said but here's the warning what we do know she'll do is effectively cap energy prices. remember we are not self-sufficient in energy. we're paying sky high prices to import coal, oil, gas, all of these things doing that is one thing. and it will save a lot of businesses from going bankrupt but if she doesn't put in place in supply-side reforms if she can't convince the market that she can produce genuine economic growth then i think the attack on the pound sterling could come pretty quickly. so it's a very, very different entree that she face we're going to find out very,
8:38 am
very quickly of what she's made. >> she doesn't have a lot of time, and some of these things are not going to be popular. what is the feeling in the uk about what, i don't know what boris johnson was. initially, he seemed like a brexiteer and he turned into kind of an anti-capitalist he said some things about capi capitalism and corporation and focussed in on climate change. do you think she can keep corporate taxes at 19% and not going up will she get that? what will happen in 2024 how much time does she have? >> well, remember, we've had 12 years of conservative government we've now had four conservative prime ministers in the space of the last six years, which shows you what an absolute shambles and a mess the party has been. she said one thing yesterday that i thought was very interesting. she said very pointedly, i'm elected as a conservative. i will governor as a
8:39 am
conservative and she believes in low taxes. she believes in small state. she's all about growth we're going to have to borrow a whole lot more money look at gilts. inflation could well be over 20% in a few months' time because of our reliance on energy from overseas and a weaker pound means more pounds to buy gas in dollars. i'd say frankly she's only got three or four months to safs from spts s save us from going over an economic cliff. let's hope for the first time in 12 years we get a conservative
8:40 am
leader who actually behaves like one rather than saying they are to get votes and then governing as a metropolitan. >> if she doies this and you hae all these extraneous events that cause inflation to go to 20% it causes people's liberelectric bills, i don't know what's going to happen this winter in the uk and the rest of europe, but she's going to do these pro-market things, and then it's still going to its hadhit fan, e hear that reaganomics doesn't work and spurring the private sector with, you know, less regulation, less taxes, that doesn't work all these things we know actually do work
8:41 am
but she's going to be saddled with maybe what are very, you know, nasty conditions through no fault of her own. and how she, how's she going to stay in power in 2024? >> i agree she will not put forth for taxes. they were due to rise by 30% she will make sure that does not happen as for the rest of it. look, she needs to state very clearly that the united kingdom will be energy independent by 2024 that would send a very big signal i mean the reason the dollar is so strong against the pound unequally. the euro trading down at 99 is because of energy. europe totally dependent upon russia for virtually the whole of its industry. the uk in a levelhell of a messd the announcement by putin that the norm stream will stay closed
8:42 am
until the west lifts sanctions it's a war about territory in ukraine. so i think you're quite right. we're in for a very, very tough time, but much of it our country is cause bade comcaused by a complete failure. >> we have our own issues here with the administration on being as frpiendly to highydrocarbons. >> we've put a huge a time in wind and solar energy. sw wind is fine when the wind blows. nuclear fine, but it will take at least ten years, maybe more to get any new nuclear what we can do is we have on
8:43 am
shore gas. now i get it it won't get us through the winter but it will send a signal to the markets and everybody else that by 2024 we will have sorted this out. she has very, very little time. >> you think she came around, that's the oldest expression in the book you're 20 if you're not a liberal, you have no heart if you're 45 or 50 and you're not a conservative i keep hearing that. >> it's about, you have no head. >> you believe her >> i honestly, i don't know. but i can see the mess the country's in
8:44 am
ki s i can see the conservatives have been dreadful 12 year. they've not been conservative. i will give her the benefit of the doubt. >> interesting to watch. iron lady ii, we'll see. thanks, my jnigel faraj. labor day is over and many workers are returning to the office after more than two years of remote work we'll dig into what office life is going to look like as workers start to show up that's next. and i'm going to be fllive in seattle with howard schultz and the company's incoming ceo a conversation you don't want to miss and you can't see anywhere else we're going to be right back after this as condé nast traveler. but it is now time for us to work even harder, searching for meaningful experiences and new adventures for you to embark upon.
8:45 am
they say when you reach the top, there's only one way to go. we say, that way is onwards. viking. exploring the world in comfort. power e*trade's award-winning trading app makes trading easier. with its customizable options chain, easy-to-use tools, and paper trading to help sharpen your skills, you can stay on top of the market from wherever you are.
8:46 am
welcome back to "squawk box. after more than two year, the return to offices at firms is now under way. leslie pickert joins us with
8:47 am
more on this leslie >> yeah, after fits and starts over the last two years, wall street is tackling its new return to office normal. it looks something like this post-labor day employees can work from home when needed but encouraged to be in the office as much as possible. they must be vaccinated to enter offices in new york city but most other markets don't have such a mandate. and once in the office, things will look a little more hike t like they did in 2019 with no mask requirements in a memo last week, jeffries urged employees to be in the office on a consistent basis while the firm is not going to look at individual names on the turnstile. most firms have stopped short of issuing broad physical mandates after years of attempting to do
8:48 am
so, toonly to have to switch ges in the face of new variants much to the dismafey of the c suite we will see if this latest in-office push will be any stickier as banks continue to grapple with the unpredictability of this virus, guys >> okay. leslie pickert, we heard from bill ackman earlier this morning on this issue. he thinks you got to get people back in. he's doing five days but as steve liesman pointed out, if you have a cold, don't come in. >> stay home >> we'll see >> that's kind of the new normal they'd like to see people in the office five days a week, but they're going to be more accommodating than perhaps they may have been historically on things like being sick,
8:49 am
childcare issue, other things people may have gotten accustomed to during the pandemic >> and i'm convinced, i do believe there's disposable income, it's being used for other parts of the economy that's going to be lost because of people spending money they aren't spending on commutes. it will be interesting to see, we'll see how that goes. >> i'd be interested in the starbucks perspective. are they changing up where they're building up the stores doing more thins in the suburbs? >> it's a wholesale shift. and we'll talk about it tomorrow with the new ceo >> where they're investing their money. they're betting those trends last for years >> i think the bet, and we'll hear more tomorrow, is effectively that this idea of the quote third place, the place that would you go in between work and home, where you might hang out, see friend and all of that is going to fundamentally
8:50 am
or has already fundamentally shifted, but that that is actually going to be remaining force in society you will, order your starbucks on your phone, you may go pick it up and go out whether you're picking it up in a car >> smaller of that >> makes sense >> and we've seen it shift look, i'm drinking a cold iced coffee here. it's gone, the majority of starbucks drinks now are cold, not hot. it's not hot coffee anymore. which changes the entire business, it becomes about ice and blenders, blenders break it's a different business. >> and hot coffee, you can't make iced coffee out of hot coffee >> you can, but it's not very good >> i've seen people with the ice cubes made of coffee >> so it doesn't water your drink down >> exactly, otherwise it gets too watered down so you drink two of those every day, i don't know how you do it,
8:51 am
you must have a bladder -- but you drank like five today because of your 66 ratrating >> i drank three at home i drank a nitro. >> man what time did you go to bed last night? >> very early. >> and you didn't sleep? >> it's back to school, back to work >> hard to get back on schedule. >> it is >> you're still weak, barely get ready for the trading day ahead. mohamed el-erian will join us. dow futures are up by 200 points "squawk box" will be right back.
8:52 am
only at vanguard, you're more than just an investor—you're an owner. we got this, babe. that means that your dreams are ours too. and our financial planning tools can help you reach them. that's the value of ownership. ♪♪ energy demands are rising. and the effects are being felt everywhere. that's why at chevron, we're increasing production in the permian basin by 15%. and we're projected to reach 1 million barrels of oil per day by 2025. all while staying on track to reduce our carbon emissions intensity in the area. because it's only human to tackle the challenges of today to help ensure a brighter tomorrow.
8:53 am
8:54 am
welcome back to "squawk box. we're a half hour away from opening bell on wall street. mohamed el-erian, it's great to see you, as we begin the sprint of the fall in terms of the markets. we might start the day in the
8:55 am
green but boy, have we had a lot of red on the screen in the past week and a half or even more than that now. tell us where you think things are headed and where you think the fed may or may not come down given sort of the cross currents we're seeing here. >> let me say, it is impressive that we are in the green, given what's been happening to the world. and the question we have right now, andrew, comes down to how resilient are we to the mess in china, to the mess in europe that's the key question. we know from friday's report that the economy is resilient but is it resilient to the headwinds we'll face china have having more lockdowns. europe is in a mess, you just talked about it with nigel they've realized they won't have enough gas supplies for the
8:56 am
winter, they're not ready for that the market dealt with the fed having to pay cash, now it's dealing with the headwinds from the rest of the world. >> it sounds like you have a more negative outlook, am i wrong? >> i've been saying this over and over, the u.s. will outperform other markets, other currencies consistently. people don't understand how much more resilient the u.s. is than other parts of the world the u.s. will continue to outperform what i'm not sure about is what the absolute level will be given what's happening in the rest of the world. >> how concerned should we be about the energy situation and what's your outlook in that sur
8:57 am
space? >> if you're sitting in europe, you should be super concerned. we've seen government after government scrambling to protect households and protect industry and doing it in a very uncoordinated fashion. there's a question mark as to whether there's enough physical space. if they have enough physical flexibility to do what they want to do. the u.s. is in a different spot. oil prices are coming down i don't think energy will be the short term driver of inflation there's still a big question about the energy transition. in the short term the drivers on inflation are going from energy and food to wages, that's what you have to keep your eyes on. >> mohamed, this is a broader issue, in talking about how china would soon overtake the united states on so many different metrics, but given everything that's going on in china right now, between lockdowns and all the other
8:58 am
uncertainties in that country, there's now a view that maybe the, quote, unquote, american empire may not be as challenged as we thought. do you agree >> di do i think the notion of the rise of the west, that it's inevitable and that the u.s. will see its relative standing come down, i don't think that's the case i think if anything the west is going to suffer quite a bit in the next 12 to 24 months, and the u.s. is in a good position to consolidate its gains a lot will depend on what happens domestically what today and the last two months have proven and what i think the next few months will prove is the u.s. is in a much better place both in resilience and agility. >> but mohamed, the flip side of all of this, you've been calling for higher interest rates, bill ackman has been calling for
8:59 am
higher interest rates, if that happens you'll see earnings come down the question is is that baked into the valuations that you think are already in place >> so i have a bet with joe that suggests i do not think they're baked in, i do there's downside still ahead. nothing compared to what europe, china, and other face. but i do think it's going to be pressure on this look, there is no good alternative to reducing inflation. we've got to do that otherwise next year we'll have both an inflation problem and a growth problem there is no alternative to the fed raising interest rates aggressively because they are so late so the market is going to have to mnavigate its way through tha because that's our reality, unfortunately. >> mohamed, i want to thank you for joining us to kick off our coverage post-labor-day. talk to you soon
9:00 am
>> i have to pay attention too, by the way >> we all do >> we need to talk about the mets, aaron judge. that's going to do it. final check on the markets 180 points now on the dow, nasdaq indicated up 64 an monday. >> tuesday >> that's right. and it's september; is that correct? >> correct >> and it's raining. >> make sure you join us tomorrow "squawk on the street" is next good tuesday morning welcome to "squawk on the street." i'm carl quintanilla, here with david faber. jim cramer has the week off. we have powell on thursday, ecb, futures getting a lift here over the last couple of weeks


info Stream Only

Uploaded by TV Archive on