20 Episode results for "Joe Kernan"

A Boost for J&J; Tim Cooks 10 Years at Apple; Meme Stocks Surging

Squawk Pod

32:34 min | Last month

A Boost for J&J; Tim Cooks 10 Years at Apple; Meme Stocks Surging

"What exchange is now a podcast. I'm brian sullivan. Join me as we hit the biggest money stories from around the world breaking down the risks and rewards of global. Trade the news. You need to know what real world actionable advice. Even a little fun and unique content. You won't get anywhere else like the most random but interesting thing you'll hear all day subscribe to the worldwide exchange. Podcast today bring in show musically. This is squawk pod. I'm cnbc producer. Katie kramer today on our podcast. Ten years of tim cook in a decade as ceo. Apple's stock up twelve hundred percent tech watcher. Tony saginaw when tim cook took over. That was the real question in a post steve. Jobs era can apple continue to enjoy success. The numbers have been tremendous and vaccine mandates. They're all over and they're all different former mark. Weinberger everybody who comes in and says an employer should absolutely not mandate can start right not to have to get it doesn't understand the risks of nuance. Every business is different. Even the mandates that you're talking about are those stories today. But first johnson and johnson is out with some promising news about its cova vaccine booster house. Democrats compromise for biden's economic agenda and mean stock mania. It's back is it. Mimi me my like mimi because it's all about me if it ever left it's wednesday. August twenty fifth twenty twenty one just one more day till national dog day. Squawk pod begins right now getting warning. Welcome it's box here. Cnbc. i'm melissa. Long joe kernan who barked. That was not a real dumb like the dog just like dog or does today shares. A game stop soared yesterday as some retail investors came back in full force despite and otherwise quiet market the stock closing twenty seven percent higher with no obvious catalyst during the trading session arose as much as thirty six and a half percent on heavy volume more than fourteen million shares changed hands seven times more than thirty day average other stocks also popped amc entertainment jumping twenty percent clover health. Climb nearly ten bath and beyond rose more than four percents but you should see in the twitter. I mean in in the the red it sort of amc hashtag amc. Short squeeze was trending. We've had a little conversation yesterday about you know how to do this. Show who to book what we should do in talking about the overall market. You can only do that. Sounds so much. And i think maybe there's traders around that are like you know playing this overall market. Yeah let's go back to those meam stocks. I really think that might be. It's like let's find something somewhere that gives us all gets our blood running a little because there's nothing we need to hit a new high of every day it seems like but it's tough to attributed to anything delta whether it's jackson hole. Whatever you wanna talk about. But i think think it's i think it's boredom and you know it's august so it doesn't take much to get. These things started democrats reaching a deal to break the stalemate over the three and a half trillion dollar budget resolution. Aiming jabar's has more on a busy day shape in washington and it just struck me that these tough guys. These tough moderates in the in the democratic party they were holding their ground aim and they said all right all right. Here's our deal. Here's our deal. If you'll pass are one point two trillion if you promise okay go ahead and do the three and a half trillion and just let me see three and a half plus one just as i mean we say these words so easily ayman but these are major major commitments that that that have a lot of far reaching consequences. And i don't know. I just accept anything now. I just read it so we'll do you want. We'll do three and a half. Just make sure you do are one point to that how it works. Remember when a obama era stimulus was measured in billions. and now we're talking about trillions right. I mean so. There is some inflation going on in this world. I don't know if it's transitory or not. But that's the way it is in washington and look at the the dilemma. Nancy pelosi had yesterday Was she had these moderates who were saying. We won't vote for the three point five trillion package which is desperately important to the progressive. Unless we get a vote first on the infrastructure package which has already passed the settings right. So they're saying we got a big win here on infrastructure roads bridges and all the rest. Let's take that win. Put it in the bank and then move onto the next thing which we don't know what the fate of that is going to be the progressives said no no no we wanna use the leverage of the infrastructure which everybody wants to get the larger piece which we think we might have some difficulty with in the end. What the moderates got in the way pelosi finesse. This yesterday was she allowed them to get to have a commitment from her. Was she put out personally that they would have a vote on the infrastructure package. Bhai september twenty seven if they voted yesterday to move the budget framework forward on the three point five. The moderates did that. They voted enthusiastically with the speaker. Wants you gave them that commitment. And so that's the way you have is the three point. Five advances in the in the procedural process. That's not by any means spinal but it advances along the track and they get a commitment for september twenty seventh vote on final passage of the overall structure. Bill so pelosi brought these to sort of sparring factions together And you could say that the moderates loss in this in the sense that they wanted the infrastructure. Bill i they didn't get that They did at least get something They say base and they they live by another day with a far less. The far left faction says. We're still not gonna vote for that one point to even if you know when when that comes up on the twenty seventh the three and a half not going to be done so they they might say we're not going to do that won't yeah hold. That's a possibility. But i mean a lot of this is negotiating positions that everybody's out in the beginning and then you came towards the middle but you take out the most extreme positions so when your cave cave right That's an old washington strategy. It's an old strategy and everything and that might be what's going on here in the end. It is really hard to see that house. Democrats would vote to tank. Joe biden most significant economic accomplishment. So far You know the idea that they want to go into a midterm election To a presidential reelect eventually having tank and infrastructure bill that just about everybody in the country. One i don't think that's politically viable. And i think a lot of accurate but that's a point. Republicans always make it. Say what you will about the democrats they come together. They stick together. They are united block and a lot of times. The republicans look around in wonder. Where is that Ethic in their party. And there's you know whether it's joe i mean there's an old joke in among capitol hill journalists which is that you can always get away if you don't have a story you can always run the headline democrats in disarray. And they stick together when the going at stuff i mean you remember mccain. Romney says murkowski. I mean there. There's there's always about flake there's always about ten of them. That are not a necessarily going to go with with the part and then things don't happen for republicans anyway because of this breaking news from johnson and johnson on vaccine boosters may drill joins us now with more good morning. Good morning joe. Johnson and johnson out with a press. Release saying that. It has given a booster dose in a small trial six months after the first single shot of its vaccine and seeing that it produces what it calls a rapid and robust increase in spike binding antibodies. They saw that they were nine. Fold higher after this dose six months out Than they were about twenty eight days after the first shot. now they're saying that this supports Being able to boost the single shot. Covert nineteen vaccine. And of course as we've been hearing all of this talk about boosters eight months after the original vaccination series that's been for the are vaccine's the cdc though yesterday tweeting and really reiterating what we've been hearing from. Us health officials That quote people who receive. Jj we'll probably need a booster dose but we've been waiting for more data on that. Interestingly the johnson and johnson data show that their immune response is sustained out to eight months. But there's been a question about whether they would need to boost and this is some initial data suggesting that when they do those at least spike binding. Antibodies are increased. So there's going to be much more data that we need to inform this entire process but a little bit of it coming out now from jj and we're expecting more from there to does trial pretty soon guys. It sounds like a pretty good deal to me. You know the ninefold dropped by walgreens. You stop in there. Don't even hurt. I don't know what the you know. Remember when we wanted a vaccine and we didn't have it yet and we're like you get this thing and you don't know you know all bets are off if you get got these great vaccines now and so you need a booster. What's the big deal. I got ten minutes on my way home to stop by think. This is good news. Thank you meg. Thank you jane j. What do you think it's wrong. I'm a writer in my right. All right i'm with you no way. Oh my god mark my words. Who michael begs. Forty-seven this is breaking news. I agree this is breaking food but we were. We don't know we'd take it for granted. I think we're jaded jaded. How quickly would develop these and how ninefold blisters will likely help. I mean joe. I think the the whole idea here is we've been a pandemic and so we've been taking these vaccines and trying to get as much protection as we can as fast as we can and what it might turn out is that we should space the doses out farther six months or a year the way a lot of other vaccines are initially does. And that's what will end up finding but because we've been in a pandemic and we needed as much protection as we could get as soon as we could get we got all the doses at the beginning or at least for the two-shot vaccines and now we're talking about boosting but this will change as we get out of the pandemic face and as you've been pointing out we need to take the vaccines and more people to take them in order to get out of the pandemic fee though with the with full fda approval of the vaccine now it is possible to use that for off label purposes which could include using it as a booster correct. So we'll probably hear about more and more people getting boosters now compared to before you it's really interesting now typically when something has full approval doctors do have discretion to use things off label. But the cdc fda really warned about that in this situation because these vaccines are under some special handling with the cdc said there could be sanctions for doctors that use them off label. This is particularly in questions about using them for kids. Under twelve for whom they're not authorized at all. We already know a lot of folks. Have gone out and gotten booster doses. I think the cdc said about a million people had done that and it is under emergency use authorization for people who are immuno-compromised but they are trying to wait until it goes through the regulatory process. The fda in the cdc for everybody to be able to go and get their boosters eight months out so much hand wringing gnashing of teeth about the talk we talk about our you know accede hesitancy and everything else it. Just it's confounding at times may versus the prospect of hospitalizations. Serious illness cove nineteen. So it's just weird. It's weird i when i heard nine fold if i'd gotten j. like i said i got. Jj and someone said well we can do nine fold higher antibodies. If you stop by walgreens on your way home i don't understand what all trepidation and it's kind of a lunatic. Fringe isn't it. I probably shouldn't say i'm gonna get on. I know what. I'm not gonna say that. Say that you just you just said it but it's the egg is already cracked instead of the horse to okay. Thank thank you just mentioned mention ned ryerson just to get kick continue with your your pop culture movie education. Someone notice that. Am i right in my right right. That groundhog day okay. Groundhog day noted next. Unsquashed pod can your boss mandate the covert nineteen vaccine getting into the risks with mark weinberger former ceo of consulting firm over half the employees hold. Want to have the mandate but remember thirty percent or more absolutely. Do not want him any. Under these circumstances the issue is even if you want mandate which do you can't afford to lose those employees gotta take a listen to this swap. Pot that's right. Cnbc's flagship is new. Show is a podcast squawk pot this control to is not just the show folks even better. Because it's only audio join. Katy kramer as i take you inside the squawk box control room and beyond the headlines of our tv. Broadcast with. Joe kernan becky. Quick andrew ross sorkin every weekday. Subscribe to squash pot on apple. Podcast spotify stitcher. or wherever. You get your podcasts joe and three this one here warning and welcome back to squawk box here on cnbc. I'm joe kernan along with melissa lee Becky and andrew or off the day a belief tomorrow in friday and Melissa noted difficult this morning for you And it's only going to get worse. I mean coming in to see me. I meant that what's your three. Am to three a. m. i. Up at three twenty three twenty. Yeah well you've done twice so two more times by the end of the week. You're going to be the fault. Trade is definitely up and it's got nothing to do with the fed it's You know people are are buying rocks or not even real rocks for including the rocks. It does liquidity. I think it does your interest rates. But they're all tina. There are an attorney to pratt. Rock to there is no alternative to a digital rock. You love knocking. The rock i do. I don't understand it but it must have the conversation yesterday. We did. And i looked at it that i actually live buying rock any worse than buying one hundred fifty dollars. Cotton polo shirt. They can buy it. Walmart is something that you could it. Some people hold dear in their exactly exactly goldman sachs the latest firm acquiring vaccinations for all people employees and clients entering their offices. The wall street journal or wall street giant joining a growing list of companies mandating vaccines for their employees including names like disney walmart and facebook to us now to talk about companies mandating. The vaccine is mark weinberger former ian y. Ceo and chairman. Enduring marks tenure. You y. at three hundred thousand employees. I don't i would have been so nervous. I also hired sixty five thousand new employees a year. I guess at some point markets like you do your best and come what may cause. It's never gonna be never going to be easy or smooth. There's going to be things that happen. Here's what one of the things that i don't understand about the vaccine. Now we got the fda approval. So you figure it's gonna be easier. But then you say to remind what i said. On squawk before employers have an oversized role to play and making sure employ their employees to get vaccinated but making it. A condition of employment is a big step in should be the last resort. so what are you talking about. Begging beg big big big. I mean short of making it a a requirement. How do you get it done. Throwing my own quotes. that's impressive. So thank you for digging that. Oh that's a bad one for you. Is that a. Do you still use with that. Sediment you think it should be very difficult to actually do the mandate for employees. I think making a condition of employment. Joe is always difficult. It's the hardest thing to do. It says that we're going to fire you. If you don't undertake this activity it's usually lead left and things that are illegal. You get fired. Were not for things that are based on vaccinations or anything like that. Now i will say this that in the last three months or so you see a huge movement in business moving towards Mandating because the delta virus has become so proliferate and because we've seen the rise in spike over again of of the virus. But i'll tell you anybody who comes in and says you know every employer should mandate because if you don't mandate it's responsible i doesn't understand the nuances and risks and every everybody who comes in and says an employer should absolutely not mandate because it's our right not to have to get it doesn't understand the risks nuances every business is different even the mandates that you're talking about are different. Some are only certain offices. Some are only if you come into the office. You have to get the vaccine. It depends on the demographics of your business. The of the business. You're in the industry where you located in a whole host of other things. So i think companies ought to be given a lot of leeway here to make their own decisions based upon what their workforce wants needs and how they protect them in. It's it's you know we're going through this for we know done this before pandemic obviously but now we got a new. I don't know we got to think through this vaccinated breakthrough problem and it's thrown a wrench in the works completely because now vaccinated people can be not only can only you can catch it but then they can have a high viral load and not even know it so employees employers get everyone vaccinated. Everyone's in there but some of them may still have it they give it to someone else. Who takes it home to their kids. Who aren't who aren't vaccinated. So what what do you do about that. we have to wait. 'til children are vaccinated before we can finally take off the mask and finally stopped social distancing and finally get back to a normal environment mark or we're backing know. We're back at square one. Well this is. Why the government. And and most ceo's that i know urging all their employees to get back to the herd immunity will be back to a safer environments with operate. And that's why summit two mandates and those who haven't have done every incentive under the book to try the. My question was so okay. You vaccinate it but you can still get it. you can still give it to someone else's vaccinated and they can take it home to someone who's not vaccinated. So what do companies do about that. How do they. Then you shouldn't be bringing people back if you can or at least liable for mandating people to come back even if they get the vaccine because it can break through give it to somebody else and take it home and give it to their kid under that scenario then to its logical conclusion. No one would leave their homes for under any reason which we're not gonna get to so emmy. Listen it's it's every employer has to manage the wrist and there's going to be increased risk no matter what you do because the environment ran its. They're looking at their who they serve how to have their customers The service providers right service to safe employees safe and i think they're saying is in most cases want a mandate over half the employees polled. Want to have a mandate but remember thirty percent or more actually do not want to mandate under any circumstance and join the issue is even if you wanna mandate which allowed employers do. You can't afford to lose those employees who are often at the lower end of the pay scale in the frontline workers who don't want to get the vaccine so these employers as we said at the onset of this. This hit are very difficult situation and has to make the best decision. They can't based on the information to help. I mean that's that's my next question mark and that is would we be in a different situation in terms of weather to mandate if if the labor market were not so tight if it were not so hard to find workers if there wasn't labor shortages across industries and we would it be a different story employers have more power to say. You know what. I will just issue a mandate. It's certainly possible. Melissa i mean honestly again i think that it would be really great if they can just convince turquoise wives important them and their children and their friends everybody else to get. It doesn't seem to be working as fast as we would hope. So maybe that's the case issue. One is not having workers as you suggested but also those workers who are most impacted are the ones who are most impact economically by the whole pandemic situation. It's the lower income and franklin the minorities who are these willing to get the to get the backseat and so that would have a really disproportionate. Hit i'm not only the number of employees but the diversity across the board we've all through. This pandemic tried to to balance of being safe as possible with with not really going so far overboard that the what you're doing is actually worse than if you hadn't done it in the first place and i wonder right now with these breakthroughs and what we're talking about it even though maybe they're not as common and and a lot of times you're not hospitalized. The worst case scenario is taken off from that but do we go back to people that are vaccinated need to wear mass when they're with their when they come back to the office. Is that what we need to do it. Because that here we are again wearing masks and social distancing for double vaccinated people just to make sure that that really rare occurrence doesn't happen well to to your point jo. I mean. I guess it depends on by the. You're sitting right next to someone. Maybe or you have your own office or whether you're in a house with a health industry aurora a food industry where you're working with the public you know. I think it's going to be sensitive as to whether you're going to have to wear masks but for sure as long as we have this spike. We're going to mask in public places like airplanes and track even longer than we want. Yeah that's one of the problems that people are like. Oh i get vacs but it doesn't really change anything for whether i need to be careful too but it does take the worst case scenario off the table but then you've got kids aren't vaccinated so then you gotta worry about. Maybe that's the next step. That really is the game changer. Where across the board. You have the worst case scenario taken off the table for for most people. Then you gotta go back to take the mask off. Maybe at that point but we all want the mess. There's no doubt about that. Don't want to wear those. And i think you're right. I mean if you managed down to where you get. Maybe a flu like sentiments policy going to the hospital. I think people would be willing to take more risks than still. If you're at risk of dying going to severe cardiac arrest all right. I don't envy you or well. I envy you because these aren't decisions. You need to need to be quite as involved anymore. You can just come on squawk box which is awesome for you and for us getting to talk to you as always great. Joe this is. I still love it. And the boards. I'm on are active. Jj big announcement today chose to stay involved in the issues. But you're right you don't have all the responsibility of leading which is really heart sarcastic about that. Or was he found fifty percent sarcastic. Or how much all true. I love talking to you. I am the listening. It's great to. I miss becky. Every this is great. All was great talking to you too more. Thanks joe ugly still to come on squawk pod. It has been ten years since tim cook. Took over as ceo of apple and things are just about a sweet as ever longtime apple watcher analyst. Tony sakanaka joins us immediate near term challenges after such a herculean year where every business has really fired on all cylinders. What can apple do in the near to medium firm to continue to demonstrate its growth profile. We'll be right back. Cnbc's workforce executive council is the premier group c. suite human resources executives from leading companies across the country. It offers a members. Only portal and chart plus exclusive industry contact with access to breaking news calls and digital networking experiences the networking resources. Hr leaders need now. Apply to the workforce executive council at cnbc councils dot com slash. Wc you're listening to squawk pod from cnbc. Today with joe kernan and melissa lee. here's jail. Today marks the tenth anniversary of. Tim cook replacing. A tech icon. Steve jobs and leading apple to new height meant so much to me and so much to all our boss. Steve spirit and timeless philosophy on life will always be the dna of alcohol. Josh lipton joins us. Now he's been following the cook era closely as close as anyone that tech giant. Hey josh so joe there are different ways. We can judge the performance of a ceo. One way of course would be financial. We can look at a company. Stock price remember apple named tim cook. Ceo on august twenty fourth. Twenty eleven since then apple stock is up more than one thousand percent that has versus a gain of about two hundred eighty percent for the s&p five hundred revenues growing more than one hundred and fifty percent to two hundred seventy four billion through fiscal twenty. Twenty apple's market cap skyrocketing from three hundred forty six billion to nearly two point five trillion company. We know has very deep pockets. Net cash position of seventy two billion dividends. Paid nearly one hundred and three billion now some more when tim cook took over from steve. Jobs the visionary who could wow audiences with the latest and greatest apple products. How could cook engineer and supply chain guru ever fill such big shoes the truth is cook chartered. His own course telling reporters that challenge for all of us is to be the best version of ourselves. Ben baharan of creative strategies longtime apple. Watcher says coke has put his mark on this company. He helped change the narrative for a longtime. He says apple was thought of as a boom bust story today. Investors clearly consider a strong sustainable business and baharan says cook prove he can lodge new popular products as well a watch air pods and music video and other subscriptions now baharan says one big question. Investors are going to start asking in the next couple of years who takes the baton from tim. Cook melissa back to you. All right josh. Thank you joining us to discuss. More about tim. Cook's last ten years of ceo of apple. Is tony sack. Unagi bernstein senior research analyst. Tony great to have you with us. What's cooks biggest challenge for the next ten good morning. I think the challenge is released. Sustaining the success. that apple has enjoyed. I think when tim cook took over. That was the real question in a post steve. Jobs era can apple. Continue to enjoy success and his josh outline. The numbers have been tremendous apples now with three hundred fifty billion dollar revenue company and that makes growth more challenging even prior to this year in the previous five years apple grew three percent per year. This year is growing thirty five percent per year so the immediate near term challenges after such a hurry herculean year where every business is really fired on all cylinders. What can apple do in the near the medium-term over the next two to five years to continue to demonstrate its growth profile. What do you think that would be. I mean the for instance making the phone. Something more like a piece of hardware phone as a service if you will. Would it be attracting new. I don't know doing more in the gaming roundly. I'm just trying to think of what what it would be tony. That could that could continue these growth rates. Well i take what apple has done. Successfully is attack it through various angles. So if we we'd look over the tim cook era about forty billion dollars worth of growth have come from wearables largely watch air pod and there certainly could be more growth from new products. Potentially some kind of headset or glasses in the biard space. I think the secondary has been through services so again. While tim cook has been. Ceo services have gone from about ten billion to seventy billion so an increase of sixty billion in revenues. And the you know the challenge there is to continue to introduce new services. They've obviously introduced apple. Tv plus they introduced apple pay et cetera et cetera. And the question is can they continue to build on that. I think one of the areas where most excited about is apple's nascent advertising business which is just a few billion today but was a few billion at amazon four or five years ago in today's twenty five billion dollar business. We think that's an opportunity for apple and then do continue to evolve the iphone which remains about half the company. And i think your suggestion. Melissa about ken. The phone perhaps reinvent itself as a service going forward has always been a question among apple watchers. Is there an air parents. Tony what we learned. When tim cook took over is that you may think of. Ceo will be there forever. And the ceo's fantastic and it's great etcetera but they won't be. I mean that's the fact of the matter is. Is there somebody you know what it would be. A seamless transition. If this person took over it's not clear and i think it's important to recognize that tim is sixty and in good health and has said that he'd liked to be ceo for many more years. Not ten. I think he said but many more so this. That's that's another challenge for For apple over the next three to five years is is thinking about a succession plan. You know in. In tim's case he was the c. O apple has a coo today. He's pretty similar in age to tim. So it's not clear that that jeff williams would necessarily be the parent but there is really good young younger talented apple. Greg frederick about a decade younger than tim could be a potential heir-apparent. But i think that's something that will be an important part of the next three to five years i think for tim cook in creating a succession path. Not only for himself but for other senior managers within apple. Tony thanks again. That's squawk pod for today. Thanks for listening. Squawk box hosted by joe kernan becky. Quick and andrew. ross sorkin. This podcast is available on apple. Podcasts stitcher spotify. Google wherever you listen and if you like what we do tell. A friend. Checkouts faulk sharing his carry. We'll be back here tomorrow. We are clear. Thanks guys get an edge. Invest like a pro access. Cnbc's live streams around the globe unparalleled access to cnbc. Experts actionable investor insights and ideas. Start your free trial today at cnbc dot com slash pro.

johnson tim cook joe kernan apple cdc amc mark weinberger joe Katie kramer Tony saginaw fda jabar pelosi washington
Jab Incentives & Ultimatums; A Marketplace for Fakes; The Scoop on Jelly

Squawk Pod

31:57 min | Last month

Jab Incentives & Ultimatums; A Marketplace for Fakes; The Scoop on Jelly

"Cnbc's workforce executive council is the premier group c. suite human resources executives from leading companies across the country. It offers a members. Only portal and chat plus exclusive industry contact with access to breaking news calls and digital networking experiences the networking resources. Hr leaders need now. Apply to the workforce executive council at cnbc councils dot com slash c. Bringing show musically. This is squawk pod. I'm the cnbc producer. Cameron kosta today on our podcast. Get back st- or else delta. The first to raise insurance premiums for its unvaccinated workers fortune. Five hundred board member shelley archambault on this as a precedent every company situation is very different. Some companies have situations which people have to work together others. You don't you can be. This is darren. Unique to every single company one of those companies. The jam brand. What smucker's is mandating. And how despite inflation supply chain and covert pressures. Smucker's is taking a bigger bite out of breakfast. Ceo mark smucker where we have holders dunkin and boost jello. We grew share across all three of those brands in the quarter. Those stories plus. Cnbc's beijing bureau chief eunice yoon takes us inside a shop for fake kobe vaccination cards customs officials have seized thousands of fake cards in tennessee and alaska and wile weren't china squawk booze news china's high end liquor is under pressure. It's thursday august twenty six twenty twenty one. It's national dog day. They're so good and so pure they do so much for us in they never asked the squawk begins right now. Good morning and welcome the squawk box here. Cnbc on melissa. Leo along with joe kernan becky and and you are off to date is a national dog day. Joe has reminded me. Thank you for bringing that up that way i don't have to. I knew you're going to so. I might as well nip it at the bud. Business leaders committed billions of dollars to bolster cybersecurity efforts at a white house meeting with president biden. Yesterday the white house had apple would create a program devoted to making security improvements across its technology supply chains. Google said it would invest more than ten billion dollars over five years to strengthen cybersecurity and pledged to train one hundred thousand americans in technical fields. Microsoft meantime committed twenty billion dollars over five years. Deliver more advanced security protocols. Such adela tweeted after the meeting that the company would invest one hundred fifty million dollars to help government agencies upgrade their security systems and expand training partnerships. Ibm pledged to train more than one hundred and fifty thousand people in cybersecurity skills over three years and partner with historically black colleges and universities help. Diversify the workforce amazon web services is planning to give account holders free multi factor authentication devices to secure their data. It will offer security awareness. Training to companies and to individuals is more american businesses demand. Proof of vaccination more chinese counterfeiters are making bogus vaccination cards eunice. Yoon joins us now with more state kovac. Nineteen vaccination cards are on sale. In china online marketed with plastic sleeves or holders custom made for the cards one vendor tells us their certificates will be shipped from a major business area in junk province or from a warehouse in the industrial town of shenzhen. This batch of one hundred is from the manufacturing hub of egwu. The forgeries are may look as if they're issued by the department of health and human services. And the cdc but typos in both english and spanish. Give the lowest version away. Even the word vaccine is misspelt. The fake end its holder sell here for eight cents on the black market cybersecurity firms. Found the focard's priced anywhere from several dollars to hundreds. This vendor says she shipped ten thousand to the us this month alone. We've had this discussion on on the set a lot. about one. new york's going to mandate something and there are. there are ways to do more than just. I don't know how how you expect anything different. Given how easy it is. Have one of these things that look authentic. You need to do a bar code. Or i mean it needs to be in the computer system from the healthcare provider where you got it so that it can be so. This won't be. They're not going to be making money for a long time. I don't think on this unison. Once once people authorities get their interact together. Yeah the people. The vendors here definitely are aiming to make a lot more money but as you said the authorities are clamping down over in. Us customs officials have seized thousands of these fake cards in places like tennessee. And alaska with the vendors also told us that they've been advising their middle agents They're kind of the middleman agents that if they want to. If they end up facing potential trouble in the us they could just send these small batches is. It makes it a lot more difficult to trace. We've made in china. But why these i mean. There's no one in the united states. The figure that well i was thinking. If you had a a laser printer and some card stock why you wouldn't be able to just do it yourself. I'm not trying to say that anybody you should do. This seems easy enough. Okay thanks for that report. Unicef through shaded. us. Regulators are reportedly investigating deutchebanks asset management arm. The wall street journal reports that the probe comes after the firm's former head of sustainability. I said the division overstated. How much used Sustainable investing criteria overstated it. And we thought piece in the journal last week and the op-ed pages about promise of guys talk to trillion dollars global stakeholders but stakeholders nobody stakeholders. Nobody's doing what i i was black. I'm i'm milton. Friedman guy stakeholders are fine. I think they're satisfied by the original goal of what you do. I think every that filters down into everything. You don't do bad things about you. Don't do chemicals into their right mind. Your ps and qs in terms of a satisfying your customers your employees in everything and then everything else although researches signaling and business and i've told the business roundtable that and then the other yesterday but just the whole stakeholder for two signaling squawk burs news. China's reportedly cracking down on its liquor. Industry shares of major distillers have all fallen over the last week on reports that regulators are trying to rein in the soaring costs of high end spirits. Attendees of meeting between producers and regulators said the focus is on cooling off overheated market prices. Some bottles of baiju from high an distiller multi fell as much as forty six bucks in one day. According to state media chinese liquor stocks are among the top five most invested mainland china stocks by foreign institutional investors high end liquors often gift also joe and a lot of these stocks of companies. That make things that would be. High-end gifts have fallen since president. She made a speech about income inequality and making things a little bit more level in society. That i did though Sucks so there's very communist country there's high end not everyone As a high and liquor or the income inequality which is a fascinating subject for me. To talk about china i think. Income inequality inequality seems so great. Because it's a communist country and because it's supposed to be a gala -tarian and it's not and then you wonder for someone who it's like what i say not what i do for the leaders in china because they're all wealthy i'm sure so like so many places reveres people like jack ma right but if you're going to really not ever change your stripes just in terms of personal freedom if you really are gonna have this weird hybrid between a free market capitalism but we're human rights and personal freedom is restricted. If you really gonna keep it you need that control. You can't just control control companies. You own them but you also gotta control the populace in part of that problem is you. Don't want billion people really p o'd that there's a couple of million that have all this money all right so it's it's just in their best interest or not let happen. Even though america crecy i still think is the best way to do things because it rewards hard world. That's why we are but harrison. How do they keep the meritocracy going over there. When they everything they do to now just enough you can get here. You can have this without too much. That's i mean that's part of the reason that the chinese tech. Crackdown that we've seen. They don't want too much power in the hands of the tech companies. Which have all the data on your income on everything because people are using ali pay instead of state run payment systems so sometimes you got to hand it to him just in terms of intelligence and ruthlessness at their able to keep control the way most of what are we got three hundred plus here and so they have is five-time five six times so whenever they're trying to do anything they gotta do it five or six times as well as we do it for the number of people that are there are hard work or needed decider. Us i fall back into fell back into w everyone they need the next on squawk todd mask mandates vaccine mandates incentives threats and everything in between shelly archambault board member of horizon often nordstrom at a former. Ceo herself takes us inside the room. Where all these decisions are happening need people to work. We need people to serve our clients and as you look across the board. That's really what all businesses are trying to do trying to keep business and economy going. We're back after this exchange is now a podcast. I'm brian sullivan. Joined meet as we hit the biggest money stories from around the world breaking down the risks and rewards of global trade the news. You need to know what real world actionable advice. Even a little fun and unique content. You won't get anywhere else like the most random but interesting thing you'll hear all day subscribe to the worldwide exchange podcast. Today this is qualified. Welcome back to squawk box here and cnbc. I'm joe kern along with melissa. Becky and andrew off today delta airlines. The first major company to impose a financial penalty on unvaccinated employs starting november. First those who haven't been inoculated. We'll pay two hundred dollars per month more for health. Insurance premiums delta says the fees cover the or the fee will cover the higher cost of insuring employees who get cove and ceo. Ed bastion said the average cova hospital. Stay costs fifty thousand dollars per person and he said since the rise of the cova dealt vary. All employees who have been hospitalized with cova were not fully vaccinated. So that makes sense. I think to me. And i don't i don't know what i think about it I mean i tried to pay bonuses and then you go the opposite and tried to actually the only thing i thought it was that were there actuarial calculations actually made two hundred sounds like totally arbitrary and say okay. You don't get charge. A is that really cover the or is it just. We know there's going to be some hospitalizations with unvaccinated employees. Were just going to raise a certain sum of money and apply it towards that and hope it helps ors two hundred the actual number. What would it really cost to cover actuarially. He said twenty thousand dollars on average fifty but house two hundred but to think not every single unvaccinated boy hospitalized so i just wonder whether that's really our insurance insurance people have actually looked at that. And that's i mean that's the same question for for instance smokers to twenty three hundred not six hundred. It's not fifty charge. People who smoke companies charge people who are obese extra in terms of premiums for healthcare. Or they give the people who don't smoke credits but they proved that they don't smoke. So i don't know if their numbers behind it how. How much do you think how strongly you have to feel about the vaccine to coney up two hundred a month. Two hundred yeah. I mean i think a lot of people like okay you know. I really didn't want to get this but all right give me a hundred is. That's a pretty good inducement isn't every show. yeah right. that's a pretty good inducement which also means you probably won't end up on a ventilator. That's you for some people. That's not the calculation their head for whatever personal reasons choices. People think that there's a microchip in the vaccine. It's going to allow the government to monitor. Can't get onboard. That's one of the reasons people aren't getting it then. Just make up your own reason. Anything the i mean. I'm sure that means that. Some people think that aliens gave this to the biden administration to to somehow harness. I dunno keep people under control. I'm sure anything you didn't come up with there. Are people out there that that's why not the country that has been able to kobe. Zero the fastest china right and think of what they had to do to their population to do that. Exerted firm control right into the people point to that and say you know maybe. This is the government's way. I'm not saying that that's the case at all. But that is some people's thinking. See me i you know. I got two of them. They told me pfizer's got one ready for me. One yeah booster. You'd go on the way. I i'm on the way home. I'd stop off. I don't care get a shot. Boom done twenty nine times the antibodies. If something the only thing that gives me pause when i read sean penn is is so out there in saying you must work sued. And that's what i'm like. Do i need to rethink my position. Because you know the guy visit hsieh's hates on any american so when when the left gets when the hollywood left gets that point then i started thinking maybe this do i need to rethink my present to stick with your beliefs job joining us. Now shelly. Archambault board member of horizon and nordstrom and the former ceo of metric stream. Shelly we we had just before we get into the meat of things. We had a discussion. Do you think that numbers just pulled out of thin air. You think they have any idea actuarially what they need to cover as a company for healthcare because of of cova for their employees. You think it's exactly two hundred a month for unvaccinated employs honestly. I can't tell you what delta airlines knows or doesn't know all companies are looking at what their overall expenses are and what things cost. But i have no idea what went into the decision around two hundred dollars. You know as you can imagine in the social media world allowed through saying if you do the math on hospitalizations and become serious point zero this and there's no way that that's that that's a real number. Does it matter whether that's the actual number. Not can they just pull one out of thin air and say. Hey we're the company you're either paying this or you're you're not going to work here. Companies can decide what they're going to charge and how they're charge for different healthcare company to company premiums employees pay differ across companies so each company decides what works for them. And what doesn't so can't comment on what they charge and you ask. Does it matter it comes down to what behavior are actually trying to drive. So it's really the concept of what they're doing more so than the actual dollar amount. How why do you think they're hesitant to say if you're coming in physically to the office you can't come in unless you have. The vaccine is is their future liabilities. Some type of lawsuits. What what's what's the problem with. Just you know going full full on with what they tell employees to do. Why half measures. We are an unprecedented times. Every single company is trying to figure out. How do they read a very fine meal. Trying to create environment that safe for the workers and their suppliers as well as their customers. The same time benita workplace that will be efficient and productive. And they're wanna make sure they're following different rules and laws and regulatory environments which by the way are changing states coming up every day with new requirements of what you can do and what you can't do so every company situation is very different. Some companies have situations which people have to work together and have to be close in proximity others. You don't you can be remote. So therefore what mine. Rules are and what my policies are will be different. This is unique to every single company. We've always had the discussion. not not on all cable. Channels has been on some that. There was a balance saving lives and saving livelihoods. and what. We're both trying to do. At this point. If vaccinated people can have breakthrough cases of cove it and if they can transmit cova to either vaccinated or unvaccinated people and we say this again and again then bring it home to their children to get how at this point. Don't we need to have double double masks social distancing. We're back to square one if we try to get cova cases two zero instead of the other. Two hundred human transmissible infection. Whatever you wanna call diseases that we have now. There are people that say this is going to be added to that there will be two hundred and one because cove is going to be around. Never go to zero. So if there are vaccine breakthroughs do we need to go back to masking indoors. Masking outdoors masking children in school. Double requiring double vexes work at home. See what i'm saying. What is when is it enough. What do we do. The issue here with vaccinating unvaccinated if you're vaccinated and the cdc is said healthcare professionals have said that if you're vaccinated can you get cova. Nineteen or get the downtown area and you can but the level at which you will be. Ill is significantly different. A public policy issue here is overwhelming are hospitals so we wanna make sure everybody's vaccinated than yes. I might get it. But the odds shown that i won't be hospitalized. I'd show that. I will indeed recover. So jury require mass. Do we need to require mast in the workplace even with vaccinated people again as long as we have a significant percentage of the population is not vaccinated. That's why we're having to wear masks. Because we need to protect the broad set of the population. Four board member of companies. That are so diverse. Some really reliant on being quote unquote in office like a nordstrom versus other businesses. That can operate pretty well remotely. How does liability factor into this liability that a company may face should they not mandate or they mandate. I'm just curious what those sorts of discussions in the boardroom are. Like decisions are made every day by companies in boards looking at the risks that are entailed by the policies that they put in place. We are all trying to create an environment in which people are safe to work and companies are starting with Educating right we need to educate our employees we need to yes incentive employees and if nothing else works we need to mandate the environment in which we need so that we can continue to operate our businesses. We need people to need people to work. We need people to service our clients and as you look across the board. That's really what all businesses are trying to do. They're trying to keep business and economy going if if it is seasonal and it becomes similar to the flu and it comes back every year and we never reach one hundred percent vaccinated. We need to wear masks from here on out. If you're in the workplace to keep cases at zero. I am not the healthcare experts but everything that i read says that if we can get ourselves to the point where the vast majority of people are vaccinated. Then it's significantly reduces just like any else that we fought in this country whether you're talking about polio or measles etc once you get to the critical mass that does not have the kind of impact that we're seeing today so i don't expect that we would all have to wear masks every day as we operate. I got my first job in january. My second subway. i'm not. I think everybody should get but i look at what you take it to the degree and never won another cova case ever to happen. You can see what the slippery slope that some people that don't have my opinion you can see where they get some of their ideas because this could go on forever if you if vaccinated people are still contagious. I just. I don't know what the future looks like shelley but thank you and that's what Corporate managers are dealing with in the. That's right. It's a very tough environment. Unbelievable what did this. I mean i live for long time. Never thought about any of this. And that's all we think about now so true and all companies wanna do to operate. Circular clients treat their employees well creative environment and little. There's a little little. Cya hang in there to shelley. Don't kid yourself anyway. We appreciate it. Thanks for your time and very much to still to come on. Squawk pod why you maybe shelling out a little bit more dough for your jelly. Smucker's ceo mark smucker. There is significant. Cost inflation across ingredients packaging. Obviously transportation and labor are playing a role and even certain weather events have impacted of cost of commodities and so forth plus. It's national dog day and you know we're pet people time now for today's aflac trivia question. Can you name joe kernan three companions the answer the interview and the puff when we come back. Welcome back squash pod from cnbc. Today with joe kernan and melissa leo. Here's joe smucker out with earnings this morning and we're joined now by the ceo. Mark smucker Not everyone knows. You're in a lot of products to on national dog. Let's start with with the results because there's some interesting things happening. The stocks down a little bit today. Marc and there is a tough environment in terms of raw material and logistics costs to the underlying fundamentals. Are strong demand is strong and fundamentally the change in guidances is related to the significant inflation that we've experienced in some of the supply chain disruption. So we continue to manage those things. We've already moved our pricing bit working with our our retail customers and so we will be continuing to work with our customers to raise prices over the next several months and we are confident that we'll be able to recover those oss. Although i the timing might be a little bit later than we realized the cost so mark this is pandemic related. The supply chain volatility. Even in. it's not just chips and things like that. It's just logistics and everything else around the world so it's pandemic related. It is largely pandemic related. There is significant cost inflation across ingredients packaging obviously transportation and labor playing a role and even certain weather events have have impacted cost of commodities and so forth. I'm so we do you. The that these This inflation is somewhat transitory. But it likely will persist through the remainder of our fiscal year which is which is through the late spring so mark. I saw your base somewhere in ohio. I didn't recognize town. But i'm sure smucker is a great name to have in in in town but in ohio. I'm not sure of the delta variant but you employs everywhere. What is your current approach to getting employees vaccinated to be safe you saw. What delta did the. They're doing two hundred dollars a month for additional insurance health insurance coverage. You're what what is smucker's approach right now. Well since the very beginning of the pandemic our focus has been on keeping our employees safe and delivering the business. And so that is what we have done. I could not be prouder of our people. In the way that they have continued to execute and deliver the business We recently did bring back. Our math mandate out here in the office. We are in northeast. Ohio and we've continued to encourage educate our employees to to get the vaccine. We have not issued a mandate. We're monitoring it daily extremely closely. But at this point we have not made a decision to mandate if you what do do vaccinated. Employees need to wear masks now to mark only disappoint because of of the the delta variant and and the way that Obviously it is. It is contracted or or pass along. All of us are required to wear masks here in the office. obviously we we longtime fans a smoker. And i remember. I think it was the old squawk box. There was a time when you bought your jelly company and you bought peanut. Butter was like what i get this and you know. There's a lot of saturday's lot of synergies that escaped me. And then they you know the the investment bankers suggest a merger and then they'd be merger. This has never been be murdered. That was that was that was a good one. So i wanna talk to you about some of your new products because you've gone not just the iconic brands you got some some Some coffee that millennials probably like you got some of these other things going on with your got milk bones. But y'all got rachel ray which i use for treats so you've gone into the niche branding as well as the iconic brands. Yet thank you. That's a great segue. Our strategy is really around making sure that we participate in all segments of the category and copies a great example where we have holders dunkin and boost stelo You know we grew share across all three of those brands in the quarter and the strategy is really contingent upon the combination of iconic brands and faster brands. so with duncan and who stelo significant growth in the in the quarter as well as our entire k-cup or voglio. Well i'd be remiss. If i didn't ask you about uncrossable 's and i was actually visiting your people because i i know. There's a big controversy. Are they sandwiches. Or they ravioli. How does ravioli enter this discussion. Because in the patent they are sandwiches at around and they have the little. Some people think they're like pop tart but there was a patent dispute mark. And you want. There was a pack dispute for a pet. That you own whether it's really ravioli. Or what does the verdict mark. It's a sandwich right. Martin there for to them sandwiches and that is the number one growth engine company right now. It's it's grown twenty nine consecutive quarters and double. Did it several. So it's it's envir- we we'd love the brand and and we continue to push that. I mean you don't miss it's like a pb and j. and they're frozen but like when i see golf tournaments and there's a big vat of them and you take one the one where they unfrozen that day but they taste fresh and good. It's pretty amazing. There's a lot of other fillings. Look a lot of other siblings. It's a big growth engine for smucker. Were joking but it's a big growth. Engine uncrossable absolutely thanks. Martin and speaking of dog wrote the answer to today's aflac trivia question. Today is national dog day. Can you named joe kernan three companions. The answer pungo come third. Freddie they are truly joe's best friends believe the producer. Got our guy who does all those voice overs way he decided to is so s- pull of meaning are his best in every day. I read more and more about mental people that have preempted. They do so much comfort dogs. They've peng on pong. But i think there's national blankety blank day inflation but national dog day is one that we really shouldn't celebrate maybe national animal day because they're so pure can be show good and so they do so much for in they never asked for thanks just rates and that does it for us. Today i'm squawk pod. Thank you for listening as always squawk box is hosted by joe. Kernan becky quick and andros zorkin weekday mornings on. Cnbc at six am eastern to get the smartest cakes and analysis from our tv. Show right into your ears. Listen and follow squawk pod wherever you get your podcasts for me back here tomorrow. The are clear thanks guys.

china smucker joe kernan workforce executive council Cameron kosta shelley archambault Ceo mark smucker eunice yoon us Cnbc president biden cnbc Yoon joins delta airlines cova jack ma
Kids, Covid, & Classrooms; KPMGs C-Suite Survey

Squawk Pod

27:00 min | 3 weeks ago

Kids, Covid, & Classrooms; KPMGs C-Suite Survey

"Out steer means pige navigates market volatility with an active investment approach designed to capture opportunities globally. Join the pursuit of outperformance at p. Jim dot com. That's pg im dot com bringing show musically this is squawk pod. I'm cnbc producer. Cameron kosta today on our podcast. Twenty years finally at an end it was time to end this war that might be over but the pandemic is not kids are heading back to school. Covert cases among them are taking up and vaccines are still not quite ready for them. President of the american academy of pediatrics. Dr lee savio beers number was just a disease for dos. But now we're seeing so many cases that that we really are seeing the impact on children. And i don't know about you but we're still working from home. Ceo's are pushing back the return to office but overall it's not all bad news in the c. suite share and ceo of kpmg. paul canal. There is a great degree of resilience. And i think we're feeling really good about how the vaccines are responding to the virus. Very optimistic about the future. It's wednesday september. First twenty twenty. One squawk thought begins right now. Becky by in three to one place. Good morning. welcome to squawk box here on cnbc. I'm becky quick. Along with joe kernan. Andrew is on vacation today. Let's september i. You know that what that means that we've just finished this month so we should take a look at how the markets actually performed for the month of august. If you were watching you saw that the dow gained one point two percent that would be at six positive month in the last seven. The snp was up by two point. Nine percent logging seven straight months of gains and then the nasdaq was up. Four percent for the month russell two thousand small cap index. It outperformed yesterday but for the month that was up by two point. One percent and despite a decline of one point one percent in yesterday session. The dow transports finished the month higher by one point. Four percent now. The transports are still more than nine percent from their all time high. But if you look at the financials they were the best performers. In august up by five percent energy stocks were the worst performers and the only sector declined for the month as well. I don't know if you were watching yesterday. Joe we we didn't see new records for the snp and the nasdaq it would have been the thirteenth record for the month For the snp fell just short of that but stockton fall by too much. Had the snp down by about six points and were you watching the nasdaq because it was down by six point six six. I didn't see that that final close. There were some other things that i was watching yesterday. As a matter of fact which will will talk about in a second and how it impact. The business world finance got well. We couldn't pa. No i mean we couldn't possibly we don't need to enter the fray of we characterize what we've seen over the past couple of weeks that's not. That's not what we do but there is quite a bit of commentary on what we've seen and these are these are big things. The the black and white shot of the or the greenish sort of shot of infrared of the final defined soldier. That that's gonna be like what we've seen. That's going to be one of the most iconic shots i think of a twenty year saga ending. So this is going to be one of those things that maybe our kids kids read about sunday right. I don't know how maybe it'll be implanted into their brains by then or something maybe reading we'll be out but hopefully not hopefully not. Yeah this is what. I was watching yesterday. President biden addressing the nation. He defended his decision to end the. Us war in afghanistan after nearly twenty years of conflict saying the era of us nation building is over. We succeeded in what we set out to do afghanistan over a decade ago and we stayed for another decade. It was time to end this war. Let me be clear leaving august. The thirty first is not due to an arbitrary deadline. It was designed to save american lives. I was not going to extend this forever. War and i was not extending a forever. Exit president biden vowed to defend the us against evolving threats from terrorist groups such as isis without getting involved in another ground war. Let's see the next story you were going to talk about. We were just going to go. Just leave it at that and move on. I just figure i did. I was watching it. I don't know what were you watching when this happened. Did you see the end. I thought it in kind of a you know nothing about that. Speech was funny and nothing about the whole situation. It's funny but he turned around the president and was leaving and there were dozens of questions being shouted at him and at one point he turned around and he turned around and he walked back to the podium and everyone thought the same thing. He's going to answer. Questions is going to take a few questions. And he picked up his mask and turned around and left. Were you watching it at the end to see but you think he was coming back to feel a few questions but it but anyway we we have a fair free and fair press in this country and sometimes maybe i don't like it but other times i do like it and the journal hesitated. They maybe should i. If i tweeted out and re tweets are not endorsements. Is that possible to just tweet out. The maybe the some of the commentary on on what we saw yesterday or or just because it does affect the next three and a half years. That's the last point. The journal makes the next years are going to be something to behold. But i think he'd be questions that i think people have been thinking that for the last couple of weeks tweeted out for people that don't have a subscription to the journal order dry just not tweeted out. I'm not going to tweet out the new york times. So maybe that's unfair for me to just tweet out one side. What do you think I think you are allowed to express your personal expressions on on twitter. So yeah you go. Then i'm going to get busy with that and we'll get back to this. I'm going to think about it. I'm gonna know sometimes. I feel like having a relaxing day. And i don't feel like yesterday. I one of the reasons. I said i was what there was supposed to be a baseball game on did you. That's what you were going to be talking about. But it got cancelled unceremoniously. Because of i think we're going to see the effects of ada later today here. Yeah and i think it was in cincinnati yesterday. The reds are supposed to supposed to play but the mets were supposed somewhere. I had a game that i was planning to watch. And i i was unable to it. It was not on today. There's a bunch of money just in case you're one and it's supposed to rain today too. Though so we'll see later. It's supposed to be flood warning all kinds of stuff happening in pennsylvania re jersey. Bjork all around. That's right you can check for yourself. If joe re tweeted his morning reads catch him on twitter at joe squawk and you know what go ahead and send him the tweet. Were you going to watch baseball game. Two or maybe that on it. Let them know well you do that. Here's what's coming up on this podcast. There needs to be an urgency in the way that we approach the authorization of vaccines for the younger kids. Of course obsolete need to also follow very clear and thoughtful safety procedures but but we think that both of those things can be done. President of the american academy of pediatrics. Dr lisa savio beers when squawk todd returns each. You remember kevin o'leary here. Money court is all about dispute resolution. Businesses have problems. And i'm here to resolve money with kevin o'leary new series wednesdays ten eastern on cnbc tv. This is squawk pod. good morning. Welcome the squawk fox here and cnbc live from the nasdaq market site in times square. I'm joe kernan along with becky. Quick pediatric kovin cases are currently on the rise as the delta variant continues to spread across the country affecting many children who are unvaccinated as they return back to school cases and children are up over five times what they were earlier in july and child hops civilizations because of covert are at an all time high joining us right now to talk more about. This is dr lee savvy. Beers the president of the american academy of pediatrics. And dr beers. Thank you for being here this morning. Thank you so much for having me to talk about this really worm issue. This isn't just a disease for adults anymore is it. That's absolutely right. I really never was just a disease for adults. But now we're seeing so many cases that that we really are seeing the impact on children with that backdrop. Are you surprised that the fda is asking for more information about the clinical trials and expanding those trials for kids who are ages five to twelve before. They'll approve the vaccine for them. Now this is. This is something that we think really needs to be approached with a lot of urgency given given the number of children affected by kobe particularly with the spread of the delta delta variation. There there needs to be an urgency in the way that we approach the authorization of vaccines for the younger kids. Of course obsolete need to also follow very clear and thoughtful safety procedures but but we think that both of those things. Yeah the data. I think for pfizer and this has been a moving timeline as the mother of two young kids. I was a little concerned. I thought maybe we'd be getting these vaccines by late. September early october. Then the timelines sort of change too late winter or early to late winter potentially depending on where we'd see where where do you think things stand right now. What are you hearing now. It's you know we're hearing on of the things you are a. We've heard estimates from his earliest halloween to as late as early winter. We of course really hope for the earlier time line and we've also heard that least one of the manufacturers will be ready to submit their data by the end of the month so that's that's really encouraging to us so were were hopeful it will be on the earlier end of that time line but of course we'll we'll have to wait and see what that data works like right the. Cdc is taking a kind of unusual step and is basically threatening doctors saying that they cannot prescribe these vaccines off label for kids ages under twelve And i understand that. You want to see the data. I if you were able to see that data next month would that maybe make you feel better about off. Label prescriptions at that point. Yeah you know we also do not recommend off. Label prescriptions for off label. Use of the vaccine for children listened to them and and the reason really is safety. Just we know that during the trials. we are using should smaller doses of the vaccine for chairman. And until until we see no that you know we we really have to make sure you know we we are. We feel urgency about it but we also need to make sure it's done safely. What are you seeing right now. Just in terms of hospitalizations. I think this is the delta. Variant is more violent. Is this a situation. Where i. It's going to spread more quickly among unvaccinated. But we're also seeing breakthrough cases too. And i think that's a game changer. Yeah it is and it's a good question you know. I think of course as you probably have seen through at this. The data around hospitalizations sometimes lags at tiny little bit behind data cases. It's a little bit hard to know. If delta is a truly more severe disease in kids or it's just that you know just like an adult the more people who are the more kids who are affected the more who are going to get severe disease but what we are seeing is is really dramatic increases in cases and really dramatic increases in hospitalizations. I think this is particularly true in some of the states Largely in the south and midwest. Where where we're seeing surges and in those places you were seeing new. Pediatric hospitals are running out of beds. Kids are having to wait long times to be seen. It's it's really putting tremendous stress on that healthcare system as well as we're also seeing just a whole lot of sick kids there. I know the american academy of pediatrics is recommending. That kids do go back to school in person Obviously there was a lot of Mental grief that was caused by not being in schools. Last year What do you say about doing that. In areas where There's not a very that. High vaccination pickup and masks are not mandatory. Or maybe not even allowed now. We have guidance on this that that actually we'd had all throughout the pandemic which really focuses in on the point that you just made which is is really essential for our weekend to get kids into inverse in school. I think one of the things we've also learned over the past year is that we can do that safely even in areas of high spread. But it does. It does require mitigation measures in the school. And so you know. Our strong recommendation is that that we need to do everything we can to get kids back into school safely. And what that involves is universal masking for children and adults over the age of two good ventilation. I'm some sort of regular testing. Protocol that can vary depending on the on the school district Physical distancing keeping kids a little bit distanced where you can Where this space allows and so put an all those things together and layering those things together. We can get kids to school safely but as adults we need to. We need to do our part to make sure we're creating a safe environment for our kids. What's your biggest concern right now with the delta variant with the issues in the the higher pediatric hospitalizations. That we've seen well you know many concerns concerned about about our kids who are getting sick and also knowing that that many those kids actually are over the age of twelve desert illnesses. That could have been prevented with a vaccine. So that's that's one concern absolutely also concerned with the impact that this can have on families You know this is going to be the case adults. It's been the case of a long. You know meet that. We have tens of thousands of kids in the united states who've actually lost a caregiver to kovic into that's of concern as well. And then i think lastly i'm really concerned about her health systems as i said particular these areas where we're seeing the surges You know the health systems are getting overwhelmed and our healthcare providers are physicians. Our future should getting overwhelmed to dr. Bears wanna thank you for your time. Today we appreciate it. Thank you so much. Cheese will be next next. Unsquashed pod a cease meet survey and executives who keep pushing the return to the office. Kpmg chair and ceo. Paul can up. Our big found was that she owes her so really competent until the next three years about their own prospects for growth the domestic economy and growing competence actually in the global economy. We'll be right back. Each kevin o'leary here money court is all about dispute resolution businesses have problems and i'm here to resolve them money code with kevin o'leary new series wednesdays ten eastern on. Cnbc tv. Welcome back to squawk pod. This morning with joe kernan and becky quick. Here's becky google is pushing off. Its return to office date until january tenth of twenty twenty two in an to employees yesterday. The ceo soon upper chai's said beyond january tenth. We will enable countries and locations to make determinations on wind end voluntary work from home based on local conditions which vary greatly across our office which i also said that employees will receive a thirty day notice before their expected to come back to the office sticking with this topic professional services firm. Kpmg surveyed four hundred of some of the of the cfo some of the largest companies in the us and compiled their findings on a range of topics including the future of work. Join us now to discuss more palkan up. Kpmg us chair and ceo. It's good to see paul and and we're looking out three years in in this survey that's tough right now. What are the assumptions. That were making about the next three years. Because we're we're right back in the soup in terms of The delta variant and what's right in front of corporate managers face right now is the pandemic or covert again absolutely joe. Good morning. it's good to be with you today. Yes what our survey found was that she owes are so really competent over the next three years about their own prospects for grows the domestic economy and growing confidence actually in the global economy from the last survey. We also found that there was a high appetite for 'em in a strategic growth opportunities in companies. Continue to digitize beyond joe that also comes in the face of a lot of uncertainty right now with not only koga nineteen as you mentioned but the future tax changes that will come on both the global stage enemy. us supply chain disruption. Cyber issues incidents. It was a really serious issues that we're facing into despite that back you know. Ceo's are remaining very confident and when you mentioned the future of work you know we saw that. Ceo's named as our top operational priority. That was the employee value proposition. All very hyper focused right now. Our people in our organizational cultures. So many things go into the calculus now post pandemic and just listening to everything. You're saying yes. Supply chain related the pandemic but also related to. We haven't built up certain capabilities in this country. And we gotta do that. Probably get companies have flourished during the pandemic which which sort of gave everybody some companies. A blueprint on how to deal with things like this and and are they better prepared prepared to they feel better prepared if we continue to see variants and this situation i think they know how to handle it. And maybe you know successfully maneuver through these times drew. I think that's correct. Companies approved very resilient. I think we're very optimistic about the vaccines. But digitisation effort that companies are undertaking before the pandemic and have really rapidly intensified their efforts to digitize their business models or business processes are feeling really confident about how they're able to do business in a more digital economy as at present some challenges i mentioned earlier that would be questions around how digital transaction tax but there is a great degree of resilience. I think we're feeling really good about how vaccines are responding to the virus. I realized that we're in a difficult situation right now. But i think they are very optimistic about the future but now we know how value how valuable employs are given how some companies are having trouble invest. So you said that that a net may entail letting people work remotely for up to feel safe with the because it's not either or with the vaccine as we're finding out right. Now they're still you know people are still going to want to wear masks is still gonna wanna socially distant distance and they're still going to be some remote work and i guess you need to be more accepting of that if you want to retain key employees. No doubt about. Joan flexibility is the operative word it's red hot labor market. There's a lot of employees burn out still jas environment there's a lot of disruption from remote work. We need to have more shared office space in the future. We'd have more flexible time for employees in. We talk a lot about this hybrid environment. We're still trying to really design that hybrid environment for a future ready purpose in. I think a lot of us will experiment with what that entails as we move forward into the future. No doubt about it though. It's going to involve a lot more remote work in probably a lot more flexible space. That might be closer to people's homes. A ceo's also reported job that they want to see employees come back to the offices from time to time to collaborate and create ideas. That's going to be very important. As for the future of the employees returned to office from time to time. It really reported being very happy to see their colleagues. And i think that there's going to be a real mix or hybrid approach for many years in the future really happy No no no. I'm kidding i have the you mentioned something. I want you to drill down on. That is the thinking thinking about the tax implications. Were and i wonder if we go to twenty-eight percent corporate tax and if we have a new global minimum tax for for companies that operate all around the world. Are they thinking about. Those things is that is that likely. Will that be a headwind in terms of of margins. And is it something to prepare for. Joe absolutely we. We are helping companies scenario plan using visual visualization tools technology tools to look at the very scenarios. You know they're going to be interdependencies between the global minimum tax the taxes in the us that likely will increase under the biden administration. And of course they always cds looking at ways to modernize the digital economy and digital taxation says a lot of Interdependent changes that are happening potentially in the next year or two and we need to look at all that plan for those scenarios. Not we do cease leading ceos very much planning around what those taxes might do to their balance sheets and income statements. And it's it's really top of mind for business leaders at this time this new kinder gentler workplace where everybody gets to plan their own hours work from home if they want to. Is this transitory like the fed. Things inflation is. I just wonder how much of this is because. Ceo's want to do this and how much of it is because they have to because of the labor shortages everywhere. Becky i think it is a little of both to be honest with you. Employees have been working at home very effectively over the last eighteen months. And there's some real work like harmony benefits to that so what we need to do is calibrate to both what they need. And we're listening to our employees as we try to design that hybrid environment for future and we. We also believe that we need to have him come together to collaborate create ideas and we built at four hundred thirty million dollar learning development facility on lake. Nona florida that. We opened in january of twenty twenty and closed in march of twenty twenty. But we recently reopened it and falling. Cdc guidance and we're only allowing vaccinated employees at this time to that facility but when they come back and create and learn at that facility. They really have reported. You know really being excited about what we're doing to bring people back together but there's no doubt this going to be a balanced. We have to be future ready. Nothing that future were still trying to design as we look at what employees want and what employers need and try to balance those two things in the future. What kind of assumptions are. Ceo's making about the business cycle interest rates. I gonna stay here forever. Paul i mean there are some. There are some troubling inflation. There's some troubling headwinds. Other headwinds the horizon that that i guess we've seen in the past it's not like a pandemic but nonetheless it could be it could be very You know you need to deal with them. You do as we go into the future when there is the prospect for inflation. There inflation's here today. Obviously but increasing interest rates is obviously of concern into the future. But we do see leading. Ceo's modeling for all those possibilities you know. There's a tremendous amount of quitting the markets. Today as know by some reports one point five trillion dollars of investable cash in private equity funds. It's only invested which is reflected in that finding around the high ma appetite and companies to strategically transform their organizations through. 'em a in digitisation into the future. So i do think. Ceo's are paying close attention to inflation. They are you know looking at actions to take to raise prices increase wages and obviously they're looking at future. As monitoring fiscal stimulus has created a really strong economy for us. We also need to think about longer term what that might do interest rates all. Thanks for bringing us that. I guess that's and i said see if we had the cfo survey that was the same. You see the is that. ceo service. So we're we're getting all covered here. At some point. I think in the corner offices anyway who we missing hr. Maybe i'm sure that's coming up about the employees the valued employees worker bees very valued. Now quarter paul where we can ask for anything. I think that what do you think you wanna mcmuffin or i don't i don't think there's mcdonalds around here. Maybe one around the corner from you. That's the show for today. Thank you for listening. As always squawk boxes hosted by joe kernan vecchi quick and andrew ross sorkin weekday mornings on cnbc at six am eastern to get. The smartest takes an analysis from our tv. Show right into your ears. Listen and follow. Squawk todd wherever you get your podcasts and if you like what you hear or you have a few suggestions for us send us a tweet at squawk. Cnbc all right becky. Quick we'll see you tomorrow. Yes sir we'll meet you back here tomorrow. Clear thanks guys. outlast means. Pg brings long-term experience actively investing through thirty market cycles to deliver for our clients. Join the pursuit of outperformance at pge dot com. That's pg. Im dot com.

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The Donut Debut: Krispy Kreme on the Nasdaq; 100 Years of Chinas Communist Party

Squawk Pod

32:26 min | 3 months ago

The Donut Debut: Krispy Kreme on the Nasdaq; 100 Years of Chinas Communist Party

"Outlast means pm rings. Long-term experience actively investing through thirty market cycles to deliver for our clients. Join the pursuit of outperformance at pge dot com. that's pg. Im dot com bringing show musically. This is squawk pod. I'm cnbc producer. Cameron kosta today on our podcast doughnut. Go anywhere you guys eating any of these. We had a couple of pieces of bacon here in my sick mind. I thought about layering it. On top of glazed donut in eating it crispy cream goes back for seconds. The donut chain going public again in an ipo a- generation after its first launch last year we sold one point three billion donuts. I love that it's great. One third of our donuts are dozens are actually gifted to others and china's president xi is standing up to bullies and pushing the chinese communist party forward maybe backward to its roots. Cnbc's beijing bureau chief eunice yoon. A lot of people here are also worried about where president xi jinping is taking the communist party because it has evolved a lot since it was founded in nineteen twenty one. It's thursday july first. Twenty twenty one. Squawk pod begins right now becky by three two one. Good morning everybody. Welcome to squawk box here on cnbc. I'm becky quick along with joe kernan and andrew. Ross sorkin andrew. These are the donuts that you can eat. Lots and lots of not having one lane ones doughnuts as doughnuts. You could go through devastating not national donut day. But it's close. I up today on the podcast in ipo. Bonanza this week alone. Eighteen companies are seeking to list on the us markets. That's the most in a single week. Since two thousand four on the docket chinese ride hailing slash. Everything app didi which successfully listed in. One of the biggest. Ipo's of the year so far as well as clear. The biometric screening company that you see at airports and sentinel one the massive cybersecurity company that clocked the highest valued cybersecurity. Ipo ever on wednesday with their help. We closed out the first half of the year with two hundred thirteen. Ipo's which together raise over seventy billion dollars. It's higher than the full year average for the last ten years so pretty impressive. The last time we saw this kind of activity was back in the nineteen ninety. Six two thousand era aka the dot com bubble. This past june alone was the busiest month for. Ipo's since the year two thousand ironically two thousand was also the year that today's ipo. Does your i tried to hit the public markets. Lots and lots and lots of donuts. it's crispy cream over eighty years old. The iconic donut chain has now gone public twice. I as i said in two thousand and then it was bought for over a billion dollars and taken private in two thousand sixteen and now five years later it's back you'll hear more about that listing in a second. I have even more also you. I'm all set up here but before we dive into the dozens and dozens of today's doughnut. Moments a little warning you haven't heard the end of the twenty twenty one ipo parade. There are eighty seven companies that have already filed to go public and plenty that are so private but expected to list or at least file this year. Where we parker insta- cart flip carp and of course robin hood among them. Okay back to the donuts. Here's andrew leslie picker as a closer look at the donut maker. Unless you know these these stories have a special place in my heart and stomach by the way investors though. Oddly enough right yeah. I mean you can't always square your you know your appetite with what is going to happen in the markets crispy cream of course returning to the public markets. Today after five years in private hands eighty four year old donut maker priced its shares below the range. It had been marketing to investors at seventeen dollars each but the company did wind up selling more stock than expected for an offering of about half a billion dollars now the pricing implies a market cap of two point. Seven billion dollars which is still double. What j. abe and investment firm paid when taking crispy cream private in two thousand sixteen to some though a than expected pricing may not come as a surprise here. The company did manage to grow. Its top line. Fifteen percent last year. It's evolving the business to focus on so-called hot light. Peter shops and delivery but it's net losses happen widening consumer taste of course has been shifting toward healthier options. In recent years. Still crispy cream is debut into a listings market. That appears to be about as open as it's ever been with near record activity this week. On the heels of the hottest quarter for ipo's into decades crispy cream set to begin training on the nasdaq on today under the symbol d. n. u. t. Enter in terms of the the growth story. how much of it is. Us versus international. At this point it's mostly us at this point for them. I i'm under the impression that you will be at one of their kind of new. Experiential shops delivery has been primarily. Us focused venture for them. So they do tend to be a little bit more focused on the us and is the free doughnut for your vaccine card is that is that deal. Still still open for business. That is a good question. I did not see that mentioned. in the perspectives. The top risk factor was cove it But as it pertains to the free donut for your vaccine car. You'll have to go and ask them today and see if something tells me he'll still beginning free donuts regardless of vaccination. When you're there we will discuss. We will discuss leslie. Thank you andrew crispy creams here. I can't believe you'll only had two so far. Joe or joe get it not box half a you said i gotta lot here this is. This is god. You've got some everything by the way. This is what i keep on my lap. I've got i think we. I think i've got maybe double this myself. That's so nice eating to do the they knew they did. Their market research. For who is going to be able to to get the job done with those i i you know what we already talked about it. And it was kinda gross. We don't wanna share. If i was in ancient rome idea to all these. And then i'd go. And i'd do it again. I would but but since we're not i can't so but he did say i understand why andrew can eat nine of these as soon as he took a bike right so they're life group. They're tasty they're great. We had. We had a couple of pieces of bacon here from the nasdaq to because they're having a in my sick mind. I thought about lehrer layering on top of a glazed donut in eating it. I did but i didn't do it. I didn't do it now. you didn't do it. It might be a very tasty tasty thing to do. Well you was talking about that remember. We had some that are like that. It's the best combination and we've had some great doughnuts bacon bacon doughnuts. Yeah people know this is this is the way to my heart but we are going to talk about the ipo right now because we have a very special guest crispy cream going public. This is the second time around for the company went public back in two thousand but years later the stock tumbled following an accounting scandal at one underwent a restructuring then two thousand sixteen and was taken private by j through a one point. Three five billion dollar. Acquisition today is listening on the nasdaq under the ticker d. n. Ut after its ipo priced at seventeen dollars per share should say is below the expected range and talk about that as well joining us right now i on cnbc from its time square location crispy cream ceo. Mike townsville mike. It's great to see you this morning. I've got the donut here. We're eating a lot of them. So thank you for that but it is a big day for you. It's a great day for some. It's an eighty four year old brand and you know as you think about it. We're always trying to build the most love. Sweet treat brand in the world. The transformation that this company's done in the last five years has been incredible. We've worked on our brain. We've worked on the culture and we actually change the business model and we really created an omni channel approach where we leverage these amazing donut shop like the one mean today and then really get fresh donuts to where the customers are. So that's what we've been doing. And it's been incredible ride so far might want to talk to you about the valuation because it did come in lower than expected in terms of where you thought you were going to be with investors. Even just days ago. What happened listen. Five years ago we came in and bought the business for a little north of a billion dollars. The value today is two and a half times the value. We purchased a company so when we talk to investors and they saw that we doubled the revenue double d but dodd during this timeframe they really love the traction that were doing and the journey ahead both in the united states market as well as global. Because it's about this Shared occasions we sell in dozens. Unruly dr occasions. We do that exceptionally well. And just deliver donuts and building gifting andrew. I know you got a lot of dozens in your house right now but you can share them as well. trust me. we we. I'm going to have to give a lot of these away I can't eat all of this. But the question i ask in terms of expansion. You've been growing. You've been going fast Questions are you growing at the expense of profit in terms of net profit. So the if you think about it when we double b but you know double the revenue double d but one of the things that we did in the transformation on the brand we used to be a franchise or franchisee in the us. We bought back the system. So we have a controlled system or eighty five percent of the system today in the us is where we make our doughnuts we then use our four hundred. Donut shops are theater shop. There's only four hundred in the world. I love that right so the aspect of keeping the donuts special but instead of opening up random donuts shops everywhere. We actually use an omni channel approach so we leverage these theater shops are amazing. I'm sure you've been in it. When you see our hot light or glaze line and then follow were the customers at so. Take the journey whether it's a fresh shop in new york city where we actually produce here and then send donuts to that. An e commerce model where the consumer can order gifting or delivery as well as in the wholesale space where we now deliver fresh donuts to select grocers or selects convenient shops around the globe. So my i. I don't know if there's a hard question out. And i don't know what to do about it but in day and age where people are supposed to be moving away from carbs right carbs and sugar. This is one hundred ninety calorie treat but you typically more than one. What do you think just trained wise in terms of the movement away frankly from traits and what that does what that may mean or not to your business long-term so i love the indulgence space and crispy cream works incredibly well right within our customers engage us about two and a half times a year and they engage us on occasions. So you're having those dozens. It's about dozens that we focus on celebration. Gifting and the customer is always looking for a sweet treat and i know the world's a not a really good place in bland place if you don't have a sweet treat so it's really about the opportunity of how do we build on that. We're really proud of what we do. And if you can get on occasions when you think about gifting you know mother's day that just came by you can have a little kid. Basically sending their mom a dozen donuts. We compete against flowers right. It's a whole different occasion at celebrations. It's an amazing part of what this brand does again. Those theater shops that are so special but doing donuts everywhere of db one little snapshot last year. We sold one point three billion donuts. I love that it's great. But but do you imagine you're gonna get pressure from investors or es g investors. I mean i'm thinking you know coca cola's taking a ring for very long time about the sugar in their drinks and you're going to have to come up with other products in terms of the mix long-term you think we'd use lead into the donut when you so when you think about it you know doing those one point. Three million billion doughnuts we lean into the donuts. It's clearly the opportunity this shared occasions right. We're design we're in the normal sweet treats base. It tends to be an individual occasion. These are designed for sharing and gifting. One third of our donuts are dozens are actually gifted to others. So in that space we grew twenty percent last year even with that low incidence rate of two and a half times. We grew twenty percent because we focus on the occasions of the donuts. Right mike keep. Can you speak a little bit about whatever inflationary pressures. You may or may not be feeling right now. Both in terms of wages in terms of food ingredients. And the like. Yeah i'll tell you we'll always face headwinds if you can imagine twenty twenty a year where crispy cream really shown itself to be an incredible company and how to one of its most profitable years in its history so we will if you can do that in a year cova and really start to transform your business we will always be able to manage these types of costs and if you think about it that shared occasion on an accessible price point gives us a lot of opportunity to to move right. What's your what's company's position on on wages and minimum wage. Right now that we're always competitive in the marketplace. And we'll always continue to do that the one thing i always focus on in our companies about where every crispy creamer. That's who i call folks work crispy cream can reach their dreams and goals and the wherever they'd like to go and then they can grow along with the company. I'd love them one of them to be the ceo of the company. One day. two quick questions one of the things that that really hurt the company years ago was it's over expansion and i know you're trying to avoid that over expansion but to grow you're going to have to expand. How do you see that working so again. I talked about those spotlight shops right. That's just four hundred of these around the globe. We wanna keep him special. We're going to keep them special. But it's building access points so we build an access point inside of tesco or inside of a walmart. What will do those fresh donuts from the theater shop to them done daily so it's the fresh doughnut experienced that you get in the shop and that's how we see the growth building. These big theaters shops is the is the past but today we actually really focused on how to get access to the customers and we keep our special mike. We gotta run giving away two million donuts to those who who who have a vaccine in a vaccine card. I mean you're expecting giveaway about by the way when people come in for the free donut. Do they end up buying more. They do celeste here. We gave away thirty million donuts. Right really could be helpful to the healthcare seniors among teachers this year. When we did the cdc program you get donate every day you come in and folks. We're past two million donuts people because of the distance sometimes when they come visit the shop tend to pick up a dozen and they share their donuts andrew. So those donuts you make sure you spread them around the building or your family okay mic. We wish you lots of luck. I promise to share these doughnuts. I will need to share these nuts and we look forward to following your progress. I look for. I look for the senior and thank all the crispy cremers around the globe. It's a great day for crispy cream. Take care chairs becky. Are you guys eating any of these f. Joe's eaten have but we're buying them. They're tempting to maintain so far but they are tempting all back at us. You have so many different kinds. And i'd like everyone next on squawk pod on the ground in china the day after president's xi jinping bold speech to his people and to the rest of the world. Cnbc's beijing bureau chief eunice yoon a lot of people here do want to have more and more rights but in terms of what president she thinks is the best to try to get make china great again that he apparently does not believe that. That is the best way forward. That conversation right after this outlast means. Pg brings long-term experience actively investing through thirty market cycles to deliver for our clients joined the pursuit of outperformance at jim dot com. That's pg. Im dot com. Water exchange. Is now a podcast. Brian sullivan. Join me as we hit the biggest money stories from around the world breaking down the risks and rewards of global trade. The news you need to know with real world actionable advice even a little fun and unique content. You won't get anywhere else like the most random but interesting thing you'll hear all day subscribe to the worldwide exchange. Podcast today this on this july. First with joe kernan becky quick and andrew. Ross sorkin. here's joe. Turner been bullied lately. I hope it doesn't seem like a country. You bully easily but if you thinking about it don't because china won't be bullied. That was president. She's message to foreign powers in his speech overnight. Eunice yoon joins us now with more philipson. Unicef's good day. Yeah well joe. Today wasn't important day. For china president xi jinping was projecting strength on this hundredth anniversary of the founding of the chinese communist party so president xi jinping as you said had warned in this speech that any foreign force attempting to bully china would quote find themselves on a collision course with a great wall of steel forged by china's one point four billion people now. His tough talk matched the show of force that we saw today. A lot of military hardware at this event which featured a flypast of military choppers and china's own stealth the j twenty president. She also pledged that china would build up. its military. He reiterated the commitments that the country has to the reunification of taiwan and stability of hong kong. He also hailed a new world order now. Security in hong kong is very tight. The city has an anniversary of its own. The twenty four th anniversary of the hong kong handover now normally on july fourth july first. Every year the city holds a peaceful demonstration to mark this occasion however the authorities are not allowing it this year citing pandemic restrictions however activists believe. It's also because the authorities want to clamp down on protesters for the past year since the national security law has been put in place. The city has rounded up a lot of opposition and critical voices. A journalist as well as you guys. Well know the pro-democracy paper. The apple daily was essentially dismantled and some of the executives. At least one was released on bail though the others are still being detained and since then the apple daily parent next digital said he was going to stop its operations as of today and there has been a chill that has been cast on a lot of the other press so some of the smaller independent papers have been taking some precautionary measures Saying that they're went to relocate their servers takedown editorials and suspend donations until they could figure out what to do next guys lot of interesting things in thoughts as you were speaking unison. In the old days the cold war with it was all soviet union all the time. The salt talks strategic trying to limit nuclear weapons for years and years and years. Those were the two superpowers as china was in the background. But where do you get power. You get it. From economic strength and the soviet union does not russia the former soviet union obviously big shortfalls there in terms of the the world stage the opposite of china which is an economic power that you can't possibly minimize or or not understand how great that is. And where does that come from. You put one point. Four billion people to work in a single minded way. And it's going to happen so i i'm i hear i hear him. I do respect them. But we have a problem with a lot of things. China's doing right now so this is setting up some interesting years as well. Joe i think a lot of people here are also worried about where president xi jinping is taking the communist party because it has evolved a lot since it was founded in one thousand nine hundred twenty one started with a bunch of revolutionary kind of folks and then eventually had to make some changes after chairman mouse dung. In his one man rule had kind of created a lot of disasters here like famine. So since then another lear came in xiaoping reformer and as you had mentioned economic power plugged into that global economic system of people. Got rich very quickly when you think about it. In terms of decades and then now president xi jinping is kind of moving the party back into one man rule where he has his personality cult around him. He's there's been so much propaganda about mouse dung and about how similar president she is with mousa dung and so. There's a lot of questions here as to whether or not one man rule is actually going to be good for the country this week this week. Lot being written in the journal by either home in jenkins bill. Mcgurn one of them about milton. Friedman who said this is going to be a great power china and as the country becomes more capitalistic and because much more powerful human rights by definition are going to flourish and the point of the piece in the journal was that has not happened and the the country has floors but not at the same time with with opening up like like the west in terms of human rights and freedom and privacy and everything else. So it's kind of an enigma. Actually someone very smart called. It was that russia call someplace. He had 'nigma wrapped in a riddle. There are a lot of folks overseas. And i think within the united states and the west at large who would say that it was kind of a mistake on the part of the west that they miscalculated that they thought that china would eventually become much more open politically as it became much more open economically. However as you had had noted that hasn't really happened. We saw some of it in terms of the internet opening things up. I think a lot of people do want to have more and more rights. And if you talk to people privately they do wanna have more open discussions but you know in terms of what president she thinks is the best to try to get make china great again that he apparently does not believe that that is the best way forward things being taken unicef at ten years and take your what are you here from. Us business leaders or at least leaders of businesses. That are that are headquartered in the us but do a lot of business in china. Are you hear any murmurings at all. Even under their breath that they're going to somehow leave or that they're trying behind the scenes to have conversations with the government. Is that even on the table. They are always having conversations with the government. I don't know of many companies or business. People who are who have who believe that the chinese consumer is going to be their future actually thinking of leaving the strategy though has been changing. Where maybe they're trying to buttress their business a little bit better where they might have more operations here and instead they're setting up a manufacturing facilities where they're going to be Shepherd kind of selling into the chinese market and then kind of having their their china business. That's kind of hived off from there. The business for the rest of the world. But but it's yeah. It's it's a very delicate dance right now and you could also see a lot of companies not only not only foreign companies but chinese companies as well a really closely with government policy. I think you saw that with d. as well. I think it was interesting that they send that they're going to be pushing either. Andrew john donahue said earlier this week we are a brand of. We are of china. A brand of china and for china. So that your that your businesses taking the moral stand against the thing about the nba. Can you can you say. Nba how's the nba think about china. We had that interview with with joe cy week and a half ago where we put the question to him and clearly he supported the chinese government as i think we all imagined he probably would. The question though is can you control it but is there some kind of constructive engagement going on behind the scenes. Clearly if you come out publicly and say something negative. You can't have that engage in behind the scenes. And i just don't know whether there is engaged in behind the scenes. Well after looking at the last couple of decades it doesn't seem like there's a lot of these guys were stationed behind the scenes taking place money money money money. Tease will be next still to come on squawk todd you will let us know when you evey yourself. I mean that's close right. The road race to electric vehicles and one way or another. they're gonna find you those donut carbs. That is those are horrible facts. That under though does a really horrible fact that a bag of potato chips. You got to run for twenty minutes. What exchange is now a podcast. I'm brian sullivan. Join me as we hit the biggest money stories from around the world breaking down the risks and rewards of global. Trade the news. You need to know what real world actionable advice and even a little fun and unique content. You won't get anywhere else like the most random but interesting thing you'll hear all day subscribe to the worldwide exchange podcast today. Updraft welcome back to squawk pot. Good morning and welcome. Squawk box cnbc. I'm joe colonel. Becky quick andrew ross. Sorkin travel coming holiday weekend expected reach levels not seen since before the pandemic aaa forecasting that about forty seven million people plan to travel between today and monday auto travel expected to be the highest on record also setting a record rental car prices the daily rate now averaging one hundred sixty six dollars. That's one hundred forty percent increase from two years ago. One hundred sixty six. And i'm i suspect. Joe it's like one hundred sixty for like a ugo right. It's going to be you know that little car in. They're going to jack that so i don't even know what a what a full size car would cost right that the the i haven't heard that in a while that you go remember i do. I don't know but you know. I feel like you're gonna get a toyota corolla for one hundred sixty six dollars. You know it's pricey it's even get a minivan or suv. Forget about it's four five hundred dollars a day right Under you will let us know when you when you evey yourself. I mean that's close right. You're you're looking around. What what where are you in the process right now. That's that's coming right. I still i have a lease going. I still have during the pandemic you know. I switched out cars. We got because we wanted the three rows. We have a volkswagen atlas now. And i think there's two years left on the yeah about two years left on the lease so call me in in two years. Okay call you. What doesn't matter the ev then switch out the car. It's harder if you live in say because you can't. You don't necessarily have a place where you can charge it every night. I mean it just if you're parking on the street that's that's tricky right. So we spend a fortune and we park parking lot in the city and actually at our parking lot. There are some tesla chargers. I don't know if there are charges for other brands yet. And i don't know if you have to pay extra for those. Yeah so that's going to be. Yeah we've got spaces here for months. Which are probably outrageous already. And then if you want to be near a charger you pay this smart. That's coming i've never. Yeah it's trickier for people who live in the city. You figure andrew ten minutes of brisk walk per half donut. So i'm already signed on to that twenty minutes for the entire donut to jog or walk to burn seriously. Yeah that's that was andrew's s. I wear a heart rate monitor. And usually if i go running even just for like a two mile run i can usually burner two hundred calories in maybe eighteen minutes. So if each one's one hundred ninety calories my my thought was really brisk walk you could probably those are horrible facts under the. There's a really horrible facts that for you know a bag of potato chips you gotta run for twenty minutes. Then it's just if you're going to look at things outweigh whatever. You're never gonna eat anything again. That's the show for today. Thank you for listening. Squawk box is hosted by joe. Kernan becky click and andrew ross sorkin weekday mornings on cnbc at six am eastern to get the smartest takes and analysis from our tv. Show right into your ears. Listen and follow squawk pod wherever you get your podcast and don't forget to tell us what you think either on apple podcasts or via twitter where apps flop cnbc. We'll meet you back here tomorrow clear. Thanks guys outlast means. Pg brings long-term experience actively investing through thirty market cycles to deliver for our clients joined the pursuit of outperformance at pj dot com. That's pg im dot com.

china president xi jinping eunice yoon joe kernan chinese communist party andrew united states becky Cameron kosta Ross sorkin andrew cnbc andrew leslie picker Ipo andrew crispy Mike townsville Cnbc
Pfizer Vaccine Approval with NIH Director

Squawk Pod

32:25 min | Last month

Pfizer Vaccine Approval with NIH Director

"Each kevin o'leary here. Money court is all about dispute resolution. Businesses have problems. And i'm here to resolve money code with kevin o'leary new series wednesdays ten eastern on. Cnbc tv bringing in show musically this squawk pod. I'm cnbc producer. Katie kramer today on our podcast visors cova nineteen vaccine gains full. Fda approval director of the national institutes of health. Dr francis collins. You have any doubts about whether they'll pfizer. Biotech vaccine is safe effective and most of us have an ad those doubts. Fda is going to tell us it seems that those doubts can be removed and the longest final jeopardy clue. Ever who is. The show's new host significant risk. Here for sony. Pictures jeopardy is a reliable cash engine variety editor. Cynthia littleton and the air is not apparent. Those stories plus bitcoin on the upswing and andrew cuomo on the move. Joe kernan and kelly evans have it all covered. Could you sleep around. The excitement was because we'd like to together. It's monday august twenty third 2021 squawk hud begins right now. Good monday morning. Everybody and welcomed squawk box here on cnbc. I'm kelly evans along with. Joe kernan becky and andrew are off. Today bitcoin top fifty. Is it still up. There was over fifty k. At some point in the overnight session obviously highest. Since may still off. What was sixty to sixty four joe. All-time it's fifty three forty five on how the theorems up everything's been moving quite ether guy too. I got a little theory. Do light coin no doj no of those other ones but it is interesting that all of a sudden change in tone weaker dollar stronger asia especially after what a train wreck. It's been a lot of the chinese stocks trying to technology stocks. They come out again. Swinging in terms of wealth redistribution and all that and markets are kind of shrugging it off again bitcoin rallying and there. It is three good to have you here. I'm trying to figure out a way of steering into you and how you're a bonus baby like this third third thing here. Rachel maddow in the wall street journal. This is a huge story that she's staying. Yes i think very. You're very interested in that she's making the same age. He seems to really work hard for her. Commissioner now get paid in bitcoin with your huge rachel maddow bonus to you Have you requested that. You know. I have i get a i get upset every time people talk about paying and bitcoin for anything like the mortgage company than you pay in bitcoin. Pay for anything in big club would of course not because you buy pizza and be able to buy a ferrari a couple of years later because you pay capital gains tax on it. You're up if you want to do what you do it. When you're down. And you say. Okay i'll take the tax write off and pay for my mortgage around pizza or whatever but of course he wouldn't pay for anything bitcoin. Maybe you could get paid in it. That's a little different. Don't you think we need to have money for the irs. Just so they can watch people with with crypto. Probably and how are they going to monitor. It's going to be another interesting to talk to some people. So i asked you about this question in the capital gains issue all the time and they say it's not the bigger deal kelly but we watch the stable coins. All the stuff that's happening on exchanges were they. Think the irs isn't paying attention. It doesn't matter. Give it three the you always catch up with it. Always do they always do. Just happy to have you here. You know that you probably were. Could you sleep last night or the excitement was because we like to be together on. This is a treat. Let me tell you yesterday for everybody. Did it not feel like twenty twenty all over again. We're stuck in the house philly. We couldn't usually we just go. Take the kids go to home depot and wander around something and feel like a couldn't even do that you know stupid delta. It's even just to sit here. Have some sense of normalcy bite. Buckler i was at a wedding saturday night in boston So i drove down in the hurricane yesterday with my kids and my mind so i was not hunkered down. Do you ever have alma double vexed. I got the day that i could have been. That's why i said the good news. Abedin is good. News is a able to get the vac bed is. I'm able to get the vaccine. I was in that. I said that first group was eligible. I got it in january. Second one in february. Two plus two plus aid is ten if they come to me and say. Here's your booster. I love myth grief from crazy people about Talking up the viruses we didn't francis collins on. Yeah so we'll talk to him about this. But the technology is so elegant and the anecdotal stories of things happening. And i don't know how to tie things of that but i see some anecdotal things happening about people who actually get cova. That scares the heck out of me. So don't go into my husband. Had unto boyne gotta pick one versus the other that go with the i would also be curious launch. So my mom. For instance got a breakthrough in the how far family got it. My mom who was double of scott. It's why i think maybe we all had delta. This was in may and i wonder what are the effects of people like that who got it. I guess i never had it but erica. Yeah because i got my vaccine two weeks earlier than him and he got it to. We're going to might just talk nine. How was his experience Hideous or he. He definitely had sort of like a bad flu today. Three or five and he's no hospitalizations. No strapper he's should be good. I should have been nicer but that goes without saying it was nicer to suck it really get an update now on tropical storm already. I can just look out here to tell you what's going on i actually. It is raining But it was downgraded from a hurricane before making landfall yesterday in rhode island sparing the region. It's i direct hit from a hurricane in three decades storm. Cut power to more than one hundred and thirty five thousand customers from new jersey all the way up to maine and made the trek from the north of boston down here this morning. It is blocked rain driving. A i took a parkway which is better cars driving the parkway and this morning the storms moving inland it's expected to weaken further as it turns and heads northeast across northern connecticut southern massachusetts the slower speed poses a greater risk from just sits. There and i was watching. It was for a while it was it about point four inches per hour and there is a pool around my house and i was a moat. No no no. There's a pool. I have a pool. That is like this right now and my fingers are crossed because when it does overflow all the surrounding stuff goes into will see driving and it was not as bad as feared although it looks pretty bad right now. Did you hear about nashville. I this morning i had to. Yeah yeah no. Rachel manno series. This is your story and in nashville. The flooding that they got houses swept away. Elementary schools underwater seventeen inches unbeliev. Not we did not get that we did not. We did president biden announcing his picks for several key diplomatic posts to the names will be familiar to squawk viewers nicholas. Burns is the president's pick for ambassador. To china he served as ambassador to nato and degrees he worked with. China is an undersecretary wide range of issues. he's also a former seem to see contributor. Who has helped discover international affairs and rahm emanuel is the president's pick for ambassador to japan. He served of course chief of staff to president obama and mayor of chicago second emmanuel. We've mentioned already today. Maybe we'll get zeke and boy talk about what happened there overachievers in terms of the tanks but those are in terms of those three brothers. All being so zeke emanuel rahm emanuel ari new york governor andrew. Cuomo is expected to relinquish his office at eleven fifty nine pm tonight. He spent recent days signing bills and granted clemency to prison inmate. As workers moved his belongings from the executive mansion to a rented. u-haul it sounds horrible Just flung himself he. He announced his resignation. After a state attorney general report found he sexually harassed at least eleven. Women the governor called the accusations of harassment and misconduct unfair and untrue. And lieutenant governor. Kathy hokuto has been a meeting with state officials and building a cabinet over the past two weeks. She's scheduled to take the oath of office. To morrow next on spock pod the delta variant is taking off among children but will full vaccine approval from the fda stem cove and tied director of the national institutes of health francis. Collins is being very tough on the companies that are proposing to offer this to kids under twelve saying you gotta try this in a very rigorous trial for thousands of kids and we gotta look at that data very carefully and only then are we willing to. That's the right thing to do. Each number kevin o'leary here money court is all about dispute resolution. Businesses have problems and i'm here to resolve money with kevin o'leary new series wednesdays ten eastern on. Cnbc tv standbys. Joe you're listening to squash pod one good morning and welcome back to squawk box here on. Cnbc i'm joe. Kernan along with kelly evans. Say it anymore. Becky in andrew r. off the day. You don't need publicist you know. I have hugh that's right. If you're watching the six i may have referred to kelly's the rachel maddow of cnbc and that is the news that we we're not we're not really That understand that analogy. She hosts a prime time show. This is she's a very well thought talent at msnbc. That's important to the network. Why is that and this is the stories this. Here's you no. I'm happy happy. Happy for jeff. And caesar and everybody else. Are you looking at any options. He wanted to tell though. I just am happy. Four sister here's what's making headlines at this hour. The fda has reportedly set to grant full approval for the covert nineteen vaccine produced by pfizer. And bion tech visor in modern. Vaccines are currently being administered under an emergency use authorization. We'll see whether that increases the pace at which were vaccinating people that are still unvaccinated and younger. Kids that the hold up. I just think that there are places where there's too many unvaccinated people there are. And i'm not saying it in a political or geographic way but the whatever for whatever reason there are places and not only does it potentially cause hot-spots for the for the virus but it is a breeding ground for for new variants which could affect people that are already vaccinates. Or it'd be doing this again and again and again you're saying you think the full approval is going to change that situation. That's the question whether the whether people then to and i'm not sure it will because people who if you can't figure out that the potential side effects versus what happens with coverted that you know you probably for me. I mean it was so you read about long haulers you read about i see us in ventilators and not coming off ventilators in side of all those things into take that off the table. Mostly i mean it's it's up to your immune system. That's what we have to keep stressing to people. This is not a therapeutic. You don't it doesn't kill the virus that's not. What teams do they stimulate. Your immune system is still that you can go if your immune system if there's any problems there's going to be breakthroughs because it's up to you once you get the vaccine to for your immune system to take care of things but hopefully it's weird though 'cause it's even as we're trying to think they asked her zeneca versus the pfizer in order for delta for all of us who got adviser you think would it have been you know now i do know people that have gotten and pfizer or the knicks it i. I don't know if you're anti vaccine. You're anti vaccine. There's just no to. It doesn't matter whether it's astra zeneca. Johnson and johnson pfizer in in any adverse concert. Even though there's been tens of millions administered get three unexplained cases. That's what you're going to see on twitter. It's a bad name joining us now. For more on the state of the pandemic and what full approval could mean director of the national institutes of health. Dr francis collins. Dr collins welcome does full approval unlock vaccination availability to younger kids. Well no let's be clear. The full approval means that the pfizer by an tech vaccine which has been available under emergency use for individuals. Sixteen and older will now have full approval. It'll still be emergency us. For twelve to fifteen year olds and those under twelve that process is still underway to try to figure out what would be safe and effective dose and that will be probably a couple more months but the big news today is that this succumbing announcement will say that. If you had any doubts about weather the visor bind tech vaccine is safe and effective and most of us have had those doubts. Let's let's be sure we've checked every box here. Fda is going to tell us. It seems that those doubts can be removed and the hope for all of us who are looking. What's happening in our country is at that will be one more reason for those ninety million people who have still not gotten their first dosed to say okay. I guess it's time. At least. I sure hope a lot of them will be posed indicated that has been an issue. That's been holding some people back. And i hope they'll be now feeling fully released into confidence to roll up their sleeves because we have a terrible surge happening right now across the country hundred and fifty thousand cases a day. We didn't think we would see that again. And here we are because of delta and because of all those unvaccinated folks who are sitting ducks for this particular variant which is out there looking for them. So don't wait a minute if that's the thing that's been holding you back and they announced this today. Find that place near to you. It's not hard go to vaccines dot. Gov it'll tell you where to go and get that immunization started let me just ask you a follow up question though about kids because for many people. This is kind of going to unlock What they're able to do and the way they're arranging their lives even over the next nine months the next school year so on the one hand you're saying we're gonna get full approval from the fda everybody who's unvaccinated you go ahead and get it and so forth but on the other hand what are we waiting for. An order to administer this to younger younger. Kids is it that we didn't have enough trials with there including you know. Why is this taking so long for all those parents who are about to send their kids back to school now for viruses seems to be more dangerous than alpha was against which they're left with no protection other than masks which is difficult enough for people to sustain for a long period of time. If they're going back to school full time in the fall so just explain to us why this is such a large glaring omission style. I wouldn't call it omission. Kelly i would say we want to be really careful in terms of administering something kids under twelve and that's the place still having the study's done let me be clear though if you're talking about kids between twelve and fifteen naked get immunized right now sadly only about a third of them seem to have gotten those doses even as school is starting. That's a lot of schoolrooms. That could be protected if those parents would decide. Yeah let's get our kids done. My grandkids have certainly have those jobs. The kids under twelve though remember kids are not just miniature adults. They're metabolism physiology is different view. Give the same dose one hundred micrograms That you would add to an adult or you scale it down. And if so by how much any surprise side effects that you watch for so fdi is being very tough on the companies that are proposing to offer this to kids under twelve saying you gotta try this in a very rigorous trial thousands of kids. We gotta look at that data very carefully and only then. Are we willing to allow it. That's the right thing to do. I know people are impatient. To and i know they're tired of things like having to wear a massive school but right now if you want to keep your kids safe. That's part of the answer to doctor. You still frustrated with china's response. I'm looking back through the news. At how many times you've said we need more transparency in china to open up on the investigation any progress being made since you started in may and june july august. We've gotten anywhere. I've gone backwards. I think china basically refused to consider another. who investigation just said nope not interested. I will be an interesting week because tomorrow is the day of the denied. Any day deadline that president biden set for the intelligence community to do all their poking around the big good to see if they could come up with any more insights as to how this virus got started in china. And that's all going to be pretty classified. I suspect there will be some information coming out of that. Nih work very closely to provide every kind of information to that intelligence group and we don't know what they're going to come out with either but read tensely interested. I was excited. Heavy you on all the work you did on on the human genome project and one of the reasons is a tried to clear up some things for me when things are presented a factually and they say that this is this is true and then it. I'm not really sure. But there was an article written by a couple of scientists in the journal wall street journal couple months ago about something called a double. Cg g nucleotides sequence that. I know about that doesn't occur in nature and there would have been thirty five other ways for the virus cofer. Argentinian arseny and. I know we're getting too in the weeds here but it would not have occurred. Naturally it indicated to these guys that it was spliced in to the wuhan virus genome are. They was that totally jus- crap their way outside the data here yeah. I love getting into these weeds. Joe so there are various ways that you can code for an arginine amino acid and cg happens to be one of them. That isn't used as often but it is. You like it never but never happened in corona virus before that these guys said the double that two of them together would be. I don't know what the odds are for picking that way out of thirty five to do it. Twice the odds would be very high. I don't agree. I actually think they did. Some math. There that was a little bit fanciful and if you talk to every virologist except those folks i have talked to about this they think finding those don's is nothing about david baltimore and he was one of my professors and he actually looked like he looked like he was leaning towards possibly that escape and then it looked like he sort of moderated his viewpoint i think he had an immediate knee jerk reaction about. Oh well that's interesting. And then he backed off and said you know that is not that big a deal to draw such a sweeping conclusion about this. Having been lab engineered the vast evidence from other perspective says no this was a naturally occurring virus. Not to say that it could not have been under study secretly at the wuhan institute of our the and got out of there. We don't know about that. But the virus itself does not have the earmarks of having been created intentionally by human work. I have one more question at the semantic question about gain of function. So i'm trying to figure out if you're studying a bat genome and you're studying it to find out how would jump to humans. Wouldn't you by definition be looking at the way it would gain that function to go to human so to say that we're funding this research in wuhan. That's looking at bat. Gino's why is that not gain of function if that's what they're actually looking for to see. How wouldn't there be some research being done on the spike protein or on the way that detach us to to bat cells versus human cells is an semantics to say. It wasn't gain of function research. Dr so joey get into all kinds of issues you're about terms and definitions and terms of art gain of function you just reported in pfizer's bought trillium What does trillium do. It does gain of function research to try to treat cancer. That's a very broad approach to lots of things. The kind of gain of function reserves. It's under very careful. Scrutiny is when you take a pathogen for humans and you do something with that would enhance. Its variance its transmissibility. They were not studying a pathogen. That was a pathogen for humans. These rabat viruses so by the strict definition and this was looked at wizardly carefully. By all the reviewers of that research anticipation that this might come up was that this did not meet the official Description of what's called gain of function resurged requires that oversight. I know this has gotten a lot of attention. Weird though because if it's not a naturally occurring human pathogen but it becomes a human pathogen based on research being done. I don't see how that that's a good enough delineation. Not call it gain of function joe. It did not become a human pathogen based on this business of shifting spike proteins from one for a backbone to another was interesting work to try to understand something about that family of bat viruses if if it was spliced in if cg cg was spliced in that would have been gain of function research right. I mean if they actually tried to get that to to see if they can get it to infect humans. It would have to be that. This was a human pathogen which was altered in a way to enhance its transmissibility. Or it's very ons and again that's pretty fanciful I think joe those. Cg's need to be kinda set. Aside is an indication of any particular malfeasance. That looks very much to the rest of his life. Is there anything. Is there anything left in china. That will tell us once and for all what happened. Dr it yeah. Wouldn't it be good if they'd actually open up a lab books and let us know what they were actually doing. We may never know more about those cases of people who got sick november twenty nine thousand nine which in the lab. We'll never know. Do you think they've they've already. They've mopped up in gotten rid of the stuff and we're done. We're never going to know. I don't know i'm going to be really interested to see. The intelligence community has been able to snoop out some information about those things. well edge. You are how excited are you. About messenger are anna in the application and even therapeutics. It's going to be a great. We have a great dude. Don't we we may. We may be talking about one hundred years dr you maybe we may be talking to one hundred years. I look forward to it dr. This might do for cancer vaccine citing. It's great okay. i'd have more to say i do. I would like to talk more about. I can't come back okay. Still to come on squad pod jeopardy in jeopardy. The saga for alex trebek's successor. Variety co editor in chief cynthia little ten joins us has also reinforced touch america and the world mugs. This show beatles invested in this show and felt bested as if the fans should and will have a say. We'll be right back each number. Kevin o'leary here money court is all about dispute resolution businesses have problems and i'm here to resolve money court with kevin o'leary new series wednesdays ten eastern on. Cnbc tv. Welcome back to swat this. Beloved television quiz show is decades deep and now host. Louis answer what is jeopardy. The syndicated game show is searching still for a new full-time host. Following a series of celebrity guest hosts and much discussed search process jeopardy executive producer. Mike richards have been announced as the replacement for the late. Alex back who had helmed jeopardy since nineteen eighty-four twenty years into its run and nine days after richard's announcement in a dramatic twist. He was out when controversial statements. He made on an old podcast series. Resurfaced the richards announcement. The boss essentially choosing himself or plum gig had already deigned the shininess jeopardy brand and its enviable legacy and entertainment. People love this show. It's been on for years. Reminding us of earlier eras in popular culture deep in the nineties. I took the test for the teen tournament in mid western hotel ballroom and yes. I still remember a key question that i missed jeopardy at sibling in syndication wheel of fortune earn about one hundred twenty five million dollars. In annual profit for parent company. Sony viewers watch it live when it is broadcast on hundreds of local stations across the country. Lost the pandemic. How many more people were home in the evening and able to keep an appointment with jeopardy so once axed and other lineup of tryout hosts. Cnbc's david faber got a shock earlier this month. Here's kelly evans to ring by the way. And i'm i'm conflicted because i want him desperately to do a job but then he would not be able to be here with us. Which would be a huge loss anyway. Joining us now to discuss what happens next. Cynthia littleton is co editor in chief of variety. Cynthia i think there's potentially big ramifications here. You could say for the parent. Company in terms of the cash flows if we sort assume or or speculate the viewers can really tune out ellison like there's implications for linear. Tv given that this is one of the last sort of scheduled tv events my own family. My grandfather my dad. Everybody they sit together in front of the tv. They watch this. And who knows what happens after patent vienna you know if they end up handing over the reins as well and you have this. This major transitions something. Think a risk here. Think very much so this whole drama that nobody could have predicted around jeopardy has certainly been. It's been a black guy for sony. Pictures producer do eleanor primary owner of jeopardy but it has also in another way it has reinforced how much america and the world loves. This show feels invested in this show and felt invested as if it as if the fans should and will have a say in a final search for the final permanent host in this situation. It's really an extraordinary outpouring. The camera just reflects all of the cross currents in media right now. What happens if just ten or twenty percent of viewers. That have been tuning into these series. Go away. I mean talk goes through the implications well as you mentioned. I mean jeopardy and wheel of fortune are one of the few existing. The transcendent tv shows at this point. They're kind of institutions. They're part of the fabric of tv or one of the few monday through friday shows there reliably draw millions and millions of viewers particularly lie yours which in a world of fragmented viewing and on demand streaming something that draws a big crowd on a regular basis has real value to advertisers. So there's significant riskier for sony pictures and cbs which also owns or shouldn't yeah as a colleague of ours. I was talking to the other day. Said you know this just gives me an excuse not to watch so from their point of view. What's the best way to kind of smoothly deal with the situation and and make sure that you're not permanently alienating. A whole generation perhaps viewers. It's tricky it's absolutely tricky. In in the end this whole process shown how hard it is to pass the baton from a beloved host. Like alex travek. I think they'd go back to the drawing board on some level. They had a long run of guests. Starting in january including cnbc's day favorite who did rate fairly very highly on many of the fans surveys on. I think they go back to. They have a pool of people that have had on air additions. I do think they cast a wider net this time and look look outside of that pool guest host but it is no question. A lot of scrutiny on this process even more so than the first time around. And that definitely has to raise the stakes and attention relive people. That are only shots. Yeah i can't imagine it even these cashless. Don't really move the needle for sony or do they know as sony corporation as a company has an has been battling way bigger. Challenges jeopardy is a reliable cash engine or the company it's so entrenched and i suspect the jeopardy in its format all of this. I think has proven in strong enough to endure this small period of controversy and if anything in some way emerges even stronger well this has been the sub theme importance of hosts cynthia. We again really appreciate having here this morning. Thank you thank you. There was a time when Art fleming was not going to be able to be replaced. You have no idea what i'm talking about. Art fleming was the first host jeopardy. When i was a kid. Just to watch it when i went home for With a tray table one of those tray tables we have lunch. It was on during the audit like new people. Say not one way for awhile. I think and then came back much bigger and better. And that's the podcast today. Squawk box is hosted by joe. Kernan becky quick and andrew. Ross sorkin tune in weekday mornings on. Cnbc at six easter and to get the smartest takes and analysis from our tv. Show right into your ears. Listen and follow squawk pod wherever you get your podcasts. You can tweet us at squawk. Cnbc and we'll meet you back here tomorrow. We are clear thanks guys. Cnbc's workforce executive council is the premier group c. suite human resources executives from leading companies across the country. It offers a members. Only portal jot plus exclusive industry contact with access to breaking news calls and digital networking experiences networking resources. Hr leaders need now. Apply to the workforce executive council at cnbc councils dot com slash c.

kelly evans kevin o'leary Joe kernan pfizer Dr francis collins Rachel maddow Cnbc president biden Cynthia littleton Katie kramer Fda Abedin china cnbc national institutes of health Rachel manno zeke emanuel rahm emanuel governor andrew
United Airlines Moves for More Legroom; Facebook Joins $1 Trillion Club; Cathie Wood Launches New ETF

Squawk Pod

38:33 min | 3 months ago

United Airlines Moves for More Legroom; Facebook Joins $1 Trillion Club; Cathie Wood Launches New ETF

"Cnbc's workforce executive council is the premier group. We'll see suite human resources executives from leading companies across the country it offers a members only portal and chat plus exclusive industry contact with access to breaking news calls and digital networking experiences the networking resources. Hr leaders need now. Apply to the workforce executive council at cnbc councils dot com slash c. bringing in show musically. This is squawk pod. I'm cnbc producer. Cameron kosta today on our podcast. The biggest aircraft order in united airlines history. What two hundred and seventy new jets mean for you and your legroom. United ceo scott. Kirby this really is about as we come out of covid and as we have confidence in the future being able to rapidly. Change the airline for customers wall street's star stock picker. Kathy would is making a big bitcoin. Bet the question on everyone's mind is possible given maybe it has become more mainstream and more that maybe doesn't have eighty and ninety percent pullbacks anymore. Plus deniro sean. Money language app duolingo is filing for an ipo. Facebook is the newest member of the trillion dollar club and jewel. Settles for forty million dollars. You don't need instill a new addiction from scratch addictions we do. Let me get my starbucks. It's tuesday june twenty ninth twenty twenty one. Squawk pat begins right now. Stab becky by in three two one. Good morning everybody. Welcome to squawk box here on cnbc. Quick along with joe kernan andrew ross sorkin shares of facebook. They jumped more than four percent. Yesterday bringing the company's market cap above a trillion dollars for the first time this came after a federal court dismissed the federal trade commissions antitrust complaint against the social network the court also dismissed a parallel case brought by forty eight state attorneys general. The ftc had sued facebook last december arguing that the company engaged in a systemic strategy to try and eliminate threats to its monopoly including the acquisitions of instagram and whatsapp but the court ruled that. The ftc failed to prove its main contention. The facebook holds monopoly power in the united states over personal social networking markets. The court chastise the agency for failing to provide an estimate for facebook's market share at any point over the last ten years saying it is almost as if the agency expects the court to simply nod the conventional wisdom that facebook is a monopolist. The ruling does leave the door open for the ftc to shore up the week. Parts of its and file an amended complaint in the future. I believe that has to be done in the next thirty days. But andrew this definitely strikes a blow Against the regulatory efforts to try and rein. Facebook end it. Does i have to tell you. The ruling is fabulously written ruling. I mean i just thought. The rationale with which the judge explained it affected by the way throws out the state's case completely. The state's case has gone almost impossible for that to come back the case. We'll get Refiled he does make an interesting heels lays out the what the ftc would need to do with they. Try to repeat this case if they do what you have to imagine they will. But it's true. We all say we all. But i think a lotta people unfortunately simply say sizes. If you're big your monopoly we regurgitate. What a lot of these politicians and activists say if it's just it's just truth and the truth is that the law is very clear and different. Perhaps then within what people think now by the way there's lots of people who think the law should change and interestingly either and isn't very interesting sir test case either you think facebook is monopoly or you think the law should change. It's sorta hard to believe that can be both at the same time so this'll be a very interesting sort of test case as to all how things play out. But if you're into kind of reading it's it's absolutely worth it. Because the judge makes him very very interesting now not not even bold or wild radical views but explains the law in a way that. I don't think we often do do enough jewelry. Labs agreed to pay forty million dollars to the state of north carolina to set a lawsuit that alleged that the cigarette maker had targeted underage users. Now also the ledge that you will designed and marketed those e cigs to attract teenagers and misrepresented the potency of their nicotine. Joel did not admit wrongdoing as part of the settlement the funds. We'll go to support scientific research to curb you vaping. Thirteen other attorney generals have now sued the company after regulatory pressure increase in two thousand nineteen jewel halted most us advertising releasing its over t overseas expansion. A stopped selling sweet and fruity flavors evaluation plunging from thirty eight billion dollars in two thousand eighteen. Just about four billion dollars right now the fda currently evaluating whether gills products can remain on the us market and. I don't know as the debate closed yet on vaping guys were talking about that when when when you when you said joel at the thought joe. We both thought joel. They say means nothing. I never talked about this. I thought about it. And so long. I mean i remember that. There's a tv guy who was like on break like doing that was like what are you doing. I just think you meet a nicotine delivery system. What's wrong with you. I don't i don't know who does it. Just don't don't do it then. You won't need it right. You don't need if you don't we. Don't drink your coffee right. There were all group of people who said it was a lot healthier than smoking right relatives not i knew people and they were doing it and putting it flavored and marketing towards kids and they were creating new users not somebody using it to to quit smoking tobacco. I should not have value judgment. I see people doing it. And i think less of what i do know this. You can't see their face. Ernest preferable to tobacco and i give them that. It's just the way they went about doing it. Instead of trying to just look at the market of people they could cure from tobacco smoking. They were looking at a bigger trying to create users. People want to do it. That's personal freedom. Whatever they wanna do. I'm fine i'm good. I hope it does not judgmental so. I'm trying i'm trying. I'm trying. i'm trying and it's a contraption to isn't it and what do you do it's like metal in you but you're right we all have our no sorkin. What's is it a look metal contraption. I've seen ones that have a usb connector in that you plug it in charge at. This is hard for me. I don't i. Honestly i. I'm a lotta when it comes to being or any of these kinds of i mean i don't know anything but look at. It's good if people are going to quit tobacco we'll say that just you know you don't need to instill a new addiction from scratch. Because they got enough addictions. We do starbucks on wall street. There's a woman who beat the market. She's a devout believer in innovation and she builds her bets on companies. Like tesla chiappa fi in coin into an exchange traded fund with twenty seven billion dollars in assets folks in business have postulated that she could be the greatest stock picker in the world. Her name is. Cathy would or as some reddit. Traders like to call her queen. Kathy and kathy kathy bay. She's the woman behind arc innovation. Etf which surged to nearly one hundred and fifty percent in two thousand twenty which four context. That's of nine times better than the year. The s. and p. Five hundred had and it's twenty five times better than the dow jones industrial average twenty five after a year like that inflows to her fund. Hit well over ten billion dollars in the first couple months of twenty twenty one but so far this year hasn't been quite as rosy tech stocks fell squeeze in twenty twenty one so did arc's funds in february and march flagship fund was down but in an interview with cnbc amid the downturn. Kathy would was unconcerned. I love this setup. The last time i was on. I think i said that this rotation was good news because meant the bull market was broadening out was strengthening and The the worst thing that could have happened to us is to have. The market narrowly focused on just our ilk of stock. The the innovations face Instead it has broadened out so that your date I think it's Energies according percent financials are up twenty seven percent. Our point of view. Five year time reisen. Nothing has changed except the price since then probably not to the surprise of kathy would things have started to turn around arc innovation. Etf is now up a little over four percent for the year. Regardless of her famous funds performance investors keep an eye on woodson moves and this week yet another after years of betting on bitcoin other exchanges. Kathy woods firm aims to own the asset directly arc invest filed with the sec to create a bitcoin exchange traded fund cures job with the story. It's been buying up proxies for the digital currency coin base in gray scale. Bitcoin trust now. She's seeking own the actual asset itself if approved the fund would trade under the ticker symbol a. r. k. b. would track the performance of bitcoin. Arc's sec filing noted that a significant amount of the value of bitcoin is speculative which could lead to increased volatility. Last week the sec. Again postponed decision to approve the first bitcoin. Etf chairman gary gansler is called for more regulation of crypto exchanges greater investor protection. I just while we're talking about Kathy would that. I requested a three month. Archer remember it was it was threatening to break under a hundred and It may have traded there but now it has made a a lot of people tying the overall market to to a stabilization that etf. What's been interesting is every time one of her big holdings really gets takes pummeling. She doubles down and takes the opportunity to buy more As long as you by the dips. Did everyone think this was a big deal yesterday. This this ricardo salinas salvador. Got a potential bank in mexico. These are a lot of data points at the same time. You've got a mean. Aren't there some clouds gathering in regulatory ways for bitcoin and for crypto. Well you heard what in the uk. Yeah yes. I am potentially. Meanwhile el salvador was surprised. Bitcoin wasn't down yesterday. I thought this we when a bank says yeah. We're going to. he's billionaire. Ricardo salinas go and said his bank working to be the first mexican lender that will accept the crypto so lot of swirling things but back above thirty five. You know you're going to see over the next six months you're going to see more people accepting on one side you'll see some of the even the big. Us banks are going to open their. I imagine they're their coins and token operations of some sort. And then the other side. You're going to see china and others. Potentially the us government make other kinds of moves. And so the question. What does that. What does that mean. i don't know if it means it's going to move material. The question is is this. The floor regs thirty thousand a floor and then it makes this step up. Well listen listen to yourself is thirty thousand the floor. It was it a mass. You know it was at eight. I mean went to twenty back down to three when it goes sixty five. I know cream. Kramer has been talking about. I buy it again at ten or twelve or so. The question on everyone's mind is. Is it possible given. Maybe it has become more mainstream and more accepted. Maybe it doesn't have eighty and ninety percent pullbacks anymore in a single year. Maybe it's actually gotten it's gotten above stall speed to where it stays it stays above thirty that is significant because on the way up. You know people were needling me melissa. Santos it was at twenty eight and they said well eight. You were talking about how you like it. What about twenty eight. And i'm like twenty eight twenty eight. I don't know if i like it at don't know if i buy at twenty eight. They don't want to sixty five so now we're back down at thirty five thirty five. Is that really cheap. Is that a fair price now become do we accept that. This crypto currency is worth over. Thirty thousand dollars organ. I'm not willing to accept anything. Because i don't know i. I don't think i know when it's worth well as you know. Once you got into thirty it makes it harder to get to sixty makes it harder to get gets ninety makes it hard to get to a million word about eight worried about getting it. Did not if it stays above thirty. It depends what you're basis is joe of course but there's a lot of people unfortunately whose basis actually was sixty. That's the thing fifty four none of point where it was going to be lower for the year. It's it's turned around and recovered from that. You know it held dirt in was recently. It looked like it was going to break under twenty eight recently the weekend before in the last several weeks. Yeah since since we've been that's my question. They is thirty really. Remember what no regrets at forty might be. Then he said thirty might be as twenties. The next kramer you gotta ten ten or eleven and all of this will piss somebody off in that i hate. I'm not gonna use that. But i know we're going to get it is too late but The people that really love it. We said something already. I know that it probably squawk gilfry. No no no no. It's the squawk joe. Joe that squawk joe pretty sure. It's at joe squawk i think it's at what's people for people. Send in stuff to me about him. They forget your are now to send back and say if you really want to reach him. It's andrew are sorkin because arkan i'm not gonna return. Ask me as they say. Don't add me. But at mc andrew are sorkin at them all and for the record. It is at just walk and at becky quick. Coming up next. United airlines has bagged the biggest aircraft order in. Its history. it's a huge bet on post pandemic travel and as it turns out. It's good news for you and for your legroom. These craft are bigger brighter. And better ceo. Scott kirby we have the best international product of an airline in the country today but upgrading. Our domestic experience for customers really what worries about spot will be right back. You gotta take a listen to this swap right. Cnbc's flagship business news. Show is a podcast. Squawk pod this is. Abc control to is not just the show folks to even better. Because it's only audio. Join me katie. Kramer as i take you inside the squawk box control room and beyond the headlines of our tv broadcast with joe kernan becky. Quick and andrew ross sorkin every weekday alpha. Subscribe to squawk on apple podcasts. Spotify stitcher or wherever you get your podcasts standby joe. Three squawks one his united launching a new flight. Plan this morning with its largest new aircraft order in the company's history. This is a really significant film. And i wanna talk to after after we hear about it. Philip joins us now with mortgage to see you at the nasdaq. Today fell to be in the big city joe. This is a massive order. The largest in united states and the largest by an airline in at least a decade. Here's how it breaks down. United ordering two hundred and seventy narrow body planes two hundred thirty seven max. Most of those will be the largest of the. Max is the max ten. And then you've got seventy airbus eighty-three twenty-one nieto's they're also going to be replacing two hundred single-aisle regional jets with these larger man. Line jets so what. You have is a major upgrade in the fleet for united airlines. And they're also going to be retrofitting. All of their narrow body cabins which for some people have been in need of an upgrade for some time they're going to be adding more premium seats more cpac entertainment cpac entertainment by the way on every single seat. They're going to have larger bins across the board a big retrofit to upgrade the interior and the cabin experience. And all of this is happening because they need it. This is an airline. That has the oldest fleet jeffries providing this information to us look at united no comparison against the other. Us carriers in terms of how will their fleet is and at times. It feels like it's an old fleet when you're flying united they're out to change that and change it in a big way between now in two thousand and twenty six in fact. They're going to be receiving one new airplane every three days in twenty twenty three they expect to create twenty thousand jobs. Many of them front-line jobs people who are either ticket agents working at airports etc interfacing with the customer as well as pilots maintenance. You name it. They're going to at twenty five thousand jobs through twenty twenty-five take a look at shares of boeing. Which will you know. This is a big. Move for boeing to say okay. We've got two hundred of the taxes that are now part of a new commitment and all new commandment. These are not options. That united is ordering from boeing and also take a look at shares of airbus with seventy eight hundred twenty one. Nieto's the largest of the nieto's so this helps united in a number of ways. Hey phil i liked where you said these really small planes in these small seats for some people. They have a problem with those. So you've got a friend. Is that what you're saying myself. Let's be blunt about that. I've taken more than a few regional between new york and chicago. So kim frequency yes but when you're crammed into a regional jet you come away going really what i paid for and i think that a lot of people will look at this announcement by united and they'll say bravo by phone. Line that you do this. In terms of stepping up the customer experience and they will be making major changes between now and when they have all of the airplanes delivered by twenty twenty. Six cabins. Really gonna stand. I know which ones you're talking about. And i like i like those embraer's and i like the one on one on one side and i liked the getting on and off is really easy but they are smile and bombard year ones to the sorry right i was just gonna say i like the idea that they're putting entertainment back. Because i thought that was kind of going away. The idea that everybody's supposed to bring your own tablet or that was a a number of years ago where they said you can download the app. And i did on the way here on the way to new york and a lotta people do download the app and there but a lot of other people on other airlines. And i noticed this when i fly other carriers they like having live entertainment and the seat back and you get that on some united flights but a lot of flights. It's download the app. So i got so many things this is and we should. Did we ever really think that we're never going back to leisure travel. It's the growth industry future. Everybody likes to go places whether it's europe or so. We knew that. But is this an endorsement or a bet on business travel running. Yes hundred percent. Evac yesterday in a briefing with reporters. One of the first things. That scott kirby talked about is that they believe business. Travel is coming back. Full gone is the discussion of maybe a little bit. A lot of people don't want to come back on the road. They see a increase now. Is it going to be all the way back by the end of this year. No but they do see a steady move higher and they also are very optimistic about transatlantic travel. They believe that next summer not this summer but next summer will be a record all time record for transatlantic travel and so they believe that we are headed back to big days in terms of people flying especially here in the us for business as well as around the world. Well it'll be a big change. Pittsburgh cincinnati whenever any of those places are always a smaller debts though. This is a big deal to be getting rid of all those little region. I'd like them. I'd like the other ones the And bombarded made a really nice little one embraer those amber and look. They're very. there's nobody saying that you shouldn't find some regional jets. There will always be regional jets that are needed within the system for smaller markets look to charleston south carolina. It's hard to see the volume so you only fly ler jets in there. You can take some larger jets and there but you're also going to have carrier's gonna say we have just enough volume for a regional perfect. I don't think anybody's about that. But when you're going from new york to chicago on of regional away. More than once i would hear from other executives. Who were traveling. They're like this is for the birds. It's that kind of thing. United wants to think are small. I heard it. Yeah there are people that you know that they'd have a problem with those. I heard you say that phil. Thank you You have a friend who has a problem with with me. I have that problem. Scott kirby. Ceo united airlines joining us here at the nasdaq to discuss. What is a huge day for the airline. Let's talk about the numbers overall. Yeah two hundred and seventy new airplanes. Two hundred of them. Being 737 max the other seventies being airbus a three twenty-one nieto's and you're also going to be replacing your regional jets most of them with ler jets. What's the thought process here behind this decision. Well i it's great to be here in person again. Absolute seeing everyone really. What we're trying to do is upgrade the whole customer experience and this singles see that class fifty seat regional jets or some of the toughest customer experience and at united. We'd really needed to get that to be a world class first class. We have the best international product of any airline in the country today but upgrading. Our domestic experience for customers is really what this is about. And while it's a big aircraft order it's really about upgrading. The customer experience with planes but also brand new interiors the best interior seat back entertainment and all the amenities that we're going to put on the airplane when you were at american airlines before you came over to united. Did you realize you were coming over to united. Look this is a bit of a sleeping giant. They've got a great network but they also have the oldest fleet and they frankly have interiors and experience. That is not living up to the competition. When i first went to the united. I always knew that there was a ton of potential and everyone in aviation thinks of united airlines as this airline with lots of potential that never really realized but this has been a big part of it. We had to actually create the product that customers want. And that's really what this is about is giving the customers of the product that they want. Because we're already in. The biggest cities in the country are hubs are in the best places in the country but we needed to create the product that customers will choose to fly united airlines. You have the largest or the oldest fleet right now at more than sixteen years for the average age of your aircraft. But you're going to be taking what one new plane on average every three days and twenty three by the time we get to twenty twenty three one or new airplane every three days. Which i don't know of any airline in history. That's even come close to that but this really is about as we come out of covid and as we have confidence in the future being able to rapidly change the airline for customers. You're not playing list price for these aircraft. I know people always say that. They're like are they. Spending and list price would be somewhere around thirty three thirty five billion dollars. Clearly you're not paying that much but the critics will look at this and they'll say this is an airline that already has heavy debt and there are a lot of questions about how you're gonna pay that back in addition to whether or not business is going to come back both in terms of corporate as well as international. What do you say to those critics. Joe well i on the second point. We believed back in april of last year. We were unique early. The only ones it believed that business travel international ultimately come back every day. Two point as we've gone through crisis mix. That gets stronger and stronger today and today you know. It's an understatement. Am confident that business travel is gonna come business. Travel is gonna come back. It's going to be a little bit different. Some of it will be people commuting instead of driving to work They'll be things like that are different. But we've seen a huge accelerate even the last few weeks and real quick. Before i toss it to joe and i know you got a question joe when you say business. Travel is coming back. Where are we at right. Now in wendy. You think that we're at more than or back to nine thousand nineteen levels so we're down to about sixty percent now literally ten weeks ago. We were down close to ninety percent that tells you something about the acceleration and all the anecdotes we hear from customer is once we get to september. They're going to be back on the road particularly for client facing visits. I don't think business travel comes back. One hundred percent probably until two thousand twenty three but i think we have a big step function increase in september another one in january when people have budgets again but but we absolutely think it's one hundred percent. Joe go ahead thanks. Scott planes are important. Obviously but i think airlines that. I think about how daunting what you do. Actually is and that makes your people so important across the board from ticketing agents the pilot's flight attendant anybody that maintenance everything and i still cause a mold. I still think continental and united. I think of of the separation in the culture trying to put those two airlines together and some of the issues that i guess it's been years now and we've been through the pandemic labor issues The culture clash between united and continental one airline. Everybody happy everybody's united so to speak. I think we all are united. And i don't hear that at all. Of course i wasn't here at the time of the merger but we are united as single airline. And i think we were getting there. before under oscars leadership as we went into the pandemic but particularly coming out of the pandemic everything we went to the amount of pride united airlines for the role we played in the global humanitarian response and flying thirteen thousand cargo flights carrying over a billion tons of equipment around the world. The us -tarian response in india. Most recently that pride has created a sense that united airline that it's our destiny to be the leading airline in the world and this orders. Another part of the even the rumors of it when i flew in yesterday employees. We're incredibly excited trying to get me to spill the beans on what it was going to actually be But our people feel really good. And i think that's in our past seat back entertainment and somebody brought up on the call yesterday. It used to be if you mentioned it to an executive at united say three or four years ago. No no no no no no no you download the app and that's good enough. You realize the value of the seat back entertainment correct. I look see back entertainment. I think is one of the most important things we can see it. In our data you know every all of the customer service scores get massively better just from having seat back entertain. People like the food more like you know. They don't care as much about the flight delays. Everything is better with seat back entertainment. Walk through a cabin. You see sixty percent of people using it. I flew this month in my seven year. Old son had seat back entertainment and he was bouncing up and down to tell me when we got off the plane how he played battleship in two games and lost only one on the flight and mean. Just it's such an improvement in the experience for customers. Let's talk about international travel. It sounds like you believe. And i know on the call yesterday. You guys said that you think next year is a record year for transatlantic travel. What about asia. So we think asia's going to take a little longer to recover combination of they had much closer to zero tolerance on cova a different place than we are here in the. Us were in europe. And so we don't think asia's coming back probably for eighteen months until it really comes back. The good news. Is you know all of our airplanes. That were flying asia. We've added it a lot of new service to india and africa and that service has done really well so we have the ability to to wait. Strengthen your next year. Africa india other places and wait for asia to to get back to full. Probably eighteen months from now joe. Thanks and we've talked about airlines lot. Andrew pointed things out. A lot's got about you know just how to make sure that that airline's keep enough in reserve for for things that really only affect the airline industry that i think nine eleven i think about it. We can't guarantee that there's not going to be another pandemic. So how do you ever keep rainy day fund so that you're not going to need any assistance again in the. Is it ever possible that an airline can be totally impervious to future government assistance given the nature of your business. Is it ever possible to expansion to be more like a utility. Or i don't understand how you do that. And how you can ensure that. That won't happen again with such It is perilous. What you do. Yeah we are. We are more subject than most What we call black swans Although i hate the term black swan because of black swans happened once a decade. They're really not a black swan. They're just different events You know historically we thought of it if we could survive something that was twice as bad as nine eleven which was by far. The worst thing ever happened to aviation Than we were. Okay of course covid through us something. That was an order of magnitude worse than even nine eleven was from a financial perspective The fact that we made through and thanks to the bipartisan support in congress and the administration to help not just aviation but the whole economy the fact that the whole us economy made it through as strong as it did for this event you know is a testament to what they did in washington hub of radiation in particular. You know while. I hope we'll never have another event like this. You can't obviously guarantee it but we can position ourselves Even better in the future davidge stronger balance sheet so that we can get through the crisis. We're going to have more cash on the balance sheet. We're going to pay down debt. You know the amazing thing about this plan that we're announcing today while we're buying thirty billion at list price worth airplanes By twenty twenty six we actually expect to have our lake relevant ratio below two and a half and it was three point. Two coming into covert. So it's gonna take time. It's not gonna happen immediately. But we're well positioned for the future and and it really is good that you know the response to see the whole economy not just aviation the whole economy responding like it is coming out of covid talk to you about staffing levels. We know the problems that american had recently where they had to cancel a lot of flights because they just didn't have staffing there were some storms came up to The philadelphia chapter of the american pilots association has said that what they've seen initial forward-looking data suggests that management has published and sold the schedule through december of this year that it probably doesn't have profited proper staffing to execute. Is that a problem. United is facing and What are you doing in terms of hiring and staffing so united is unique and really all of our large competitors have have one point or another in the last few months had staffing issues. But because we thought this was going to be a long crisis in april of last year we worked with our pilots union. We're the only airline that negotiated deal with our pilots union to keep all of our pilots in place trained in current equipment and a result of that. We're unique in having these staffing issues. But it really is a testament to the partnership we have with our labor unions and our pilots in particular that allowed us to negotiate that deal so that we could be confident that we could get through christ's the crisis but then be prepared to bounce back at one hundred percent and we should point out part of this plan. Is you expect at twenty five thousand jobs by twenty twenty five of my correct. You're at sixty eight thousand you expect to be to what ninety ninety three thousand and most of these will be front facing whether it's gate agents Ticket agents whoever etc. Yeah these are. These are not really jobs. These are careers You know we are creating twenty five thousand union frontline workers You know the kinds of jobs where without a college education you know pilots flight attendants mechanics. That can make a one hundred one hundred fifty thousand dollars year. There's just not many of those left in the. Us com real quick against a break. What do you expect for airfares. Let's say three months from now. Well i think it certainly domestically airfares are going to stay under pressure because visits demand isn't really back yet. They're going up but there's still a great value a great price across the board My guess is prices across the atlantic or going to return to more normal levels Quicker than the rest of the country But still a great time to travel and great bargains out there. Scott kirby ceo of united airlines huge day largest order ever in the history of the company two hundred and seventy new airplanes. But i think the more interesting guys is the complete renovation of the interior of these aircraft that is making a statement about improving customer service. Scott thank you very much for being here guys. I'll send it back to you. All right phil ed you said earlier. You know some people some people you know. Those seats are small for for some people. Thanks thanks so will be next learning new things. I'd like to learn another language. Joe i took four years of latin. That's as well in high school. We'll be right back. You gotta take a listen to this swap that's right. Cnbc's flagship is new. Show is a podcast squawk pot. This is abc control to it is not just the show. Folks might be even better because it's only audio. Join me katie. Kramer as i take you inside the squawk box control room and beyond the headlines of our tv broadcast with joe kernan becky quick and andrew. Ross sorkin every weekday. Subscribe to squawk pot on apple podcasts. Spotify stitcher or wherever you get your podcasts. Welcome back squawk pot. Here's andrew ross. Sorkin duo is planning to go public today. Company behind the popular language revenue more than doubled during the first quarter. compared to a year ago It did however post eight thirteen point five million dollar loss for that quarter. I'd like to learn another language. Joe i was thinking you know what i was thinking finally andrew. I'm never going to be like where you can just speak fluently. Probably but i could just learn a lot of now in different languages and do a lot better. I think you know what i'm saying. It need to be you know to be able to you know. In latin. i took four years of latin. That's useful in high school. In case i ever like dan quayle case ever visit latinica but support. You know they told me that everything that all the other just come from. But i remember a griqua a delay in porto poor portavogie portanda. That's about veni vidi vici. Vdb to hit cabeza. So what about that andrew. What about that. Look because there's a lot of words where if you just know the not the noun. You can probably going to give you a secret about french. Andrew give you watch you watch. Call my agent right. I have they use all the same words. They just say a little differently. I mean that's the trick. All the same words meant that you blend over okay with my flip flops. And my I'm with her. I'm with idiot. T shirt a. We'll do pig latin and call it a day. That's the podcast for today. Thank you for listening. Squawk box hosted by. Joe kernan becky. Quick and andrew ross sorkin weekday mornings on cnbc at six am eastern. And when they're not on the air they're pretty much always on twitter at me as they say. Or don't ask me and you sorkin becky. Quick and joe squawk or at swat. Cdc and finally to get the smartest takes an analysis from our tv show and from our twitter right into your ears. Listen and follows clock pod wherever you get your podcast. We'll be back here tomorrow clear. Thanks guys. cnbc's workforce executive council is the premier group c. suite human resources executives from leading companies across the country. It offers a members. Only portal and chat plus exclusive industry contact with access to breaking news calls and digital networking experiences the resources. Hr leaders need no applied to the workforce executive council at cnbc councils dot com slash wnyc.

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ISIS-K & Kabul; Covid & Classrooms; US Open with USTA CEO

Squawk Pod

31:54 min | Last month

ISIS-K & Kabul; Covid & Classrooms; US Open with USTA CEO

"Each kevin o'leary here. Money court is all about dispute resolution. Businesses have problems. And i'm here to resolve money code with kevin o'leary new series wednesdays ten eastern on. Cnbc tv bringing in show. Musically this is squawk pod. i'm cnbc. Producer cameron kosta today on our podcast. The world watches afghanistan marines and civilians show bravery and selflessness amid chaos and a rising death toll. Salt lake a good punch. Everyone i think around the entire country. They're harris they are kovic. Nineteen dealt variant continues to spread across the us and former white house health advisor. Dr zeke emanuel says. Vaccinations for adults are the key to keeping our children. Safe in their classrooms. Twenty two percent of new cases are now among kids so we really do need to be much more vigilant especially because many of them cannot under twelve can't get vaccinated and despite coveted the show must go on for the. Us open at least us tennessee. Association ceo michael doussi on a safe tournament. It's much like a mets game or a yankees game. We won't be requiring vaccines at this point. We know it's a fluid situation you so that changes will quickly communicate. Those stories plus retails feeling a supply chain. Squeeze all that on this friday august. Twenty seven twenty twenty one. Squawk pod begins right now. Good morning and welcome as fox. Here on cnbc. I'm melissa long. Joe kernan becky and andrew are off. Today it is friday. The greatest kind of a tough friday but it is friday. There are times. I like to hide in the refuge of the mundane bond market said all stuff. This is one of those days. Where the almost glad what we cover because we can. We can go into this stuff and do our job and the tough stuff. President biden addressing. Those guys are getting up there already up but guys and gals over there doing what they did yesterday trying to get people out after just knowing what. The risks are amazing president biden addressing the country. Yesterday after a deadly day in afghanistan thirteen service members were killed. Eighteen wounded after two suicide bombers detonated explosives near kabul's airport those who carried out this attack as well as anyone wishes america harm. No this we will not forgive. We will not forget. We will hunt you down and make you pay. A group called isis k. Claimed responsibility for the attack. President biden said he ordered commanders at developed plans to strike isis k. Assets leadership in facilities. In the meantime the american withdraw as a alluded to continues since the end of july. More than one hundred. One thousand people have been evacuated from the country including about five thousand. Us citizens and their and their families interesting piece in the journal. Like an enemy of my enemy type thing. I mean the taliban fighting isis k. Clint nut clandestinely but it hasn't been covered in american media very much and the taliban so warped what's going on they were supposed to provide security. There's supposed to be providing security for people coming into the airport so the question is someone. I guess that was dressed as afghan afghanis citizen trying to leave they breached. But you wonder how tough the taliban security i mean. we don't know and how it happened in the taliban. I don't know whether any taliban were killed. I'm sure it'd be there. There were some but they probably nobody wanted it to happen. The taliban probably didn't want it to happen but it doesn't necessarily not play into their long-term interests so And if you're one of the guys guys knowing that the threat is not over how do you. Who are these these men and women that are able to get up and do their job after a day like yesterday. it's just amazing is nuts. They're heroes they are. Let's get to aim in jefferson about that. Felt like a gut punch. Just everyone i think around the entire country Amen is in washington. Dc good morning. Good morning joe. you're right. The numbers are tough to hear what happened. Yesterday was twin blasts and what the united states is calling a complex attack involving suicide bombers and isis gunmen attacking a checkpoint outside the airport in kabul. Here are the numbers that we have as of right now in terms of total casualties and they are tough to take jobs. You say thirteen americans killed ninety five. Afghans killed according to the associated press. That number is and some flux as they go hospital by hospital and try to figure out exactly what the total there is. That number could move a little bit. the white house has just released this new number. Twelve thousand five hundred more people evacuated from afghanistan over the past twenty four hours isis k. Is the entity that has claimed responsibility. That is a splinter group from the taliban that is at war with the taliban. So they're at odds with the taliban even though they share some ideological overlap. There is a struggle for control of the country in the power vacuum of the us withdrawal and the collapse of the afghan national government and this is the collateral damage from that power struggle. That's going on right now. President biden at the white house yesterday addressing the nation he was by turns sorrowful and defiant in terms of both the us response here and also his defense of his decision to withdraw american forces entirely from the country so very difficult and complicated situation here. Remember the withdrawal deadline august thirty first that self imposed by the united states but the taliban and said they wanna see that hell to as well. That's tuesday today's friday. That doesn't leave a whole lot of time to evacuate remaining american citizens and afghan allies out of the country. The president suggested yesterday that not every afghan. Who wants to leave. We'll be able to leave. The country ultimately the president is also vowing revenge against isis k. At the same time he's trying to complete this evacuation of all military forces from the country. I talked to a former high ranking. Us military official in afghanistan yesterday. Who said that. Any military action in afghanistan going forward. It's going to be extraordinarily complicated by the fact that we no longer have any basis there or any bases really in the region to operate out of and that means that any drone strikes the like we're going to have to emanate from the gulf initially and sixty percent of a drones capacity is going to be taken in just travelling to and from afghanistan. That doesn't leave a whole lot of time over target for anybody who's trying to contemplate. The revenge of the president was talking about there so i very difficult intractable situation and the most difficult part of it all is that. Us officials now are saying that in fact they expect more of this not less in the days to come joe back over to you. That's where i was going to go in because we're still involved as you said. I was surprised to hear how many in the last twenty four hours in a lot of that had to be even after what happened yesterday. So they're still doing. They're still doing their thing over there. Getting people out knowing full well that there are warnings that there could be more tax. So what you told us what you know. So they're expecting more tax. Don't have any more clarity on on what that means where it's coming from how we know how likely it is. What can we do can we. We've co opted. The taliban for security to some extent can can things get toughened up. Can we ask the can't believe these questions. Can we ask the taliban toughen up the security at the gates we can and what you don't know is the isis has recruited its own members out of the taliban is k. Think of as a more extreme version of the taliban who doesn't think the taliban is going far enough so some of the hardest line taliban fighters are susceptible to recruitment by isis k. So we don't know is the initial checkpoint man by the taliban and then the secondary checkpoint manned by the united states whoever conducted this attack presumably got through the first check point. We don't know if that was deliberate right. By the taliban people on the ground whoever that faction was and it's a very divisive coalition fighters whoever that faction was did they let them through intentionally as part of an alliance or just turn a blind eye or was this attacking force somehow able to dupe the taliban at that checkpoint. We just don't know that as of right now but look. I talked to again this. Us former high ranking military official in afghanistan who said there are ways to harden up the exterior perimeter of the airport including having you have long snaking concrete barriers so people are more or less in single file for the long line rather than a large crowd gathered in a clump and that is unfortunately to limit the damage that a suicide bomber could do if they're able to get in and detonate. There's only so many people within the blast radius if you have a long snaking line rather than a huge crowd mashed up against the fence. Which is what we've had so far. So there are tactics and techniques that they can put in place but to your point. Jo i think about the pilots and the staff and the crew were airbase right now getting shot or potentially getting shot at u. s. military says that they don't think that they have the man pad capability to take out a us aircraft there but they say that the us military aircraft are using all kinds of defensive mechanisms because they know that somebody a lot of people on the ground. Do wanna take a shot at them. And i also think joe of the marines who were on that wall yesterday and and you know the. They're backing day. Standing there standing there yesterday. They're not knowing any minute and they stood there yesterday. Joe these marines who these marines who were killed stood there yesterday at a point when the united states had intelligence. That attack was likely coming. They even had intelligence. That suggested that that gate was under attack. You have to presume. That intelligence was passed to those very marines. Who were there. They went and stood on that line. Anyway joe yesterday and they held that line yesterday it now. They know that a lot of the people that they know in the armed services or even their fathers did fought for the last twenty years. All they're trying to do now is just help. People get out of a failed war of a failed mission. All those lives at now just seem to be lost in vain and they're still there with their lives on the line just to get these people out there. Where do these men and women come from. And it's it's it's amazing. It is incredible. The study from the uk found that the risk of rare blood clotting is significantly higher as a result of catching cova then from being vaccinated against the virus. The peer reviewed study was conducted by researchers from oxford university and several other british universities in hospitals and data analyze more than twenty nine million people who received either one dose of astra zeneca or pfizer's vaccine and they estimated that out of one hundred and seven. That one hundred seven out of ten million people would be hospitalized or die from low platelet counts with twenty eight with the twenty days of receiving astrazeneca vaccine by contrast that number rose the nine hundred thirty four people pretend million following positive cova test The researchers also found the clotting wrist remain elevated for a longer period of time after kovic than it did following the vaccination surprise that nine hundred thirty five. Can you believe we. Even we have the limits of resolution to to confidently hundred nine hundred thirty four out of ten million need scientific notation. Figure that out. But it's good news though. I didn't confirmation almost good news. Cova doesn't causes. It causes so many other things that will kill you. Alison chairs are sharply lower loss of a dollar five. A share was worse than the forty five cent loss analysts expected peleton also said it paste it faces higher commodity costs freight prices and it plans to ramp up marketing spending in the months ahead revenue growth slowed for more than a billion dollars in the prior. Quarter to just nine hundred. Thirty seven million. That's in part of the recall of its treadmill products. In may over safety problems it's cheaper. Treadmill motto is set to go back on sale. Next week meantime peleton lowered the price of. It's less expensive bike by percent to fourteen hundred. Ninety five dollars is also rolling out new monthly financing options for the more expensive bike plus and treadmill to try to make the products more affordable. It's all about margin pressure. Joe and we've heard it for from so many different kinds of companies in terms of higher material costs a mic schick. Change here in this case retail and told about the supply chain not all about it but many of the companies that did miss towards has to do with its best and then you think about think about the ones that are really price sensitive and a slight move and input because they make no money anyway dollar tree something like that. They're going to be pressured by that because they don't have a lot of room for raise prices everything. We saw the impact of of a stranded containership the one of the dollar stores and the impact. They are in the quarter if you're thinking back to school type operation. When are people going back to school. I mean back to school. They're thinking about holiday. See their thinking about christmas. Whether or not the stuff is going to be solved at christmas all the goods that you want some people go back to school. But that's not what we thought. It was going to be three months ago. Now it's a big question mark there. I'm meantime we're also watching. Shares a gap there sharply higher earnings of seventy cents. A share estimates a forty six cents revenue also beat the company raises for your guidance for earnings net sales go with an operating margin. A gap also acquired ecommerce startup. Draper non line at the less people try on clothing. Virtually gap said. It would help customers find the best clothing sizes and reduce unnecessary returns. Are you grimacing about that. How do you try and close. Virtually any net charity yourself. Are you nate like a naked emperor. So like no. I have close on your. I don't understand to be naked. Virtually trying on would've give your underwear just sounded weird. I the whole new. You think of at six o'clock in the morning just a marvel really was global supply chains. I know the russians in the speeders. Really got your underwear. I no no no no virtually dress. I'm not thinking about underwear thinking about. What does that mean to try on clothes. Virtually don't have to go into a dressing room now you don't you don't think what do you think about what the prompt or says. Don't you is your mind working in nice it. It makes me think russian. There's less friction to me actually. Making a i think rushing going to the beach. How can you not think about guys. It looks like boris yeltsin wearing one of those small businesses. How can you not i. Just don't okay. Well then you're going to happen to be at a beach because you weren't for shuttle global coming up on squawk pod. Kids are physically back in classrooms but former white house advisor dr zeke emanuel says we have one big thing left to do to keep them safe. It does seem to me that we have been circulating. This being very ginger about a mandate but i think we need a nationwide mandate. Why do we have this extremely effective intervention and roughly half the population. Not using it. Back to school. After each walla kevin leary here. Money court is all about dispute resolution. Businesses have problems. And i'm here to resolve money could with kevin o'leary new series wednesdays ten eastern. Cnbc this squad from cnbc. Today with joe kernan and melissa lee. here's melissa in other news. Illinois governor jay pritzker will mandate vaccines for teachers. Hospital workers college students and nursing home staff. Those who are unable or unwilling to get vaccinated. We'll be required to get weekly. Covetous kentucky governor andy bashir out with a warning. A third of the state's acute care hospitals are reporting critical staffing shortages as covert hospitalizations. Hit a new record for the fifth. straight day. He pleaded with residents to get backs needed. Where masks and avoid large gatherings just fifty six percent of the population has received at least one vaccine dose since march i ninety percent kentucky's covert hospitalizations have been unvaccinated. The democratic governor said he would enact another statewide mask mandate indoors but he can't because the state supreme court sided with the republican legislature on saturday to strip some of his executive authority and dissolve kentucky's state of emergency. Our next guest has important tips for how schools can stay open amid rising cova concerns. Let's welcome. Dr ezekiel emanuel vice. Provost of global initiatives at the university of pennsylvania served as white house a health policy advisor in the obama administration was a member of the biden transition teams covert nineteen. Advisory board zeke in summary vaccinate as many staff and students as possible establish accessible testing. Everyone even people need to wear high quality masked indoors. Take any special get togethers pizza thing like that. Move them outside and improve ventilation of classrooms. All those are your in a nutshell. Those are the five things that that you advocate for. In in the current environment we find ourself yash and one of the things. I should note. Is that you know. Twelve to fifteen year olds are eligible for the vaccine and yet only nationwide thirty. Five percent of them have been vaccinated. That's really a way to low. We need to ramp that up to ninety five ninety. Six percent only students with good medical excuses because of their immuno-compromised or have other problems shouldn't be vaccinated. I mean that's a number that we can really boost similarly sixteen to seventeen year olds are under fifty percent. We have to ramp that up as well. If everybody if there's a vaccine mandate or close to it for a college these young people to start with so they're mostly vaccinated. Then who are you protecting with with the with the mask mandate indoors. If everybody's are you protecting the students that aren't vaccinated. That have decided not to and we know that in the past weeks there's been at least some conjecture that young people since they seem to do better with cova that. Perhaps you don't need to be quite as stringent. This is a zero tolerance policy that. You're still you're advocating here. Well first of all we are seeing a lot of spread among children we about twenty two percent of new cases are now among kids so we really do need to be much more vigilant especially because many of them cannot under twelve can't get vaccinated Even among college students. I think that we know that. The delta virus spreads. We know that you can be a symptomatic especially if you've got had a vaccine and still be infected with the delta virus in there for you can unwittingly not intentionally spread it to others. The point of a mask is to protect you from other people but also to protect other people from you. And i think in the united states we also have to one of things. I like to emphasize his move up. On the quality of the mask the wearing of the mash we need and ninety five masks that are very very well fitted. I'll say that's what i'm passing out. The my students are when i go back next week at penn. The i'm just thinking about what the future looks like. And and hopefully don't know what you think. The maximum amount of vaccination percentage we can get in this country but oncologists. I would think you're you're going to get pretty high. And if as symptomatic people are spreading it to as symptomatic people it just seems at some point you don't need to be quite as stringent about it. What number would allow us zeke in the future. Is it ninety. Percent of the country gets vaccinated. What could we take the mass off. Because even at ninety as symptomatic people that are double vaccinated can get it and spread it to asymmetric people who are double vaccinated. Who could then i guess. Run into someone somewhere at some point so you see what i'm saying. we could. We could essentially just be a mask. We could get permanent mass in your world. Now we're not going to get to permanent man. What do we need to get to. Terms of percentage vaccinated what we need to get tuition a college and university like the university of pennsylvania. We live in a larger community. A lot of our students live outside. They go in and out of a community and those communities are much less than ninety ninety five percent vaccinate way the university will be over protecting the unvaccinated. We need to get that. They need to get vaccinated. Obviously that's what needs to happen. You say obviously so. Then the question is what's the our government policy to getting people vaccinated. Who's going to mandate it. It does seem to me that we have been. You know circulating this being very ginger about a mandate but i think we need a nationwide mandate. Why do we have this extremely effective intervention and roughly half the population. Not using it. Some of them are not eligible but there are plenty of people in the country as i mentioned among young adolescents twelve to fifteen year olds at are eligible but not accessing it. We only do the kids when we do the kids. Because that's the thing the symptomatic double vacs can give it to an nascent. Symptomatic double vacs. The the the thing about is the kid that finally results from that chain of transmission who's not vaccinated but if we get them vaccinated at that point can we finally. Yeah well that then you're going to have the situation where the virus will be dying out because people that's the place we wanna be. Were far from that place. And we're far from that place. We need to vaccinate people. We need to wear masks. We need to improve the ventilation school. All that doable. And all that can make going to school much safer and make parents at each. And that's the important point. It's about the psychology of going around in society. We're not worried about being infected frightening cohen. So scary. I just don't understand the you know i don't understand i don't understand i was. I was scared to death before. Then get that thing. And it's a real relief. It's almost liberating to feel like the worst case scenarios taken off the table. So you got there. Or american civilians call you. Give me a booster. i think i'm gonna. I'm gonna call you. I think you you could probably do it. You can call. You can make a call. I can get doctor manual. Thanks thank you next on squawk pied. We're hitting the courts ruffin. Doll rajib federa and serena and venus williams will not compete in the us. Open this year. But don't worry. Usda michael doussi says there's plenty of talent left to see. We still have nineteen in the top twenty women in the world competing in the tournament on the men's side. We have seventeen of the top. Twenty men competing. We'll be right back. Ichi number kevin o'leary here money. Court is all about dispute resolution. Businesses have problems and i'm here to resolve them money with kevin o'leary new series wednesdays ten eastern cnbc tv. This is clock pod. Welcome back boarding and welcome back to squawk box here on cnbc. I'm joe colonel. Melissa lee becky and andrew are off today you know that they're not here the. Us open begins monday. It's usually a big moneymaker for new york but this year is. Us open is now. without several. of its top stars serena williams venus williams roger federer. Rafael doll all withdrawing citing injuries. Join us now. Us ta ceo. Michael dell says. I said that's seven letters but we know what we're we understand what we're saying. Usda ceo mike. Good morning. i'm i. Don't i miss everyone who's not there but you know we've we've had to deal with not having a full sports venue for a couple of years so the excitement should still be pretty high with thing. Yeah hi joe. Thanks for having me. It is disappointing to miss some of the top stars. They've been wonderful champions literally from us twenty years so it is a little bit of a changing of the guard. We're not counting them out by any means and we hope those champions are back next year but we do have a lot of depth this year surprisingly if you think about the big names missing the tournament we still have nineteen of the top twenty women in the world competing in the tournament including naomi asaka past champion on the men's side. We have seventeen of the top twenty men competing and of course novak going for the first translate and fifty two years. Believe it or not so. We're excited with the quality of field. We have and maybe more importantly an equally important. It's so much so exciting to have fans coming back this year after having no fans last year. Exactly and mike. I'm thinking if you were a total homer in american stars. We'd have a kind of a problem with men's tennis right now. would we And it's not really that knew. Who do we anyone in the top. Seventeen that you just talked about that are going to be there. Who who should we be pulling for if we did want to root for an american good question and we absolutely want. American champions is the governing body of american tennis. I love our depth through some statistics. You i'll throw a few more at you. We actually have fourteen the top one hundred players in the world american. That's more than any other country. That's on the men's side and on the women's side of course we've had a ton of success. Yes we have sixteen of the top hundred players in the world that are american so we like our depths. The future is looking bright but we absolutely want a grand slam champion on the men's side. It's been a few years since we've had that on a figure out that not not indi who you know i should be paying more attention to it was the last last What was andy. Roddick are last men's grand slam champion. I was at the semi final batch. It was a five setter with now ban. Now abandon i think and that was the real. Mac is a fine thing. Final with wasn't as concert at least wasn't as exciting a previous one. I got the. Ceo's amazing. i'm worried about your coming out this year as well i'll be there. I will be there but on a really good night to. I'm not going to say because you know the crowds are big enough. I mean if i were to disclose that but as far as seriously mike i'm worried Because the before people go in. There's a lot of people around. You're not gonna require either masked wearing or a vaccination cards but it is it is outside but it seems like people are pretty close together that full occupancy no no no restrictions there either. Well it has and again. I mean we take this really seriously and joe last year. We kind of developed a playbook to help us on this. I know was without fans but we did over. Fourteen thousand cova tasks last year with the players and the support staff. We had a ninety nine point. Nine seven percent negative rate of course issue. We have fans that we've had to work extremely closely with the city. Of new york's department of health and the cdc and you mentioned no vaccines that we will be requiring them for our indoor dining indoor sweet. So that's important. I know of your coming out As far as grounds. It's much like a mets game or a yankees game We won't be requiring vaccines at this point. We know it's a fluid situation and we'll never sacrifice health and safety so that changes quickly communicate but the guidance were being given now by our medical adviser group and more importantly the government officials who are experts in. This area is We're we're okay without requiring seems on the grounds of the of the tennis center. If i'm hoping for a men's champion just give me your name. What's our best shot. I know that you have all your put me on the spot. How can we fought is too big tall dude. Still still play with the huge serve. What's his name is there. He is and we have someone another american. Who fits that bill riley. Who's having a great summer and there's just a lot of players on the field is is really wide open but again you have to take novak. Maybe the favorite right now. he's mentally. He's like scary. He scares me scares me so mentally tough and knowing the crowd starts hoping for the other guy the other guy's gonna to lose that's just that's just At this point are all right. Well the lady side too too bad. The williams sisters aren't there but now there is a lot. We have a lot of town coming up. Definitely on on on the lady side of things and they've they've been winning so that be good thank you. I dunno may look me up Look me up. They'll be as. I said there might be a crowd but Come over and say hi seeming. There might be on a saturday. I look forward to seeing you. Maybe on saturday note to self. Don't go on saturday a a lot of little shots like that. My wife says you take a lot of. I'd just ignore her. I really do i. I believe you. I don't care i'll continue. That's the chauffeur today and for the week. Thank you for listening. Squawk box is hosted by. Joe kernan becky quick and andrew ross wargin weekday mornings on cnbc at six am eastern. Get the smartest takes an analysis from tv. Show right into your ears. Listen and follow squad cod. Wherever you get your. Podcasts will meet you back here on monday. Have a great safe weekend are clear. Thanks guys what exchange is now a podcast. I'm brian sullivan. Join me as we hit the biggest money stories from around the world breaking down the risks and rewards of global. Trade the news. You need to know what real world actionable advice and even a little fun and unique content. You won't get anywhere else like the most random but interesting thing you'll hear all day subscribe to the worldwide exchange podcast today.

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Debt Default Drama; Theranos Texts on Trial; Smart Travels with The Points Guy

Squawk Pod

35:43 min | 3 d ago

Debt Default Drama; Theranos Texts on Trial; Smart Travels with The Points Guy

"What exchange is now a podcast. I'm brian sullivan. Join me as we hit the biggest money stories from around the world breaking down the risks and rewards of global. Trade the news. You need to know what real world actionable advice. Even a little fun and unique content. You won't get anywhere else like the most random but interesting thing you'll hear all day subscribe to the worldwide exchange. Podcast today bring in show musically. This is squawk pod. I'm cnbc producer. Katie kramer today on our podcast. A standoff on the hill to fund or not to fund the government former republican house majority leader eric cantor on suspending the debt ceiling and roadblocks in the senate. There's no question with emigrants have a path out of this. And i believe in the end are going to take care of this. And make the most of your amex points guy brian. Kelly has tips for smart charges to your credit card. Eventually notice a frequent flyer. Miles have become more valuable because they give more flexibility. If you want to cancel that trip for whatever reason you can get all your miles back. Those stories plus fed chair j. Paul speaks and inside theranos founder elizabeth homes trial and her private text messages. Nbc's yasmine corum has all the details talks resume just a bit that we all knew a cruel confidence. Oh it's completely different than the elizabeth homes. We are seeing incited off this for our. It's thursday september twenty third twenty twenty. One squawk pod begins right now becky by in three two one okay. Good morning. Welcome to squawk box here on cnbc. I'm becky quick. Along with joe kernan andrew. We're going to start with the markets this morning. The dow jumped by three hundred and thirty points. Yesterday i broke a four day. Losing streak also posted. Its best daily performance since july twentieth. The jump came right. After the fed's announcement andrew meantime stocks closing higher after that fed indicated that rate hikes could be coming sooner than and that it would start pulling back on some of the stimulus. It's been providing though it didn't give a specific time. I know the central bank also significantly this important cut its economic outlook for the year. Here some key moments from fred chair powell's news conference. Demand for labor is very strong and job. Gains averaged seven hundred fifty thousand per month over the past three months in august however job gains slowed markedly with the slowdown concentrated in sectors most sensitive to the pandemic including leisure and hospitality. My own view would be that the test. A substantial further progress test for planet is all but met while no decisions were made. Participants generally view that so long as the recovery remains on track a gradual tapering process. That concludes around. The middle of next year is likely to be appropriate to bottlenecks and shortages. At that are being. We're seeing the economy have really not begun to abate in a meaningful way yet. A lot of questions that the journal notes that had to be asked about insider trading. I guess someone had to ask him but across the middle of the country where people that had small wage gains recently inflation eating away maybe more questions about inflation or maybe that is something that would be more front of mind for most people about what the fed is doing and keeping assets so high which adds to income inequality and everything else. So you got to ask those questions. I guess and people love a good. You know these guys there. What would you call them. They're in a privileged position so they got privileged information. So they're all a bunch of rich fat cats. And you know these are the guys in the government all the swamp but what we really ought to be worried about is what they're doing not in their not holding muni bonds but what they're doing in terms of what could be a monetary mistake. I think the sound bite. We just played from him that last one talking about how they haven't begun to bait the inflationary. Science haven't begin to debate any meaningful way. is that a step back and kind of an acknowledgement that. Maybe this is not as transitory. The inflation as we had originally anticipated. I think it is. I think eventually i years from now we will look back at that. We will show that video no but we will show that video of them making the the transitory claim. And i think it's gonna turn out to be the different place. Don't you think i'd just once again anecdotally. The chip shortages real. You cannot buy still. I don't know i got a meeting somewhere. Fricken germany. it's you know it's like may eventually leave. the port. Got turn my old car in any way. So i don't know i'm going to be. I hope i write hitchhike question. So is it this big house. It could be a transplant housing buying houses. 'cause i think not because not because they're the demand is down. I think that there's no supply so people have given. Our prices are too high. So that would reflect inflation to fedex if you looked at their earnings report. I think this was a big scientific. Because i when i when i read through what they were saying just that they have to pay more for labor right now and there are still labor shortages and that it's not going away anytime soon. I mean once you start paying more for these employees to come in. I don't see that point either. Feel bad for the car dealers said that this is. We thought we were going to have some hard rain. This has been a hurricane that we've been dealing with in terms of no product to be able to people. Come in you came. Yeah but some of these guys are selling it. You know thirty percent over stickers. 'cause you can't get any new over sticker cars. The marzio ida. I'm not crying at the moment. Where from carbon. I for me. I mean okay for you so carlos yes. No look if you wanted to buy a refrigerator cow problem yesterday. The fda authorized the pfizer cova booster shot for people sixty five and older. Remember the fda panel said that okay other vulnerable americans immune compromised or with underlying conditions six months six months after they have completed their first two doses. That means many americans would be eligible. Receive the shots now and digging into that vulnerable term the agency used a broad definition including people who have medical conditions place them at the risk of getting severely sick and people who have frequent institutional or occupational exposure that opens the door for frontline workers for the cdc to potentially clear third doses for people nursing homes prisons frontline health workers and other essential employees who were among the first to get the initial shots Last december and the cdc could give final approval for the booster shots at to proceed at a vote scheduled for this afternoon. But like we saw the original e- you way was enough for a lot of people. I don't know i i think we need to do madonna. Half the people got madonna instead of fis over. There's no boosters from in a couple of weeks. I just not done with the data yet future to know what appears to be a little bit more durable so maybe maybe you get a couple of months extra out of it. I don't know we'll see but also the interesting part about the booster shot. The madonna is creating is. It's actually a different amount in the booster so right now. The pfizer booster right. The madonna booster is going to be some fraction of what the less of what the other one leads to not only does the data to come before the fda and they have to clear it. But that would mean that you would need to get different shots out to distribute all of these places the doing it the way maderna's doing we'll make it more complicated. It may be the right way to do it. But it does former theranos. Ceo's with homes is on trial defending herself against twelve counts of wire fraud and conspiracy to commit wire fraud sees obtained thousands of private text messages between homes and her coo and then boyfriend sonny. Bonnie now want to get straight over to cnbc producer. Yazmin corum who's been in the courtroom every day of this trial and obtain these text messages. So tell us what's in them andrea thousands and text messages between liberal hole and sunny ball. Wannabes these toxins right messages. Span from two thousand eleven to two thousand sixteen which we know is when their relationship personally and professionally ended when he left theranos. Lemme a picture of what these text messages. Show elizabeth homes. They show she was embarrassed. Confidence see listrik the first example from two thousand fourteen elizabeth homes text sunny ball wanting total confidence in myself. Best business person of the year sunny response to her awesome. You are listening and being a tensor. Another example elizabeth is boasting about the money. That's slowing in baroness investors. She texts sunny. Just finished. Calls alice while Alice while on his course of the walmart same along family ended up. Investing one hundred fifty million dollars into barrels sunny responds to this text message. They're not investing in our company. They're investing in our destiny. That of course is the much different destiny than what ended are being mentioned. We're fighting in charge of various serious are and potential prison. Time a zero to add that. I did reach out to for wanting and attorneys for homes. They they declined to oversee osmond. What does this tell us though about her. And her defense case in terms of how she's trying to going to patriot self. Does this help or hurt her. You know it can go both ways that these text messages A server elizabeth poems that we all knew cool confidence. But i have to tell you andrew that it's completely different than the elizabeth homes. We are seeing incited outside the courthouse. I've been covering his case. I three years and she has been silent. We throw her questions outside as she's walking in she ignores all of them in. I'd jumped in the elevator with her referring her trees before enshrouded shot her up and he doesn't say anything their mo is clearly to keep her silent which is a complete contrast to the elizabeth homes. You i saw years ago making the media rounds appearing on every magazine appearing on these television networks. That really begs the question. Who is the real. Elizabeth olds are does the time line to the point or any of the text message to say. Wait a minute. You're telling me that this doesn't work in the entire technology that we've built a company on is a is a fraud or anything like that. I mean confidence is great but is there any indication that she knew that it was all built on a house of cards. None of it was real none of that they do. They talk about some issues with their edison lead testing technology. They don't text about anything related to fraud but they do mention about issues within the company they mentioned bow us some exits of employees. They mentioned about some turmoil with company. They talk about the former wall street. Journal reporter john kerry ru and him in are getting talking severe employees within the company. How swath that they do rank up this year the deseo not no. It doesn't maybe. The ceo didn't know that the technology didn't work is that that would be my defense. I guess there. There is the paper trail that showed that she was aware government. There's nothing in. The texas betrays the idea that she is nervous at any point or anxious. Any point that the technology isn't working or that they have to use these other testing machines to verify or in some cases just do the test unto itself yeah again. There's text messages shown that they were. They were worried. There's one that may sense. Elizabeth actually amount in you know our government necessarily that said that the normandy laugh in a expletive disaster so they knew that there were issues star. He hasn't been. I've seen some of the text to the defense that we've heard at this. Point is that sunny wani was the one who is controlling things and that she was under his thumb with some of those things not going to be probably one of their defense. Y'all saw the bombshell documents. That were unsealed a few weeks. Elizabeth homes is claiming some very serious things instead but sunny ball wanting abused her. Both mentally and physically. It's allegations are unable. Bomani category denies. I look through six hundred breaches of these text messages. And what. I saw or text messages between ridge. Visuals were interrelationship. But again these messages are only one piece of the puzzle. Is you guys know. This is the very big. It's been a foot if elizabeth died. Speak stand it's going to be a monumental nor because we really have not heard from elizabeth foams her side yazmin. It is great to see. We appreciate you walking us through this reporting on this as diligently as you have and we were looking for. Updates and progress in boys courtroom drama. So thank you coming up. The clock is ticking again on the country's debt ceiling former majority leader eric cantor on the congressional calculus. I don't believe we're gonna see either a shutdown or the fall and we've seen this movie before everybody reverses depending on where they said. That's what happens every time. There's sort of a sick to it. I will actually agree with you there but there are good things to spend money on. Two wrongs do not make a right more. Squawk mod. After this you got gotta take a listen to this. It's swap that's right. Cnbc's flagship business news. Show is a podcast squawk pot. This control to is not just the show folks to even better because it's only audio. Join me katie. Kramer as i take you inside the squawk box control room and beyond the headlines of our tv broadcast with. Joe kernan becky. Quick and andrew. Ross sorkin every weekday royalva. Subscribe to squawk pot on apple. Podcasts spotify stitcher or wherever you get your podcasts banjo by this. Is todd with joe kernan becky. Quick andrew ross sorkin. Here's the debt limit. Drama has wall street plotting out some worst case scenarios some big risks to the economy. L'envoi joins us now with more on good morning jail goldman sachs calling the current debt limit. Showdown the riskiest decade analysts their project the treasury department would face a five hundred billion dollar shortfall for october and november if congress does not raise the debt ceiling that would trigger a forty percent cut in federal spending potentially including interest payments social security checks and military pay even just the delay increasing the limit could be damaging as well in the letter to congress yesterday. Six former treasury secretary said quote postponing action to raise the debt limit untold too close to the deadline undermines confidence in our political system at home and abroad. Now it is important to note the both democrats and republicans agree that default would be catastrophic and that the debt ceiling should be raised. What they're fighting over. Who should actually do it. Don't play russian roulette with our economy step up and raised the death failing to cover all that. You've been engaged in all your long now. Complicating everything is at. The debt limit is now tied to government funding which runs out in just one week. This is similar to what happened in two thousand thirteen. And moody's estimated that sixteen day shutdown reduce gdp by about twenty billion dollars roughly half a percentage point of growth at the time so guys the worst case scenarios clearly bad but even the medium case scenarios. Don't look so great either. do alon thank you. This next person may know something about this now for a closer look at the debt ceiling showdown on capitol hill and the potential impact on the markets and investors. Welcome eric cantor former house majority leader. Now moas and company vice chairman and managing director eric. Three and a half trillions a lot. So i understand the republicans if you have the house the senate and the president. Don't you have the ability under reconciliation to do this yourself. What what's the problem. Could they do it under reconciliation. Short answer is absolutely yes they can. And that's been mitch mcconnell's point along the last couple of months. It's not as if he is not put the democrats notice that the republicans on capitol hill as because they've not been apart at all of the biden administration and the democrats pushed to spend all this money he has said early on. Mitch's said hey. We are not going to participate in increase in the debt limit. So again all the people who are getting all nervous Not yet this is serious. Stop you know first of all job remember. I mean we have been seen this movie before. I've participated in the movie before in two thousand eleven and two thousand thirteen. There's no question that the democrats have a out of this and oddly in the end are going to take care of this. I think what the what the reticence is is. There's there's a few things that are standing in the way here one is they have procedurally put themselves in a box and it's gonna take them time to get out of that box. Which of course slows down the march towards trying to get through there three and a half trillion dollar spending belt but they can decouple the debt ceiling from the continuing resolution. Which is the stopgap measure to continue the funding of government. So there won't be a shutdown. They can do that. And mitch. mcconnell and the republicans have said that republicans will help support keeping the government open. Just don't tied to a debt ceiling again it's just a procedural that will take a lot of time the second issue very interesting that you know when you come to the debt limit. So let's say that they're going to separate out the debt limit and have a separate vote on that I don't believe that they're going to well. They've got two options the democrats they put the debt ceiling provisions In their large three and a half trillion reconciliation bill. The problem with that is. I don't think they're going to be resolved on all those issues by the time the need for that arises in mid to late october so there are other option is to have a shock. Reconciliation bill aim justin increasing the debt. Ceiling the issue. There is if you put a debt ceiling provision in reconciliation. The democrats have to cite a some specific. As to the amount of indebtedness they'll have to incur again which goes back to the democrats disarray which they can't decide is at three and a half trillion. is it a trillion and a half trillion. So that's sort of what's behind their reluctancy to do that. At the end of the day back to your question they will take care of this And i i don't believe we're gonna see either shut down or the fault they can. They can take care of it. Without republicans doing anything can they. Not that is correct. Well the republicans have to join them in funding the because as you know as as i said to him you loose. But that's not an issue you said at this point. So i think mitch mcconnell has already said they're going to help so the republicans will help do that. Yes harkening back to. You said you've been through it before. I had forgotten about that. You and bainer in president obama had a grand bargain a big deal already to go and now the narrative is chain. One side says that That you talk and walking away. The other side says that that president baba changed the entire deal after he already had an agreement. What is that a matter of opinion or is there facts. Are there alternate facts. So the other piece of that is joe. Biden was central part to that as well which was a very different joe biden than we see going on today because he was the one who you know i met with him biden commission three times a week for about seven or eight weeks and we really made a lot of progress in accomplishing spending cuts. Which over the next successive years allowed the The budget deals to continue because those spending cuts Actually took the place of what happened back with the time that you were bird to on this request store but yes. I think there was a little bit of all of that. Joe that you know. President obama changed the deal As well as in the republican ranks back way back then we didn't have the boats for any notion of what president obama wanted at the time. As you remember back then you know. My party wanted to transform the entitlement so we could actually regain some fiscal integrity and there was just not a meeting of the minds on how to do that between us and the obama administration. It's not why you got primary. Does it out. We can't we can't relitigate all this they'd that we don't. We don't need to earn a better place. You're in a better place. You're better palm good absolutely so it sounds like one of the things that democrats don't want to do is show their hand on the three and a half versus two versus one ahead. What mansion go for. What and you know. It's not just mentioned in cinema. There's some moderates in the house. Theoretically they folded pretty quickly last time. But the the party. Would you say that the disarray and the democratic party is what's responsible for the not being able to raise the debt limit. That's where we are. That is exactly where we are. I mean they're going to have to get over. You know this this difference or lack of agreement on the amounts of not spending bill in order to raise the debt ceiling. Because as i said before they'll have to provide for specific amount it bits in a reconciliation. But i think also what's driving. The disarray is the prospect for increased taxes. Go back to this john. My my the seat. I used to rob present was the most republican in the of virginia And is now held by democrat And the current member of congress. I can assure you is not excited at all in raising taxes. That is a death-knell to anyone sitting in that seat. So i think that to your point. There are moderate democrats yes. They have caved trump's of giving pelosi more time but i don't think that those suburban seats that they're in right now. I don't think those constituents wanted to see their member of congress to increase jackson's. That's what i was going to ask you about. It didn't did those moderate democrats cave because it looks like they got sore not what they asked for. Which is they wanted. The separation of the big infrastructure. Bill the bipartisan infrastructure. Bill from whatever you wanna call the so social infrastructure three and a half trillion dollar bill. They wanted a separate standalone. Vote on that and they wanted that to be taken care of without consideration for whether or not they would go ahead and vote on the second. It looks like nancy pelosi said okay. We'll vote on that the twenty-seventh which is monday. And maybe it sounds like they're still sticking to that even knowing that they don't have the bill ready to go did they. Cave or is this. They cut a deal and we'll see if leadership sticks with that deal and whether they go along with it if they don't know it depends on what the conversation was as to whether there was really a deal there because if pelosi just committed to bringing the bill up on the twenty seven so we've got that come in next week And that was it then. Then they'll have to make the decision whether it's even a smart move to execute on that deal. Because i can tell you as a leader you don't you do not want to bring up a piece of legislation and have it go down on the floor. That creates all kinds of precedent boats in the rest. It is not an easy thing to overcome what you do that. You don't think he has the votes on that net get no no absolutely not no because the republicans are not going to join in any skiing. That helps the democrats Enact one of the largest tax increases are and spent trillions of additional dollars. So then pelosi's gotta deal with her progressive caucus and they've already said they've got enough votes to block now. I'm not sure about their whip count. But i don't know if i were pelosi. I wouldn't take that risk because of the ramifications of putting a bill on the floor. That's going to go now. All right eric cantor thank you. I thought andrew. You were thought you were going to talk to him. But he looked unhappy. When you're talking about obama and right that you thought you were going to get involved with something. I don't think he really say anything. Bad about obama. You you you you wanna talk to him about anything cool. You sure did he. Did he have his facts. Wrong or something vaccine. Well i was nervous eric. I i will say this. I'm gonna make one comment. I welcome it. I asked for my comment. Is that when the democrat when when concerned power they willing to spend spend spend spend spend. Democrats are in power the whole thing everybody reverses depending on where they serik. That's what happens every time. And there's sort of a sickly there's sort of sick to eight funding defense number one. We need in a world. We need to be said and cutting corporate taxes to make them globally competitive so we can compete around the world and hire people and succeed. Economically is different than the total. Look they're a good thing. O.'neil two wrongs do not make a right. I do not support the idea of spending too much money. I find it completely. Hypocrisy hypocritical that depending on. Who's sitting in say so you're everybody's willing to spend money to spend money again. I think we need to leave me now. Budget i absolutely do talk about the doubling. The entire debt of all its predecessors at obama orchestrated with his predecessor. All of obama's predecessors. I said he doubled the debt of every previous president away. The worst recovering suggestions world war. Two the pri- this prior. I did not hear complaints from this side about this about too much spending nita strong defense and you need big. It's very you need competitive corporate sector. Eric thanks area all those things. But i think you can. Do you can keep cradle-to-grave entitlements for the fifty foot high. I did not. I did not defend that position. I hear me defend that position. How much you spend three and a half or how much you want to spend on human infrastructure. I would probably spend materially less but we can have a longer conversation about that will be next next. Unsquashed todd the point sky whether you've gotten to travel or ready for some retail therapy ryan. Kelly has the smartest ways to use rewards points that may have been piling up during the pandemic. If you've got credit card points transfer them to airlines. There can be amazing. Deals out there news. You can use an points to right after this. Cnbc's workforce executive council is the premier group c. suite human resources executives from leading companies across the country. It offers a members. Only portal and chat plus exclusive industry contact with access to breaking news calls and digital networking experiences the networking resources. Hr leaders need. No apply to the workforce executive council at cnbc councils dot com slash wnyc. We're back. this is pot good morning and welcome back to squawk box right here on. Cnbc mantra ross. Sorkin along with becky. Quick and joe kernan more travelers returning to the skies and airline points and miles deals. They are changing. Might mean your rewards are becoming less valuable. Join us right. Now is an expert on all things airline points brian. Kelly is the ceo of the points guy and talking about inflation a lot. Maybe there's inflation or deflation with miles. What are we going to do here. Brian. not all bad news. There are some silver linings to the pandemic. most frequent flyer programs have now made it easier to change or cancel tickets. So i've actually noticed. Frequent flyer miles have become more valuable because they give more flexibility. If you want to cancel the trip for whatever reason you can get all your miles back but certainly you know it varies by program. But what i would tell people is if you've got credit card points. Transfer them to airlines. There can be amazing deals out there. But let's talk about it so for those of us who actually like to do the math. And think we're clever and arbitraging. What's happening here where we're the points the most valuable. When should we be worth today. When are we getting a good deal. When are we getting a bad deal. When should we actually use the mile on. Shouldn't when should we wait so look. The best is still international business class. Next week i decided last minute to go to paris. New york to paris air france. There is award availability. Like i've never seen in my lifetime. Ten tickets one hundred fifteen thousand miles round trip business class. I checked it was an eight thousand dollar. Flights so airlines are still charging a huge premium for business class on many routes. But it's a screaming deal when you use miles. So i got nearly nine cents per point in value for my amex points because amex now has twelve transfer partners. Air france was a twenty five percent bonus so instead of using one hundred fifteen thousand points. I use only ninety thousand for roundtrip business class. So if you have the appetite to travel abroad. Going to europe business fastest is the best time of year to go too far fewer tourists than in the past but delta even domestically they came out with the fair sale. They want you to use your miles. We saw delta's charging as low as six thousand sky. Miles one way for seattle new york. Just one it's era argue right now. The which which airlines have the best deals which is the worst. I think when you look at the value of alaska airlines has really valuable miles. United is a top contender. But it really just depends each airline has. It's a bright spots. What about credit cards. Amex guy you a chase guy. Amex and chase are neck and neck. Amex has more partners. Chase has some more valuable transfer partners like. Hi so really just depends but amex at chase points. You can't go wrong but the trick is that we gotta talk about this. You got transfer the points from the card directly to the airline rather than go through the card program for example chase just added aeroplane which is air canada's loyalty program. It's only seventy thousand miles one way to go business class anywhere in the us to europe. You know if you book through their puerto you're gonna get seven hundred maybe nine hundred dollar ticket so you're flying coach if you book directly but if you figure out the transfer game you can fly for the same amount or less in business boss. Here's the thing. I've never understood about the transfer game. Why why is the deal so much better in the transfer game and the issue that once you transfer you can never go back correct when she transferred to an airline. You can't say oh. I want my chase points back and try to reverse geisha. Let's talk about this. Let's get very practical. Because i think a lot of people who are watching have had this have dealt with this before. You can't actually book the flight before you have the miles in the account so sometimes as little chicken and egg problem. Do you know what i'm talking about here. There is some airlines. If you call they will hold an award. We've got a block at the point. Sky airline loyalty programs will let you do that. But there is a level of risk exactly to your points where there's high risk there's high reward and that's how it works with loyalty programs if you transferred there could be changing availability but in general once you educate yourself on how to transfer your credit card points to airlines you can get tremendous value. One example emirates is now adding up to ninety percent capacity starting in november from the. Us gateways you can fly dubai for one hundred thirty two thousand miles one way in first class a ten thousand dollar tickets so there are huge rewards for those who can take on anybody out there right now actually buying miles from people. I mean there's a place for that right. I don't recommend it if you buy a lot of google ads half business class. Generally what those people are doing is buying frequent flyer miles and booking tickets the airlines. Find out they can not only cancel your fly. Take all of your Miles away. So i do not recommend that one lesson i think over the pandemic people have had tons of miles. Because i haven't traveled. We had the points guy at now. Which will actually give you your net worth. It'll track all your major airline miles and credit card points. And i think it's important for people to visualize how many miles they have and don't let them keep racking up over time they will lose value. So use your miles. There's no better time to do it. Bryan appreciate seeing you. It's fun i've been on you for so long and i constantly click on that web on. I'm glad to see you again soon. That's clock pod for today. Thanks for tuning in swan. Fox is hosted by joe. Kernan becky quick andrew. Ross sorkin tune in weekday mornings on. Cnbc at six eastern to get the smartest takes and analysis from our tv. Show right into your ears. Listen and follow squad pod. Wherever you get your podcasts. Tell friend tweet us all that good stuff and we'll meet you back here. Tomorrow are clear thanks guys. Cnbc's workforce executive council is the premier group c. suite human resources executives from leading companies across the country. It offers a members. Only portal and chat plus exclusive industry contact with access to breaking news calls and digital networking experiences the networking resources. Hr leaders need now. Apply to the workforce executive council at cnbc councils dot com slash w. e. c.

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The Dollars Loss Is Not Americas Win  Ep 637

The Peter Schiff Show Podcast

55:05 min | 10 months ago

The Dollars Loss Is Not Americas Win Ep 637

"Leadership i like to thank indeed for supporting the peter. Shift show podcast. This has been a challenging year for businesses across the globe and they are under pressure to be as efficient as possible which means every higher is critical. That is why indeed is here to help you finish twenty twani as strong as possible. Indeed is the number one job site in the world and you can get a free seventy five dollars. Credit at indeed dot com slash peter terms and conditions apply and the offer is valid just till december thirty first. The big story of the week continues to be the slow knelt down of the us dollar. And it's not that the financial media is ignoring the story they are covering the dollar's decline. It's just that they don't seem to appreciate the significance of what's going on nor do they realize how much further the dollar has to fall. And in fact most of the coverage thus far has been of the positive aspects that will result from the declining gdp which is typically the case. The dollar has gone through some significant declines in the past. I mean the most recent big bear market in the dollar was from two thousand and one through two thousand eight dollar did drop in two thousand and nine after the big rally in the second half of two thousand and eight but then the dollar recovered but we had a very very strong dollar really from the two thousand and nine low up till the peak a couple years ago. we've really been going sideways. And now we're finally starting to break down. In fact the dollar index closed below ninety for the first time since december of two thousand and fourteen. I believe and we ended up at eighty nine spot nine two on the week. We actually had a slight positive day on friday. So the index was a little lower on thursday but were now almost two percent i think from taking out the low and being back down to where we were in december of two thousand and fourteen which would put the dollar index at a six year low. And as i said on my last podcast. I think the odds are pretty. Good that we're going to take out that low before the end of this calendar year which you know is coming up another couple of weeks. But i think that is going to set the stage for a major decline in the dollar's value in twenty twenty one and it's not going to end a twenty twenty one. This is going to be another multi year bear market in the dollar. I think we are gonna take out the record. Low from two thousand and eight which was about seventy one on the dollar index. So we've got a long way to fall to get down there. We got about twenty points but then isn't even bigger. Drop in uncharted territory. Once we take out seventy course the. Us stock market continues to ride the wave of money printing with all four of the major averages making new record highs this week in fact the record highs. We're all clocked in on friday. But all of the indexes did manage to end friday in the red so. I don't think it's technically a significant reversal. But we'll see. I mean it would be a bit of an irony. If the market peaked. Just as tesla was added to the s. and p. five hundred that might make it too simple so my feeling is that we probably have more upside to go nominally anyway in the us stock market tesla did hit a new record. High itself today and close positive on the day was pretty volatile in those last few minutes. Friday was the last day to by tesla prior to its inclusion in the s. and p. five hundred. It's now probably going to be the most expensive stock in that index. I think it's trading about fourteen hundred times trailing earnings I think of course. The street expects earnings to improve. So it's future. P is not nearly as rich. But i don't think it's trading at three hundred or four hundred times expected earnings of course expected earnings are not as a tangible as prior earnings to trailing earnings actually happened The future earnings are just forecast so they could actually be wrong but there is a lot of optimism but of course look. There's going to be a lot more competition in the electric car. Space in fact one of the companies that we own in our value strategy by do announced this week that it was going to be building electric cars of its own and that helped power by to a twenty percent gain on the week. But it's not just new entrance but a lot of the existing established car companies are going to be able to compete with tesla In electric vehicles and again it's that electric vehicles to that is also helping to power the demand for copper and nickel. Which of course are used in those cars and into batteries but the big problem for including tesla in the s. and p. Five hundred is all these funds that are index to the s. and p. Five hundred now have to by tesla and tesla is extremely overvalued but they have to buy it anyway. So it's gonna make the s. and p. five hundred index inherently that much more overvalued and it's gonna set it up for that much bigger of a decline once the air starts to come out of this bubble. Of course you know. The air continues to come into the bubble in a form of fed money printing. And in fact if you look at the bad labor numbers came out on thursday. You know everybody is watching now. These weekly jobless claims and we got a big surprise thursday. They were expecting eight hundred six thousand new claims and we got eight hundred. Eighty five thousand. That's almost eighty thousand additional weekly claims run employment and in fact they revised upward the prior week. It wasn't that big revision but from eight hundred fifty three thousand eight hundred sixty two thousand But now look at the trend from age sixty to eighty five but this bad news is good news because again it puts more pressure on congress and the fed to try to do something about the increasing rates of unemployment. And of course what they do is just crate board flation because they somehow think that there's a trade off and if we have more inflation we'll have less on employment in reality. We're going to have more on employment because more inflation and even the people who are employed are going to suffer as a result of the rising cost of living but the idea that this is somehow a positive for the us economy is a bunch of nonsense. Not a positive. The last time we had a weak dollar if you recall what was going on and during that time period from two thousand and one to two thousand and eight oil prices went up to a hundred and fifty dollars a barrel. That was a big problem in a lot of americans were paying a lot of money for oil. What are the reasons that i suppose it was palpable as we had the housing bubble so there are a lot of people that had a lot of home equity back then and so they could tap into that home equity to tap in a gas station to fill up their tank but it was beginning to be a problem and of course it wasn't just oil prices other industrial metal prices copper. Nickel were very very strong in fact. Those metals are now strengthening again. This time around at one of my biggest personal holdings in the stock market is a royalty company for nickel and copper. The stock was up fifty percent on the week so the inflation signs are already there oil prices by the way speaking of oil. This is the highest close since the big claps were now back over forty nine dollars a barrel for crude oil. So i think we'll be in the fifties probably by next week still a lot lower than the one hundred and fifty dollars so price that we peaked out in two thousand and eight. But i think we're going to get higher this time and we're not going to have the supply coming in from the us market but a lot of it is going to be because of the weak dollar. You know the the reason that a lot of these pundits believe a weak dollar is good for the. Us economy is they look at the impact that the weak dollar has on multi national corporations that earn money overseas and obviously when they repatriate the money earning in euros for example the euro now at one twenty two and a half or just above there but as they sell the euros for dollars they now get more dollars for their euros and since they report their earnings in dollars will now these companies can report. Better earnings Because they've earned more dollars but the reality is the dollars that are earning are less valuable. They have a lower purchasing power which means when they pay out dividends to their shareholders based on those increased earnings. It's not a real increase. If your cost of living goes up which is going to happen. The weakness in the dollar is not going to be isolated to the foreign exchange markets. It is going to result in a higher cost of living here in the united states. Now of course a lot of these pundits also talk about the fact that a weak dollar gives american exporters a competitive advantage relative to producers in other countries because our products become more competitively priced. It's not really true because what happens is the only way that a. Us exporter- can become more competitive. As a result of a lower dollar is if he also lowers the foreign currency price of his exports so for example if the dollar loses twenty percent of its value relative to the euro. And i was selling some products in europe at ten euros in theory i can lower the price to eight euros but still have the same number of dollars and that supposedly my advantage i can cut my prices by twenty percent but still earn the same amount of money but a monitoring the same amount of money. I'm earning the same amount of dollars. But emerging twenty percent fewer euros and what you have to understand when it comes to exports is exporting is a means an ends countries export so that they can import because what society wants is products. You want goods. You're exporting products. Just for the sake of having work your exporting products because you want to import other products and the concept is comparative advantage. If a nation has a comparative advantage in producing certain goods it will produce a surplus of those goods and export them to other countries and then use its earnings to buy goods produced in other countries where those countries may have a comparative advantage and therefore trade is a big win because you produce what you produce most efficiently and then you trade your earnings you use those earnings to buy what other countries produce more efficiently. But if you're currency goes down and then you earn fewer units of foreign currency so if we earn twenty percent fewer euros based on putting our goods on sale and selling our goods in europe at a lower price if we're earning fewer euros then when we want by products and want to import from europe we can't buy as much so basically what happens when your currency goes down and then you put your exports on sale. You can't import as much as a result of your exports so in other words you're actually earning less for your labor. You're not gonna be able to import as much goods as what you had to export to pay for them. So we'd decline decline in your standard of living. The goal is not to slash your prices and sell your products in a discount. The goal is to earn as much foreign exchange as you possibly can from your exports that way you maximize what you can afford to import. And that is the reward for the work that goes into producing the exports. Exports are how you pay for imports. And if we don't earn as much for our exports than we can't afford to buy as many imports and so we have a lower standard of living and that is what is going to happen but also the week this and the dollar should be a warning sign. That game is coming to an end for the fed and all this money. Printing and stimulus quantitative easing. In fact if you look at the numbers that we got on thursday member every thursday we get the fed's balance sheet and we get the money supply well. In the most recent week the balance sheet surged by just under a hundred and twenty billion dollars. I think this is the biggest weekly gain in the fed's balance sheet since may and member that was really when they started the massive qe infinity. They were really printing. A lot of money Earlier in the year you know the the pandemic really you know hit hit the fan in march and then the fed came in april may printing all sorts of money. Now we're back at the same pace as we were back then and that new round of buying debt monetization has now pushed the balance sheet up to seven point three six three trillion dollars. So this is a new record. High in the fed's balance sheet and in fact if you recall when the balance sheet originally topped out at a little over four trillion dollars and this is before they started to unwind the balance sheet with quantitative tightening if you recall when they first announced their intention to shrink the balance sheet and i said that while they'll never be able to succeed even if they begin the journey they'll never complete it and that if they start shrinking the balance sheet. They'll have put an end to that process and then quickly reversed said. If you recall my initial target for where. I thought the balance sheet would be when we had to relaunch. Qe qe four. I said the balance sheet would go to at least ten trillion dollars during the next round. Q eat and i think that that prediction has a very good chance of coming true by the end of next year. I really think we got a good shot at a ten trillion dollar balance sheet before the end of twenty twenty one also along with the balance sheet expansion. Is the explosion in the money supply last week. Two hundred and twenty eight point one billion dollar increase in an to. That's just one week. Two hundred and twenty eight point one billion dollars was magically created out of thin air. Obviously a lot of this in order to buy up. All these government does fact. My son spencer pointed out on twitter that the size of the treasury securities portion of the fed's balance sheet has now doubled in size since the beginning of the year so this year. The fed has bought as many. Us treasury bonds as it did in all the years prior to this year coming in and my guess is they're going to break that record next year by the way if you're not following my son on twitter you might as well. He's got a pretty big fan base growing. He's got twenty three and a half thousand followers. Now's is getting close to twenty five thousand people following him on on twitter but the reason the week this and the dollar should be a warning sign is that as long as the dollar remained stable or as long as the dollar was strengthening the fed could seemingly create as many as they want right as long as there was demand for dollars then they can increase the supply of dollars without a problem. And that's how the fed is able to artificially manipulate interest rates. They can keep bond prices down by buying bonds if they're a big buyer in the bond market and they're propping a bond prices they're keeping interest rates low by bidding up bond prices. But the only way they can buy bonds is if they print money but that money that they're printing there has to be a buyer for that money. I mean maybe there's not a buyer for the bonds but there has to be a buyer for the dollars and for a while there were buyers for those dollars and be costumer buyers for the dollars. The fed could sell those dollars then. Buy bonds and that was keeping everything afloat. But i've always been saying that. The fed was sacrificing the dollar to prop up the bond market to prop up the stock market to prop up the economy to facilitate large deficit spending on the part of the federal government but now the canary in the coal mine here is the weakening dollar because now the market is saturated with dollars. The market doesn't want any more dollars but the only way the fed can keep a lid on interest rates is to keep printing dollars. Fed has to keep adding to a supply of something. We're there's already inadequate demand the fact that the dollar is falling right now shows you that. There is inadequate demand for the number of dollars it already exists. Plus we are running massive trade deficits on a monthly basis. We're putting out an extra eighty billion or so dollars into the global economy. That comic doesn't want. I mean they don't need them the by our exports by definition because that's the deficit. They've already bought all the products they need. And they've got this eighty billion dollars leftover so they sell them and so that's putting downward pressure on the dollar. In the meantime the deficits the budget deficits are getting bigger and bigger and now the federal reserve wants to monetize those to prevent interest rates from rising. So they have to expand the money supply even faster and add to the glut of dollars on the market so in this dynamic. The only thing that can happen is that the dollar goes down. You got all this supply and demand and then of course it begins to feed on itself because as the dollar really starts to fall more and more people want to borrow in dollars but fewer and fewer people want to lend in dollars. Because obviously if you're lending dollars you're getting screwed because by the time you get your dollars back. They will have lost a lot of value. But a lot of people wanna borrow in dollars because it's free money and so this dynamic feeds on itself. And just accelerates the dollar's demise and the strength of the dollar is key. You have to understand that the only reason this economy works is because the overvalued dollar the only reason the fed has been able to get away with all the stimulus and the bailouts is because the world has made it possible by buying up those dollars but now that the world doesn't want those dollars in his facts starting to hemorrhage those dollars. This whole process is going to unravel the mainstream of the financial media. Just doesn't understand this dynamic. They still don't get it so they still don't realize how problematic a weak dollar is going to be now. The weak dollar would have caused a crisis all on its own back in two thousand and eight. If the dollar had continued to fall there would have been a currency crisis but instead we had a financial crisis and that financial crisis ironically was reprieve for the dollar because everybody ran into the dollar and bought it and a lot of people thought that that was going to happen again. Kovic started we initially got a rally in the dollar in the early days of covert and a lot of people that was reminiscent of what happened in two thousand eight. I mean that's where you had you know. The dollar milkshake guys talked about how everyone's going to buy dollars. And i pointed out how pathetic that dollar rally actually was. Sure it rallied. But it was a shadow of the type of rally that it had had in crises in the past especially given the severity of the decline in global equities. The dollar barely caught a bid. And now here. We are dollar index breaking below ninety dollars days as the safe haven. Goto asset are gone. The question is how many days left where it still serves as a reserve currency. That is a you know the sixty four trillion dollar question that we don't know for sure what the answer is. But i think we're witnessing to beginning of the end of the dollar gemini that has made all of this possible but so many people in the financial industry. Still don't get it. I mean they never got it. In the past that's why they didn't understand The criticisms in the warnings that i was You know issuing prior to the two thousand eight financial crisis and that's why they still don't understand that everything. Federal reserve did subsequent to the two thousand eight financial crisis just exacerbated. The problems caused it and set us up for much greater crisis. Which is the one. We're heading to now. Twenty twenty has been a very challenging year for employers and twenty twenty. One is probably going to be even more challenging. That's because a lot of new regulations are likely in the pipeline. The democratic administration is likely to reverse the trend of the trump administration. There's going to be more regulation particularly employment law. It's going to be increasingly more important that you get the very best hire every time you add a new employees because each employee is gonna come with significantly more risks for the employer in addition to the risks of cove. And having to make sure that not only are your costumers safe but your employees safe and so it's more important than ever that before you hire somebody you make sure that you have got the right person for that job and indeed. Is the number one job site in the world with more total visits than any other job site according to calm score dot com indeed helps you find quality candidates quickly so you can focus on hiring people that you need to keep your business going and unlike other sites indeed gives you full control and payment flexibility over your hiring. You only pay for what you need. 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Peter this is the best offer available anywhere so go right now indeed dot com slash peter terms and conditions apply offer valid through december. Thirty first you know in fact. Ironically i was watching on. Cnbc as joe. Kernan was interviewing henry. Blodget and henry blodget was one of the most famous if not the most famous internet dot com analyst during the dot com bubble. I think he was the merrill lynch analyst and he has some. You know crazy price targets on all these internet companies. So he was really. The poster analysts for that bubble and since the collapse of that bubble. He's gotten a lot better. I mean i think he's learned a bit from his mistakes and he was on and the topic straight to bitcoin. Which is something that happens quite often on cnbc pretty much. Every guest is asked to a pine on on bitcoin and in generally the comments were positive. But finally we saw somebody talk about bitcoin. Being a bubble and in fact blodget said in his opinion it was the mother of all bubbles the perfect bubble because you have an asset. That has absolutely no intrinsic value whatsoever so people can ascribe any value to it. They want that is in limited supply and they have this this narrative that everybody is signing onto that everybody seems to believe in and it is. You know the ultimate Pyramid scheme greater fool dynamic going on and then immediately joe curtain interruption to argue with him and take the bullish side of bitcoin. And why you know. Bitcoin is digital gold. And it's the new gold and therefore people need to buy and what's i thought particularly ironic about that is that my first appearance on. Cnbc was on squawk box with joe kernan. He wasn't to host but he was. One of the regulars was joe. Kernan was there with marc faber and the host of the show was mark. Haines who passed away Several years ago. But that was. The first time i was on steve lease man was on there and i came on for first time and was talking about the financial crisis and the federal reserve and artificially low interest rates and one of the things i said was that people should buy gold as a hedge recommending foreign stocks and. We talked a lot about that. But i talked about gold and of course the price of gold was under four hundred dollars the first time i came on. Cnbc and said that people should buy it as a hedge against excess money printing and inflation and the fed and these guys just attacked me. I mean they were ridiculing me for recommending. Something as crazy as buying goals right. Nobody should buy gold. Who cares about the price of goal. You know people shouldn't be buying gold. And and so they all attacked me for recommending actual gold. But now joe kernan. Who is one of the guys who is attacking me for recommending. Real gold is now attacking other people for not recommending digital goal. Or my opinion fool's gold so he didn't see the case for buying gold but he sees the case for buying bitcoin and again. I made this point that the main reason that i'm not on. Cnbc is because they disagreed with my bearish outlook on the us economy. They didn't like my criticism of the federal reserve. They like my criticism of the fiat based monetary system and the deficits quantitative easing. And so. Because i was saying always unpopular things. They just didn't even want it on their air but now every day. They have guest after guest talking about hyperinflation a collapsing dollar. It's all good as long as you then recommend that people buy bitcoin. As long as you're going to tell. Bitcoin you could be. Bearish as you want and still be on and you know what i actually think is the trade right that i guess they're recommending. That they think is going to happen with. Bitcoin is the guys on. Cnbc the regulars the host. They think that there's no reason to buy goal. The by gold is stupid but there are some stupid people like me who by goal and what they're betting. Is that the people who are dumb enough to buy goals in the future will be even dumber and buy bitcoin instead. That's what they're saying is like for all those idiots who don't believe in central banking and don't realize that the people at the federal reserve geniuses all these crackpots who are buying gold in the future. They're not going to buy gold. They're going to buy bitcoin instead and so they wanna do. Is they want to load up on bitcoin now so they can sell it to people like me when i finally figured out that i shouldn't be buying cr- bitcoin instead of actual goal right. So they're betting that the goal boggs who they thinker dumb will be even dahmer and eventually ditch their goals and buy bitcoin instead. I actually look at it from a different perspective. I think it's really a bet. At this point on will the institutional investors be dumb enough ingredient off to jump on this bandwagon. As i am talking right now. The price of bitcoin is over twenty three thousand. In fact it's getting very close to twenty four thousand about twenty three thousand seven hundred and this is about as high as i've seen it. I'm not sure maybe. We peek their head above twenty four thousand. I'm i'm really not sure. And in fact. When henry blodget was on he did mention even though he was bearish. He said he sees no reason why. Bitcoin can't go to a million dollars. Bitcoin now i find it very hard to believe that it would get up that high but in theory sure because he said a million dollars of bitcoin makes as much sense as twenty three thousand which is true because any value above zero makes no sense at all because there's no actual value there but if people are willing to pay that much for it then they're willing to pay that much for it but just because they're willing to pay that much for today doesn't mean they're willing to pay that much for tomorrow but there is a lot of pressure now on on some of these institutions that thing. Hey why have to do is by this. And it's gonna go way up in fact some of the institutions realize that simply by mentioning that they're gonna buy it that in and of itself is going to help push the price up. You know i mean obviously i mean i probably would have some impact if i were to come out and say you know what i was wrong and i'm now going to just buy bitcoin and i'm going to recommended all my clients by bitcoin and i'm going sell all my gold and gold stocks by bitcoin. If i were to say that then it could easily have a positive impact on the price of bitcoin. I read this article on friday. Know the top. Ten kripo of villains. And i was a little disappointed that i was only number four. I kind of wanted a top list. So i have to work a little harder next year to be number one but if one of the top bitcoin critics all of a sudden came out and said hey I i was wrong. i'm now buying it. It would probably have an impact on the price so clearly. If i were to do something like that. I would buy a bunch of bitcoin first and then i could come out and make that announcement of my intention to buy bitcoin. And then when the price went up. I could sell and i could take a profit. I would never do anything like that. But i would not put it past some of these other institutions who realize that their own mentioning of their intention to buy in and of itself could push up the price and help their performance against some of these hedge funds. Of course they marked to market so they can charge their clients. Twenty percent of the prophets. Even if they don't actually realize them which is a big advantage in illit. What asset where. It's actually hard to realize the prophets but if you can help goose some paper profits then you can you know. Get some real Incentive fees from your clients but. I think you're going to be some natural limit to the number of institutions. I mean the bitcoin community is going to greatly exaggerate every time one person from a hedge fund or institution Does something in bitcoin. They're going to focus on it as if the entire industry is making this this migration in the bitcoin. They're not and they never will. In fact i know from personal experience trying to get institutional money into gold was almost impossible for them to even make the jump to gold. You know they had. They had no interest or even gold stocks so to think that they're just going to go right to bitcoin emit they have no interest in gold. And why do they care about digital goal. That's one of the things i think is so incredible is so many people on. Lets say on financial television. Who have never bought any gold at all and who never had any interest in gold because they thought it was a dumb investment. What so if there's now a digital version of dumb investment will why is that a smart investment. I mean if goal was stupid. Why is a digital replica. Supposedly so much better. I mean especially since it doesn't even do any of the things that you can actually do with real gold so it would make sense to me if you had a lot of people who used to like gold and gold bugs who now so you know what i like. Bitcoin better than gold. But people who never like gold thought it was stupid and look down on people who bought it all of a sudden think it. Bitcoin is great. Makes no sense whatsoever unless you look at it from a more sinister perspective. Which is what. I've been doing regarding these pumping and dumping anderson sensuous relationship going on between cnbc and gray scale events. I thought it was very funny and this was the day before. Blodget came on so was on on friday. On and andrew wa- sorkin was on and he had a guest who is a representative from grey scale. Right one of the guys that works their. This is their biggest advertise. The biggest advertiser odd. Cnbc is gray scale. And of course they bring him on. They also were. What's your forecast on bitcoin. What do you think's going to happen. And of course you know. Well it's gonna go way up. What else is he going to say. But then i thought this was hysterical. Then andrew ross sorkin said you know. I wish somebody would give me the bears case against bitcoin. Like i wish somebody would do that. I'm like yeah. We'll invite a bear on there. I mean the first one. I saw was henry blodget and he was not really there to talk about bitcoin. It's just a joe kernan kind of steered the conversation eventually to bitcoin. Because he's such a big bitcoin bowl himself. Gold bear turned bitcoin bull. But angie were circuit. I wish somebody would. Just tell me the bears case for bitcoin. Well the reason no one is telling him. The bears case for bitcoin is because no bitcoin bears or ever invited on. Cnbc to articulate the bears case. All they have is one bull after another shilling for bitcoin one person working into bitcoin industry whereas when i used to come on you know talking about goals all they would do is attack. My credibility. Say i'm biased. You know no one should pay attention to me. Because what. Because i had shift gold and if i said put ten percent of your money and gold it was all because i i had a goal business that i was trying to promote. People are complete depended who were on these crypto businesses. Goal was a side business for me and still is my main business is asset management. Not gold but you got people coming on whose entire livelihood is based on bitcoin yet. They're never accused of being biased. But the reality is though for all the talk and all the promotion of bitcoin is all about institutions or buying bitcoin. because they're worried about inflation. They're worried about a week. Our they're worried about quantitative easing no. They're not they're not worried about any of these things. If they were they would be buying actual goal. They would be dumping. Us dollars they would be dumping dollar-denominated bonds. None of this is actually true yet. It eventually will be true. Eventually these institutions are going to start to worry about inflation and a weak dollar. Just that they're not there yet. So all of this is just make. This is just part of the false narrative to promote bitcoin. The reason that gold is not much higher is not because people are selling their goal. The buy bitcoin. They're not doing that. The reason that gold is not much higher is because people still don't get it. They're still not afraid they're still optimistic. It's risk on. They want to go into the stock market. They don't wanna be defensive. They don't want to buy gold and in fact. There's nothing defensive about bitcoin. Bitcoin is the ultimate risk asset. People are just betting on appreciation. That's not what you're doing when you're buying gold. You are hedging. you're getting out of assets. You're getting into real money but you're in gold instead of dollars or euros or yen because you recognize that paper money is losing value. So you to you wanna have dry powder but you don't want your powder to get all wet because the central banks too much of it so we're not even there but the bitcoin proponents are trying to create false narrative that the reason goals not going up is because everybody is buying bitcoin instead. They're not. People are buying bitcoin to gamble on the appreciation and the price of bitcoin the narrative that's driving it is that it's inflation hedge and it's replacing gold but there's no evidence that that's actually happening back and that's never going to happen and eventually when the price of gold really starts to go up because people are worried about inflation and are worried about all. The things that they're pretending is the driving force behind bitcoin. That could be the point where bitcoin really starts to fall. Because then you could see the people who own bitcoin wanting to get defensive. Wanted to take some of these paper profits off the table and put their winnings into real money. That is going to happen as much as so. Many people want to pretend that bitcoin is the real money. It's not that's the pipe dream. That's part of the hype. Now while i'm on the topic of printing money. I want to speak about an interview to that i saw on. Cbc what are the governor's one of the states. I don't remember Which state it was actually remember. It was a governor but it was somebody in state government thought. It was a governor but the guy was arguing in favor of more stimulus and the reason that this guy was saying. The federal government needs to provide. This stimulus is because the states can't and what he said was that the states can't print money and states can't borrow as much money as a federal government and therefore since the states can't print and borrow money the federal government needs to do it for them right. The federal government needs to step up and use these tools that are not available to the state governments. And first of all if we're gonna follow the constitution. The federal government can't print money. either. I mean nobody. According to the us constitution can print money right. The states are specifically denied. That power right. The constitution says that no state shall admit bills of credit which was how they described paper money. So the states are prohibited from issuing bills of credit but nowhere in the constitution is the federal government authorized to admit bills of credit issue. Bills of credit. And as i've discussed on this podcast before the way the. Us constitution works and the tenth amendment. Explains that if you don't know But you could also re deferral papers but the way it works is the states can do anything. That's not denied in the constitution. So the states have a lot of power but if the constitution says they can't do something then that's what they can't do but we're the constitution is silent. The states can do what they want right now. The states are going to be limited by their own constitutions but as far as the us constitution all it does is say what the states can't do and if it doesn't say they can't do it they can do it. The federal government. it's the opposite. The federal government can only do what the constitution authorized the so the federal government has these powers and if the power is not enumerated it doesn't exist and there is nothing in the constitution that says the federal government can emit bills credit. And that is not an oversight because in the first draft of the us constitution that power was there. They gave the federal government the power to create paper money and then they removed it. It was a vote of nine to two so they were to states. That wanted to keep it but nine states said no. We don't want the federal government printing money and so the federal government was not given that power in the final draft of the constitution. It's quite obvious that they can't do it. So nobody is legally allowed to print money but the way the federal government got around the constitution was they created the federal reserve in nineteen thirteen and the federal reserve as a private banking syndicate. They're allowed to print money. They're not the federal government and so the money. Printing is done by the federal reserve but initially federal reserve was independent. And also on this podcast that when the original federal reserve act was passed the federal reserve was prohibited from owning any us treasuries and the reason was obvious as they didn't want the us government to be able to use the federal reserve to do an end run around the constitution because the federal government had no power to print money but if they could sell bonds to the federal reserve which could print might a buy those bonds they could effectively around that constitutional limitation and utilize the federal reserve to print money. So the way they safeguarded that they said the federal reserve cannot by us treasuries now. of course you know. The ink was barely dry on the federal reserve act before they amended it. And why did they amend it because world war two started in nineteen seventeen and the government wanted money to pay for the war but they didn't want to raise taxes so they wanted to borrow the money and they amended the federal reserve. Act to make that possible. And that was the beginning of the end. Because that's when congress was given the ability to sell bonds to the fed reserve the federal reserve was now authorized to hold on its balance sheet. Us treasuries now. Of course there were congressman. Who were concerned about making it illegal for the federal reserve to buy treasuries recognizing that this could lead to much larger deficits that is the debt ceiling came in lot of people. Don't realize you know. Hey why do we have a debt ceiling. The debt ceiling came around in one thousand nine hundred seventeen as part of this change to the federal reserve. Act because what happened was congressman said. Well you know if we're going to allow the federal reserve the by treasuries then the government is going to be able to go deeper into debt. So let's put a limit. Let's create a debt ceiling so that the government doesn't abuse its ability to sell its bonds to the federal reserve right so let's have a debt ceiling so we're gonna use this debt ceiling to limit how much bonds the government could sell. Well that was obviously a mistake because congress raised the ceiling every time we got to it and now we've completely suspended it so that it's a ceiling that doesn't even exist anymore but the mistake was amending the federal reserve and in fact had the original federal reserve act in power federal reserve the by. Us treasuries. i don't think it ever would passed. So that is always the problem with government regulation. It is the camel's nose under the tent. Never give government and inch because they will take a mile you give them any small new power and it is going to be abused. That is why what's happening right now. With covid nineteen is so dangerous because we're giving government some additional powers and of course. These powers are supposedly. It's an emergency. We're having a war on covert look. It's always an emergency. It's always a war. The government always uses that type of environment to to usurp some power. That's why it's hey. Never let a crisis go to waste even if you have to manufacture the crisis yourself because that's where the public's is down that's where they're willing to sacrifice some of their freedoms and some of their liberties for some temporary security and that has always been the secret to the government's ability to get the american public to give up its rights and to increase the power of the federal government. And that's certainly what happened with the fed reserve. But going back to the point that i was just making about this guy on cnbc. I think the governor saying hey this as can't print money so the federal government needs to do it. Ironically it's not the federal government's printing the money it's still the federal reserve does printing it and at this point there's nothing that stops the federal reserve from buying municipal bonds so in fact if the federal reserve were to make it known that it's qe program. And i believe this is going to happen is going to extend to state bonn's right then. There is no limit to how much dead this states can run up. I mean right now. There is a limit because interest rates will rise if states borrowing too much money. The lenders will start to correctly worry about the ability of the state to repay is loans but if the federal reserve decides to start buying up all the state bonds well then they don't give a damn because they don't care if the states default just keep buying more pause so if we end up with a huey program for the states will then doesn't matter then the states can do exactly what the federal government is doing because the only reason in federal government can borrow all. This money is because the federal reserve has made its intentions known that it is going to monetize it. Well it could just as easily at this point let everybody know that it is going to monetize the debt of the states of course that potentially can do even more damage because the moral hazard there is enormous because once states know that their desk will be monetize by the federal reserve. Now you've got a problem. It's even bigger than the one we have in europe right now with the monetize in all the debts of these various nations because if the state realizes that it can pass the bill onto the other states right by having the debt socialized now you have a big incentive for states to run even bigger deficits knowing that the federal reserve is going to buy the bonds. But now you're sending a message to those fiscally responsible states. You guys are idiots. Why don't you go into debt to because what's the point of being responsible yourself if you're only going to have to pick up the tab for all the other states that are reckless so basically it's a race to the bottom and now every state wants to run bigger and bigger deficits to get its fair share of the qe program and so it's a huge moral hazard which results in an explosion of debt. Which is one of the reasons why the federal reserve might be reluctant to actually go there and to basically let these state legislatures know that they are going to start buying their boss but they might start doing it anyway. Just to prevent interest rates from rising because as the federal reserve crates all this inflation and predominantly. It's being done by monetize ing federal debt as they're doing that and they're running up inflation and destroying the value of the dollar. There's a lot of dollar debt that they are not buying what happens to the value of those bonds they crash and so even at the federal reserve can hold interest rates. Artificially low for the us government. What about everybody else who wants to borrow in dollars. Which would include the states in the municipalities. Their interest costs are going to start to skyrocket. And the only way defend reserve reserve could keep those interest costs from skyrocketing is to include the municipal bonds and estate bonds in qe programs. And in fact they're going to have to do the same thing for corporate america if they want to keep a lid on corporate interest rates if they want to prevent the rates on corporate debt from skyrocketing if they want to prevent mortgage rates from skyrocketing. Worcester obviously gonna wanna do. That's the only thing that is fueling. This new housing bubble is the lowest mortgage rates in. Us history but the only way the fed could keep all these rates from rising is to monetize all that debt and so the federal reserve goes from the buyer of last resort to the buyer of only resort. And that is it that the dollar is toast in fact even before it gets to that point the dollar has to crash and then the federal reserve his to make the choice that it has been reluctant to make all these years and that is to let interest rates. Go up to stop monetize this debt and allow the mother of all financial crisis to develop with no bailouts for anybody but up until this point. There's almost no indication that that's going to happen is best when we have janet yellen as secretary of treasury working hand in glove With powell and her buddies over at the federal reserve they are going to manufacture a world class historic. us dollar and sovereign debt crisis. And you'd better be prepared and don't get sidetracked by what's happening in bitcoin. Because that's just noise that bubble's gonna pop and the only thing. Bitcoin and other crypto currencies are going to succeed in doing is making paper. fiat currencies. Look good in comparison to digital fiat currencies. But in the meantime by up as many real assets as you can look at what's happening to the dollar look at what's happening to allow these foreign value stocks look. It was happy to commodities. Look what's happened. To emerging markets these trends are just beginning. They're going to accelerate. They're going to add a lot of momentum. I think particularly in two thousand twenty one and twenty twenty two so before the rest of wall street wakes up to the reality that i have been warning about for years. Just make sure you top off your positions if you're still holding onto any us stocks. It makes no point to own them when you can own foreign stocks where you have the tailwind of a falling dollar. Instead of all of the headwinds that are going to be there for the domestic economy when it comes to higher taxes and more inflation and more regulation and you want to be getting in on these commodities you want to be getting in on golden silver silver again very big week this week. Silver stocks particularly strong on the week. But they're still cheap. There's still a long way for these stocks to go. So if you don't have an account you know. We do have separately managed accounts now at your pacific capital that concentrate predominantly or exclusively in the mining sector. That's where i think the most profits are going to be made of course. That's where there is the greatest risk But if you do have the stomach for that type of risk and if you don't have the money for a separately managed account you can put money into my goal fund your pacific gold fund you can buy with your europe's of the capital rep or you can buy it. At any of the discount brokerage houses that have my mutual funds on their platform and for your more conservative money recognize. The real threat is to the us dollar. There are no conservative dollar-denominated investments. So if you wanna protect your purchasing power you gotta get out of. Us dollars in us. Dollar denominated investments into sounder real investments outside the united states.

federal reserve tesla federal government united states joe kernan Cnbc Bitcoin Blodget henry blodget bitcoin europe
Bezos Blastoff & Keeping U.S. Safe: Cyber Security & Covid Confidence

Squawk Pod

40:07 min | 3 months ago

Bezos Blastoff & Keeping U.S. Safe: Cyber Security & Covid Confidence

"Exchange is now a podcast. I'm brian sullivan. Join me as we hit the biggest money stories from around the world breaking down the risks and rewards of global. Trade the news. You need to know what real world actionable advice. Even a little fun and unique content. You won't get anywhere else like the most random but interesting thing you'll hear all day subscribe to the worldwide exchange. Podcast today bring in show musically. This is squawk pod. I'm cnbc producer. Katie kramer today on our podcast. Cyber attacks are ramping up. But so is the government's response white house cyber adviser and neuberger says she needs the private sector's help this a small number of high impact cybersecurity steps that every company must take and into those steps are taken. It's far less likely that a ransomware attack will be successful hot back summer former. Fda scott gottlieb ways in combination of the protective immunity that people have through vaccination combined with the fact that prevalence is very low. I think people can feel reasonably assured through the summer those stories plus a coordinated global tax rate. It's like when someone tells you. Hey take your pants off. And then i'll take mine off you know. Let's do that right. And then you take it offline and os off on his blue origin's first space mission to risk to risk going up in the for the first flight. I would love to do it. But i don't want to be the first. It's monday. june seventh twenty twenty one. Squawk pod begins right now. Spent becky by in three two one. Good morning everybody. Welcome to squawk box here on. Cnbc we are live from the nasdaq market site in times square. I'm becky quick. Along with joe kernan andrew. Ross sorkin i stop today on the podcast to market themes to keep an eye on and now neither a mean stock. The first optimism friday's jobs report. Should the unemployment rate dropping to five point eight percent with a little more than five hundred. Fifty thousand jobs created in the month of may. That's okay. it's not a rip roaring success. But it's not bad enough news to worry investors about the economy's ongoing reopening this summer as we try to leave the depths of the covy pandemic behind us. Second inflation is the key data to watch this week. May's consumer price index will be released thursday in april. The cpi rose more than four percent from the previous year. The fastest rate. Since two thousand eight the federal reserve is in the early stages of tapering thinking about tapering. That is reducing. its one hundred. Twenty billion dollars in monthly asset purchases a program designed last spring to stimulate the economy but if consumer prices continue to rise could hasten the fed stepping back from easy money policies. Triple eight gallon gas andrew. This is for you. How much do you think is up at this point from a year ago on a percentage basis percentage basis. We're like In some places. I'm seeing close to four dollars so as the national average will be where i am. It's i don. I must be on the wrong gestation. Then one three ninety six or something. There's a headline that was seven dollars. I forget which state but there's some state where it seven dollars a gallon. It's a fifty three percent from a year ago on a national average. So you're watching that. Also the reason devon energy is in here. It was the top performer that we saw last week in the s. and p. five hundred was up by nineteen percent for the week marathon oil up. Sixteen percent chevron was the second highest performer in the dow. It was up by four and a half percent for the week. Second only to goldman sachs and milk. There are some things dropping now. This is regular milk milk. It was down eight eight and three quarters percent for the week today last week. So there are still some commodities coming down in price It's still up for the year today by about nine and a half percent from a lactating mammal. I'm reminded of that all the time. That unless it's coming from a lactating mammal yourself. Yeah i am the breast milk at you. Why you mentioning either food or energy one. Neither one matters for inflation rate because average people don't pay for such things we just ignore those things. What does go up. That matters lumber coppers we could fit a lot of board feet in here. I found copper. Were actually lower week to cover. The was the biggest decliner. Yes now this atlantic dodo but we order. you know. My son loves domino's. It's going to be at least an hour. we can't get drivers go. You're kidding man he goes. No one will work because they make more money. And co- come on friday to watch cnbc and you're saying that just to just a cnbc. It's just a normal guy. There he goes no. I can't get any drivers hour and a half. Wait for our for our if we if we had delivery done on friday night so we went and picked it up. It's a real issue. Its attacks in new york. It's why you can't. There's so many different things you can get in for some reason. We're so hesitant to say someone would actually do that. Because we don't want to imply anyone. Does it have a great work ethic any norm. Lets you make a lot of money. Let's say you can make twenty percent more and you stay up in connecticut. What are you gonna. Do you know how much i love my job. Though you know i would do this. I don't want to say for free all right. Maybe the rational actors rational actors. Let's talk about taxes. I wonder whether you guys think this is rational acting or not because new over the weekend. The finance ministers of the g seven group countries have backed a us proposal calls for corporations to pay at least fifteen percent tax. On earnings to finalize provide momentum for upcoming talks planned with one hundred and thirty five different countries in paris treasury secretary janet yellen praising the move significant and unprecedented tweeting that quote global minimum tax would end the race to the bottom of corporate taxation ensure fairness for the middle class and working people in the us and around the world the wall street journal's editorial board took it very critical view though of that announcement calling in yellen global tax surrender. And are you in. Us workers consumers and shareholders will end up paying for that new tax if it if it passes the bigger issue is not necessarily all these other countries though their issues and all these other countries but actually whether it would be approved here because the fifteen percent minimum tax here would be real thing to. It's not it wouldn't be just everywhere else. I'm actually surprised that they were able to get the g seven unto itself to agree though not completely and it's not binding and it's like hurting cats and they're saying that no one else can sign on until they know what our congress exactly based on what our congress is going to do it if nobody else does and then whoever does it. I you know it's like It's like when someone tells you. Hey take your pants off. And then i'll take mine off. Let's do that right. And then you take it off and he goes. that happened. Never ever done that to me. But it's the same thing. Hey if you do it. I'll do it and you do it. Nobody's plumbing at your pants on. Yup right. I think that's what it's like and then it would hurt. You hurt at the at the country. The other thing that this is trying to deal with the idea that all of these european countries are already coming after our big tech giants or for money. Anyway they're doing digital tax on all of these companies so this is our way to get back at the elvia ages if you want to take share their biggest companies to. We're just gonna make sure it's fair. Janet says we're gonna make sure it's fair. Nobody ever defines it for me. There is. I'm i'm i'm vulnerable today. It's monday and i'm feeling vulnerable pants. No but really what. I don't know i don't know the race to the bottom is probably a real thing. Because i i'd go to zero ours. Are corporations do best globally. And then everybody else would and then you get no money from corporations they just got to do the individuals because eventually i think that's where it ends up when you to corporations anyway so just do it do it on the people you want to do. What number you gotta go so but hold on. We've also had conversations with ann koopman and others about philosophically. What's fair everyone should pay. I'm ready. I'm ready to fifty percent total. Everybody think local and state backs as top now. Work till june thirty first but but let's recognize. Victor is lower than where we are. Today i know for us but not for people that are paying the same as their secretary blah blah blah. All the people that have made money over right yours there. Just a real. Amt that actually has teeth and do that for individuals. If that kicks back in my man. Max I was gonna. I want you to ask him. This is the max Under son to spend the weekend at my house because in paddock. Oh he's a big right winger anyway. This is max zorkin sorkin. Yes i want you to max. Yeah what would you think of the system where you work your ass off from january to mid july right orlando. We have this conversation with him. You work for the government till mid july or late july and then you get to keep whatever you make after that. What would he say that he would say you. Ted say it makes no sense do something. Why don't you want to do something. Man does easy disappointed in you bury. This is rebellious man. This is max is maximum joe or like completely estimate. I got a pool pool. I mean he hanging on we were talking about real estate and how they wouldn't how their restrictions on how big a how someone can build how high can be in bad. I don't understand said if it's my property my property she would ever we want with the property and i thought to myself i mean right you guys. I mean there were twenty. You don't need to do by twins can't be. I mean that really. It looks like he's yours is he's mine. Maybe he started watching the show early. And i'm as favourite. you would not want to. we have a show to do okay. France reopens to vaccinated tourists on wednesday. Americans will need to show a negative covid test. What do we have a decent vaccine truth thing yet. We don't just get little cardboard cards. Don't we that that anyone could. Andrew has the passport new york out by the way. I didn't realize that apple was created effectively by ibm and they were trying to use that app to try to do national. I'm hoping still do. It's amazing but it's still only for new york right. It's still only for new york right now and they just happen to have all the data from all the process. Like how do you prove you're just playing your batch number in or no so you. They do a quick quiz. Do you know how you ever got into a credit score quiz or trying to figure out if you are actually you and they ask you like your address so they say what day did you have it on and they give you five five dates. You get the date right. Which one did you take. What time was your appointment this the appointment. That might have been a question not at what time we thank you for the pandemic tours before before before the pandemic tourism made up about ten percent of francis. Gdp is one of the most popular european destinations for americans obviously with nearly a five million of visiting in two thousand eighteen but anecdotally if they're putting the gates back right. It's tougher to get into france. Sunbaked just heard from somebody here. Who's supposed to go in. I feel like when i go back to. I have a much better feel for everything after watching all my agent and just knowing now knowing what all the french stuff means actually following along to hear a lot of words. No rosetta stone for you. If you've watched it. I have never heard. Can't be jerry lewis like french music. They play once in a while. When there's something funny happening. I mean i just feel really like a francophone. Now i feel like i can go there and have a whole new understanding plan right in. I got my outfit radio socks with birkenstock shoes. Obviously i'm gonna wear with your shorts. What do you call those shorts. I do have i got new ones right. You've been cleared for those cargo. Shorts from the wife no is there. Is there a new kind of carbon. That's now allowable. I thought you liked them. But not clear flammable in my my household. Unfortunately we were walking around the park yesterday and she went early so i didn't know where she wasn't. It's a mile long and she goes. I saw an old guy running in cargo shorts in front of me and she goes. I came up and i couldn't believe. Are you not allowed to running car. just jog. a little crombie cargo short congresswoman. We're talking about these apply. ralph lauren. yeah and i got three different colors and that you. That's what i wear button. But i will be able to next pod ground control to major jeff bezos heading to space. Maybe it's a has reckless as it sounds. We've been putting rockets into orbit for a long time and the. Us government is stepping on cybersecurity for corporate. America and neuberger is deputy national security adviser for cyber and emerging technology. The government has in some cases limited visibility on the breadth of ransomware and we need the ability in order to devise effective policies to disrupt ransomware and disrupt the ransomware ecosystem. Cnbc's workforce executive. Council is the premier group see swede human resources executives from leading companies across the country. It offers a members only portland. Chat plus exclusive industry contact with access to breaking news calls and digital networking experiences the networking resources. Hr leaders need now. Apply to the workforce executive council at cnbc councils dot com slash wnyc. Spend ended by this. This one commander good morning back to squawk box right here on cnbc. I'm andrew along with becky. Quick and joe kernan. jeff bezos. Says he's going to space. Yes you heard. Correctly would be historic if it happens. Businesses spaceflight company blue origin announcing that. Jeff bezos along with his brother mark will join the winner of an auction in the company's first human flight. It's going to happen on july twentieth. The highest bid by the way on that auction was up two point. Eight million dollars is what it costs but if the price tag goes up as they announced i don't think about him. He is now probably easily the richest if not one of the richest people in the world a sense we one of the most influential people in the world who runs one of the most influential important companies in the world. And he's going to space. You're looking at amazon stock off slightly Presents a new risk. The company hate to say risk. Because i hope it all goes perfectly and very well but i don't think people were necessarily planning on. Jeff bezos jumping on a rocket. But he's planning to do it. It's a risk a yeah to risk to real what else in on the first flight so go on the first we all of course we all wish him well and hope that it works out. But there's definitely for shareholders. You'd have to think i'd have to kind of maybe. It's not as reckless as it sounds because we we have we have seen you know lately due to the international space station and it seems like they've got got it down and in some of the mishaps in the past that that crazy shuttle was there so many things so many moving parts of these seem like they've stripped it down to something very basic on how on how we're doing this now and we've been putting rockets into orbit long. What is wrong. I don't know enough about in flight. But i think they have the technology. Obviously it's gotta be. How much better than john glenn was sitting there. Just going yeah. I hope i'm going to see my family. I mean those guys. They were a different breed. chuck yeager all those guys back then to sit on top of that light that candle you know when you send up a monkey. He's like wow. This is a nice place not really it. Seems like an okay spot. But he has no idea unless he's really smart really smart but he has no idea what he's in for but men and women know exactly wh- they're on top of it i i. I'm not bidding on that oxen. I know you have pretended to one a bit on that oxen. i. I don't know to do it but i don't want to be the first one. What do you want to be the millions in smithfield brand. We asked him same things that he was not going in. The first play for virgin says not ceo. But i've said it doesn't matter that he's a huge presence. I would think too following a growing number of recent cyber-attacks including the solar winds breach in the colonial pipeline. Jbs hacks the white house is now urging businesses to step up their digital defenses in a recent memo deputy national security adviser for cyber emerging technologies and neuberger wrote executive should immediately convene their leadership teams to discuss the ransomware threat and review corporate security posture and business continuity plans to ensure you have the ability to continue or quickly restore operations. The national security councils and neuberger joins us right now and i have heard this. Compared to the other pandemic we are dealing with right now cyber attacks. Just how bad have things gotten. Certainly we've seen an increase in ransomware over the last few years driven by the rise in use of crypto currency and certainly companies movements to allow employees to telework which opened up gaps in the information technology. So we've seen a rise in ransomware both in the number and the intensity of the attacks and it's why the administration is so committed to working with international partners and the private sector to address it. At this point the government has said the white has has said that businesses have a distinct and key response ability to step up their systems. You think these attacks are happening because businesses are lax with these things or is it because the united states hasn't done enough to push back against nations like russia and china that are harboring some of these cyber attackers to really address. The ecosystem ransomware takes a partnership between the private sector and the government. Much as we say the in our own lives from security perspective we have locks on our doors. We have alarm systems as well as a police force. We need the private sector to ensure that their cybersecurity defences are adequate to meet the threat and on the administration side were committed to working with our international partners and with the private sector on a four-part ransomware strategy disrupting the ransomware ecosystem building international coalition to hold countries who harbor ransomware actors accountable addressing crypto currency. Which is a nibbled a significant rise in the use of ransomware and then of course putting in place coherent and thoughtful ransom policies that really disrupt the ongoing ecosystem in the long term. A lot of businesses do spend quite a bit of money on cyber protection though the recent attacks that we've seen let's say colonial pipeline. Jbs are those because those companies didn't do enough. The first step in any successful ransomware attack is finding vulnerabilities that can be compromised. In order to enable encrypting the system so part of the letter we issued was to say this small number of high impact cyber security steps that every company must take those steps are taken. It's far less likely that a ransomware attack will be successful against that company. I'm just asking though. Is this something that basically says the companies that are being attacked should be shamed because they didn't do those very basic things you're talking about. It's certainly something that says that we can learn lessons from successful ransomware tax to ensure that every company has the adequate defences. And i think the first question you should ask themselves if they're compromising even better well. Before is our each of the steps. We outlined in that new place is there multifactorial indication in place because we see so many compromises happening through re use of passwords through spearfishing individual user. And that is what's happened in a number of successful ransomware attacks and that's really the reason that we did that. Call to action of ceos rather than name and shame. We wanna be proactive and call on us and say let's end this scourge of ransomware together we. The administration are focused on the things we can do but we cannot be successful without the partnership of private sector and this is specifically what we need the private sector to do. And can we talk a little bit about crypto. And how you think about it. Because cruelly janet yellen is thinking about this guy gansler at the. Sec is thinking about this Proponents of coin. Crypto say look actually it's more traceable then cash critic say absolutely not look at. What's happening right now with ransomware. It wouldn't be happening if it wasn't for crypto. So what do you do really thoughtful in the way you outlined that so there are specific aspects of crypto that have enabled the rise of went somewhere. A it's an international currency. Be it is while the blockchain is public. It is difficult to trace particularly anonymity. Enhancing cryptocurrencies like monteiro and and finally around the world. There is far less regulation than there is in place for traditional currencies in the united states. For example there are rules around. Know your customer for crypto exchanges and treasuries fateh has really been around the world to ensure those know. Your customer rules are in place for other crypto currency exchanges as well so it's a bit of both exactly as you outlined. There is a lot that crypto currency can engender regarding innovation. It's also a key risen for the rise of ransomware and it's why one of the four lines of effort in the administration's ransomware strategy is working with international partners to ensure there is the right oversight in place to to track cryptocurrency and short isn't an easy tool for criminals to use for ransomware host of other ways to evade overseas. Is there a way for a bit for bitcoin. For example to be successful as something. That's both completely trackable and traceable and isn't anonymous and yet is still bitcoin because so many of the quote unquote venues that the proponents of bitcoin talk about seemed. Also be the downsides as with so many areas of technology we need innovation and we also need the security aspect. It doesn't serve any of our interests to have a currency that can enable not only ransomware but trafficking in weapons and people and other criminal uses so we believe that it is possible to have the innovation of cryptocurrency win the adequate oversight and i gave a couple of examples so that we can ensure that it isn't used quickly and internationally by criminals and i know the official government policy who's always been that companies should not pay these ransoms when when and if they get attacked obviously preventions a much better way about going going about this but when you think of it realistically if a company has had all of its systems taken away what alternative do they have. I'm thinking especially of the colonial pipeline. If they had said forget it. We're gonna find our own way to do this. And it had continued to cripple the east coast and and had had people out of gas for even longer periods of time. I can't imagine what would have happened. Where would you honestly have told. Colonial pipeline not. Pay the ransom. You hit at the crux of. Why are ransom policy. Review is underway. It's one of our key areas of strategy because in the long term payment of ransom drives the increase of ransomware. That's undoubtedly true. However there's a period where asking companies to put in place the resilience so that they're not in the uncomfortable spot you just outline that companies may be where they their networks are encrypted. They don't have backup so they have difficult to recovering and they look at the options and payment of a ransom looks to be an attractive option. So certainly we know. Payment of ransoms drives the rise of of ransomware. And that's the reason we're the government's official position. The fbi strongly discourages the payment of ransom. But we want to look at say what needs to be the government policy that really disrupts the ransomware business ecosystem while also understanding and driving and encouraging companies to put the resilience in place. So that they're not in the difficult position. You just outlined. Hey i'm what percentage of ransomware efforts you think that the government is aware of meaning. How often do you think. Companies are being pursued in iran somewhere attack and the companies are deciding to settle it privately paying the ransom and not only paying the ransom but not necessarily calling you over the last number of weeks. We've talked to a number of companies and individuals across the ransomware ecosystem insurance companies to understand the role of insurance and insurance payouts individuals who sometimes negotiate with ransomware actors. Because to your point we were seeing that the government has in some cases limited visibility on the breath of ransomware and we need that visibility in order to devise effective policies to disrupt ransomware and disrupt the ransomware ecosystem. Ten percent of it. Or do you think you're seeing ninety percent of it from those discussions. I think we see far less than we need to to really understand the scope of ransomware. And that's why we've been having these conversations with other entities to piece together the full picture so that the review that the vitamin station is doing now to effectively devise policies to disrupt the ransomware. Eco-system is as effective as and we've heard anecdotally that their companies that are putting bitcoin and other cryptocurrencies on their balance sheet. Not as investment or is it treasury but almost as an insurance policy if and when there is a ransomware attempts so that they could then pay it off if they have to. Are you hearing the same thing that is really troubling to hear we have. I have not heard that. But that's troubling to hear and it underscores why we need the international partnership the partnership with the private sector to attack. This issue is urgency. That is really troubling to hear. Thank you for your time today. Thank you both so much. Coming up on swap pod getting the job and getting back out there will the. Us hit the white house's seventy percent vaccination goal for the fourth of july dr scott gottlieb former head of the fda. I think we're going to see his. Vaccinations are going to fall sharply in the summer. And then you're going to pick back up towards the end of august and into september as capable contemplate going back to work and back to school. Cnbc's workforce executive council is the premier group of c. suite human resources executives from leading companies across the country. It offers a members. Only portal chat plus exclusive industry contact with access to breaking news calls and digital networking experiences the networking resources. Hr leaders need. No apply to the workforce executive council at cnbc councils dot com slash w. We see you're listening to squawk pod from cnbc. Here's joe kernan golfer. Jon rahm finishing the third round of the memorial. Jack's tournament In columbus saturday with a six stroke lead but didn't compete in the final round yesterday before he could get to the clubhouse to sign a scorecard officials stopped him to tell him he had tested positive for covid nineteen would have to withdraw from the tournament. Rahm was devastated. Visibly to hear the news in a statement released afterward the pga says it. Rom had been subject to contact tracing protocols since last monday versus monday last week he elected to stay in the tournament and tested negative every day until friday. I want his most recent tests followed than the second round was performed and then according to the pga Rahm is the first positive asymptomatic case of the tours routine contact tracing protocols. First time it's happened. Weird weird with a six stroke lead which i couldn't hold a six stroke lead they. I'm sure he could have won that. And it's a real. It's not a major but people love when and Jack's tournaments great course and everything else and just to have that taken away when you're playing so well but there are plenty going to happen now. He was vaccinated to know. I know the point. There's gonna be lots. I actually think there's probably lots of vaccinating people out there. That are asymptomatic. probably. I didn't believe that until the yankees stuff i mean when you start hearing about that when it kind of ticks like that and we haven't heard anything else sense get vaccinated or another one but then you about if you have kids at home like especially anybody who's at high risk most most employers now are no. Nobody's really doing testing anymore. Because the view is you're going to walk in with your your vaccine car. Whatever your your and things very complicated. Hopefully by early fall they have. They have vaccine kids and everything else. In fact the latest data shows that the united states is averaging fewer than a million shots a day and every single state is at least two thirds below its pete vaccination rate the south and the midwest are seeing less than fifteen daily shots for every ten thousand residents joining us right now. Dr scott gottlieb. He's the former. Fda commissioner and to cnbc contributor who serves on the boards of pfizer and alumina. His new book uncontrolled spread why covid nineteen crushed. Us and how we can defeat the next. Pandemic debuts in september of dr gottlieb. Let's talk about this. I thought that was a typo. When i first saw that there are ten shots are sorry fifteen shots for every ten thousand people in some states at this point. Is that a bigger collapse than you'd even anticipated in terms of demand actually. Don't think so. I think that this should have been expected. And was by many of us. In vaccination rates are gonna fall off quite sharply in july and august. The bottom line is people who haven't been vaccinated at this point are more marginal customers for vaccination might be younger. People people who are health. You don't feel as at risk. I think we're going to see his. Vaccinations are going to fall off. Sharply into summer probably july and august and they're going to pick back up towards the end of august and september people contemplate going back to work and back to school people get vaccinated people who haven't been vaccinated wanna get vaccinated before they returned to work but just the prevalence is going to be very low. This summer people going to be looking around. People will be outside. They won't be a lot of corona virus so if you haven't gotten vaccinated at this point there's not going to be a lot of motivation to get vaccinated in the middle of august when things feel pretty good i think people are gonna get vaccinated when they go back to work in the fall probably when they pick up their flu vaccine hopefully cdc. We'll give guidance that allows the coronavirus vaccine to be administered alongside the flu vaccine. I think we'll we'll do better. I think we're going to pick up more people in terms of getting the population vaccinated. But it's not going to be in july and august. I think the administration's pushing hard to hit its goal by july fourth. Hopefully they'll hit it and he's gonna slow down quite a bit after that. It's not a huge reason to be concerned. Though because the prevalence is going to be so low this summer as long as people get vaccinated in the fall. You think it's okay. Look it's not great. I'd like to see more people vaccinated but we've hit it. Pretty high level of the american population vaccinated. We have to remember that a lot of people who have been vaccinated have been infected. We know statistically at least a third of them have been infected. And i think it's probably overrepresented. Population is probably more people in the unvaccinated pool that had been infected by the virus than in general population. Because a lot of people choosing to go on vaccine at this point because they know they've been infected so we have a lot of immunity in the population will pick up a little more. We probably will get close to the goal. The administration set of getting seventy percent of adults vaccinate by july fourth. We're probably going to pick up more teenagers. As they contemplate summer jobs need to get vaccinated for those summer jobs. So we'll get maybe sixty five percent of the public vaccinated in all before the somerset's in and it's gonna be slow. We'll pick up a little bit through the summer and then we'll pick up another bullet heading into the fall. I think it's going to be okay. Given the fact that we have a lot of protective immune the population and prevalence levels are low. I don't think that this is going to mean that. There's going to be a resurgence in corona virus. Over the summer. I'd like to see ten percent more the public backside. I don't think we're going to get that But we're in a pretty good place right now. What's the latest research just in terms of when people are going to need these booster spy shots that have been so talked about. Feel safe if you if you've had this less than a year ago the that your vaccine look. I think you could feel safe through this summer. And the effectiveness of the vaccine also correlates with the prevalence of the virus so how effective vaccine is also correlates with how likely are to come into contact with the virus and the combination of the protective immunity that people have vaccination even if it's declining over time combined with the fact that prevalence is very low. I think people can feel reasonably assured through the summer. I think as we get into the fall. We're going to have to look at giving especially the vulnerable population boosters. I think there will be some continued discussion around that particularly once we get past this july fourth deadline that the administration said. I think that you're going to see more active discussion around the boosters in the fall particularly for the elderly population and the other point here. Is that the variance that we're seeing now. The six one seven varying in particular. We're seeing some resurgence in the united kingdom That further suggests that the boosters may be important because what we're seeing is that people who've had one dose of vaccine aren't really protected against that very but once you get two doses. You have a pretty reasonable degree of protection against that vary so suggests that the declining effectiveness of vaccines may be more of an issue for some of these variants. That may be another reason why we lean in the direction of boosters particularly for older the older population dr We saw this. Jon rahm news over the weekend He tested positive. We don't know whether he we think he had the vaccine. But do you think there's a high prevalence of people who've had the vaccine for now. Walk around with symptomatic cases of covid and not getting tested. And does it matter. I don't i mean my understanding is. He hadn't completed the vaccine series. I need only had the Recently ahead of that tournament. So but i'm not my my facts may be wrong there. I think what the evidence is showing that people who've been vaccinated far less likely to get infected and even when they become a symptomatically infected that far less likely transmit the infection we'd we haven't fully quantified that but the magnitude of it does seem to be quite profound and that in fact was the basis of the cdc's new guidance saying that people have been fully vaccinated. Don't need to wear masks if you sort of dig beneath that recommendation. What they were saying was that they've determined that people who are fully vaccinated even if they get a symptomatically infected they're far less likely to shed virus and therefore they don't need to boy masks to protect others around them either So i think we we can be reasonably assured that if you've been fully vaccinated you're going to be less likely to transmit the infection now if you're going into a very high risk setting and you've been exposed to the virus. Should you still be mindful. I think you should. And i am. When when i go into a medical setting. Certainly i still do wear masks dr. There's i don't know the sports reporters are saying that. There's some evidence that he maybe got one shot recently and didn't do it immediately. And that's why they're sorta faulting him. It lives in arizona. Could've done it a while ago. So did you read the piece in the journal from the the the two scientists talking about. Cg you read that that. it's gets a little arcane. We don't have a lot of time but when you do gain of function research that's how you make despite protein work better to infect human cells very rare to. It's never happened just naturally and that's the way it's been done eleven times in the past and the those sequences are present in corona virus. These guys say that definitively proves that it came out of the lab. Is there a way that it. It didn't prove that look. I think we've made a persistent mistake. Here looking at the sequence and trying to derive all conclusions from the sequence early on. They looked the sequence. It looked suspicious. They thought that this could have come out of lab. They look more closely at it. We assured themselves that the sequence in fact didn't look suspicious and a lot of scientists are still looking at the sequence and saying look. It doesn't look that unusual therefore it didn't come out of a lab some other saying well in fact it does look unusual and therefore did come out of lab. We're eighteen months into this. And we have a lot of other evidence that points that it could have come out of lab including i think the single biggest piece of evidence we have. Which is the behavior of the chinese government. What they deliberately chose to withhold and what they've shared openly the things that they deliberately chosen to withhold the evidence that they've withheld is is e exact evidence that you would need to either implicate the lab or it would be sculpture tori to the lab. And that's what they've chosen to withhold so. I think we have a lot more information now. Eighteen months later the sequence of the virus itself is not the only thing that informs this picture. And that's why. I think that's the trouble with looking at this through purely scientific mosaic. When you look at it through a scientific mosaic you focus on a sequence when you look at it through a national security mosaic. You start to incorporate the other evidence that comes into play including the behavior of the host government. It'd just be weird because it codes for our ginny ginny. Cd thirty five thirty. Four other ways with the genetic code to code for that and for just have the same one that's been used by all the researchers in the past to accomplish the same thing with the spike protein. It's very strange that that that would have and it's also possible to go back and cover your tracks too. So i don't know what the end result is going to be doctor. But those two guys certainly seem and they. They mentioned that it gained a lot of that quickly and that the variants didn't come about for for like a year and be very weird to gain that that function so quickly. Did you re that was at the end of that. It's in the journal if anyone has has an interest but as someone who knew about molecular biology back definitive but as you say look i think the problem here is that the science on both sides is to beta focusing just on the sequence alone. There's a lot of other details here that we should incorporate including infections around the lab. So i think we need to look at the broader mosaic. Care doctor thank you. thanks a lot. That squawk pod today. Thanks for listening. Swap boxes hosted by joe kernan decade quick and andros organ tune-in weekday mornings on cnbc at six eastern for grownup mature market and business commentary. One time. Do you remember when. I threw my breast milk at you. You can subscribe to squawk pod wherever you get your podcasts. And when we get back here tomorrow we are clear. Thanks guys what exchange is now a podcast. I'm brian sullivan. Join me as we hit the biggest money stories from around the world breaking down the risks and rewards of global. 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Jeff bezos cnbc neuberger becky Us joe kernan workforce executive council Katie kramer scott gottlieb cnbc joe kernan andrew Ross sorkin
Inflation Is No Threat to Gold  Ep 663

The Peter Schiff Show Podcast

54:48 min | 7 months ago

Inflation Is No Threat to Gold Ep 663

"Leadership show. i like to thank tommy. John's for being the newest supporter of the peter. Shift show podcast. You know you take the seventy five inch. Tv not the fifty. You buy the rib eye steak not to sirloin. You wanna fly business not coach. There are times when paying a little more is worth it and now you can get fifteen percent off tommy. John's underwear and lounge wear at tommy. John dot com slash goal. See the website for details. The dow jones finished the last trading day of the month of february down about four hundred and seventy points. It ended the week in the red by about one point eight percent but that's a small decline compared to the better than five percent. Drop in the nasdaq. Although the nasdaq did manage to pair its weekly losses on the day. Managing to be up about one half of one percent but the real damage started yesterday in the market. The nasdaq really got hammered. In fact most of the decline on the week happened yesterday but if you look at the technical action the dow jones which hit an all time record high during the week ended up closing negative on the week for an outside reversal week. And if you look at the weakness in a close the market tried to rally back but basically just rolled over and just hemorrhaged for the lows near the end of the day. I think that was a very weak close. And i think monday looks like a potential bloodbath for the stock market. We'll see what happens over the weekend but technically speaking people should be prepared for very weak monday. Potentially a black monday will see. The dollar also had a big reversal. That started on thursday morning early thursday morning. The dollar index was down at eighty nine sixty eight so that was a new low for this particular move with currencies like the australian dollar sensitive to commodity prices hitting a new fifty two week high. Well then after the bond market fell apart and that rogue over into the stock market the dollar also caught a bid and started a rally and it closed the day back above ninety with currencies like the aussie dollar getting clobbered. Even more so again. Today the dollar was strong across the board but again mostly Relative to those economically sensitive currencies dollar index closed just below ninety. One now ninety spot nine to now. I don't think this is going to end up being a significant reversal in the dollar. I think the dollar still looks week. I just think that since it was at the lowes up. People decided to cover their positions if they happen to be short dollar and they bought them back into same thing happened in the crude. Oil market crew made a new high on thursday as well. We almost got up to sixty four dollars. A barrel think the high was sixty three eighty one and then we ended up. reversing went. Live close back mildly positive and then got hit almost two dollars today back at sixty one sixty six. But we're still above sixty dollars a barrel. So i think the uptrend in crude is going to continue and i think the downtrend of the dollar is going to continue even if we have a momentary pause. But we're it was really black and blue on the day and not just today but yesterday was in the precious metals market gold hammered by almost forty dollars today or about forty dollars. It closed down at around seventeen hundred and thirty. We're now down over nine percent on the year for gold. We're doubt about seventeen percent from the high last august which was an all time record high. So we're now almost in a full-fledged bear market maybe we'll be in that bear market by next week we'll see silver hammered by about eighty cents down at around twenty six dollars and sixty cents but the catalyst for the selloff in metals and sell off in the stock market is the continued selloff in the bond market. I've been talking about that on this podcast quite a bit recently and the bond market yesterday really collapsed early. In the morning we had the yield on the ten year spike. All the way up to one spot six one four percent and on the thirty year yield. We got up to two point. Four two that was a huge intraday. Move one of the biggest intraday moves in the bond market. I've ever seen and that finally caught the attention of the stock market now. Gold gold traders have been watching rising bond yields closely and they have been selling gold off consistently on rising rates. Because again as i've been explaining on the podcast what. The view is ben on wall street. Is that the fed is going to be raising interest rates sooner than expected because inflation is picking up and also the belief is that growth is picking up and in fact today we got some more economic data that seems to confirm the idea that growth is picking up. We got the personal income and spending numbers for the month of and personal income. Shot up by ten percent ten percent that is a massive increase. The month before income was only up six tenths of one percent. Of course the reason for the surge in january was that's when the stimulus checks arrived in the mail and so it was all these transfer payments that now constitute personal income. In fact if you back out all the transfer payments welfare unemployment benefits the stimulus checks if you take all that out. Personal income actually declined during the month of january so people actually earning money that went down but people receiving checks from the government that went up but that is not how a strong economy is made. You don't have a strong economy by printing money and sending it to people who aren't working you build a strong economy when people are employed productively making things or providing services. That's not what we're doing. This is not economic growth. I don't care if the spending drives an increase in gdp and as a matter of fact there's a lot more spending the come because even though income surged by ten percent personal spending only jumped by two point four percent which is a big number. But not when you contrast it to ten percent gains so we had a big increase in savings as a lot of the stimulus. Money was saved. But i have a idea that that money isn't going to be saved for long. It's going to be spent right especially as the economy parts of it reopened. All that money is going to get spent and all of it is going to push up consumer prices. In fact we got more confirmation of screwed up. Our economy is today when we got the merchandise trade deficit for january first of all we revised the december number up. It was originally reported. Eighty two point five billion. Now it's eighty three point. Two billion and the consensus was for eighty three billion in january. And we'd top that with eighty three point. Seven billion that is the second biggest merchandise trade deficit ever recorded in a single month. And i'm sure that by february march at the latest we will be printing all time record high goods trade deficits and then we're going to keep on going higher because what else are americans going to do with all this money that the fed is spending in fact they still have a lot of money saved from the previous stimulus and they're about to pass another one. The fourteen hundred dollar checks are going to be in the mail. I think the house of representatives today they may have already voted to pass the one point. Nine billion dollars stimulus. Initially i think they were gonna take out the fifteen dollars an hour minimum wage because i think the senate parliamentarian said that it was a violation of the senate rules and they couldn't put it in there so i'm not sure if they included it or not or if it can possibly be there but look it's a done deal that these stimulus stimulus checks are gonna be in the mail and the only reason they don't bounce is because the fed is printing money so all this money is going to be spent. What are we going to spend it on. We're going to spend it on imports because we're not making this stuff ourselves. We have more americans unemployed than ever before and a lot of americans who are employed. Don't make anything so if we want to buy stuff we have to buy the stuff that people in other countries who do have jobs are making and so the trade deficits are going to go up so this is not a strong economy. This gigantic bubble but people on wall street can't differentiate between a bubble and genuine economic growth. And they also can't differentiate between nominally interest rates and real interest rates. It doesn't matter that nominal long term interest rates are rising real interest. Rates are actually falling. And i hear people talking about real interest rates rising. They're not i mean. Maybe if you believe the government's version of inflation maybe they are but if you're looking at real world. Inflation real interest rates are falling. The inflation is accelerating faster than interest rates. Plus short term interest rates are still at zero. I don't know where people got the idea that what affects the price of gold is the yield on a ten year treasury or the yield on a thirty year treasury. That's not it. There is a lot of risk when you buy that. Far out on the yield curve especially when rates are this low the interest rate. That is important when you're contrasting it with. Gold is the overnight rate the fed funds rate. That's what you want compared to gold what you can get on your overnight money not if you go out ten years to thirty years and take all that risk. What is the overnight. Money and that is stuck at zero. And it's not going anywhere. I just talked about that on. The last podcast pal assured everybody that rates are moving that the fed things is going to take at least three years for the inflation rate to get the two percent. Even though we got the university of michigan sentiment numbers came out. Today and consumers are expecting inflation to be three point three percent over the next year. One of the other things. That powell said was that the fed needs to make sure that inflation expectations stay anchored at two percent. Well clearly they ain't anchored there. They've drifted up to three point three percent yet. The fed is pretending that they're still a two percent. Meanwhile consumers are wrong. Inflation is likely to be much higher than three point three percent but at least they're closer to it then. The fed but wall street is still focusing on how this is somehow bad for gold and even though rates have really backed off because after we had that spike yesterday morning and then the stock market rolled over and then oil rolled-over and everything started to roll over. Then we've actually got a backup in interest rates because now as risk asset started. Tanking right people went back into the treasury market as if it was a safe haven and so some safe haven buying as a result of rising bond yields and falling bond prices right because bond prices were falling and then stocks fell. People bought those bonds back as a safe haven from falling stocks. What they should have been buying his goal. They sold that too. Because gold is real safe haven if you understand the real threat. The real threat is inflation and low yielding. Us treasuries buying a ten year treasury at one point four six percent which is where we ended up today. There's no safety there. That is a negative real yield. You need to buy gold. But then traders haven't figured this out they're still using a playbook that no longer exists and they don't understand or appreciate the situation that we're in. They all expect the fed to fight inflation. it's impossible they can't fight inflation. They're going to surrender without a fight. Inflation is going to win and anybody. Owning dollars is going to lose. An- anybody betting against gold is going to lose. I didn't expect the price of goal to drop as much as it did from the highs. I knew that interest rates would rise. But again i thought that more investors would understand what that meant that it would mean the fed would be doing more. Qe not less fact. We got the balance sheet numbers yesterday. The most recent week and now we saw a thirty three billion dollars. Spike the fed's balance sheet is now just under seven point six trillion. This is the highest. It's been. I have a feeling that one of the reasons that we saw a reversal in the bond market yesterday is potentially the federal reserve intervene. Maybe the fed panicked and bought a truckload of treasuries on thursday morning. And we'll find out when we get these numbers next week. What happened to the fed's balance sheet. But i have a feeling it really ballooned now. I don't know where the money supply numbers are because the fed stopped reporting the weekly to number. So we don't get him anymore now. I think they're going to be reporting the maybe less frequently. I don't know maybe. The conspiracy theorist in me would say that one of the reasons. I don't want to report. These numbers is because they don't want people to see how big they are right. If you're trying to commit robbery right you want to do it. You know in the cover of darkness. You don't want to shine a light on it. So maybe there's a reason that they don't want us to see these numbers as often but you know they don't seem to care. I mentioned on my last podcast. Powell said that money supply no longer matters that the quantity of money no longer affects inflation. Even though that is inflation you have a fed that thinks they can print as much money as they want and none of it effects the value of the money or the prices of the goods that we buy with the money but the other thing that traders overlook of course is what rising interest rates are going to do to the stock market. What they're going to do the economy if you think we have a strong economy well if interest rates rise there goes that economy because the economies of bubble in rising rates will prickett. You have all this borrowed money. And it's all more expensive. If interest rates go up same thing with the real estate market same thing with the stock market asset prices are very much a function of interest rates. And in fact. I said this on the podcast. The stock market is far more vulnerable to a decline based on rising interest rates. Then is the gold market especially the nasdaq growth stocks. They are highly sensitive to interest rates. Far more so than the value stocks that pay good dividends now That compete with those higher interest rates and here is the rationale in k. Should understand this growth. Stocks are stocks. That are not producing income. Now right investors are looking into the future and they think that they're gonna grow into their earnings right. These are going to be. They're spending a lot of money now. They're growing their business as they're going to have all this growth and eventually they're going to have all these earnings and then they're going to be able to start paying dividends in the future. I don't get any dividends now. I'm just waiting to get the dividends in the future that are going to be the result of all the growth now when rates are zero. Does it cost you any money to wait. Ten years For your income now because there's no opportunity cost is zero interest so if you have really really low rates or zero you can put a very high multiple on growth stock that isn't going to deliver earnings until many many years into the future on the other hand. Let's say you have high. Interest rates say interest rates are ten percent right. Well if i'm waiting for a stock to grow into earnings. And i have to wait ten years well. It costs me ten percent a year. While i'm waiting so if i'm going to have to give up all that income to wait for this growth stock to potentially start Paying dividends well. I'm going to be willing to pay nearly as high a price as the price. I would have to pay. If i wasn't giving up eddie. Income now of course raised ten percent. Whatever they are if they go to one percent two percent three percent any increase in the interests that i can get on my money today. That produces a reduction in the value of whatever income a growth stock could potentially produce in the future so the stock market is much more vulnerable particularly the high fly nasdaq. And so what is going to happen. If rising interest rates 'cause the stock market crash well. We already know what's going to happen. We saw what happened last year in march when the stock market crash because of covid. What fed do the fed quickly bought interest rates back down to zero and unleashed q. Infinity now if the air starts coming out of that bubble again if the stock market which is even more overvalued now than it was pre covid and the economy is even more screwed up now than it was then the deficits are much bigger now than we were then and we don't have donald trump as president who's promising lower taxes and less regulation. We have joe. Biden is president who's promising higher taxes and more regulation to market ca tank. Even more now than i did that. So what does the fed do. Just sit on. Its hands and do nothing. Of course not. The fed is going to come up with a much bigger increase in its quantitative easing program. That is what's coming now. I don't know the markets for some reason. They're just waiting to hear it. They can't figure it out. They can't read between the lines even though the lines are pretty wide and easy to read between. They're just waiting for the fed to actually come out and say what should be obvious or not. Just say do it. They're waiting for this program but when it happens it's going to be a stampede out of the dollar and a rush to get into goal which is why people should be buying the dips. Now don't worry about it. If people don't understand where we're headed are doing the wrong thing you just keep on doing the right thing and of course. Doing the right thing does not mean buying bitcoin. Bitcoin is not digital gold. Bitcoin is the riskiest of all the risk assets and it is gonna come down with rising interest rates and i know a lot of the bitcoin is probably are taking some satisfaction in the fact that gold is falling to. Bitcoin is falling with everything else and gold is falling although if it was supposed to be. Non correlated why isn't it rising. I mean if you bought bitcoin as a hedge well. Bitcoin is going down as much if not more than the rest of the market. So it's not providing that type of hedge now. Yes gold at the moment but i think gold is going to be negatively correlated with bitcoin in that gold is going to be a hedge against The market and against inflation whereas bitcoin will not because it's not a real good and therefore it's not an inflation hedge because it has no price no value as a good that relates to any other prices that rise as a result of inflation but meanwhile look at what's happening with the gray scale. Bitcoin trust i warned about it on this podcast. You know it closed at a small discount a couple of days ago for the first time in maybe five or six years i forget but today it closed at about five or six percent discount to the net asset value. It's closed at forty three twenty stout about twenty seven percent now From its high which was set earlier this month. So that's within the month. We have this twenty-seven percent selloff. And that's about i think maybe seven percent bigger than the bitcoin selloff itself. Bitcoin is down about twenty percent or so from its high as i'm recording. This were a little over forty. Six thousand maybe forty six thousand three hundred. The high was fifty eight thousand two hundred. But i think this is a big game changer for bitcoin. Now that you have the gray scale trust at a discount in fact. I think it's now more likely to trade at a discount. Then a premium number one. You've got an etf now. That has some competition that was just launched out of canada. So why by gray scale when you combine atf. So i don't think it's going to get to a premium and that means that gray scale is not going to be able to sell shares into the market for cash and then take that cash and everyday buy bitcoin. Gray scale was the biggest buyer of bitcoin. It's not going to be buying anymore. So i don't know where the buys is gonna come from. Everybody says the institutions are buying the institutions were buying g. btc because they didn't want to buy bitcoin outright so they wanted to buy it on the exchange. Well obviously they're not if it's trading at a discount and in fact as gtc the gray scale trust as that trades at a discount. It ends up being a competition for bitcoin. If i can buy the trust at a five percent discount. I'll just buy that. What's the point in by an actual bitcoin so it draws demand away from bitcoin which pushes down the bitcoin price and as the bitcoin price falls. Will sodas demand the price of bitcoin trust so this thing could be a self perpetuating spiral so. There's a lot of risk for a stock market crash right now. There's an even bigger risk of bitcoin crash and of course if we get a real crash into stock market if we get a real crash bitcoin this safe haven is not us treasuries because it was the decline treasuries that started the whole thing. There is still a lot of risk and treasuries the real safe haven is gold and when gold starts to soar the dollar is going to tank and then all of a sudden all this money. Printing all these deficits the budget deficit in the trade deficits. They're gonna mean something right now. It doesn't mean anything because everybody is crazy while sanity is going to return and i think it will return soon and the important thing is that we're already seen and we're just prepared for everybody else to realize what we already know. I was very glad to have tommy. John's as my newest sponsor. Because you know. 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John's is the best place to store the family jewels. That's fifty percent off. Tommy john underwear and allows where at tommy. John dot com slash gold. Tommy john dot com slash gold. See the website for the details and as if the week wasn't crazy enough one final bit of market craziness happened with these memes stocks. These heavily shortage stocks. The poster boy being game stop now. Game stopped shares on wednesday. They closed it. Forty dollars. A share on tuesday the shares closed at forty dollars a piece. On the following day wednesday they gapped open to forty four seventy and closed at ninety one dollars and seventy one cents so pretty much a double in one day then on thursday. The next day we gapped open at one sixty nine fifty five and what is high as almost hundred and eighty five dollars share before selling all the way off back down to one hundred eight still up on the day but about eighty dollars a share off the high. Then today we ran all the way up to one hundred and forty two ninety before selling off back down to eighty six and then closing at one on one seventy four only down about four bucks on the day but having been through a roller coaster ride during the day. In fact i saw an interesting interview. Today with henry. Blodget on cnbc. With joe kernan and henry blodget lynch internet analyst during the nineteen ninety dot com bubble. And i remember making fun of this guy in real time because he had these pie-in-the-sky forecast for all these internet stocks. He was the leading cheerleader from that bubble but to his credit he actually learned a lot from that bubble. Unfortunately joe kernan. He was a reporter during the bubble. He didn't learn anything. And you know the most interesting part of conversation was that henry blodget talked about the fact that during most of his career now since everybody knows the role he played during the dotcom mania as the stock market has been going up. He's always asked a question. Does this remind you of two thousand nine hundred ninety bubble and he finally said he said you know for the first time. What's happening right now. And what i'm seeing is exactly what was happening then. So yes finally. After all these years we finally gotten to a point of market craziness. That is exactly like what i remember. The one thousand nine hundred ninety s being and what he said is he doesn't know where we are in. The cycle is at midnight. One thousand nine hundred ninety eight. Is it midnight. Thousand nine hundred nine. Is it early. Two thousand right. So is the bubble about the pop or is the bubble going to get a little bigger before it pops but what are the things that really annoyed. Joe kernan is he had to bring up. Bitcoin of course and henry blodget agrees with me. He thinks that the whole thing is nonsense. It is a pure bubble. And it's gonna crash but because it has zero value as opposed to a stock which can have some measurable value since it has no measurable value. The sky's the limit. I mean people will pay whatever they want and of course. This is infuriating joe kernan. Who is really can't be an objective interviewer when anybody is asked about a bitcoin because if they don't like it he immediately starts arguing with them But i thought what he had to say came from a unique perspective of having lived through the bubble and ben caught in it because henry blodget did not realize that there was a bubble in the dot com until long after they crashed and so he was able to look back on his experiences and see how he got caught up in the mania and now he sees the same thing happening in the market. Today with these memes stocks with a lot of these momentum stocks and with bitcoin and other cryptocurrencies. I wanna move on a little bit from talking about the craziness that's going on in the economy or the markets and talk a little bit about the craziness that's going on in american society. This whole cancel culture war that has raging by the left. And there's a few examples that have really been bothering me that i wanted to discuss. One of them has to do with this controversy. That shouldn't even be a controversy regarding the bachelor. Which i've spoken about this series before on the podcast. You know i had been watching it. I kind of got dragged into it by my wife who is a fan of it but neither one of us is ever going to watch this series again or the sister series the bachelorette but the controversy exploded because of a photograph that surfaced of one of the finalists. She is one of the three finalists now. Competing for the hand of the bachelor. And you know. I think i have an idea who won. But i'm not gonna say anything just in case anybody who's listening to a podcast is watching this show. And they don't want me to spoil it but she's one of the three finalists and long before she even became a finalist. I think it spent the last few weeks that this has been brewing is. This photo came up of her at a sorority party. And it's a southern themed party antebellum south you know of like gone with the wind They're all dressed up and the type of clothing that the southern belles would have worn during that era. And because of this she has been accused of being a racist because after all in the antebellum there was slavery. And so if you are at a party that is in the theme of the antebellum south while you were there for supporting slavery your insensitive and you're racist and of course what made this all the more sensational was the fact that the bachelor on this season Guy named matt. James is the first black bachelor and in fact i think the series was quick to announce him in the aftermath of the black lives. Matter george floyd stuff. Because they had taken a lot of flack because they hadn't had black bachelor in the past and so they were quick to to show that they were racist. And so they have this guy on there saying that this woman who is a contestant and who was hoping to marry this black bachelor that this woman is a racist. Which of course is nonsense. Because if she's such a big racist why does she want to marry a black man and first of all to. She's not even pure white. I mean she's half white and half hispanic. I saw her father on the show the other week. And you know. He's very much a hispanic so i guess she's like george zimmerman right. She's a white hispanic but so she's ethnic herself and by the way matt james his his his mother is white. His dad is black so you know but his complexion is pretty dark but they're both mixed race. But why would this latino right. Who wants to marry a black man. Why is she a racist simply because she went to a party. That was in the theme of the antebellum south. I mean first of all the girls twenty four years old now so it was three years ago so she's twenty one going to a fraternity sorority party. I mean if you think about all the crazy things that goes on in greek life and all the wild things that people do. When they're twenty twenty one years old. This party would rank pretty low on the totem pole went crazy parties. I wasn't a member of terni when i went to cal number parties. In fact i went to roman toga parties. Toga parties were back in vogue. When i went to college because of animal house which came out. I think right at the end of my high school days and that kinda revived. The nineteen fifties sixties. Kinda toga party. And all of a sudden people started having toga parties so i went to some toga parties now. They had slaves in ancient rome. I mean i obviously didn't care about that i. I wasn't being plo- pro slavery. Because i went to a roman toga party. I mean roman culture didn't even enter my mind right. I hear about a party and it's like oh there's going to be music. There's free beer. There's girls dressed in sheets. Yeah i want to go to that party. Sounds like a lot of fun right. I'm sure that Rachel kirk connell is the young woman's name she wanted to go to the party. She wanted to dress up. It sounded like a lot of fun. It didn't mean that she endorsed slavery and it didn't mean that she was insensitive to black americans today who are the descendants of slaves that somehow she is condoning slavery or disrespecting them in any way obvious obvious. So here's what happens with the controversy so as a result of all these people who want this young woman's head because she went to this party right. The host of the show guy by the name of chris harrison. He's on an interview on television with the former first black bachelorette. Her name also happens to be rachel rachel lindsay so she is interviewing him about this whole controversy and now chris harrison has the nerve to actually defend this young woman from all these attackers and he says come on. We need to put this into context. Right she wasn't being racist. It was three years ago. It was before you know black lives matter. And george floyd. I mean we weren't hypersensitive back in two thousand and eighteen like we are now in two thousand and twenty one so maybe you should cut her some slack and let her explain herself and he basically did the right thing by defending somebody who is being attacked unreasonably by the woke a mob of political correctness. Trying to cancel her and so because of that because he stood up for her now all of a sudden this guy's a racist and he's got to resign from the show he's not even going to be on. The next episode is after the final rose episode. He's not there he may never host this show again because everybody when out and attacked him now even including the bachelor matt james who originally i think defended him but now he's coming out and say no no no no. This was horrible. The way he talked to rachel lindsay. He needs to be more respectful of the of the horrors of slavery and discrimination and bigotry and the black experience all this nonsense and so somehow he should not have tried to defend her. Which of course is a bunch of nonsense. But now even the woman herself. Rachel kirk coddle. The half mexican half white woman who went to this sorority party has now come out and publicly denouncing the people who are defending her. She is basically apologizing profusely for her racist conduct and is basically trying to win now. The acceptance of the mob by caving in and admitting her sins and she is admonishing anybody who is trying to defend her as also being racist. I mean so the pressure now from this politically correct crowd is so intense that the host has to leave the show. The bachelor himself turns on the woman who he may have even proposed marriage to who knows and now she's even caved in on her own and is now profusely apologetic for her racism and insensitivity when all she did was go to a party. This is a bunch of nonsense but this is now the society where we live in and we are allowing this vocal group of people to push us into this direction and the more we cave in the worst. This is going to be. I mean you may think this is trivial stuff. But as we surrender this territory. They're going to take more and more and more. I know that this is all leading up to a bigger. Pay day reparations. This other controversy regarding that new york times reporter donald mcneil. And if you haven't heard about this guy he was a longtime new york times reporter. I probably a pretty liberal guy. And i really didn't follow them. I didn't know much about him. And then i started this controversy but so this guy. He was on a field trip with high school kids in europe. Somewhere i forget where but he was out a field trip and apparently on this field trip there was a discussion about a girl who got suspended or something from school because a video surfaced of her when she was only twelve years old and in that video she said the n. word and i think she sang it. I think it was a song. If i'm not mistaken. She might have been singing a rap song and of course. The rap songs are replete with the n. Word they're all over the place so maybe she instead of just mouthing it or skipping over. I'm not really sure what you're supposed to do when you're white and you're singing a rap song right you just gotta skip over those words. Even if you're black friends are all around. You saying the word But maybe she said on the whatever was she wasn't calling somebody the n word she simply eat. Maybe sang the song and so the students were asking this teacher. Did he agree with her. Suspension because this Video surfaced of her years earlier in a private setting using that word and he basically said well. I don't agree. Because i think it depends on the context in which you're using the word i mean. Are you calling somebody that word. Is it being used. As a as a racial epithet writer you really like are you. Are you directing it at somebody or are you just using it in a sentence. And then he ended up making the mistake of using the word in that sense as he was describing it right so apparently so he uses the word he speaks this word right but obviously not in a derogatory. Says he's just describing something. He ends up using the word in the description. I so anyway. The the administrators are the people at the new york. Times find out about it that he said i guess some of the kids rat out and said hey. Don mcneill said said the n. Word right so then the newspaper. The times looks into it. They discover the context in which he used it. And they're like okay you know. Hey yeah you should have said that but we understand that you're not racist you didn't mean anything bad kinda just slipped out right. You know that that routine that that a comedian has we where he does. George bush and he's like you know he says you don't want to mispronounce the country. Niger right. i mean you just can't you know you can't you know there's even a word that means stingy. You know that has that in it and apparently you can't even use that word anymore either because it contains the n. word within it even though it means stingy it doesn't refer to To a person but they let it slide. So what happened. Recently was the fact that the new york times did not fire this guy for using the n word in the context that did that became such a huge controversy that they ended up firing them they had to fire the guy even though he had not used the word in any kind of insulting matter so basically the rules are if you are white it doesn't matter what the context is. If that word comes off of your lips you have to be fired from your job. And it doesn't even matter where i mean if if it's surfaces if you had a private conversation and you use that word in a way that doesn't even indicate that you have any racism just the fact that you pronounce that word correctly allowed. You are immediately fired. Meanwhile these are a lot of liberals who all believe employee's rights and workers rights and all kinds of wrongful termination but apparently none of that matters. Because if you say the n. word you're fired. It doesn't matter what happens. It doesn't even matter. What the context is you know. It also makes me think of the movie. The life of brian. Where the guy's gonna get stoned. Because he said to jehovah and then he just starts saying jehovah in a different context and every time he says it they throw more stones at them and then the guy. That's the leader of the people. Who are stoning. Him he ends up saying jehovah and then they all throw stones at him. But i mean it's the same thing but i mean think about the ridiculous of this where if you're white you can't say this word i mean if you're black you can say the word all the time right for a lot of young black males the n. Word is as common in your talking as a as to the canadians punctuate every sentence. I put a in there while. I mean you hear the you know the n. Word all the time so they can say it all they want and if a white person says it not in a bad way but just says it. Well they're fired. I mean could you imagine if society if white people tried to tell black people that here's a word that you can't say we've got this word and you know we could say it but you just can't say it and if you say well you're going to get fired from your job. Do you think that there's any way that they would put up with that. Of course not. They say you're not going to tell me what i could say what i can't say right. It's ridiculous but how can society bow down to this pressure and say this is some sacred word and if any white person says it regardless of the context they're going to be fired right and then it even gets worse because what happened then. Is this guy. Mike pesca. Who's a reporter right. This guy works for slate. I and he has a private conversation on slack. Right the message service with some of his colleagues discussing the fact that don mcneill got fired and he says he doesn't think he should have been fired. He is defending don mcneill by saying. Hey come on. You have to look at the context with which said the n. Word right so news got out that he was defending this guy in a private conversation among his colleagues and for having the nerve to defend this guy he gets fired and he didn't even the n. Word i mean. The whole thing is ridiculous. Imagine of some guy from the new york times. Learns that don mcneill got fired for using the n word and he says to another colleague. Oh i can't believe that don mcneill he's been here for. I don't know twenty thirty years a great reporter and only does is say the n. Word but he doesn't say the n. Word he actually says the word by accident in that conversation. I can't believe he got fired for saying blank. And then somebody found out that. He said that now he gets fired. I mean what kind of crazy world do we live in where this is our reality. Meanwhile you know we have all this other real stuff that we should be worried about right. There are a lot of problems that the african american community faces. Racism is not one of them. It may be a problem but it's minor in the big scheme of things the real problems. Nobody wants to deal with those right. We want to build up these fake problems and we want to then create this ridiculous environment that somehow if we can punish everybody who just uses this word that somehow we're going to stamp out systemic racism but of course it's not just racism. It's all this nonsense. Look about this stuff with gender right. Just read in california. They avenue law. I don't know if it's passed yet or if it's just gone through the legislature. But they wanted to make it illegal for stores that sell things to children. I guess children's toys or maybe clothing but they wanna make it illegal for the stores. You have a boy. Section and girls department right. You can't label it boys and girls because you know that's not right. We shouldn't want to assign any particular gender to anybody and we don't want to just force boys into the boys department or girls the girls department and first of all. It's not the kids it's the parents right. They're the ones that are doing the shopping. Why do stores have a boys. Section and girls section because somebody comes into a toy store and they're looking to buy a birthday present for a boy boy section. Yeah that's because that's where the stuff that boys like is to make it easier for the customers. It's to make it convenient for the customers. There's nothing sexist about it. There's nothing homophobic or anti lbj q. I mean let's assume that. I want to buy a present for a boy who i think likes girl stuff. Well that'll go to the girls sexual nothing stopping me from doing that. The government doesn't have to mandate that stores take away the boys section of the girls section and just randomly put all these objects in the store. And then you just got to figure it out so now if you wanna buy something for a boy or if you want to buy a dress from disney princess are from frozen because you're buying for girl right you can't just go to the girls section because you would figure that's where those dresses are. You just gotta go through the entire store hoping to find what you're looking for instead of the store making it easier for you By separating it out which is such says look if people really want that if there is demand for stores that don't have a boys department of girls department if there's really demand for that then stores will cater to that demand and they will open up. They will advertise. Hey we're gender-neutral. We don't have any signs for boys and girls. So if that's what you want will then come to our store. But that's not the case. I mean the percentage of the population. That doesn't really identify. Male or female is so minute we can't let a tiny portion of the population dictate to everybody else. How they're gonna live their lives and what really bothers me about all. This is the whole idea. Is you're supposed to be tolerant right. So what is transgender or whatever the whatever it is they want the majority to be tolerant to the minority and i agree and i think most people are tolerant. Live and let live. I mean you know live your life the way you wanna live it you know dress however you want call yourself whatever pronoun you want. Use fine with me. The problem is when you try to force other people to do it. It's like the people that are demanding that other people be tolerant of them are completely intolerant of everybody else. That is the big irony. And so how do you solve intolerance by bowing down to the demands of people who are even more intolerant. Probably the craziest thing about it on the same topic as i just heard the other day. Hasbro is now canceling mr potato head right. We can't have mr potato head anymore. And mrs potato head because you know we can't have gender so they're going to rename it just potato head. No more mr. Or mrs and first of all you know potato had doesn't have a gender doesn't even have a body so it's just ahead so there's nothing there that would become agenda. The only thing that makes mr potato head different from mister bay are the accoutrements that you attached to it. So obviously for mrs potato head in the box you get big red lips and you get you get women things and with mr potato head you get a mustache and the different things that that would make the potato more masculine than feminine. But apparently you can't have that now so it's just going to be potato head and then going to have to put all of the defeat male parts and all the male parts in the same box. I mean so you now going to get both the male and female when you buy the potato head because before you would choose. I want the mr potato head which would be potato head with the male parts. Or do i want to mrs potato head the potato head with the female parts right if now you could just by potato head and they gotta give you all the parts and the same one. I guess the the price is going to have to go up now right because you can't just buy the parts that you want you have to buy the parts for both genders even if you only want one but the whole idea that we are somehow offending people. I mean if you are a transgender person and you are offended by mr potato head. You've got much bigger problems that you need to deal with and if the broader is going to allow this vocal minority to dictate all of our all of our culture i mean what are they doing. I just read that students. I guess these are black students at a university of washington. Washington university want to remove the statue of george washington from washington university. I mean first of all if you hate george washington so much. Why are you going to watch and university go to another university. That's not named after george washington. You would think that if you're going to go to washington university. You should at least have some respect for george washington. It doesn't matter to me. That george washington had slaves right. Because you have to look at the context of the times. George washington was a great man. Yes we're going to judge him now. Based on the fact that you know we now know in all believe that slavery is wrong. The problem is that wasn't the the world that george washington lived lived in. You have to appreciate the man for what he accomplished. And you have to view him with the morality that existed at the time. And you can't just repudiate everything that the father of our country did because in addition to all these great things he also had slaves. There are a of other people who we admire who also had some things that they did that were bad. You know well after slavery right. And we don't we don't condemn them just because they had one or two things that they that. They had faults and say an overlook all of the good things that they did and say. Oh they did one bad thing. I mean we don't know what people in the future argued a look back at. I mean maybe in the future everybody is going to be a vegetarian. I maybe everybody in the future. I don't know in one hundred years or thousand years. Maybe they're going to look back on anybody who ate the meat of another animal and like you you murdered in an animal. You actually ate the flesh of another living creature. I mean maybe in the future is going to be regarded as murder. I don't know. I don't know how people are going to look back at us that we're eating meat you know. We're we're killing cows and pigs and we're raising them and there were slaughtering them and then there were eating them. I mean we we think nothing of that but maybe that won't be the case in five hundred years or thousand years. Who knows how people in the future are going to view our eating habits and let's say that nobody does it anymore. Well are all the statue user of americans that did anything great during are they all going to have to be cancelled out because they're gonna go back and they're gonna say oh but wait a minute but he ate meat. Forget about all these great things. He did look he actually murdered or he participated in the murder of innocent animals. Right now. i'm not saying that. That's as bad as slavery but the point i'm trying to make is. We can't judge people by today's standards for the actions that they may have committed when the standards were completely different. The same is trying to judge. Rachel kerr connell because she went to this sorority party. Nobody would have been bothered by it. I'm sure that nobody at the school made us think about it. I mean i'm sure there were some black girls and guys that went to this university. Georgia i mean. It couldn't have been all white. And i don't think they had this party in secret it like i. I saw the photographs. It wasn't at night somewhere. I mean it was right and bright light of day. I don't think anybody at the time who was. Actually there thought anything of it. I don't think any african americans who were there were hurt or offended by the fact that this party took place but of course now it's a whole different world and it is not an improvement. This is not the world that we live in and believe me if we don't put a stop to this if we don't say enough is enough and and stop bowing down to these ridiculous demands. This is just the beginning. It is going to get a whole lot worse. there's an expression you give them an inch They're going to take a a mile. Well this is the inch and we are giving it. I could see this and we are going to end up losing the culture and the economy because this is all a pretext for socialism. That is the bigger agenda of the people who are pushing this. It's not just racism or sexism. They actually are pushing socialism because the cure for all these problems right all of our systemic racism. What we need is more government bigger government. So that's what they're doing. They're they're using this as a wedge and then they're basically disarming everybody and then they're going to have a full frontal attack of socialism.

fed tommy Bitcoin John dot joe kernan tommy john treasury John bitcoin henry blodget
Crypto Crash.  Buy the Dip or Sell the Rip?  Ep 693

The Peter Schiff Show Podcast

45:26 min | 4 months ago

Crypto Crash. Buy the Dip or Sell the Rip? Ep 693

"Leadership show. I like to thank indeed for supporting my podcast. Indeed is the job site that makes hiring is easy as one two three posts screen and interview all on indeed so get started now with a free seventy five dollars. Credit to upgrade your job post at indeed dot com slash. Peter offer valid through june thirtieth terms and conditions apply. You know i really hadn't intended on making a podcast today. I had a lot on my plate. And i did a podcast yesterday but the action and the market pretty much forced me to sit down to the microphone and record another podcast today. A lot of action in the markets all the risk assets were sold off broadly today although closing well off the lows. The dow jones at one time was down close to six hundred points before paring its losses at the close to just one hundred sixty four points in fact the nasdaq almost came back to positive but all of the markets commodity markets were down. Oil was down about two bucks. Most commodities were lower lumbar. I've been talking about finally had a bit of a balanced. It had been selling off earlier than a lot of the other commodities but the one asset class that i really want to focus on today is bitcoin and cryptocurrencies in which really crashed today. Now that doesn't mean. I think the bottom is in. It's not but we certainly got a short-term capitulation type sell off which is something i have been anticipating and warning about for the last couple of weeks on this podcast as i've been watching bitcoin carving out a classic head and shoulders top and to me. There was an extreme amount of complacency in the crypto community with respect to this ominous technical side and it seems pretty obvious to me that we were gonna get a pretty big selloff and we did. We got the whole thing today. In fact the big dropped happened between about. I think eight thirty and nine o'clock in the morning eastern time. That's where bitcoin fell from about thirty eight thousand to about thirty thousand within a half hour. That is a twenty percent decline in one half an hour. I mean one thing that today's action should do once and for all is settled the debate as to whether or not bitcoin is a safe haven store. Value inflation hedge like gold or whether it's a risk asset and today. Bitcoin followed all the risk assets lower. In fact it'd probably lead the risks assets. Lower gold was up about fifteen sixteen seventeen dollars early this morning. It initially sold off early in the morning. In fact i think. Gold sold off even before bitcoin but when bitcoin started to crash in that half hour gold came back from about a ten or fifteen dollar loss into the black and ultimately it had about seventeen dollar rally. It ended up surrounding those gains later in the day. After the release of the fed minutes. Which i'm going to get to in the second half of this podcast for now. I want to continue to talk about. The crypto carnage but crypto. Bitcoin went down with rhys assets. In fact people seem to be rotating into gold as a hedge against the weakness in crypto. Which is what. I have been saying. All along that the people who own crypto and who are speculating and crypto should try to hedge their crypto portfolio by buying gold because gold is a safe haven store value. It can rise when other assets or falling. Bitcoin again proved today. It is not non-core later on correlated. It correlated perfectly with all these other high risk stocks that were crashing accept. Bitcoin craft much more now. It has recovered a good chunk of those losses. The low was just over thirty thousand as i am recording. The podcast were trading between thirty eight thousand five hundred thirty nine thousand the highest. We got on. The snapback was a little over forty thousand. The interesting thing was the rally. Couldn't carry it back to forty two thousand which was the spike low. I think from yesterday so the people who bought that dip and who thought they were so smart well. We went lower today now. Of course a lot of people are excited about the fact that we recovered from thirty thousand. And that's all everybody is talking about. You see it's recovered. Buying the dip works well buying the dip work yesterday. At least that's what people thought until we had a bigger dip today and today's buying only going to work until we take out the low which we will do now. Interestingly enough this collapsed down the thirty thousand really fulfills the objective of the head and shoulders. Top if you actually measure the neckline this is about what i was looking for to complete that pattern so we could easily go sideways for some time digesting as big selloff. But i don't think that this completion of his head and shoulders top means that the bear market is over and a new bull market is going to be born and we're going to be back above sixty five thousand in the next few weeks for the next few months. I really doubt it. Because if you look at the technical damage really done to the bitcoin chart and that's really all. Bitcoin has is technical analysis because there are no fundamentals because there's nothing fundamental to analyze. It's all tentacles right and it. Tentacles look horrible now. The market has broken. It's broken big time. And i think we're headed lower. In fact i think is going to be difficult for bitcoin to get back above forty two forty three thousand and if it can't do that it is going back down to re-test thirty thousand. I don't expect that test to be successful. I do think that there will be a defense of the thirty thousand level. I think a lot of the balls will try to mount a stance there. But i don't think it will work and i think we're going to break again back down to twenty thousand which would at least test the old high which makes sense from a technical perspective and that would be about a seventy percent decline from the peak now right now. The decline is better than fifty percent because bitcoin topped out. Just below sixty five thousand and bottomed out so far just above thirty thousand so you're talking about more than fifty percent decline now and it's across the board. I think during the day at one point about one. Trillion in market cap was wiped out instantaneously across the almost ten thousand cryptocurrencies. Heathrow actually had a worse day than bitcoin ether. Got down below two thousand. I think eight thousand nine hundred and change. It was above four thousand just the other day i mean so all these currencies just in a blood bath not currencies. I really shouldn't even column currencies. Their tokens digital tokens. But the point. I made earlier. Is that the debate. Should be settled now. Nobody could look at the type of action that we had today in bitcoin and go away with the belief that if they're buying bitcoin they're buying something safe. They're buying something stable. They're buying something as a hedge a safe haven. That is true. This is pure gambling. In fact the funniest part about today's rally off the lows is the catalyst was none other than eighty. Lan must tweet. You would think to crypto community. Had enough of elon. Musk no whenever he tweets out something. That's pro bitcoin. They love him again. Because this is all its market. Has it lives and dies by elon. Musk tweet and that means elon. Musk can destroy this market anytime he wants. All the do is tweet something out. Why would you wanna put your life. Savings into a crypto asset. And just hope and pray that somebody is unstable as elon. Musk just doesn't decide to completely wipe you out with an ill time tweet. And all takes is one or two words or memes. He just can tweet out an emoji and you're done in bitcoin. In fact the tweet that launched a five or six thousand dollar rally in bitcoin. Because i think we're around thirty five thousand so we had bounced a bit off the lows before elon. Musk posted his tweet. And all he tweeted was tesla has and then an emoji of diamond and then an emoji of a pair of hands in other words diamond hands and with that. Supposed to mean in crypto community. Is you have strong hands because diamonds are strong. You have strong hands. Which means you're holding your holding. You're not selling your bitcoin. So the fact that elon. Musk tweeted out. The fact that tesla is potentially holding onto its bitcoin and not selling despite the collapse this sparked a rally why this should spark a rally. It makes absolutely no sense because number. One must didn't actually say anything with this tweet. I mean all. I did is tweet out emoji of a diamond and a pair of hands. You think that's gonna stop tai slow from selling their bitcoin. If that's what they wanna do. I mean i don't even think that somehow inside information or fraud i mean elon. Musk always say what. I tweet out a diamond and a pair of hands. What's the big deal. He could easily be selling bitcoin despite the fact that he tweeted out diamond hands. But let's assume that elon. Musk is being honest. And tesla hasn't soul. Why is that bearish. Because it means he's still has the bitcoin to sell. I mean if the market has crashed by fifty percent and has hasn't sold a saito city since the original ten percent sale that he talked about and you think this is bullish. That's bearish because he already sold. At least the market would have absorbed to selling and now maybe can move forward but now the market knows that you've got elon. Musk who's got one foot out the door already on bitcoin. He's already losing interest in it. It could be very easy for us to just get rid of his bitcoin especially when the price is still higher than i believe his cost spaces although it may not be there for long at the rate that this thing is dropping and in fact. I didn't even know this win. I did yesterday's podcast. But i talked a lot about michael sailor on my podcast yesterday. Well i missed michael sailors. Tweed that micro strategies had purchased another ten million dollars worth of bitcoin to add to its holdings i think he tweeted out. A price of forty three thousand forty four thousand dollars per bitcoin. Of course he's already way down on it but this guy continues to buy. It wouldn't surprise me if he bought more bitcoin today. We'll find out. And you know the thing about michael sailor. Is you know you hear a lot about the bitcoin. Wales right all the guys who owned lots of bitcoin. Well though michael. Sailor is one of those wales in my mind. The real whale when it comes to michael sailor is bitcoin. Bitcoin is the whale right. In fact it's moby dick. It is the big y wail and michael sailor is captain ahab and he is obsessed with bitcoin and basically i look at micro strategy as the right. That is the ship that ahab captain. And i think you've got all these shareholders who were aboard this ship and they are going to drown with michael sailor because he is going to pursue this obsession until his own death and he's gonna kill everybody. On board the micro strategy. I think shareholders have two choices. Either mutiny. right. Get rid of this guy. And take over this company and salvage. What's left of what used to be a software company or jump ship and sell your stock. This thing is going much much. Lower was only down today by seven and a half percent. We're now at four hundred and fifty four down from thirteen hundred and fifteen dollar high coin base down five point eight percent a new low in fact it got down to two hundred. Eight dollars was loaded. A member of the reference plice was to fifty which we just broke yesterday or day before went down to eight. It was as high as four twenty nine during the opening fifteen minutes or so of trading. I mentioned galaxy digital yesterday. It was down six and a half percent and of course the gray scale. Bitcoin trust down another five percent. But at one point i think it was down closer to fifteen percent on the day. The low was twenty eight and it closed at thirty two point six and that was still down over five percent even though it was two dollars and sixty cents off below but all that low did was set up a new target. Which i'm sure we will not only hit but we will take out in the days ahead as this bear market continues to grind lower. You know as. I was watching the coverage of the crypto market on cnbc continuously throughout the day. I'm watching these gray scale. Ads right by scale. Trust buy bitcoin. Everything is great. I love bitcoin constantly At every break there was another advertisement for bitcoin and they brought up all of the usual suspects to come online and talk about bitcoin. Everybody of course biased With a vested interest in the success of bitcoin because they work for a bitcoin company. They manage a bitcoin fund. And what do you know. Everybody is bullish. Everybody's saying by the dip the same thing from all of the talking heads. This is an opportunity. They're looking at this collapse and they still can't figure it out. Although i thought one interesting comment i was watching in the morning with joe kernan and joe kernan said you know maybe with the benefit of hindsight i know nobody saw it at the time and nobody really noticed that but maybe the nfc craze and the people say al and maybe the coin base ipo. Maybe elon musk. Saturday night live hosting. Maybe all this stuff was just one of those classic signs of a top of a market. A speculative blow off top that nobody noticed that the time but now in hindsight looking back maybe we should have taken notice right. He's saying that nobody noticed it. Nobody on cnbc noticed it. Yeah that's for damn sure but that doesn't mean nobody else noticed it. Nobody with a brain. Like i noticed it. I mean i know. I'm not the only one. But i was using all three of those points on my podcast as examples as warning. Signs saying hey. This is the sign of mania. These are the type of signs that you see at the top of a bubble. And that's what we're seeing. So i'm not looking back with the benefit of hindsight and saying gee i guess we miss this. I didn't miss it. I called it out and the reason to people on. Cnbc weren't able to see. It is when you are in a bubble. You can't see anything that's going on. Outside of that bubble. You are oblivious. You have to be on the outside looking in to notice these signs. And that's why they're not even sure they're saying maybe was a sign. Maybe there's a top look to me. The top is in everything that's happening the rotation of momentum into value the rotation out of in an international rotation at a bitcoin gold. Everything that is happening right now confirms that we've seen top and the trend is changed. Of course the people who are still wedded to what worked in the past argon. Be very slow to making this adjustment and coming to this recognition. Because they are used to buying the dips because buying the dips worked all the time during the bull market and since they don't know the bull market is over they expect buying the depths to work again. That's why they have been lulled into this false sense of complacency and they are about to be shocked into reality although it's gonna take a long time and they're gonna lose a lot of money Before that happens but you know one piece of good news. I think regarding all the people who are going to lose a lot of money in bitcoin and other crypto currencies is that a lot of the people are young and they have a lifetime to learn and benefit from this experience. Yes it's going to be a costly experience. People are going to lose a lot of money but they will learn a valuable lesson in the process and hopefully losing a lot of money when they're young will prevent them from losing even more money when they're older but another good thing too about a lot of the young people who have gotten into bitcoin is. They've ended up learning a lot about economics about economics. Know about sound money. Fact i you know. I ran into a group of young guys. I mean probably in their twenty s that were here in puerto rico and i was at a restaurant for lunch and they all recognize me. They were very excited to see me. So i posed for photographs with them but they were all into crypto. They all own bitcoin but they were big fans of mine. They were excited to see me and take photographs with me even though i am very anti bitcoin and they are very pro. Peter shift because i've had a big influence on them and on their way of thinking. And so i think a lot of people who got introduced to austrian economics. That understands sound money. I mean most people didn't even know what a fiat currency was until they got interested in. Bitcoin i mean most people if you said fiat they just thought of the automobile but now they know what fiat is they just think. Bitcoin is somehow an improvement. They don't realize that it's not but once they've lost confidence in fiat after they lose their money in bitcoin. It's not like you're just going to say okay. Well let's go back to fiat because now we know once they find out that bitcoin doesn't work as an alternative will. Then they'll know what does and that's gold or silver real money sound money so i think a lot of people have received a valuable education on economics and money. It's unfortunate that as a result of that. They ended up buying bitcoin but again the valuable lesson that they're learning at a young age is going to serve them well as they get older. The problem is going to be for the older people who lost retirement money. Who aren't gonna have the years to recover it. I feel really bad for these people. I mean sure yes. Everybody is gonna have themselves to blame. Everybody is ultimately responsible for their own bad decisions. I tried my best to put information out there to warn people and people obviously had that information at their disposal. But you know there are a lot of other people that i think. Bear some of the responsibility. And i'm sure that the losses in bitcoin and other crypto currencies are not going to end with the collapse of the cryptos. They're just beginning. Because a lot of the pumpers who made money are going to end up on the receiving end of lawsuits. So a lot of people who have been pumping up bitcoin. You guys better lawyer up because you're going to get sued. I'm not saying that the people who are suing you that they're not partially responsible for making their own foolish decisions to gamble on bitcoin. But that's not going to stop them from suing. Unfortunately suing people is the american way blaming other people for your own losses and your mistakes is exactly what americans liked to do. And that's what the lawyers specialize in and obviously are going to be some cases. And i think again the incestuous relationship between gray scale being the biggest advertiser on cnbc constantly promoting the gay scale trust while at the same time. Cnbc does nothing but promote bitcoin and gray scale they have no. Bitcoin bears on there. They have a constant flow of bitcoin. Bulls never a balanced discussion. All kinds of pine sky crazy statements going constantly. Why well the ad money is paying for it. Look all this stuff is going to come out in the courtroom and we'll see what happens. You know one of the more interesting anecdotes. That came out. And i missed it. Yesterday it was on anthony. Pop llanos twitter feed but apparently he's opened up a chain of pizza restaurants. Call bitcoin pizza and again it's supposedly in commemoration of bitcoin pizza day Where somebody bought a couple of pizzas with bitcoin. And now this is commemorating that but the biggest irony of it is that bitcoin pizza is not going to accept bitcoin in exchange for pieces so even though somebody was able to buy a couple of pieces for bitcoin ten years ago. If you want to actually buy a pizza at bitcoin pizza. They don't take bitcoin now. Anthony pompilio god. A lot of flack deservedly. So for that fact and he tried to explain himself and do damage control by saying. Hey the last thing he would want is to encourage people to part with their bitcoin for some pizza so out of respect or deference for their customers right. He doesn't want their big coin. He wants to customers to keep the bitcoin and to buy the pizzas with their dollars but if he loves bitcoin so much why wouldn't he want to take bitcoin in exchange for his pizzas. I mean forget about your customers. You want bitcoin. I mean if you believe. Bitcoin is the sound money than you would want to get paid bitcoin for your pizza's this is a bunch of nonsense to say that he cares about his customers and he doesn't want his customers. Bitcoin he only wants to customers dollars. Well hey what if you've got some customers. That don't even have any dollars. They're all in on bitcoin. That's all they have. Why can't they buy pizza in bitcoin. The reason they can't is because it doesn't work. It would be so expensive to buy a pizza with bitcoin that no one could afford to buy it and you can't price to pizza in bitcoin. Because it's too little. I mean it's not money it's not even currency is not a unit of account. It's not immediate exchange. We know it's not a store of value. It certainly didn't store and evalu- today it is just a special token and promptly auto proves it himself because his own bitcoin. Pizza restaurant won't accept payment in bitcoin. In business key to success is finding your edge. And then leveraging it well if you're hiring that edge is indeed indeed is the job site that makes hiring as easy as one two three posts screening interview. And you can do it all on indeed. You can get a quality shortlist of candidates whose resumes on indeed match your job description and you get it faster and you only pay for the candidates that specifically meet your must have qualifications and you can schedule and complete video interviews in your indeed passport. Indeed mace connecting with and hiring the right talent fast and easy with tools like in deeds instant match. It gives you quality candidates whose resumes on indeed fit. Your job description immediately added includes in deeds skills tests that on average reduce hiring time by twenty seven percent. You have the option of choosing between more than one hundred and thirty skill tests. That have already been prepared or you can make your own and then you can add your must have requirements so you only pay for the applicants that meet them. According to talent nest indeed delivers four times. More hires than all the other job sites combined. So if you're hiring you need indeed get started right now with a free seventy five dollars sponsored job credit to upgrade your job post at indeed dot com slash. Peter get a seventy five dollars credit at indeed dot com slash. peter that's indeed dot com slash. Peter offer valid through june thirtieth terms and conditions apply. Now i want to move forward to some real economic news or at least economic news at the market is perceived as being real really nothing but bs and that was the release of the federal open. Market committee's minutes and what sparked a big reaction in both the gold market and the dollar meaning. That gold surrendered is gain so it sold off. And the dollar rallied was the following sentence. And i'm reading from the minutes quote. A number of participants suggested that if the economy continued to make rapid progress. Toward the committee's goals it might be appropriate at some point in upcoming meetings to begin discussing a plan for adjusting the pace of asset purchases. That's it that's it now. The mere suggestion that there may be a discussion at some upcoming meeting of potentially possibly adjusting the asset purchases. That's it oh my god. They're going to tape her. They're talking about tapering. They're thinking about talking about abe bring and bold sells off. It went from like fifteen bucks. I forget where it was too down. Seven eight bucks ended up closing. You know maybe up a dollar so but gold sold off and we had this big rally in the dollar a bit of a sell off in the bond market as well yields rose on the ten the thirty year treasuries all as a result of the way. These minutes were perceived. But let's actually take a look at what was in these minutes. I'm going to go over. What i just read again. More slowly and comment on everything that the minutes reveal so i. It starts off by revealing a number of participants. Now what number. I don't know was it one was to. How many are in that number. They don't say my guess is that it's a minority of the participants. So i think most of the participants did not want to suggest this. And i certainly believe that among the number who did make this suggestion. That drome powell was not in that number. So if you don't have the chairman on board it doesn't really matter if you have a couple of guys on the fomc that made a suggestion if the chairman is not on board. Nothing's going to happen right. So unknown number of participants suggested that if if the economy continue to make rapid progress towards the committee's goals now we know it's not doing that because these minutes took place before the recent horrible jobs number that was a massive disappointment and other economic data that has been collapsing like sentiment. Numbers consumer sentiment homebuyer sentiment. So we've seen a big change already in the economic data so we're no longer making rapid progress and so the whole thing is already a non event it's much ado about nothing. Because the willingness to discuss or think about tapering was contingent on the continuation of rapid progress towards the committee's goals when that progress is already stopped so it already should be dismissed as meaningless. Now i'm gonna keep on reading then. It says it might be appropriate so might be not it will be appropriate. It might be so it might not be. So they're saying even if the economy continues to make rapid progress which it's not doing that it might be appropriate but it might not be appropriate now win at some point. It doesn't say at the next meeting. It says at some point in upcoming meetings which meeting the next one the one after that the one next year in two years. I mean they don't even mention which meeting it may be appropriate to begin discussion. Right gazetted says it might be appropriate at some point in an upcoming meeting to begin. Discussions begin not even complete just started discussion. When are they going to finish it. How many more meetings are going to take place. Before they finish the discussion that began. Which again reason to the next point to begin discussing a plan for adjusting the pace of asset purchases not implementing a plan. They're talking about future manning they're going to begin a discussion of a plan to adjust the pace of asset purchase. That doesn't mean they're actually going to adjust it worth the even have a plan. They're just going to discuss a plan. And of course they can discuss a plan and decide not to adjust asset purchases. Which is exactly what they would do if they ever discussed this topic. But there's actually no indication from these meetings that they plan on doing it. They just through the words in there. This is all part of the show know. But eventually it's going to be like the boy who cried wolf because there's going to be only so many times where they can bark about the potential of discussing a plan for tapering without actually doing it. Because again i have described this situation. This box at the fed is in on multiple occasions on this podcast. The fed can't taper. They can't raise interest rates. They can't turn off the monetary spigots but they also can't admit that now. I admit myself that. I thought the fed was in the same box years ago when they kept teasing about raising interest rates in normalizing policy. I thought at that time that they were bluffing. Because i knew they could never finished the normalization process if they started it. And i thought that that was a big risks that if they tried to normalize rates and failed that that might be a bigger problem than never trying at all. I think what happened that enabled the fed to do that was the election of donald trump. That gave them the cover. And all that optimism about the trump boom and the fact. I don't think they mind pulling the rug out from under the economy when trump was president. So i think okay that gave them the ability to do what i knew was impossible and then ultimately the fed did exactly what i said they were going to do. They aborted the attempt to normalize rates and shrink to balance sheet back to zero and now the balance sheet is at new record highs but at this point the bubble is so much bigger now than it was back then that there is no way and especially with joe biden as the president. There is no way they're going to pull the rug out from under the economy now. So the fed can't tighten policy in fact it has to ease policy even further. They're not printing enough. The acuity is big enough. They need a bigger to boat. And that's what's coming but the fed also can admit that because that would also cause a crisis if the fed admitted which should be obvious. And what i'm pointing out right now on my podcast if the fed admitted that hey we can't raise rates why are you guys actually worried about taper or about rate hikes. We can't do it. The economy has so much debt that we can't raise rates and we can't do anything about inflation doesn't matter how high inflation gets. We're not gonna do anything to fight it. They can't say that because if they say that the dollar is going to crash right now so the only way to prevent the doll from crashing is pretend that they're going to do the possible. The crazy thing is people believe. The fed can the impossible. But as i said in my last podcast looking at the action in the dollar looking at the action goal. I think people are starting to discover or realize that it is impossible and because it's impossible. The fed won't do it. That's why golden gets slammed. Today it lost a rally but it came back and closed flat yes. The dollar index was up but barely above the ninety level. So we didn't get a huge rally in the dollar. We didn't get a huge drop in gold. We got knee-jerk reactions because most of the traders don't get it but some of them are starting to get it so this is the beginning of the process where people start to realize the truth and again as the fed continues to cry wolf about its intentions or ability to tape her but it never does it and of course we're going to continue to get more and more weak economic data and that weak economic data is going to make it that much more obvious that the fed is not going to tighten policy as the economy is weakening because that will simply weaken the economy even further and they're in the job of stimulating the economy not sedating. At least that's what they believe. I know that their stimulus is actually a sedative. But they don't know that and of course they've got no alternative because to do the right thing would be so painful that all they can do is continue to kick the can down the road. I mean if they were gonna do the right thing they should have done it a decade or two ago but back then the short term consequences of doing the right thing were so painful that nobody wanted to do it. Well if they couldn't do it then they really can't do it now because all of the problems that they were too afraid to face are now so much because they didn't want to face and because they postponed the day of reckoning. We now have a much bigger problem that needs to be reckoned with and so they are going to do everything they can so the mitigating factor is the dollar. They will continue to print money monetize that pedal to the metal. The only thing that's going to stop them is dollar crash. Fortunately we're going to get one and so the fed is going to have to stop at some point because they can keep printing money and keep buying bonds artificially suppressing interest rates. They can keep subsidizing government deficit spending with money printing. But they can only do it until the money. Printing no longer has much value wants. The people don't want the money they're printing especially foreigners our trading partners who are supplying us with all this merchandise in exchange for all that money once you get a dollar crash. That's going to end it. And i think one of the dollar crashes at some point in the future. It may look like bitcoin did today. I mean look at that free fall that we saw on. Bitcoin mentioned twenty percent in a half hour. The same thing can happen to the dollar because fundamentally there's no difference right there's no real value in the dollar. There's no real value in bitcoin. The only value that the dollar has is that it is legal tender and unlike bitcoin the dollar is used as a medium of exchange and a unit of account. And we've been using dollars all of our lives so you have that but beneath all of that all you have is faith and confidence and that can be loss very quickly especially among foreigners. Because they don't have to us dollars as exchange they've got their own fiat currencies as flawed as they are they're not as flawed as the dollar and when they can read the writing on the wall and they really want to start selling these dollars and they know that the fed has no ability to ever stop inflation. And so they're not going to ron to ride this thing down and they're going to bail and the dollar's going to crash and then and only then might defend do the right thing but it might not doing the right thing at that point will be even more painful than do now and the other problem is the politics are so bad because we have record numbers of american voters who have absolutely no faith in capitalism. Of course this collapse will be blamed on capitalism. They think the answer lies in socialism. Communism big government and so this may be the catalyst not to solve the problem but to make dramatically worse by completing our journey down the road to serve them but before we finish that journey. Make sure you are prepared. We got that bit of a sell off in gold today. Selloff in silver rally in the dollar. Take advantage of it. People still don't get it. They still haven't connected the dots they still think. The fed can do the impossible. Well we know nobody can do the impossible least of all the fed so fi this dip in gold and silver sell this rep in the us dollar right as small as the rip is if you're still holding onto your crypto currency if you've been listening to my podcast and even though i've been warning you and telling you that we were going to have a crash. It's not too late to sell you fact. You got a gift. Because we rallied from thirty thousand. Almost a forty thousand. Yeah we're not quite at forty thousand now but to me. Forty thousand is seems like a great place sell. Yeah you're not going to sell it. The high you miss that opportunity but forty thousand is still double the old high of twenty thousand and it's a long way down zero so you don't wanna ride it all the way down if you still have big gains. It's not too late to realize them. You know there's an old saying bulls make money. Bears make money and pigs get slaughtered. Don't be a pig. Take your gains. But you know what you could make a lot more money. It's not like the gains are over. Take your crypto profits and put him into gold and silver put admitted golden silver mining stocks or invest more conservatively in the foreign dividend stocks. And i've been pounding the table on talk to your euro pacific capital broker. Talk to your representative at your pacific asset management about setting up. A manager count about getting into the europe pacific funds. Call up my guys over at shift goal. Get yourself some physical gold and silver. What are these days. We're going to have a bitcoin type crash in reverse For these markets right the dollar's gonna tank gold and silver going to go way up. You don't want to wait until that point to by by in the low before the storm don't try to buy in middle of the storm. That's when everybody else is going to be scrambling to buy and of course they're going to be paying through the nose when they try to do it and in fact you know in the crypto markets today. Well a lot of people were trying to sell these exchanges shutdown coin base finance. I forget the name of these exchanges but they all had temporary. And i know that amply pop liano he put out a tweet this morning and he said wow. There's nothing more frustrating than wine to buy more bitcoin. The dip and you can't buy because the exchanges closed. Well i can think of a lot of things more frustrating. Like what about the people that want to sell and they wanna get out and they can't get out. That's probably more frustrating being trapped in when you want out then trying to buy more. And you know it's also frustrating watching your life savings evaporate and go to money heaven because your paper prophets or evacuating and i know. I said that if you have profits in bitcoin hey realize them now but you know what even if you have losses if you didn't buy if you waited and watched from the sidelines or you bought some down low and you averaged up and maybe you bought your bitcoin at fifty thousand and if you sell it at forty thousand you're going to take a small loss well. Taking a small loss is better than the alternative. Which has taken a big loss so a small loss is your best friend because it prevents you from getting a big loss. Get out take that small loss and you can make that loss back by investing in something else whether it's gold and silver or the mining stocks or value stocks outside the united states dividend paying stocks. We are early in this new bull market in in global stocks and emerging markets and commodities. So this is the beginning. You're early to the game. Anybody who's still in crypto has overstayed their welcome at the party. It's amazing to me that so many people think they're getting out on the ground floor. You're at the top of the empire state building the ground floor. You're much closer to that. In the markets that i am recommending owned by the way to. I wanted to encourage those of you. Who are not yet following me on twitter to go ahead and do so now. I am now in the final stretch in my quest to attain half a million twitter followers. As i am recording this podcast i have over four hundred ninety three thousand followers so probably by the end of the week i will be at half a million. I'm not sure how. Many non verified twitter accounts how five hundred thousand dollars. I know. i'm not the only one. But i'm sure it's a pretty small club because my guess is most people who managed to get half a million followers are also verified so. I think it's an even bigger accomplishment. That i've been able to do it without any help from twitter because they haven't seen fit to give me a check mark but anyway so if you're not following me following me and then tell your friends get them to follow me. Because there's a lot of information that i'm going to be dispensing. You're not gonna get any valid financial information economic information from your conventional mainstream financial media outlets or papers. If you really wanna know what's going on and if you really wanna know how you need to produce in your portfolio's to profit from what's going on you gotta listen to me. And i know there's a lot of people out there that liked to make fun of me. Oh yeah peter. Schiff is right every ten years. He was right on the housing market crash. And so now he's right on something and so he's right every ten years. It's not that i'm right every ten years. I'm right every year during those ten years. I'm just early. So when i warned about something and it doesn't happen until years after i warn about it. It doesn't mean my warning was wrong. It just means my warning was early. But i've never been wrong. Everything that i said would happen. As a result of the fed's mistakes following the two thousand and eight financial crisis. All those things are going to happen. You see when. I was out there warning about the two thousand eight financial crisis before it happened. I understood the problem and after the crash that nobody expected happened the way i expected it and the fed reacted the way i predicted it would react. I knew that its policies. Were a mistake. I knew that it was setting us up for much greater claps. What i didn't know was how long it would take for that collapse to happen. In the meantime all of the people who were completely blindsided by the two thousand eight financial crisis had no idea that it was going to happen. They all think the fed policy work. They all thought the fed solve the problem that they didn't even understand it was because i understood the problem that i knew the fed not only didn't solve it but made it much worse but over the years as there was no apparent crisis as a result of q one two or three or all those deficits a lot of people began to hate. Peter schiff was wrong because he's been warning about all this bad stuff and it hasn't happened well. A lot of bad stuff was happening is just a lot of people. Didn't realize the stuff that was happening was bad. They saw the stock market going up. The real estate market going up american spending money and they thought it was all good and i knew it was all bad because i knew the source of the spending and i knew how it was gonna end will now. We are looking at the beginning of the end. But it doesn't mean that. I've been wrong for the past ten years and now i'm right. I have been right each and every year of those ten years. It's the people who have been cheerleading. The fed who have been cheerleader. The markets who thought the fed saved today. Who thought the fed did the right thing. Those are the guys who have been wrong for the past ten years. They just didn't know it and they still don't know it about to find out the hard way.

michael sailor elon Bitcoin Musk fed bitcoin joe kernan tesla cnbc Peter michael sailors
#65 - The Meme Stock Buyers are Back Trying to Screw the Short Sellers

Something On My Mind | Personal Finance

51:59 min | 3 months ago

#65 - The Meme Stock Buyers are Back Trying to Screw the Short Sellers

"You're listening to a podcast. Not just any podcast but this sixty fifth podcast of the something on my mind program. I am david beyond. And welcome to this week's program in the show we like to use a professional backgrounds covera- thing finance and we'd like to mix oppy story or to to give you a break from everyday reality and we'd like to do it with a little list of humor a couple of show notes for you you can follow us all social media platforms including instagram at s m md. Podcast an tick tock as well and we love questions so if you want to submit went to the show go do something on my mind dot net all right very cool. So what are we going to talk about this week. We're going to talk about the tax. This is kind of a little bit of a series. We're doing because last week. We talked about crypto. And so we're going to stick to a theme lately coming up with some topics that are really a in the zone of our younger investors and we also for our story. We're going to talk about the girl. The woman olympic athlete who ate a taco tested positive for steroids got kicked off the team. So we're going to have a little fun debating in that one all right very cool so let's hit the roundtable now and so last week. We had a couple of changes in our batting order. Because cindy again still on assignment and we hope to have her back shortly and we get ready to do a season. Three coming up so about the nc's into so we're gonna make some changes and keep this thing flowing along and we'll go back to shortly on that but we hope to have her next week chase field in last week for tara now. Tara is back because she was a well deserved vacation and we have justin. Who is still on the batting line-up him on screen when you watch the video and he did a great job last week i think he had some fun with it as well. Once we were done he said. Hey i kind of like talk. And so he's got great knowledge on the name stocks as well which is again is our main topic. So hill has some great feedback on this. And we're gonna have a little fun with the show this week on that so other than the roundtable. I don't have a lot this week. But i did. This is thing. I've heard about what the story and the last couple of weeks about Words that get misspelled and they did this. Survey this is from. It's an at and t. I thought it was quite interesting. So what it did is i think based off google searches. It says while which state spelled the words wrong meaning. What was the most commonly word that was spelled wrong. And so tara has a sunscreen for video folks. I wanna so you guys aren't looking at this necessarily louder. These words are based on the pandemic. So can anybody gas. What was the most misspelled word that came up and it came up in a number of c. Twelve states pandemic. Nope try again. What happens when you get you. Get the coronavirus shift to do. What quarantine quarantine so quarantine again number. One is that without looking. Does anybody know how to spell it. Q. u. a. r. a. n. t. i n. e. quarantine dang now the most. The most common misspelling was c. o. r. n. Space t. e. r. t. e. n. Like quarantine cheese law so this run through a couple more of these A witch like. Which way are you going was misspelled. using the w i t c h or c h not every was spelled wrong in three states. Believe definitely separate governments upper at separate always throws me off. I can't lie well. S- people get there's two as in there and they think it's s. e. p. e. there's actually p. a. r. a. t. e. The worst is when you write it in excel and there's no red squiggly line to tell you that you're wrong so you just have to pray that you spot the amount of time after google words how to spell them when i'm using excel because it doesn't actually tell you you can do check but it's not like word all right cool so i think we should get onto the main topic of the session this week and this has to do with the stock specifically the mean stocks and we talked about this before at a prior podcast about game. Stop with the short sell and Again this is a topic that comes up and people don't want to hear about it again so we thought we'd run through this a little bit all back in the news again early so it was recently. Yup the mean stocks are back so actually reading here. I would say it's about february summer and there. They started dying or rather three games that picked up but it died out pretty quick per se. That was the main one. That's where it all started. And but as early as june third there was the largest trading volume day of the year and they can track this. We're the volumes coming from these stocks so Amc amc amc correct. Amc was wanted. It was the revived one. But at that time. I think we'll get some prices down here later but i think a game stop was up close to three hundred again so when it went all the way down to in the fifties when it was hitting for twenty five at one point Guess who's still has a loss even at three hundred dollars a share. I do actually yeah today. It's about two twenty so you're still in the about one hundred and sixty dollars loss. Ouch won't glad you only own one. But i'm proud to own it. I can tell you that so would never bought it. Because i knew i was going to end up losing on it but you got to be part of the part of the fun. You know well at that point. It's only one shared this. Hold it right and you know scraping for the money and So basically we'll do a little history lesson here but this all was fueled in. I guess mainly stugotz fueled by fueled by reddit. Wall street bets the forum that all these assume younger kids have Colluded together to take some money in finding the stocks ahead short-selling so we're gonna we're gonna go talk about this and can explain in. Maybe a little more detailed fashion but really. It's still is pretty active today. So yeah no that's the place that's dictating at all. Yeah it's but it's also their normal you know it's not all just stock on there but yes that is the place that people go to figure out what to do in the team sought game. Well you know the cool thing is because of social media and technology this has never happened in the stock market when game stop started all this and still does today and so the game stop at the initial part of this happening and show that david could take goliath and so that was like the whole initial reason everybody it was. It's all just a little guy versus the big guy thing although you can make some money here. And they're doing it. It's that was like the thing and they didn't interview on someone one of the lead anchors of squawk box and he said exactly that he added like joe kernan or somebody like that. I forgot his name. But it's like alex or some squawk box. The early session younger guy. Yeah yeah yeah. Yeah he pretty much came out and said all all that same stuff. Yep true and so So it shows you like the power of the people because they collaborate or still collaborating online forums and they have a former collusion. It shows you that power in safety in numbers is a great way to make something happen. So i i thought it was called. Nothing was done or illegally and i think part of the pandemic is what caused this because these traders were new to game and they also some of them had an influx of cash due to the stimulus checks. Maybe some unemployment. that wasn't there before. And then people like to go to events and like the gamble and do things and so this took away that in so this allowed them to have another avenue although betting also picked up across the country. Just embedding itself so this hallway to basically gamble and play with their money. And you know you add up enough people over time like let's say micro investors if you will if everybody took a stimulus check from that group and it showed what can happen. So yeah. that's what i was gonna say like. It's not that this has never happened. It's just never happened with retail investors. Like this is a hedge fund thing and so it just it just shows that everybody can get on the internet and have a common goal and amman enough people can get together and have the effect as companies with billions of dollars and literally send companies worth billions of dollars bankrupt over the course of a couple of days. So it's pretty interesting. Yeah and so the hedge traders hedge fund traders by the way these these. They've been doing this kinda shit for a long time in different ways and manipulation with things in by people didn't think or know about and then they're complaining that they're losing their hat on things because they got wiped out. A couple of funds got really nailed a couple of billion dollars on one of capital. Melvin capital correct. The their the reason it's open a are the reason di- did you feel bad for them. No i'm so happy. Great like so but they were complaining. Which was great is like listen dude. You've been stirring people for years or playing your tactics and you can get any of that. I know you a little bit about how they had a bump stocks up. They've convinced there's a some stuff that came out even from kramer when he was he used to run a hedge fund. And it's one of those things were like. He's you know he's telling live interviews the the tax the tactics. They use in the fact that they're just trying to scare investors to make the stock price go down and that's exactly what they were doing with the game. Stop and the amc. But then we realized that it's people realize it's all front and that they can create a front and just to get people to sell when they don't need to i. It's interesting because kramer because of that. Some people don't like him but he's pretty honest and it's nice to have somebody from a background. Who did that and it can turn on and say listen. This is what these people are thinking and doing. And and he'll they bark right at the hedge fund. He's almost like why would you even own a headphone to be honest. But he's kind of a hypocrite though because he literally openly admits or at least it was on an interview he didn't think was going live but he openly admits to like. Yeah these are the tactics. I used them your stupid if you don't use them like it's looks what you do and it's i think that's one of the reasons why people he loves to like talk this big game like he cares about the retail investor but really he scammed retail investors for a long time. Well i guess you could say that was former. Because now he's all about the the home gamer in maybe saw the air of his ways but at least he gives you the information. No one else does so. That's what i like about it. If anything everybody else's tries to scare more people away from it and get people to sell it or at least not buy into it so that the can't keep happening so maybe he is the truthful one now. Yeah well we like to think so all right so we talked about game. Stop some other ones for example. Our costs and bbc bed bath and beyond just bb or bb. That's the game. I play and they are up over two hundred and fifty percent this year alone. So they're holding steady and then we talked about black. We might actually well actually in in full disclosure. What three or four weeks ago. We made a good chunk on blackberry and new actually called me and said hey man assured interest is really high right now. It's a high as it's ever been and maybe shucking dollars here and see if you can get a quick play on it and worked a work. Stock shot up crazily and then it shot up way much more the next morning. And then i always say to To my trading partner to at work or at my firm that i would deal with and say hey please go and put a stop order in. And so that prevents the circuit breaker to the stock goes down to a certain point. This circuit breaker triggers. It sells the position and we got tripled our money so again. We're not telling you what to do We usually don't play this game but the stock was so damned cheap and short that we have money to play with. That's the big difference so we always before even think about this if you're new to this show is We don't tell you what to do. We just tell what we did or the information. So you can make your own decision but Full disclosure. we play options but we don't typically Play around with immune stocks too much. But i think it was not a wise game to play. Now it's a. It's a game that most people including myself with my first game stop share. Get left holding the bag. That's like the biggest issue is that we hear about the people who made fourteen million or ten million but we don't hear about the people who lost fifty thousand which they're out there but the weird phenomenon is gone. Read it on wall street. Bats not only. Is there the daily thread of regular stocks. There's the daily in in the short selling times you know. There's like the daily thread. there's also a loss porn threat so people are actually like posting screenshots of how much money they've lost and getting kudos for it for holding for diamond hands. If you will for just not selling they refuse to sell so the whole things to ninety percent loss and then posted proud. People love it emotional. Thank you get when you lose something so badly that you like at this point screw it. I don't care. If i lose it. All i feel so crappy already in. I'm never going to make my money back up. So i'm just gonna leave it in on a win that something district recovers in. That's that's the attitude you take. yes Well well if you know anything about the forum. There's it's Very much a subculture in the sense that there's a whole lot of interesting terminology and it's the battle between the paper hands and the diamond hands. And so if you have paper hands obviously everything falls through you. Sal you can't hold onto the bag but diamond hand people. They're the real winners. They might lose it all but they'll never sell and that's like the that's the whole basis of this short-squeezes like we're gonna buy and we're never going to sell in the casa. Just go can't take a loss if you never sell like. It's just this logical rationale. But it's so funny and it's hilarious that these people just won't sell it. The funny thing is that actually keeps the stock stable which in prior ways of thinking to this that though a lot of those people would have sold those positions. Because they're like you're taking a loss you're taking lots get out of some money to hold onto so that's why these stocks i think in some ways aren't necessarily going away it's interesting the fallacy. That's out there in one of the reasons why these people keep if you will Holding the bag diamond hands as because they're all up and down through the crazy price spikes in the gamma squeezes. And whatever you wanna go read on there and and trust me. I love it so i am sound like i'm dogging it but i enjoy it but you'll see all these posts that game stops at three hundred dollars. Then they these people sit there and they write these long winded due-diligence posts where they've ran out these crazy models where everything is exactly perfect to the conditions aiwa and they're like oh the price of game stop could go to four thousand dollars a share and all this stuff von. Amc's going to three hundred and it's just this giant fallacy. They're like hey let's hold the squeeze hasn't been s- quo's the gamut squeezes coming the models shows and it's like they say this all in like a perfect world and so leaves all these people holding on when they could have sold for profit for it to just end up tanking. That's it's creating film. Oh oh my god. It's a huge. It's a massive fomo in here inexperienced. That's where you end up getting holding holding the bag at some point the my participation i can say what's the foam out now not that i don't understand it so at least i have maybe a little bit of a leg up on some people but I mean i didn't get in for any other reason. Besides i didn't wanna miss out so and it worked out a couple of times with blackberry and some couple smaller ones but yeah no i mean i. It's just pure foam. Oh all right so what is bad as sorry. Not as bad as the The shit coins we mentioned last week though yeah. We had a comment from one of our listeners. About that about did not want to get into buying any crypto based on the conservative way of trading and that definitely not the shit coin. So good i will. I hope my my spiel. My long winded aggressive. Last week i was very passionate about the fact that people were getting scammed on shit coins so i hope someone listening to sounds like they did and i Help you take the advice. That was austin from texas. Actually in along with an emoji that i sent back so yeah no no galaxy safe shiba inu coin this week. Sorry folks sounds like a like a like a television or something or a car like by hyundai all right so all right. Let's get into or run through quickly here but again i think we again. We were asked to do this. So we're going to run through a kind of how this works real quick and understanding what short-selling is how the whole thing work so we'll go back how game stop started. But this is how it all works in so when it did start is that Basically your trading bets on shares namely again with game. Stop when this started in this is again legalized form of gambling. If you really think about it and you're just thinking hey. The idea is to push the stock up because it's at a low price start in so when people are entities bet against stock. That's for the shorting comes. In so short he means it. Shares are borrowed from a broker on margin and the broker says. Hey i'll give you these shares but you need to return them to me later and you're gonna pay me margin interest in the meantime while you're holding onto them so that in a very short definition is what short-selling out works with someone who's buying our barring the share some a seller so this means when you short the stock or borrow the shares. You want them to go. What down so and now. It sounds kind of opposite. But that's what thinks like think of it as a put option away you want to go down where a call option. You wanted to go up. So what happens. Is that the investor by the same amount of shares of lower cost. And so in that that happens the investor gets the pocket the difference meaning iso the shares at a higher price betting the stock is going to go down. Because i don't believe in the company stability of what i'm buying into so honestly this is really angel strategy for for sophisticated investors. I would say but even sophisticated people get burned and there's nothing wrong with it. It's not illegal and bar them that you have to give them back so basically let's say it. This way shirt selling is pretty simple in the concept so an investor bowers stock sells the stock and then by the stock back to return to the lender. So we're just kind of repeating this but you gotta get in your head a little bit. What you're doing and just to interject. It's risky trades. You can do like betting on the stock going down to have to buy back the amount of shares you sold in the off chance that it does go up. This is one of the most risky place you can make as a traitor especially. It's much easier. I think the stock going up and down because you can base it off news and information it lets stable where this is manipulation of of a stock to go up to push people who are betting that goes down especially if you don't know much about it that's what these hedge funds have been doing it for years when no one was paying attention. I'm sure some of them have made some pretty good money because they have again manipulation and time and no one else is looking at it but them per se in so they but even then it's like this. Is this highly. It's high risk gambling. You can look at it anyway. Why but that's what. It is definitely an manipulation. All right so let's do a loose example for simplicity. We'll do we'll do this two ways. One actual one dismay be so we can get this melted in your brain a little bit. But suppose i borrow ten microphones from justin and they have a valuable hundred bucks a pop. So that's a thousand dollars in my pocket. Because when i borrow them. My goal is to immediately sell those two buyers willing to pay that hundred dollars for those so my goal now is saying i want the value of these microphones that go down and market value so if the price drops because maybe a better model came out maybe did marie searched and i think there's a new iphone thirteen coming off for example. Microphone something like that. And that's say in the chance to go down to eighty bucks that original hundred so that means i get twenty bucks. Per each one of those microphones. I borrowed and in this case i can take that and now go back to justin and say listen. These are worth eight hundred eibar. Two thousand now only two hundred dollars. That's how it works. And i know it sounds very backwards. Way you think about it. But that's how it works so now let's do it with a stock in. Let's say that. Let's say that. Net flicks trades at five hundred bucks a pop and i borrow twenty shares from justin and so at that point in time it means a shares or ten k now knowing that the whole point is i want again the shares to go down on price. Let's say the sheer shoot up to six hundred. So that's the opposite case here now. The is about a valued at twelve grand. But now when i perform the calculation because there were twelve grand and i paid ten for them this means i would actually oh just in two thousand dollars so that means i have to come up now extra cash to buy those shares giving back to justin neither way. They're buying back. So i have more to play with her. I have to give him the extra two k. But either way. I'm still paying interest in the meantime so it's more than just the actual amount that i'm borrowing or or even even if i am owed money back from justin per se. I'm still paying interest in the meantime so this isn't just like wait and see what happens. So for example when gain stop had such a run up in the stock price and the short seller's were losing money it was again more than just. They have to like this whole thing that we're talking about was a manipulation so the whole point is that the stock has been purchased by investors in the open market. So what happens is when price drives up these short seller's again. I was just mentioned as they need the closed their positions because again they have to pay to borrow and if the at the stocks and got going in the right direction. They're screwed so what ends up happening. A lot is that they buy more shares to pay back the lender. They're not giving him the cashier buying the shares. So what happens is they themselves are creating more demand on the open market by them covering their losses and again this actually so increases the price even further even though they're buying the shares to pay somebody else back so they get into an abyss. And and that's that's what can happen. And that's why you see these huge fluctuation sometimes with this short covering it can break it down into. Amc just like the simple terms of why it happened the second time so basically the manipulation side so an analyst came out and put out a report on amc basically saying the stock price of amc was going to one dollar and so is trading at like nine ten bucks a share and the analysts comes out and says hey investors watch out whoever owns amc. I'd be weary that stocks going from nine dollars to one dollar and what they do is they. Try to scare everybody. Who owns it thinking. Oh i don't wanna lose eight dollars a share. I'm going to sell. I need to get out now. Need to get out and what that mass selling does drive the price down ultimately they would be able to buy one hundred shares at nine dollars. Pay nine hundred bucks seldom. I'm sorry borrow. The shares for nine hundred bucks immediately sell it for that nine hundred and ideally drive the price down to one dollar by the shares back for a hundred bucks and make eight hundred dollars when they delivered it. But like david said. This data is is public information so they releasing this short interest on a regular basis reports which allows investors retail investors to run charting and different metrics. See how much short interest is out there. And there's certain thresholds that are attractive. Is someone who might be a short squeezer because they realize hey this people actually out here trying to drive the price down so they have borrowed shares and in that case everybody piles and piles and piles in herd mentality on. Read it and get as many possible people to buy into the stock drive the price up. You get obviously like kind of david just mentioned we get to where we're at where we're driving. The price up in time comes for the shorts to repay their shares so they got to go to the open market and buy another buying at the higher price and driving the price up exponentially like david set plus the margin rate is not cheap. No no not at all when you buy. I don't know how it works for. Hedgerow isn't a three and a third something like that. I mean i don't know about margin for hedge funds. But what i do know. Is that the margin requirements to buy or borrow amc shares or any of these socks shares. And maybe this rule doesn't apply to the big guy probably doesn't put you at wellsfargo. Some of those different bases you have to cover one hundred percent maintenance margin right so i don't. Let's say it's eight percent interest for example on one hundred thousand dollars you know. That's you gotta pay that slow money's in your account at all times. Well that's the thing. Maybe people should understand. When you buy an margin you have to have the stock in the underlying position. So if it's microsoft for example i'm going to go out and borrow shares of microsoft or i need margin to cover it. I have to have that backed up in my account with the microsoft and actual shares. So they can come after the money they don't dislike. Do it on faith and say okay. Well all right. Well we'll get it eventually. Like they need to make sure their positions or covered exactly all right so that kind of ties It's morbid but that one kid who unfortunately with the way that margin works in the interest rates and running your money up and having maintenance margin but that means is basically after a certain threshold you have to keep a certain amount of money in your account and if that amount of money is not in there you can get called in. Essentially you have to deposit new cash into your account so in this was an awful case of some kid who actually he killed himself because he was hit with a a margin. Call where i mean. He was running up. I don't know there's a million dollars in march and some absurd number of margin news like sixteen or something. I think it was twenty one twenty one either way he. He said that in a suicide don't believe like what place would give a twenty one year old a million dollars with a margin. Yeah that's a little absurd. But that's the point of these banks is they don't care they make so much money and have so many customers that they're willing to take the risk on earning the interest on a twenty one year old and if they don't earn it no harm to them. I mean they might not even be checking. The kid was twenty one. I'm in. Let's just put it this way when you're opening a robinhood account and you're a new investor you're trying to trade options in. Its asking you all sorts of questions about trading options and option levels They're not looking clearly because everybody and their grandmother has an option for the most part in the financial world maybe mortgages relied different now getting a car within reason. But if i go to our credit card company and i say i make five hundred thousand dollars a year. They're not gonna blink. No they just seventy five and they're gonna long as your credits good pretty much. You're getting you're getting ability to borrow. Yeah they're not. I don't think anybody is overly concerned on that side. As long as they're making money in major laws aren't they have actuaries right creating risk tables knowing what they're willing to do and not do or maybe pullback at service management teams literally doing that when you think when those keys fell out of the gm. Ignition for example. And you say what happens all these car companies when they get suiting recalls. Well guess what they have. The zastava relief funds are disaster funds. Whatever you wanna call him to make sure that they cover all this. That's the smart businesses will have all these inner coffers to cover things like this. So i'm sure there's new robin hood in my opinion and i'm sure they're going to get a settlement. Robin hood will be fine. That's the thing actually in his case and what we're talking about here with the short selling most of this is done on options right. So here's the deal. Options don't always close and the day issue on them and say what does that mean options. Don't always let me say it that way. They don't always settle right off the bat. I own them plenty of time now and sometimes especially. There's a lot of activity on security. It doesn't mean when the market closes at four o'clock. If i own apple i've seen it for example. I noticed this trend with app. I won't always own apple. And i know some days it would go down like a pretty big chunk and mike. I know the stock went up today. This isn't right. Why what's the deal here. And then the next morning it catches up in the money's been and then some right so like with this kid he had he was playing like a bull spread. I think against some type of other call options in what happened is at one side settled and the other one didn't turn out. I believe that he actually was up a little bit. I think sixteen thousand dollars in his cash account actually shoes and so it turned out. I don't even think that he would have owned any money. But he didn't know the difference because they didn't settle and that's a dangerous game and you play options especially with a lot of money. You have to understand how everything works again so as not like buying again apple and it closes at one hundred three bucks. Four o'clock in your good in like you know it's one hundred dollars. It doesn't work with with options necessarily know and actually a great example is the main stock options. I can guarantee you right now. These options are the least typical acting in the sense that you could buy a put on. Amc which means you're betting on a going down and the stock in one day could go up thirty percent and although you're on the exact opposite side of what. The stock did because the way options price in the complex math behind it. Your bet on the downside could still go up in value even though you you made the wrong just because i guess ultimate point is at. It's it's this behind the scenes settling activity that we just can't see and so until it fully suttles. There's no way for us to know. And then in that case you know we get options contracts for. Amc that when we go to bed they're worth thousand and when we wake up there were twenty five hundred also the same. The other way around. You might go to bed one day at close music. Wow i made a thousand dollars. My options were two thousand bucks now and then you wake up the next morning and everything re prices and were back in two thousand dollars you might even be back down to a loss. There's been times right. I actually finally settled. And everything re prices properly. And i'm at a loss and i thought i was at again so it's confusing and you need to know and you probably in your case because you have a smaller position now we play. You know larger amounts of money but the but the shift is a lot larger as well so I spent again especially when there's a lot of out of can't say that we're especially when there's a lot of activity like with youth anonymity last week and it's well here's one thing always putting a stop order we will tell you on the show put putting a stop order so that way or stopped which is essentially a stop loss. So we always do that. That's our opinion going to do what you wanna do. But with our amc last week we knew in the morning that the Premarket was shooting up again. So i say hey put that stop loss and put it in put it in put it in and then if it keeps going up you can shift at any time. Keep pushing it up. But just because if amc's at fifty five and i'm going to sell it at forty five in my blow down to forty think you're thinking i'm getting forty five for each one of those contracts but now because like justin said you had two things to settle and could be so much activity going around. It's catching up with what you think you're actually getting so it's not a guarantee that you put a flat number and you're gonna get what you think you are. I guess to kind of double back. It's not necessarily any form of financial. Because i'll say on the flip side of that you know you can screw yourself and putting a stop that gets touched in the stock might go up immediately after but as long as you touch it you sell it so it's like There is a another side to it. So it's not just advice to go put stop losses because you might get screwed and might have been able to make more money but i guess i kind of wanted to interject there and say that yeah we just do it for our protection. And that's the rather you're making money. The time are losing money which we just put that circuit breaker in and yeah. So that's a good point. Justin here's a couple more points on this and we can move on a little bit here. But here's the problem with the short selling. If the stock starts rising and the value in the position keeps going down. Which is what it'll do is that it could be a never ending. I use the word of this. It can continuously go down at fast. Stock goes up the more that person's going to only gets worse. It doesn't have like a flattened zero value where this would be like me buying crowd strike at one hundred bucks a pop pretend shares. It's worth a thousand crowd strike. Hypothetically went bankrupt and went to zero out only two thousand dollars. So that's the difference when you short sell so it's kinda what you were alluding to earlier. That's the big deal about highly risky. Not only the play as but that your your loss can continue just to keep going. It's that's I can't imagine some of the people have got nailed by this. It's definitely been bad but also very good for some people. Yeah i mean you you have to be willing to lose every dollar you put in gambling gambling gambling. I always think like the craps table you have to put if you wanna make any money at the craps table you have to put some money on their to do it. You can't just hang on the pass line of behind it. You start with the past behind. Don't make money. Yeah then. I got to put on the six eight which the most the best odds and then put on the ten in the nine of them feeling in two twenty times and i still a lot of money and so but once in a while you get somebody roles like forty times you make a bunch of money. You're cool but you can put everything on there and that's one hundred bucks lose it like that so literally one roll the dice. One purchase of an option. I mean literally with those options. You can lose it in the matter of minutes. I mean i was. I was of to fortunate enough to make money on blackberry. But i mean there was a point where i made a trade and literally less than two minutes later sold the option. I just bought and made money and i guess the point is that it's moving that quickly that you could do make trades back to back with an under a minute and still make or lose money so just be weary especially with the mean stocks as i say if it's apple nobody ever now if you're buying apple or tesla or again any of the big names on the the day the earning reports come out that you could run into that as well if just like a normal trading you understand what you're buying them. It's a little different but the ones that get heavy trading volume. You're not you're not gonna settle what you think you are at rather you buy or sell it or meaning have a profit or a loss. It's always going to be probably more or less than we think. I think the worst part too is that You know young investors. They don't have as much money in if we know anything about options contracts you'll know that You know the more time horizon you give yourself and the the closer strike price the more expensive. The the contract is while the issue. Is that a lot of these kids. Don't have a lot of money. So they're going in buying these extremely short term option contracts. Maybe a week maybe at one point during the most recent time i bought a one day. Blackberry contract expired the next day. So it's like these kids don't have enough money to be buying actual quality contract. So they're buying things that expire in one day. Five days maybe seven. If on the third day something bad happens they have no time to recover. So that's another scary thing for these younger investors yet. That's true And yeah when you the shorter you play with in terms of the time horizon. It's that much more risky. Actually this kinda leads us that maybe we should options Maybe topic together one danger. Kinda go through some of the basics options not through the formula. Why not but yeah. We put that on the docket. So here's the real question. I guess that people want to know and that is how will these stocks trade in the future and no one really knows that answer. I mean people definitely have their opinions. And i'm sure some experience people out there know the answer. We'll be right anyway. And based on what they say the way i look at it is. There's only really a handful of memes stocks at anytime that really play maybe five. Maybe there's been ten or fifteen. I'm sure and small buckets but on overall there's usually a good five. They're putting up on screen. That have a lot of the heavy trading going on at one point in time. I think the thing is is that the folks on the young investors or whoever they are if it's just in that bets form if we said it was just that there's not enough of them to go across the gamut and start nailing every a stocks out. There they feel like that has short interest. There's they're not a big enough of a movement or enough money to to do that. In my opinion you agree with that. Yeah that was one of the like If you read the forum during all of it you know. Everybody's on their constantly posting. Now we're going after nokia now. We're going after bed bath and beyond. Now we're going after costs and if you looked at some of the people who are more heavily invested you know. The theme on there was no like stop. We don't have enough power to do this to five stocks at once if everybody just focuses on. Amc alone we can send an amc to the moon But that's the issue in probably one of the reasons why they constantly would display all five or so on the screen on like cnbc just to make sure to try to get people to spread the money out. So the effect wasn't as drastic. And maybe that's just conspiracy theorists think by me but i'd have to say that there's some vested interest in protecting people by making them feel like there's multiple places to go. The the scary thing is that you send all these people to some of the smaller ones. That really don't have the activity to to really create the same effect the amc had and then all of those are where they got held caught holding the bag. Because all of a sudden that person's ago you may two thousand dollars off game stop. Don't take it to blackberry. Bb y and then all of a sudden that five hundred dollars is gone because they bought the one. That actually isn't doing what it should because it's not voluminous enough and traded again. Just act like it's free money and if you lose it you lose it. That may pretend like it doesn't exist in that regards if you lose your like okay. Because that's the way you have to look at it and even though it could be some hard earned money in your bank account. That's that's the risk you take. I guess the interesting thing to me in the we'll go let's go through. Amc here we can. we can Kind of run through with their current state is for example In terms of their business model and why would not be justified but the most interesting thing overall before we get there to me is that when the mean stocks took a break is because everybody caught up to the game. The short-selling was going away. Some of them held their ground but they got quiet. And all of a sudden these people wanna senators shorting the stock again fools and anybody even experienced investors guys on tv saying the same thing like what are you guys doing. Did you not think that these people out there weren't gonna go re chart understand this interest. And they tried to even have to hardly read anything. It's sort of a graph that has a line at a percentage in anything that looks high comparatively to the rest of the graph as high. I know it's in so it'd be interesting if there's another round of this they try to find something else with maybe less short interesting sneak in or something but if you're starting to play with the ones that everybody knows about that's that's the choices chance at working like that anymore. Like there's no way there's around three of this. I think they thought they could get sneaky and I don't think it necessarily necessarily worked out. I think they got squeezed. Doggone and so i i mean. I don't think that'll happen again. People would be very foolish to think that these aren't just constantly. Look i mean. We have a world filled with people on the internet. Who know how to do technical analysis chart things now which is a very very strange world when you get random. People understanding short interest in different signs like that. Yeah because it's like making a podcast example pretty much anybody can do it with not a lot of money and very little effort exactly okay. So let's let's kinda finishes piece off here we get you know get to the latter half here that are in but if we talked about amc and now you're gonna bring up a couple of graphs here but they are not a solid company is an example and they issued eleven and a half million shares at fifty dollars and eighty five cents. Today it sits about fifty six in the stock went up exponentially two weeks ago but they raise money by issuing debt because they need to run their operations or build into something as we know. Movie theaters probably aren't in the best position. right now. In fact on their aid k much. I don't know if this is ever said anything at an eight k. But quote it says we caution you investing in our class a common stock unless you are prepared to incur the risk of losing all or a substantial portion of your investment. That's crazy yeah. They had to make sure that people understood they really had to. I was as a liability them if everybody just went in and bought it and then at tanked. So well okay. Here's a great example. Business model movie tickets in two thousand and two or one point five eight billion and then as of two thousand eighteen prior to the pandemic were at one point two three so that is a falling business model for seventeen year span and then last year during the pandemic so two hundred twenty four million tickets now. I understand people will go back to the show but again it's not a model that is showing that A lot of sustainability and they're only model is to show movies. They don't have any other outlets unless you buy something at the concession. Stand that. I'm aware of so again That to me is one big that you don't really need. They'll look a whole lot to understand that. This is a good thing here. Terry of another graphs now average movie ticket prices so they are around nine dollars and change right now and ninety nine thousand nine hundred ninety five there were about like maybe four dollars and thirty cents and again now there are like a little over nine dollars a ticket now. Is that crazy. No but if you're a family on a budget and you can go to our show at the. Let's say two kids and a wife for example that cost you eighty to one hundred bucks if you concessions. Dan isn't cheap. This is an example of one company. We're not gonna go dive through their numbers but it's enough to show that you're buying a company that with that one article that did come out that you mentioned earlier. Justin at the shares are valued at book. Value would be at one dollars a share. And i think that was an oak. An accepted article. It wasn't like a hedge fund doing it necessarily I believe that was a real consensus. Which again if you look at the numbers. I was wondering how they were going to stay in business to be honest so again they had to raise capital to stay in the business. So the only thing i can think of is that they take some of that money and go by other theaters. Maybe a at a cheap price and they can you know. Bring in more revenue or something like that. We're going to buy into something else or maybe like game stops gonna have to change their model. They don't they're not gonna make it. It doesn't work in just doesn't they need to be digital. maybe they. Maybe they started selling crypto. I don't know but So let's get into the recap. I think everything else. You want to chuck in here justin. Or i think it's time for the recap all right. That sounds like a good idea. So let's start with number one. Which is what is short selling in the simplest explanation short-selling occurs when an investor security sales of in the open market and then plans to buy back later for less money and that leads into number two and this type of trading with the main stacks and others is not a normal practice. Meaning this is something that Hey if you wanted to make great money great for you we would tell you just me. And my honest humble opinion you should take the money and run it. This is the way you're going to do things. It's probably not the safest way to invest your dollars. But that's up to you now. We would also say if you're a college kid comes home and says hey. Can i borrow some money for this. Or can i take some of my savings or something and in purchase with these tax we would tell him to run for the hills because again. They don't have a lot of money to play with assumingly so that maybe it's a better thing for them to decide. Hold what they have. But that's our humble opinion on this program now number three. Is that if you hold onto this stack thinking that it's gonna go higher and stay there. You may be fooling yourself as much as maybe again a role at the crap table that we're talking about this is what's known as we talked about earlier. Justin with thommo or irrational exuberance. The term you may have heard. I think greenspan actually brought that into the fray years back. Meaning that there's like an unfounded market optimism in it lacks real foundation or fundamental vision based on basically psychological factors is. What's doing it like we just talk without about. Amc there's nothing presenting their of strong company. People are not even thinking about that all right so let's do number four and we should tell you that way we think is that you should stick to fundamentals with companies and that means quality value healthy balance sheets with cash on hand and good dividend strength. That's really how you win in the long term for your money now this will lead us into number five and lastly always do your own homework so we would also tell you that we specially mean budget guy. Is that if you don't have your budget and control especially if you're living out on your own meaning if you don't have an emergency fund or the rainy day fund And looking at putting money away for your retirement and at any age is never too early. You don't have all of that and good place especially paying paying credit that on things. This is not a good thing so if you have some play money. I think that's cool. You can do what you want with it. But i would call it that. It should just be money. So play your cards. Do your homework and make sure that you understand what you're getting into and as we've said a few times already you have to be willing to lose every dollar that you invest. That's the way you should look at it. All right so that is going to do it for the financial topic and we are going to move on all right so we have one story. This week and This one keeps coming up. So i wanted to talk about it and i think it's a good question to maybe debate a little bit. This is from health dot com. And it's about the athlete shelby houlahan. Who tested positive for nandrolone which is a steroid and she said that it came from pork. So the question in the article is saying. Is this possible in so this this woman right before the olympics here has been barred from competition for four years after testing positive for that steroid which has banned of course and she said that she picked it up from eating pork burrito. So i don't think that's a real. Well she had an instagram post. I think she went on fox. Live or something. I heard on the radio. And she's never tested positive at all and she said i think there's this poor food truck or someplace she always goes and she said the night before that she basically ate at the truck and she got tested the next day in a showed up in her system so did they even re tester. Yes they did and says Even though there are not the levels of steroids inner body were consistent with people who were tested hours before after eating pork. The lab said has to consider analyzing this thing and it never accounted for this possibility. So i guess it's saying it could happen where you eat. But they said that they also basically. This is an atypical finding and followed up with further testing the anti-doping experts reached out to say they should have so at least from their quotas. They should have tested again in finding. Maybe i suppose maybe the next day which showed. Hey it's not in there so it had been one of those things that can't just clear up. It should been in your system for a while. But they didn't do that so and also says that. She passed a polygraph test and she had her hair sample by one of the world's foremost toxicologists and they still didn't let her back in well. There's it's goofy when you read all this that there's these lease committee since there was the. Us organization said that she was listed to go into the trials but she went directly to us held out a suite in the official committee. And because ultimately. That's where you have to go. And based on the olympics coming up so fast to be able to wait for her appeal They basically said no you can't you're out reminds me of a rod. When he got the now who was it they he got The lotion rubbed on him by the trainer hang was claiming that that's how on aware that's how he got the steroids because they did an after practice massage with some lotion and that he was he who blame it. On that does that isn't even go near bloodstream. I know definitely wasn't a good excuse later. Admitted it right so yeah i might be very. It's i don't think it's a ride is era actually. isn't it. all. Those guys are taking steroids back. Then oh yeah. The automobile was filled with them. Why believe it. That's sosa monz. And are all not in the hall of fame which they would be. Based on their statistical performance use loud usually barry bonds head from when he was twenty one to forty. It's like it's double the size. And he's hitting seventy two home runs like something's not right. Yeah this did though goes on to say. The sampling similar did happen says boxing stark kennel air cannella ago alvarez said in two thousand eighteen that he received a blood test positive for a steroid lake. Chemical clenbuterol conclude are all clenbuterol. I came having trouble with this week like you last week it was. I listened to a podcast recently and they did a whole thing on steroids for some reason they were just joking around so i know all these words. So this distance runner and kenya. James or kobe may be also cited pork as the reason for testing positive in two thousand nineteen for the same substances this runner and she was banned or has been banned until two thousand twenty three. So you know. What are your thoughts on. This seems like it's i. It seems like pork is a good scapegoat if we want to go back to those phrases in the beginning pork. Seems like a common scapegoat for some of these athletes. Which makes me feel like. It's not the case. So when i read this article further basically said that this independent laboratories this place basically says right here. That co founder of soho. Strength lab and promise promise attrition arena. There's really not enough context and the numbers to know to basically be able to say. Is it true that you could go and eat is tainted of pork one night before and then get it in your system so you know if they have any bearing on the opinion. I've seen how the social media in society works is going to be probably just enough people on one side or the other to say she totally was in the other ones go. She got screwed man. It sounds like there's a trainer that's the athletes to say. Hey if you get tested for steroids and come up positive say you ate pork. That's what it sounds like. Yeah i mean the only thing it does say here. That pigs do create chemically naturally consuming the organ meats of uncalculated bill pigs bore potentially cause a false positive. Okay that's a lot of words. Their tail yeah detail. However it is extremely unlikely that a burrito consumed was filled with bill or bore oregon's rather because most in the us comes from animals less than a year old and the males are castrated or taint has a very unpleasant odor and is avoided by most producers. boar taint. So say what i said. It's the article says or taint or taint. I think that's a great place on the. Yeah well i'm gonna go out on a limb here. But i'm going to say that the official podcast position as that she was doping agreed and so i think he i like you said we end the podcast here because i think we ended up going down a rabbit hole into these things so that's going to finish it officially and a couple of show notes again follow on social media and instagram and What else tiktok aunt. S m podcast. So until then until next week. I am david.

amc justin david Amc amc amc joe kernan Melvin capital tara kramer aiwa apple google
Peak Insanity  Ep 666

The Peter Schiff Show Podcast

1:03:08 hr | 7 months ago

Peak Insanity Ep 666

"Leadership today's episode of the peter shift. Show podcast is sponsored by ladder. Ladder makes it quick and easy to get covered for life insurance so check out ladder today to see. If you're instantly approved you just go to ladder life dot com slash goal. Well we had a pretty big reversal tuesday today especially in the beaten down. Nasdaq which on yesterday's close was down. Eleven percent from its recent high that put the index into official correction territory not quite a bear market which is down twenty percent correction define is being down ten percent or more and we just made it down eleven percent but today the nasdaq finished up about three point. Seven percent a bit of a sell off into the close not really that noticeable but at one point i think we were up better than five percent. Some real crazy moves today especially in some of the real high fliers that had gotten taken to the cleaners. Like tesla tesla. When it closed yesterday was down about thirty eight percent. I think from its high and down about thirty five percent in the one month because yesterday was the one month anniversary of elon musk's announcement that he had used. Tesla funds cheryl money to put one point five billion into bitcoin and so one month ago yesterday and tesla's shares were down thirty five percent since that announcement now of course bitcoin itself had gone the other direction. It was up almost exactly thirty five percent since the announcement in fact it's up even more now as i am recording the podcast. Bitcoin is back above fifty. Four thousand it also means that the market cap of all the bitcoin out there is once again one trillion but tesla was up almost twenty percent today as were some of these other High flying darlings. That got beat. Up are the types of stocks that are in some of these arc. One particularly arc innovators. Etf is loaded up with all these high priced momentum stocks and you know. I saw the founder of that fun family. Kathy would was interviewed us today. I think around the three o'clock hour on cnbc to talk about this shellacking that her fund had had in the last couple weeks as all. These stocks are getting killed. And you know. I think last year she was. I think she got some kind of award for like great stock picker because her hips had fantastic performance. One in particular is that are innovators. Etf which supposedly is investing in these cutting edge innovative stocks you know the top holdings include tesla square roku zillow spotify shop a fi zoom. You know a lot of these companies now. These are not unknown companies. It's not like she is uncovering some hidden gems. She's finding these innovative companies that nobody really knows about and then she's buying them before the crowd finds out about. I mean she's buying. The stocks at the crowd is already in. A crowd continues to pile into her strategies. Just to buy the most expensive over hyped overvalued stocks and just hope they keep going up and so far it's worked and so last year she was all the rage because all those stocks kept getting more and more expensive. Well now that some of the air is coming out of the bubble looked so smart. I mean it's real easy to look smart in a bull market. When everybody else is making the same decisions you are. The problem is how do you look smart in a bear market when the air comes out of the bubble and you know it doesn't even make sense to have an etf with all those names in them because they're not even une correlated with one another. I mean these are all well known household names mega cap stocks way overpriced and they all trade in the same direction so of one goes down. They're all going down. I mean you don't really get diversification when you have a lot of names of stocks that are all highly correlated with one another and they're all way overvalued. I mean. I get it again. If what she was doing as i suggested she was finding a lot of stocks that nobody knew about innovative companies. That were on the cutting edge of something but they were kind of obscure. They weren't household names. And so you really didn't know maybe they were going to succeed and maybe they wouldn't right. Maybe they hit a home run. Or maybe they'd strike out so if you had a diversified pool of those type of stocks will that would make sense instead of putting all your eggs in one basket. You spread it over a number of different stocks and some of them will do really well and that will make up for the ones that don't but if you're just buying all these expensive stocks that everybody knows about i mean yes maybe some will go down ninety percent and some will only go down seventy percent but they're either all going go upper down together and so i think a lot of people who are in these. Etf's who think they're diversified are in for a rude awakening because they're just overconcentration in a highly speculative sector in the most speculative overpriced names. I mean all they did is just by one of the stocks right. You don't even need the. Etf you need to pay the fees. Just pick one or two names and by yourself now. I don't think these stocks have bottom yet. This was a turnaround tuesday notoriously. These are counter trend days. I don't think the nasdaq is seen the lows. I don't think these stocks are finished coming down. I think the market needs to go lower before people get scared enough for there to be a bottom. I'd like to see the nasdaq. Or i think the nasdaq will go down below. Eleven thousand right now around thirteen thousand so i think it has a ways to go. I think there's probably some pretty solid support as you get down closer to ten thousand and the question is visit. Fed even have the stomach to allow the market to get down to ten thousand. And that's really the test. At what point does the pain in the stock market. Bring the fed back into the game with a bigger dose of qe and a lot of that of course is gonna depend on what's happening in the bond market which i want to talk to about as well but before i do i wanna talk a little bit more about kathy would because while. She was being interviewed on cnbc to defend the stocks. Like tesla she was of course asked about bitcoin and she's very bullish on bitcoin. That goes without saying she likes everything that's overpriced in a bubble and so why would bitcoin any section and she said some of those ridiculous or she made one of some of the most ridiculous comments. I've ever heard about bitcoin. One is she was asked about its correlation to risk assets and was. She concerned that. Bitcoin seems to be highly correlated with other risk assets and she kind of dismissed that and she said right now the asset to which bitcoin most correlates is real estate. Which makes no sense whatsoever. I mean how is bitcoin. Like real estate. I mean first of all real estate doesn't really trade right. I mean you buy a house and you're not like day trading it you know. People hold houses for years before they turn them over. So you really can't look trading dynamics of real estate and say it's anything like bitcoin. I mean you see. Bitcoin can go up and down twenty percent today. I mean that doesn't happen in real estate market. So i don't even know what she's talking about unless you're looking at a long term chart maybe ten years and seeing hey. Bitcoin is up over the last ten years and so his real estate and therefore they're correlated which makes no sense whatsoever other than the fact that real estate is also in a bubble albeit smaller bubble than bitcoin as far as the prices diverging from the underlying fundamental value but to say that bitcoin is correlated to real. Estate is completely ridiculous. I mean how is this woman's supposed to be so smart yet. She makes an observation so dumb yet. It gets even worse. Because then she went on to make an even dumber observation in her speculation. The future she said that bitcoin is so dissimilar to risk assets. She says that bitcoin in her mind is more like a bond right a really really safe investment that you buy for income right even though. Bitcoin has no income. So how you would compare bitcoin to a bond. I don't get it at all. I mean if you compare it to currency say it's better than just stuffing dollars under your mattress but to try to say it somehow relates to bonds that people buy for income when you have zero income on bitcoin but what she said was in the future. She thought that bitcoin would be so correllated to bonds that it would actually take up a big piece of what would normally be a bond allocation portfolio. So these are almost her exact words she said. Slept like if you have a strategy that sixty percents equities and forty percent bonds. What you might end up doing is being sixty percent. Equities twenty percent bonds and then twenty percent. bitcoin. I mean so. You're not taking a slice of your equity portfolio your speculative portfolio and allocating that to bitcoin. You're taking part of your lower risk income generating portion of your portfolio and your allocating that to bitcoin. Which again makes absolutely no sense. Given the fact that big quite has zero yield. Now i get it. There's a lot of bonds today that don't have any yield either. But that's the bubble and to expect it. That bubble is going to continue indefinitely without ever popping is ridiculous. At some point the bond bubble's gonna pop and yields are going to go much higher but the yield on bitcoin will never be above zero. In fact bitcoin is actually a negative yielding asset because of the expense that the miners charge to maintain the network invalidate all the transactions so bitcoin is a negative yielding. Currency is just at right now. Nobody cares about the negative yield because the price keeps going up because the bubble keeps getting bigger but that negative yield is going to be more and more expensive as the price is dropping and then the people who still hold their. Bitcoin have to keep paying the toll as the price keeps falling. But i want to circle back to the stock market and also to the bond market and talk about why we actually had a rally yesterday. Because i think today's reversal rally really started yesterday on monday. And in fact it started before the open because if you look at where the stock futures were trading and in particular you look at some of these nasdaq stocks tesla. And you look at how low they were. Trading in pre market the market was getting killed and also interest rates were continuing to edge higher. And that was part of the reason that stocks were getting killed. And then what happened. Is david tepper. Who is one of the most widely followed and i guess well respected equity hedge fund managers. Right he comes out and he gives an interview to joe kernan on cnbc. And i don't know if the interview was on the air it didn't look like it was but then joe kernan like comes on and it's an emergency special announcement. I've got this breaking news and it's from david tepper. I just had an interview. David tapper and david tepper says by the stock market. He's balls to the walls long or something like that. This is a great time to buy stocks and so he puts in this big buy signal before the market opens to try to generate some interest now whether or not he already bought a bunch of stocks and he talked his book hoping that his bush statements would cause a rally in stocks and he just bought. I don't know but he came out and he was very very bullish. The interesting fact is his rationale for being bullish and the reason that he said that now he's bullish on stocks is because he's no longer as bearish on bonds because he thinks the yields on the ten years have topped out and the reason he thinks that the yields have topped out is because he's looking at the yield to a japanese investor on us treasuries after you hedge out the currency risk. So he was looking at the yield of one point four percent on a ten year. Us treasury and he said hey now for the first time. The japanese can hedge the currency risk. Meaning make sure they don't take a loss on the dollar going down. They can hedge out the currency risk and still have about a fifty basis point positive yield if they hold to maturity right which you hold the treasury for ten years. And if you do that you can hedge the courtesy. And you can make a whopping fifty basis points per year and supposedly. This is just so exciting that the japanese are going to all line up for the privilege of loaning money to the us government to earn a half a percent a year for the next ten years. Which i think is laughable. I mean he first of all was saying well. It's a lot better than buying japanese government bonds. Which are only yielding ten basis points. Right so you can get forty basis points more than that by buying hedged us treasuries. It's not exactly like the japanese are lining up to buy j. gbd's yielding ten basis points. Either that's why. The bank of japan's balance sheet is so enormous because they're buying up all these low yielding bonds that no one in the private sector in their right mind would buy and i think the same thing is going to apply to. Us treasuries why is anybody you know. Look at a half a percent yield for ten years as something that they are really excited about. Giving what's happening in every market all around the world people are making huge returns. Look you got stocks. That can go up twenty percent in one day. Somebody's going to settle for a half a percent a year over ten years. That means over ten years. You wait ten years and you can get a five percent return over ten years. There are stocks that will move up five percent in ten minutes. Who's going to wait ten years to get five percent so hey. I don't think that there's going to be this rush of demand coming from japan. That's gonna put a floor beneath our bond market and of course the other interesting aspect about it is that in order to get that fifty basis points. You have to hitch right. You have to sell dollars forward to hedge your risk because obviously if you're only getting a meager a half a percent a year over ten years which is five percent. What if over that ten year period. The us dollar goes down by ten percent. Well now you've lost five percent over ten years in yen instead of gaining five percent. So obviously you can't get into such a low yielding investment without being able to hedge currency risk and. This is the problem. If enough japanese actually thought a half a percent yield was so juicy that they really wanted a piece of that and you saw a lot of japanese buying us treasuries and then hedging currency risk by selling dollars that would put downward pressure on the dollar and what that would mean. Is that the cost of hedging would be going up so if a lot of people tried to hedge their yen or hedge their dollars by selling the dollar against the yen to protect the yen value of their investment. That alone would put enough downward pressure on the dollar to increase the cost of the hedge so that that fifty basis point profit would disappear and now they couldn't do it anymore and of course not everybody even recognize that because joe kernan when he was reporting about the fact that the japanese were going to buy a bunch of us treasuries and then heads the currency risk. He actually said well. That's going to be good for the dollar right all the japanese buying. Us treasuries could be supportive of the us dollar. He missed the part about the hedge. It's not supportive of the dollar if you're selling the dollar when you're buying the treasury's the only way the japanese would be supporting the us dollar by buying the us treasury market is if they did it unhedged but who would be crazy enough to do that. The yield is so low. It doesn't make any sense to take all that currency risk. Now if the yields were much higher right if you can get an eight percent yield on. Us treasuries well. Maybe somebody would we be willing to do that. And take the risk of the dollar going down because they might figure well if it goes down. I gotta lotta protection. Because i'm getting a big yield but when you look at the enormity of our deficits why anybody would want alone any money to the. Us government knowing how much money were borrowing and how much money were printing. What are the other developments. That happened over this weekend. Was that the us senate. Now past the one point nine trillion dollar spending bill otherwise known as the covid relief. Bill or the stimulus bill. But where's the money coming for. There are no tax increases in this one point nine trillion dollar spending bill. It's all spending so one hundred percent of that one point nine trillion. And of course it's going to cost way of more than two trillion. They are underestimating. What this thing is going to cost. But as i mentioned on my last podcast the government is already spending eight trillion dollars a year at this too. And now you're talking about ten trillion dollars of spending in the next year. Assuming no new spending bills passed which. I doubt because as soon as the ink is dry on this. They're going to start writing a an infrastructure bill. And where's all that money. come from. they're gonna print that too. They're not even collecting three and a half trillion in taxes right now and even if they raise taxes is probably not going to apply that this year right because no one wants to raise taxes now while we're struggling in kobe mcrae's raise taxes. It may not start until twenty. Twenty two so they're not getting any extra tax revenue. It's all going to be borrowed. It's all going to be printed so this is massive inflation so given all that inflation who in their right mind is going alone. The us government all this money. I mean the japanese are not that dumb. So i think the whole justification for tappers bullishness makes absolutely no sense at all if he's bullish on the stock market because he thinks the japanese have backstopped stopped the bond market that they're going to load up the truck with low-yielding treasuries because they can eke out a half a percent return for the next ten years. Look if david tepper thinks a half a percent return over the next ten years is so great. Why doesn't he sign up for it. I mean he would go anywhere near those treasuries. So why would he assume the japanese. Would you know. I read another article today on zero hedge about the backlog of container ships that is building up off the coast california which is destroying the record of the backup that they had. I think a few years ago there was a strike by some of the dock workers and so as a result of that strike. You had a big delay. And you had all these ships queuing up To unload their cargo and he said what's happening now in los angeles and long beach dwarfs what was happening back then only now. It's not a strike. What it is. American economy is so screwed up. It's so weak. It's so unproductive right. We're making so little that were importing a record amount of stuff. The world is basically single handily supporting our economy by providing us with all of this stuff. And how is it that we're getting all this stuff. Are we making a lot of stuff and trading it for that stuff no. We're not making any. the merchandise. trade deficit is skyrocketing. We're printing all this money. And then the federal reserve gives it out to americans who aren't productive many of them don't even have jobs but many americans who do have jobs are in the service sector so they're not producing anything that they can trade but they're still using that money to buy the stuff that other people that are living in actual viable economies stronger economies. That are saving producing. And we're buying all of that stuff with all the money that we're printing. Meanwhile we're deluding ourselves into thinking that what we have here is a genuine economy. When we actually have is a genuine bubble we have people spending printed money to buy stuff that everybody else produces and the evidence of that are these long queues of container ships lined up to bring all this merchandise in the united states. A lot of people say oh see this shows what a rich country we are because we can afford to buy all this stuff. No we can't afford to buy any of that stuff that's the point we can't make it. It's the countries that are making the stuff that could afford it but instead they're selling it to us because they still value the dollars that we're giving them in exchange for the goods that they've produced but the only thing that's gonna put a stop to. This is going to be a crash and the dollar. That's it that this party will not end until the foreign exchange markets take the punch rollaway defense. Not gonna do it. They're not going to raise interest rates. They're not gonna end this party. Prematurely is going to keep on into foreigners bring it to an end and these massive trade deficits these long lines of container ships. Are all the evidence that you would need to show how phony this recovery is and understand that the only thing that's going to bring it to an end is going to be a crash in the dollar that's gonna stop the american spending spree and when that happens goals going through the roof in fact before that happens goals gonna already be going because the markets are gonna sense this. The dollar will start to fall. Gradually before falls precipitously right. Now it's kind of a lull between the storm. You still have a lot of people that expect the fed to be able to raise rates to be able to fight off inflation. It's amazing to me why you have so many people that always think the fed can do the impossible. So many people thought the fed could normalize interest rates. They thought it could shrink. It's balance sheet. I kept talking about how these are impossible things for the fed to do yet for some reason the markets believed the fed anyway. Well now the fed is talking about how they have the tools to fight inflation and if it becomes a problem they'll quickly do something about it. And as i said on the last podcast. They don't have the tools or to the extent that they have the tool. It's impossible to use it. And i don't know why the market's still don't understand that but i think they will. What might bring that understanding to come a little bit. Quicker will be a bigger move down in the stock market. We're the fed is forced to rescue the market but also it could be a more rapid deterioration in employment picture and as unemployment starts to take up with prices rising. We know which problem the fed is going to concentrate on especially if rising prices is the reason that people start losing their jobs as the cost of living goes up and people spend less money because everything costs more and as businesses react to increase in costs by laying off workers and now the fed has the twin dragons of unemployment and inflation. We know which one they're going to slay and which one they're going to ignore and when the markets figure this out it's lights out for the dollar and before that happens you need to get your gold over the weekend. I read a story about a french billionaire. Who died in a helicopter accident. And every time i hear about those types of situations it makes you think about how fragile life is and you start to think about how the people that you love with deal financially with a sudden loss of your life and if you are the primary breadwinner in your family you have a wife. You have young children. You gotta have insurance but what you don't need is whole life. You need term because term life insurance is the best insurance money can buy because you can buy the most amount of coverage for the least amount of money and that's what you want when you're buying insurance don't let a an insurance salesman talking the whole life if you want investments. I can help you with that but if you want insurance you can go to ladder because you need term and the beauty of term is if inflation really picks up when you have whole life. Inflation destroys the value of your death benefit with term. If inflation increases costs you can always increase the coverage and then pay a little bit more premium. But when you're young you're healthy you can get a lot of life insurance for a little bit of money and then the money that you save by not buying whole life you can build yourself. A great investment portfolio preferably with me at your pacific capital latter makes it quick and easy to get covered for life insurance. Just log on with your phone laptop and apply within a few minutes. You'll find out instantly if you're approved after that you could decide whether you want to move forward. The plans are offered at personalized rates. That can flex as your knees chains. The prices are affordable. There's no hidden fees and you can cancel the policy at any time since life insurance costs more as you get older. Now's the time to cross that off your list checkout ladder today to see if you're instantly approved goto ladder life dot com slash gold. That's ladder life. L. a. d. d. e. r. life dot com slash gold. I wanna talk a little bit now though about some new anecdotal evidence that we are really living in the greatest financial bubble in world history. I mean this puts the mississippi bubble The la bubble to shame as far as the enormity of what is going on and talk about politics delusions and the madness of crowds. There has never been crowd more mad than the one that we have today. And what. I'm talking about now are. Nfc's these are non fungible tokens and this differentiates between a fungible token which could be bitcoin or ether. Any of these crypto currencies. They are fungible tokens in that. They're all the same. If i have a bitcoin and you have a bitcoin. We've got the same coin and in theory. That is why. Bitcoin is supposed to be able to function as money. Apart from the fact that it's not but it has that in common with gold. In that. If i have an ounce of gold my ounce of gold is identical to your goal because all gold is the same unlike. Let's say diamonds. If i have a diamond you have a diamond. Even if they're the same carat weight They're not the same because they have a different. Cut a different color different clarity. That's not the case with gold same thing with bitcoin. So if i am a merchant and i am selling a product or service and let's say the prices a bitcoin which obviously would be a very expensive thing now given that bitcoin is back above. Fifty thousand dollars a bitcoin. But let's say. I'm selling something for a bitcoin. Anybody with a bitcoin can buy. It doesn't matter which bitcoin you have because they're all the same similarly. If i want alone you bitcoin and you're going to pay me back in a year. You don't have to pay me back the same. Bitcoin i lend. You doesn't matter any bitcoin. We'll do i mean the reason you can't make a loan in bitcoin. The reason you can't price goods and services and bitcoin is because they're are far too volatile especially for a loan certainly a longer term low. No one knows what the hell. Bitcoin is going to be worth a year from. Now let alone five or ten years from now so you would have no way to realistically do alone. in in bitcoin. But i don't really wanna to talk about bitcoin. I wanna talk about the non fungible tokens and the difference. Here between these non fungible tokens and funds will tokens like bitcoin. And ether is that all of these are unique. They're not the same. And so if i have one and you have one. We don't have the same token each one is unique in and of itself. And i personally believe that there can be some useful. Nece to these non fungible tokens just not the ones that everybody is speculating. On right now what would be a legitimate use. For a non funds will token. I think to the extent that you can record or ownership of a tangible physical thing on and non fungible token and then you can use that token as proof of ownership for example the registration of a car or the d. To a home. Right if i own a car and i want to sell you the car instead of having to go to the dmv with the title and go through all that work. If i can just take your money and then give you my non fungible token that would show that you own the car and then you would take the car right but you would actually have the car and the non fungible token is just a more convenient way for me to transfer title that car from me to you and now for you resell the car to somebody else and you would transfer the title that way. But what's going on right now. Is they're basically having these. Non fungible tokens that inouye relate to a real world object. It'd be like having a non fungible token which was just a picture of a car it did reference an actual car that you owned all you own was the token and the token was a digital image of a really cool car right. Well what good is a digital image of really cool car. Well you can't drive it. You can't do anything with it. It's just there as an image in your computer but the idea is that well. What if i'm a famous guy. And i painted that car or it was a picture of my car. And maybe i put a cryptographic autograph on it. And said hey. This is the only picture that's going to be identical to that one and now you can buy it and you can hold onto it and now you can sell it to somebody else in the future. Maybe somebody in the future. We'll be even dumber than you and be willing to pay an even higher price to buy that you know non fungible token which is just an image of a car and then you can you can sell it for a higher price and this is going on in the sports world right now. You have a lot of these. I think basketball players are selling non fungible tokens which are images of shots that they made and people. You're buying this. You know i don't original but you're buying a one time or exclusive image of shot and now you own it in your Non fungible token collection. But none of these things are ever gonna have any real value. I mean i hear people talking about how well you know. The value of a rare painting is that it's rare and if you have a rare non fungible token while now we have a rare thing in a digital form and so it could be every much valuable as a impressionist painting from monet or manny or any of these big painters. Which of course is sheer. Nonsense it's not just that something is scarce. That makes it valuable. You have to look at the other contexts that make it valuable if you have a painting that was painted. Hundreds of years ago by a famous artist who's long dead and everybody recognizes him as one of the greatest artists ever and not many of his paintings survived over the centuries intact. And you happen to own one of these rare pieces by this world renowned famous artist and you have the actual painting well that has value but if i just have a digital representation of a painting that obviously can live indefinitely on a computer and you know what does not gonna have any value. There's no real historical significance to owning something like that. You know they're talking about it or comparing. These non-financial tokens so like baseball cards. Look the reason that baseball cards are valuable and some baseball cards. Valuable most aren't worth anything you know. When something is produced to be a collectible it rarely has much value because when something is produced to be a collectible the minute people have it they put it away and they don't use it and they take care of it and it stays in pristine condition. The reason some of these baseball cards are very valuable is because they were initially produced not to be saved but to be played with by kids. I mean yeah they collected on. They traded him but they didn't put him in a bag and seal them and not touch them. And then if you can find you know the rookie card from a guy who later became a great player. But of course when he's a rookie knows if he's going to be that good and so how. Many people are going to hold on to a rookie card when they have no idea that this guy is going to end up being a great player and so there's not as many of these cards that are in ingred condition and so they become valuable in the future but they they're scarce because they were initially not produced to be a collectible when you have people now mass producing these things advertising collectibles and everybody is holding them and setting aside up. They're not gonna ever have any value. They have value because they weren't created to be collected and in the future all of a sudden they became desirable. And because there weren't that many of them now. They're worth something. I mean the same thing with with cars. I mean why are some of these cars that are one hundred years old eighty years old. What are the reasons are so valuable is because most people wrecked up. They didn't put these cars and storm for all these decades and keep them out of the sahn and take all the work and didn't drive the hell out of them when they first bought them so a lot of these cars. I mean. there's not that many of them but when you own one of these cars there's a real historic significance to owning something that was produced a way in the past and there's only so many of them survived over the decades. And you've got one of you know maybe there's six of them in the world and you've got one of these and if you're really into cars and this car is going to be really important but i don't think any of these. Non fungible tokens that people are buying now even if they're one of a kind so what because whoever is creating them can create one hundred thousand ten thousand one of a kind things and pretty soon. I mean you've got so many people owning a one of a kind thing. How much difference is there really between. You're one of a kind item and the other thousand or ten thousand people that have a one of a kind item. That's almost you know very similar to the kind that you have and of course everybody who gets one of these things. They're all going to be in perfect condition. I mean nothing is going to happen over the years or decades their computer images they can't fade so whatever somebody buys is there forever and so there's never gonna be any real value but obviously to the extent that we're in a financial mania and people are enough to buy anything then who knows i mean. There's so much money. Sloshing around right people are looking for stuff to buy and people are looking to get rich quick. And this is the latest gimmick now. They actually did. This already. crypto kitties. I remember talking about these things. This happened during the first bitcoin bubble when bitcoin went up to twenty thousand. That's when you had the introduction of these crypto kitties which were simply a digital india of cats that people were buying and they were bidding them up to crazy prices. I have no idea what happened. To these crypto kitties if you could get any money for him anymore but they were fad and it died out pretty quickly. I mean they were almost like a digital beanie. Baby i mean somebody should have actually called them. Crypto beanie babies. Maybe the irony of that would have made him even more appealing. But that's really what they were and the whole thing crashed. What's going on right now. with these. Non fungible tokens is just the latest iteration of crypto kitties. Only it's gone broader. All kinds of artists musicians are out there issuing I mean pretty. I mean mass quantities. I mean maybe you could have limited edition runs of these nonfederal token so i can issue a thousand of them and like a print. You can have number one. One person has number. Two one person has number three and so now there's a thousand and that's the limited edition and so a thousand people can have it and then nobody else and each person has one of thousand but whatever it is. This is all a bunch of nonsense. This whole thing is going to implode. And i doubt any of these. Non fungible tokens that do not relate to a real item a real world product. Yes there can be some applications to this technology. Where you have these tokens that can be valuable and maybe could be traded. I mean maybe a car company. I mentioned you know is gonna be coming out with a car and you can buy the car advance. Maybe they're gonna deliver it in a year or two and you can just by the non fungible token and now you have the right to that car when it's delivered or after assembly line and maybe if you change your mind and you don't want it you can sell the right to somebody else. Now they can buy the car and maybe have the price locked in and maybe companies that are produced products. They can presell these tokens and they can get the money that they need to produce their products and then they can deliver the products into the future. But they collect the money in advance. Maybe they can give people a discount to buy the tokens now and it may be a better financing than than to a bank. I mean i can think of all sorts of things Airline frequent flyer miles. There are a lot of things that could be a token is then put on a blockchain but to simply by a token that has no relationship to any real world value. That's a bunch of nonsense. Just like a crypto currencies. That are backed by nothing. If you had a crypto currency that was backed by gold or backed by something. Then i can see the value of the crypto currency but to have a crypto currency. That's just fiat. That's backed by nothing. You defeat the whole purpose of trying to get away from the fiat system because you've just gone from a public fiat system to private fiat system. But at the end of the day you got nothing but air and that's the same thing that you've got when you own one. These non fungible tokens. You've got air. And i don't care if you can pull up the image on your computer. You don't have anything that anybody is gonna value once. The air comes out of this bubble. But i wanted to speak specifically about another completely ridiculous type of non fungible token and that is buying tweets. And i'm not making this up. In fact i i heard about it because jack dorsey. I tweet right. When he first set up twitter he put out a tweet. Obviously there was nobody there right. So if somebody tweets on twitter and there's nobody there to hear it doesn't make a sound But i don't know if there's anybody else was listening to his tweets but he tweeted out. I just set up twitter. And he was the first guy and so that was the first tweet and they're already is a bid although they call it an offer kind of real estate i i always think in terms of when some was the by something. I'm like a stock guy. And i think a bids offers i think of trying to sell but right now. There's a website v. sent dot company. And if you want to buy a tweet you don't put in a bid you put an offer. And that's how the realtors that's the lingo of a realtor. Make an offer right so somebody has an offer for two and a half million dollars to buy the very first tweet now. What you own when you buy that tweet. I mean because you don't own the tweet itself because the tweet is still there on twitter. I guess if you go into jack. Dorsey twitter account and roll down. You'd see his first tweet. What you get is some kind of copy of that tweet on a digital token and jack dorsey i guess who would get the two and a half million dollars if he accepts the author. Would i guess a fix a cryptographic signature to the tweet indicating its authenticity and the company guarantees that you're the only one that's gonna own that particular tweet right. Even though jack dorsey may have tens of thousands of tweets since he started twitter you own the copy of that one. I mean everybody else can see the tweet if they go on line but you own the official version that jack dorsey has said yep. I'm gonna sign this one and you own this minted. They call minted tweet now of all the complete nonsense. How this could be worth anything is beyond me and this guy who's willing to pay two and a half million and apparently this guy is the same one that paid more than that to have lunch with warren buffett now that at least went to charity and of course you get warren buffett's ear for awhile so who knows if you convince them to do something. It could be worth the price of the lunch. I think this guy was gonna try to convince warren buffett to endorse bit corner to buy bitcoin. And i don't think that happened at all but maybe he got some other publicity for that lunch. But i don't know what she get by. You know blow in two and a half million dollars on a tweet now. Interestingly enough dorsey hasn't bothered to collect two and a half million dollars because the is still out there. He has an accepted. So i mean you know. He's a billionaire. I guess so. Maybe two and a half million dollars doesn't mean much to him but maybe he thinks somebody else's going to outbid them you know i doubt it. I mean i can't believe that. There's a bid that high but the craziest thing forget about the fact that people are trying to buy jack dorsey tweets. People are actually trying to buy my tweets and of course the tweets are trying to buy and i just i went up there and i can see a list of all my tweets that people want buy and the way you indicate that you wanna buy tweet. He's you cut and paste the url the tweet into the program. And then you make your offer right. I got to set up an account. And i think the currency that they're trading is Ether i mean. I haven't actually set up my wallet yet. So i'm not even positioned to accept these offers yet. But i will be. I mean i'm going to sell some of these tweets. I mean why not. People want to buy them. I mean i might as well sell them. I mean who am i to deny the public They want. But i can look at all the tweets that people want to buy and the one thing they all have in common is. They're pretty much all related to bitcoin. Right and that makes sense because the people who are interested in buying Non fungible tokens are people. Who are into the fungible tokens. It's the bitcoin crypto crowd. That has an interest in the latest You know speculative mania that is related to crypto stuff. And so that is these nfc's and so it makes sense that they're interested but the tweets that have the most value are the ones where i looked most foolish in the minds of bitcoin bull and so their tweets were. I'm saying something negative about bitcoin when the price of bitcoin is much lower than it is now so obviously the earlier tweets are going to have more value. Because i look more foolish right but if you really bullish on bitcoin and you think bitcoin is going to a million well. Then a lot of the tweets on putting out now are going to look pretty foolish when bitcoin's a million so you'd better by those tweets now before they become a lot more valuable. But here's some of the tweets in case anybody is interested. Now i'm not encouraging anybody to buy these tweets in fact i think you're a complete fool. If you buy these tweets. I think by tweets have no value but again i said the same thing about bitcoin and look what happened to bitcoin. Is it possible that somebody could buy one of my tweets and then find some greater fool to pay an even higher price for the same tweet in a future. Sure who am i to say why not. I mean anything can happen. I mean this is the craziest bubble. As i've said we've ever lived in and so people are dumb enough to pay money for a tweet will then who's to say someone else won't be even dumber to pay even more but the top offer i've got right now for. What am i tweet. S- and this one is vintage two thousand and thirteen. So this is an old one. It's been aging for what eight years and obviously it hasn't aged well from my perspective. This tweet reads thinking of buying bitcoin instead of precious metals question. Mark think again. that's one of my tweets. The top offer on this tweet now. I kid you not is four thousand dollars. Somebody is offering four thousand dollars to buy this tweet and you know there was a guy that was three thousand before that and then somebody outbid them before the three thousand dollar guy. There was a guy for twenty five fifty. I i noticed it when somebody was offering five hundred dollars for the tweet. I thought that was ridiculous. And now it's up to four thousand no. I haven't even accepted the offer yet. Because i haven't even finished setting up my wallet. So who knows what. This tweet is only gonna go for me. Maybe somebody will outbid this guy and pay more than four thousand dollars to own nothing to own a copy of a tweet. This is absolutely ridiculous now. Is it possible that somebody could buy my tweet for four thousand dollars and then six months later. Sell it for six thousand dollars. I guess guess as possible. I mean the fact that somebody is dumb enough to pay four thousand. I can't rule out the fact that somebody else might be even dumber and pay six. Then maybe someone will pay ten. Who the hell knows but the other thing about it is every time one of these things cells. I another ten percent. So if i sell this tweet for four thousand dollars and ninety five percent of that right the house. The company takes five percent but then if it trades again right the person who owns it gets the profit. But i still get cut in. I get ten percent and the house takes another slice so obviously no one's going to be day trading these things because the cost is too high because of this commission but look somebody wants to buy it. I mean fine. Here's another one. I got a two hundred dollar offer on this tweet right. so there's a big fight is a big drought. Now i mean. Apparently this one is the most valuable because you know. I looked most foolish but again. If bitcoin goes to a million foolish all these tweets so maybe people should gobble them up now while they have a chance. I mean i personally think that of all the people on twitter. I am the most popular. Bitcoin bear on twitter by far so to the extent that twitter goes to a million. And you want to have the tweets that make the bears. Look the most foolish minor going to be. I mean i'm like the babe ruth of anti twitter right. I mean. I'm like the babe ruth rookie card do you get some of my early Cards except i have. There's probably a lot more of these tweets than those rookie. Babe ruth cards but here. Here's one the guys offering two hundred dollars from the guy who had a fifty thousand dollar price target for bitcoin. My goal forecast came a lot closer than your bitcoin forecast. Plus at least golden eventually hit five k. Bitcoin we'll never hit fifty k. So that's a tweet. Where i said that bitcoin would never hit fifty thousand and i was setting that the tommy lee and joe curtain at squawk box. I think that's a pretty good tweak there. I mean there's no way. I'm letting this baby go for two hundred bucks. I mean that's probably one of the tweets where i looked the most foolish because i actually said bitcoin will never hit fifty k. And here we are as i'm recording. This where at fifty four thousand. So if you want to own a tweet that makes peter shift look foolish. Here's your chance but you're not going to get it for two hundred bucks. I accepting that offer. I mean i might take us other guys four thousand dollar offer. But i can't destroy the market for my tweets by letting go for two hundred bucks. Here's another guy that wants to steal one for two hundred bucks a tweet so he really told me to stick it out my ass. That's a question wants to pay two hundred dollars for that. Now that's a reply to a reply from the elon. Musk tweet where he sent me a eggplant and so somebody told me another meaning of an eggplant and so i replied to that and now somebody wants to pay two hundred bucks for it. Here's one here. This guy wants to buy this one for a buck fat chance. No way. i'm going to sell this thing for dollar right. That would crash the whole market in my tweets. But here's this one. America was founded by rugged individuals who created to secure their rights. And leave them alone. American today. want to violate people's steelers stuff and give it to them. The home of the free has become the land of the free laura. Hey wait a minute. That's the top tweet. That's the tweet that i'd had pinned to the top of my twitter account. Because i think that tweet really defines what i'm about right. It's the only non bitcoin related. Tweet i think that anybody wants to buy. And it's only look buck. Well keeping that tweet i can't. I cannot sell the. Peter schiff tweeted a buck not an original. Peter schiff here. Here's the one where. I'm i'm replying to anthony pomigliano. This guy is offering twenty bucks. Look this tweet is worth a hell of a lot more than twenty bucks. Because i look like a complete fool in this tweet. This is replying to anthony pop. I did not forget my password. My wallet forgot my password. I mean that's a beautiful. I mean we're why. Look foolish. Because i didn't know the difference between my my pin and my password right so i mean i mean. Any tweet makes me like a complete fool in the bitcoin world. It's that tweet. And that's january nineteenth. Twenty twenty. I mean come on. I mean some has got to be willing to pay more than twenty bucks for that bad boy. I mean this thing could moon from twenty dollars. I think that's a great tweet. Here's one guy only wants to pay me ten dollars for this tweet. If bitcoin is the solution every problem wise every major companies bitcoin now in a bear. Market tesla biker strategy square twitter paypal overstock holdings and gray scale. Bitcoin trust are all trading. Bear market territory now. This is a brand new tweet. I tweeted this thing out. It's like not even a week old but maybe the guy who wants to buy this one is thinking four and he's thinking that all we stocks are going to be so much higher that not only am. I gonna like a fool for trashing. Bitcoin but a bigger fool for being negative on tesla micro strategy and square. So he's trying to think forward and by that one for only ten dollars but hey not going to get that pass me. You're not getting that tweet for ten bucks so you're going to have up your bid Here's one here's another guy. Here's a two hundred dollar offer again. This tweets is still two hundred dollars. Which is why. I'm not gonna let them steal it from me. This one again relates to my loss. Bitcoin this is my original tweet right. Thought i lost my bitcoin. Here's the tweet. I just lost all the bitcoin. i've ever own. My wallet got corrupted. Somehow my password is no longer valid so now not only is my bitcoin intrinsically worthless it has no market value either. I knew only. Bitcoin was a bad idea. I just never realized it. Was this bad that is gold. I mean that is twitter anti bitcoin. Gold i mean you got to buy that one i mean. If you wanna have a collection of peter schiff tweets. How could that not be in there. Peter ship anti-big coin tweets. Two hundred bucks come on. You're making me laugh. Two hundred bucks up. Here's another guy that's trying to steal one for a buck. Listen to this one. I got a dollar off on this tweet. Instead of putting laser beams on there is bitcoin cult members should have been selling some of their bitcoin. Well everybody was laser. Focus on one hundred thousand. Bitcoin is now closer to zero than the target. Perhaps those laser is remain on much longer than originally planned. See this guy again. He's thinking forward. He's thinking to the future when bitcoin hits one hundred thousand. How foolish will i look. When bitcoin hits one hundred thousand. This tweet could be worth a hell of a lot more money when bitcoin hits one hundred thousand. That's why i'm not going to let it go for amir dollar so if you want this tweet you're going to have to pay up. Here's one okay. Here's a fifty dollar offer. This is the last one. I got an offer on for fifty bucks here against my advice. My son spencer shift just bought eleven more bitcoin. Oh even more. Bitcoin not eleven. He's not that rich. Whose advice do you want to follow a fifty seven year old experience investor business owner who's been an investing professional for over thirty years or an eighteen year old college freshman. He's never had a job and my son's smoked me. He got eighty one point. Three percent of the vote. And i got eighteen. Eighteen point seven almost eighty. Three thousand people voted. I think this could be one of the most valuable. Bitcoin tweets in history especially with the popularity of this rivalry between My son and myself. So i mean i think this is really a could ultimately end up being part of The bitcoin twitter culture And so you gotta own this one. In fact i just noticed that the elon. Musk tweet where he tweeted me. A eggplant that one is bidding at twenty thousand dollars. Somebody is willing to pay. Ilan must twenty thousand dollars for his eggplant tweet. In fact that is the number one two three four fifth most expensive being bid. I mean i'm number five. I mean elon. Musk has got the fourth tweet where he's just tweeting. One word doj. He's also got the number three most expenses tweet. And considering taking tesla private at four hundred twenty dollars funding secured. That was a controversial tweet. I can see the value in that tweet. That bad boy right now is being offered. Forty two thousand and sixty nine dollars. Maybe he thought that sixty nine dollars would be enough to sweeten the pot and eli might take them up on. I mean obviously eli couldn't care less about forty two thousand dollars then. The second most expensive offer is to buy ceesay finance. Slap yourself if you sold bitcoin under ten thousand. I don't really see the appeal of that tweet. But it's going for one hundred and twenty one thousand dollars but my tweet or or basically. Ilan must tweet to me is the only tweet of the top tweets that people want to buy that was actually directed at a particular individual. Meaning that ilan's tweet was in reply to my tweet. Somebody is willing to spend twenty thousand dollars to buy the reply to my tweet. But i haven't even had an offer yet for the tweet that he was replying to. I mean if the elon. Musk eggplant tweet to me. Is worth twenty thousand dollars. How much is my tweet to. Ilan worth that he replied. You mean it's gotta be worth something in fact if you're building a collection. How could you buy that tweet and not by mine so somebody should be offering to buy my tweet and if you don't remember what that one was. That was the tweet. Reid tweeted about how quickly the price of tesla's stock collapsed after he revealed that tesla had purchased bitcoin. So i was questioning the wisdom of that decision. In a tweet and elon. Musk's thoughtful reply to me was an image of an eggplant so if that image is selling as a non fungible token for twenty thousand and we have no idea. That's the offer. Ilan has accepted it. Who knows how high that that tweet is going to sell. My guess would be by mine. I right if you get the tweet that he replied to win. This thing sells. I mean who knows that thinking off the charts now of course look. I'm just teasing you know on this tongue in cheek. I mean obviously people are going to buy my tweets. I mean. I can't stop people from doing dumb things if they wanna do dumb things nor am i actually encouraging anybody. Who's listening to my podcast to buy tweets. Not as an investment. And if you just want to buy into to give me money because to be honest. I that's what i think it is. I think it's a gift. I think what people buy my tweet. This guy that wants to pay four thousand dollars for my tweet. I look at it as a gift right. I'm gonna give him my tweet he's going to give me Four thousand dollars so if you just want to give me money and you want to do it by buying my tweet. That's fine but don't buy my tweet because you think you're going to get rich. Because i think the tweets gonna crash now. Could it go up exactly what i said with bitcoin right in the beginning. I didn't think it's gonna work. I think it's going to zero but how it gets zero. I've got no idea right. I didn't realize it would get the fifty thousand before it went to zero so mighty go to one hundred thousand. Sure who's to say my tweet. That's four thousand dollars. Let's say. I actually sell it for four thousand dollars. Could it go to ten thousand dollars to fifty thousand dollars. Could go to one hundred thousand dollars. I guess i mean somebody replied to me. When i tweeted something about this myself that oh these things will never have any value. Because they're not scarce well tweet is scarcer than bitcoin. I mean there's not twenty one million of them right. There's only one of that particular tweet right. So it's more scarce than bitcoin. So the helm owes. I mean i have no idea how valuable my tweet maybe come before it becomes worthless because intrinsically. That's why i think it's worth. Do i think in hundreds of years. Anybody is going to give a damn that. You've got a minted. Peter shift tweet. Uncirculated pristine condition. Minted peter schiff autograph. Tweet no. I don't think it'll be worth jack shit. But if you actually have something physical if i'm famous in hundreds of years and you actually have a physical object that i had or maybe that i autograph. That's in good condition. That might be worth something. But i don't think a digital representation of one of my tweets will be but does that mean it can't go up no of course it couldn't go up and to me fine. I'm happy i love to see my tweets go up in value. I love to see people by my tweets and actually sell them make a profit not only because i would make a profit too. I get another ten percent on every transaction but as my tweets go up in value minute tweets go up in value so i can sell my tweets at a higher price to the extent that my tweets are working out well in the market and more people are buying them. But my thinking is to the extent that anybody's tweets have value. It's mine because of all the tweets. Have you simply to people who are into quip though. And i am the biggest crypto bear. The most famous crypto bear in the world then the tweets that make me look foolish are going to be the most valuable and the more foolish. I look in the tweet. The more valuable. The tweets. Going to become both. I guess on the original market and on the resale market. So if you feel lucky and you wanna take a shot at buying tweets. My thinking is my tweets are probably your best bet. You know if somebody actually pays twenty thousand dollars for the. Musk eggplant tweet and of course they may pay more. I mean he hasn't accepted the offer yet and of course there's somebody pays twenty thousand dollars for that. Tweet is because they think somebody else will pay more at some point in the future. Maybe they will. Who knows but the point is that tweet is in replied to mine. So i think that kind of helps set a valuation for my tweets knowing that i was mentioned in a tweet or a tweet that sold for twenty thousand dollars was actually a reply to my tweet. Now i don't think my tweets will be worth as much as eli must tweets but hey the fact that the third most valuable ilan must tweet was a reply to my tweet in and of itself says something about the value of my brand on twitter when it comes to to bitcoin and matter of fact to another interesting characteristic about my tweets is that i'm unverified. I mean even my four thousand dollar tweet right now. i'm unverified. i mean. Almost all of the top value tweets are tweets verified accounts. I'm one of the only people whose got a high price tag on. A non verified account now at some point. I'm probably going to get verified on twitter. So maybe a pre verified tweet. We'll have some kind of extra collector's value to have appear shift. Tweet without the checkmark right. That's a real early one. And so that might be one of the reasons to buy up my tweets. Now before i get verified and then you no longer have the non verify tweet on the other hand the first time i am verified and i tweet out a verified tweet the very first one could have some extra value as could the very last non verified. Tweet so who knows. There's all sorts of ways that you can incorporate. Your peter shift tweets into your collection of tweets in a broader non fungible token collection.

Bitcoin david tepper tesla federal reserve joe kernan bitcoin Us treasury us tesla tesla cnbc
Ida Heads North; Building Better with Walter Isaacson; Box Office Blues

Squawk Pod

28:24 min | 3 weeks ago

Ida Heads North; Building Better with Walter Isaacson; Box Office Blues

"Out steer means pige navigates market volatility with an active investment approach designed to capture opportunities globally. Join the pursuit of outperformance at p. Jim dot com. That's pg im dot com bringing show musically. This is squawk pod. I'm seeing producer. Cameron kosta today on our podcast. Weathering more storms hurricane ida moved up to the northeast in a one in five hundred year flooding display and abc news meteorologist bill. Karen's this was the most rain ever recorded in one single our in central park those records go back a hundred and fifty six years. What extreme weather means for our country's infrastructure just impact on the hill with author and professor. Walter isaacson my focus would be on getting the physical infrastructure of this country whether it's rail whether it levies whether it's our airports and air traffic control so that we can survive it'll be bigger climate events and box office bombers topgun mission impossible and others delayed and route two theaters axes media reporter sara fisher delta is scaring people off. You have a lot of people who are looking at cases rise. You're looking at that size and they're thinking themselves guys a movie worth it especially now that a lot of people can get these at home the same day. Those stories plus. We're finally going back to the doctor for normal non pandemic things kind of specifically eyelash growth drugs but the cosmic eyelashes. I mean come on. It's thursday september second 2021 squawk pod begins right now by and three to one good morning welcomed us squawk box right here on cnbc. I'm becky quick. Along with joe kernan andrews off today but joe was a little tricky getting in this morning right. Do you have any issues. Oh yeah to take different. Roads major major highways. Some of them are closed. Yeah lots of trees downed. Lots are trying to get to where you're lots of either broken down cars cars trying to figure it out because a lot of cars had been involved in accidents and i guess there were flooded to that were roads that flooded roadways accident lot facing up way with damage and no one around so i guess what happened last night and then it's like going to do. You're not going to get a tow truck. So i think they were pretty overwhelmed. There've been so many accidents out there that this this was a tricky one whether can be a top story and it is which. I'm not sure we were thinking about that. We thought ida would have petered out more a lot of a lot of water left in in that system. It gives you a little bit of perspective of how bad things were when this is just the remnants of ida how bad things must have been when it when it came ashore everything right right and then you know the weird effects of cost tornadoes in areas. That normally wouldn't see tornadoes this morning's top story but remains of ida soaking the northeast. Nbc's bill cairns's here. He joins us right now. On the storm's path and the potential next targets and bill when we describe this as remnants of ida don't let that have you underestimating the strength. The rainfall was insane. I mean this was already a billion dollar whether disaster what happened in mississippi and louisiana. And i think we may have added a couple billion more to all the damage that was done in. Pennsylvania is still occurring near some of the rivers and new jersey and new york city at one point last night we had over eleven million people in what we call a flash flood emergency that means life threatening weather. I think we lost more lives last night in the new york city area from this storm. Then we did at landfall in louisiana. That's how i mean when you see the pictures that come out later today. I mean the pictures are already incredible and we had to tornadoes. One hit annapolis. Another tornado in central new jersey and new jersey tornado is may end up being one of the strongest new jersey tornadoes. Ever that that was just outside of the philadelphia area. So here's how it looked and here's how it played out in. The numbers are just really insane. The amount of rain that fell in a short period of time but just unprecedented rainfall totals newark airport eight and a half inches new york city over seven inches of rain with this storm and it was widespread in eastern pennsylvania and even hit hard last night in connecticut and areas of boston. So what does this all mean. This was the most rain ever recorded in one single our in central park. Those records go back one hundred and fifty six years so any thunderstorm. You've ever seen never dumped this much rain. In one hour newark was three point. Two four inches of rain. Other totals this has ended up being a one in five hundred year rainfall event so to put that into perspective going into every single year. That's point two percent chance of occurring. So this is you know. Most of us should never see this again in our lifetimes. As far as the rainfall totals went to fifth. Weather's day ever in new york city history in newark airport. That was the rainiest day ever in the history and it was well-forecasted yesterday. We had this high risk in the region and we knew that there's a chance that could occur unfortunately happened right over the top of the highest population centers. So what are we dealing with now. The rain just ended in boston. It's still raining hard on cape cod raining. Hard and maine. We still have a lot of flash flooding from the last three hours. Everywhere and maroon. They're telling people to stay off the roads that includes the mass pike. I ninety five from providence. Up to boston becky you get the idea. This was a flash flood that will out of the water will be gone by this morning and a lot of areas but there are thousands if not hundreds of thousands of people that were affected in homes in their cars. I've heard the highways are just littered around new york city with stranded vehicles. It was a mess coming in this morning and much. Bigger surprise i think bigger storm than many of us were anticipating. We're dry. we're ridding the nasdaq up here. Becky year leak here. I'm not kidding. League it's coming through the roof. You have other some other properties that have pools has paul pond and i have. I was continually checking that. I thought very strange. Because i actually this is my wife and said i'm proud of our pool. I don't know what that means but once again it was very high when it started. And that's a major deal when everything that's around. The pool comes into the pool. Obviously this is a one percenter a problem but it did not overflow a couple of weeks ago. I was worried too so there has been a lot. August was really rainy as well. So i guess we are saturated so that makes it right for schools canceled and a lot of places to We were supposed to have. I ask school this morning. Got the call last night at eleven fifteen that one of the kids schools would be closed today. Got another call about an hour or so ago that one of the other schools is going to be opening late so massive disruption. i asked. We don't get canceled do we. What would happen. i guess. we don't cancel. we're showing right. Dated this morning on what drugs are being prescribed. The most right now make. Terrell joins us with the details. The have some guesses. I but i'm i'm not gonna make it's interesting though it's lipitor what what's what's prescribe the mouse. You couldn't resist joe. So we have new data from good rx exclusively provided to us this morning looking back at the trends through the pandemic of which drugs or being used the most and what the trends look like an overall you can actually start to get a picture of when people started to get comfortable going back to the doctor's office for routine visits. There's this category called low refill drugs. Those are drugs prescriptions. Where you have to go back to the doctor in order for them to write you a refill and you can see they plunged in twenty twenty started to recover toward the end and then in twenty twenty one really started to come back in february. As vaccine started rolling out more broadly now into this specific categories joe beauty and lifestyle drugs are getting a really really big boost as people are starting to emerge from their homes and go back out into the world specifically eyelash growth drugs. There are prescription drugs for this Specifically the brand name is called. Latino there are also generics available here in the prescription fill rate. You just see this. Massive bump in the spring of twenty twenty one. The number is still really high. We talked to petition about this. And she said one reason is that people are wearing masks so all you can see there is and they want to enhance their eyelashes. You're also seeing bumps in acne medicines and weight loss drugs as people are kind of coming out of their homes and interacting with society. More on less upbeat note. There is also an increase in use of antidepressants. You're seeing about an eight percent bump in search religion or zoloft prescriptions. In twenty twenty. One we talked with the president of the american psychiatric association about that. No surprise there. We know the mental health told the pandemic has taken and she said in particular the financial stresses of the pandemic really contributing to that trend. Guys can't believe that cop cosmetic humira humira. Whatever that's that's a really big one to it treats a lot of different. I guess anti autoimmune diseases that that's a big but the cosmic eyelashes. i mean. come on that is that is up to these are. These are relative moves joe. It's not like the overall most prescriptions. It's that saw the bigger trend move. But i should talk because you know the only thing. I'm pretty lucky. The only take pro. You know that right at that. Airline makes your hair nice. No it just keeps you. Yeah i know you but it's not because it looked so good so fearful still to come on our podcast. How hurricane ida is hitting capitol hill the storms implications for the infrastructure deal in washington with author professor and nola resident walter isaacson whether infrastructure projects like power lined levies is not in my backyard this fighting using all sorts of legal maneuvers to fight upgrades of infrastructure is something that's held this country that we'll be right back. What exchange is now a podcast. Brian sullivan join me. As we hit the biggest money stories from around the world breaking down the risks and rewards of global. Trade the news. You need to know. What real world actionable advice and even a little fun and unique content. You won't get anywhere else like the most random but interesting thing you'll hear all day subscribe to the worldwide exchange podcast today. This is squawk pod from cdc today with joe kernan and becky quick. Here's becky washington news hurricane. Ida's destruction raising the pressure. On congress to pass an infrastructure bill illinois joins us right now with the full story on that good morning. Good morning becky oh. President biden had pointed to new orleans as the poster child for the need for infrastructure investment even before hurricane ida hit since then residents were told they had to boil their water. More than eight hundred forty thousand. People were still without electricity. As of last night and officials said it could take weeks to turn all the lights back on. So that is ramping up the pressure on local lawmakers to pass a bipartisan infrastructure bill which could send billions of dollars to the big easy and across the gulf coast now. They're seventeen billion dollars for the army corps of engineers priority projects including two point. Six billion that's targeted at states like louisiana that repeatedly get hit by hurricanes. A twelve point. Five billion dollar federal funds dedicated to improving the reliability of transmission. Lines as over sixteen hundred. Miles were still out of service in louisiana and mississippi yesterday the lone democrat louisiana's congressional delegation congressman troy carter. He wants to use the infrastructure bill to rebuild the power grid the same way. The state rebuilt the levy system after hurricane katrina. Gop senator bill cassidy has also been urging his republican colleagues to support this bill. In the aftermath of ida but most of louisiana's congressional delegation has opposed it at least up till now now president biden will visit the state tomorrow to view the damage himself. And so guys we will see if he's able or if the hurricane is able to change any minds of the process back to you becky you on thank you. For more. on how president biden's infrastructure plan could help cities like new orleans in the face of natural disasters. Let's bring in walter isaacson. He's a resident of new orleans where he's a history professor at tulane university. He's also a cnbc. Contributor wears a lot of other hats to walter. It's great to see it this morning. Ready to be with you becky so let let's just start with what he was talking about it. What do you think about where infrastructure stands. you know. there's been a lot of over dramatization of what happened in the storm. In new orleans the levees whole held that was of great federal infrastructure project. After thousand eight hundred people got killed into trina here. You didn't have anybody killed by raging floodwaters. I think there was one auto death in new orleans for this whole thing. Why because there was no flooding. The federal levees held likewise. There hasn't been much property damage. I know it looks bad on. Tv but in the city itself electricity is now coming back on. And i think that what we've just talked about is right that you have to protect the electricity grid. That's next infrastructure project we have and that's not just for hurricanes that's when those storms at the northeast. That's when you have major snowstorms. We have a fragile electricity grid. I've been traveling around looking at tesla energy for something. I'm doing on ilan mosque. And i'm looking at how these power pack walls and decentralized electricity grids are coming online. Those are the type of things i think. We're going to need in the future to take on big infrastructure projects like that. It's no joke because even the regulatory permits for electric companies that are trying to do some of these changes. It's not easy if you're trying to build lines that that can take power generated in one area and get it to another place. It takes years and years to get just the approvals for some of those things. Think that's a really big problem. And it's something the government's going to have to wake up. And do you see it in california where there's a lot of regulation and certainly whether it infrastructure projects like power lines levies or anything better airports better roads this not in my backyard this fighting using all sorts of legal maneuvers defied upgrades of infrastructure is something that's held this country back in terms of what you found traveling around the country looking at our potential to be able to to to come up with these power charging stations for electric vehicles. I mean we. We've set some pretty ambitious standards for how many electric vehicles will be sold in this country. You think there's a chance that we can build up the infrastructure and time to actually charge of those vehicles. Oh yeah you see charging stations. Now all over as tesla's have become the most popular car being bought these days. More importantly i was down in texas installing solar roof panels just things that look just like a solar roof tile connected to a tesla battery pack on the side of a wall. I think these type of things will give a decentralisation to the electric grid of resilience to it and these will be the wave of the future and these things that are expensive. These are not huge projects at a billions of dollars. These are things that pay off. Hey walter the this is given griss to a whole different kind of discussion and just for lack of a better way to describe it. I'll talk about the wall street. Journal's opinion pages and how they view infrastructure versus how maybe the far left us human infrastructure. So now the henin's injure wrote today talking about why ada wasn't katrina exactly what you said. Fourteen billion dollars worth of levies and but no. That didn't hard power grid enough. And that's where the problem is now but highlighting that. Maybe that's the type of it. That's why we talk about physical infrastructure. And why the right distinguishes it from human interest because that's where would be and then even further the journal. The other day had ended an editorial saying we can't stop the rising tides but we can toughen up our response to what happens during catastrophic of catastrophic events. That was saying all this money that california spent on fossil fuel minimization carbon. But they didn't clean up their force management. They didn't hard the power. They didn't bury the power lines. So all these things are happening that we could deal with. And we've got green new deal pie in the sky type ideas that you know who knows where they pay off in fifty years or one hundred years or not. Well the one thing we can say paid off the investment in the levees after hurricane katrina. I'll road i walk on those levees. I live right near those levees. They didn't even get over top. This time and powerful category four storm that came right up in the worst way. Just to the west of new orleans so i do think you're right number one focus on things that are hard infrastructure physical projects which means a good electricity grid perhaps a decentralized electricity grid the levees were built in new orleans eh protected as against a category four storm. So you didn't see that flooding that you had after katrina. Nobody was hit by walls of water. Yeah i'm gonna let california figure out what it wants to do on a variety of things. But when you're talking about louisiana just give us good levies a good pallid grid and know the airport which is new in new orleans. Don't avoid by point for thirty four three and a half trillion for human infrastructure. And if we don't get the physical infrastructure deal down i mean. Does that make sense. No i'm in favor of the physical infrastructure deal coming first. And that's my focus. I i'm going to be honest with you. Unlike some people on cable. tv. I'm not absolutely clear within all that human infrastructure thing but my focus would be on getting the physical infrastructure of this country whether it's rail whether it levies whether it's our airports and air traffic control so that we can survive it'll be bigger climate events or you. Might you know people are going to throw stuff at the aspen institute. If you're not more it's a nice wonderful. All the kids are doing and you know them. They're your friend. They're sweet professor. Oh my god that's amazing that here. We'll get it from joel now. Yes i talked about your. I think you're a giant your conic you are iconic you are. I can't believe that word man. But i assume you don't mean it as an insult. You don't have that ghostwriter those books. Do you write those. I mean eight. Does he writes them. He researches he does the work himself going around doing my new book on all sorts of the great new innovations that are coming out of cars and rocket ships and solar roofs. You ever watch you ever watched streaming netflix. You don't have time for any. I can't imagine they have. Your wife is so helpful to me. She watches netflix all the time. Cliff notes there. We're gonna be back because your last book. Your most recent book is what i want to talk to you about to just the you've studied the so much you were in one of the early studies for this. We'll have you back to talk about what you see happening. Just with breakthrough cases what we can expect next. But we'll talk to you. Let me just say real quick these vaccines just a miracle. It what we can do with some government investment and they can be tweaked for each new variant. And just i just got my third shot. You know we are now get a beep bag viruses because of this messenger are a type technology that says every time a new virus comes along. We'll look at their genetic code. We'll make something that goes right out and we'll make new types of treatments so that we can just kill the virus in our system. This is a game changer. And it's exactly what we need after this pandemic and it's a ray of sunshine this morning to to think about that. Walter thanks for joining us. We'll see us in. Cheese will be next up next on squawk pod topgun mission impossible ted lasso. What's your viewing pleasure big screens and homemade popcorn. Movie delays watchlist recommendations and box office drama. Right after this water exchange is now a podcast. I'm brian sullivan. join me. We hit the biggest money stories from around the world breaking down the risks and rewards of global trade the news. You need to know. What real world actionable advice and a little fun and unique content. You won't get anywhere else like the most random but interesting thing you'll hear all day subscribe to the worldwide exchange. Podcast today this squawk pod. Welcome back good morning and welcome back to swap out senior and cnbc. I'm joe kernan along with becky. Quick andrew is off today. Shares of amc theaters taking a hit yesterday after recent announcements from studios of box office delays. At least six major movies and now delayed to two thousand twenty two including tom. Cruise's next two films. Top gun maverick. And mission impossible seven. Join us now. Is sarah fisher. Axios media reporter. We've got important things to talk about sarah. But i just couldn't help thinking that. Tom cruise insisted on vow. Kilmer being in this remake. And i'm just wondering how how do you do that. How do you know what i'm saying. I mean how does that. How does that work. I mean we all get old. Obviously but he's had some tough tough times. But i don't see. How dow can you know what let's talk about. Let's talk about the real subject here. But god bless him for doing it. He insisted vow v. in it and i think that's nice right. Yeah i mean. The town has a lot of letters right now from smoothies. So that's what he's going to demand. It doesn't shock me. The city is going to go. What's harder right now. What's causing this. That people can't go to theaters. You can't make the movies. I think we're making the content is being produced right. Can't being produced worsen. production delays the think about this. Show like a jigsaw puzzle. So one of the reasons you can imagine you're gonna move. Top run into that memorial day slot is because you might wanna move that memorial day movie into another flock to me too so there's a little bit of that going on i think ultimately issue here is that delta is scaring people off you have a lot of people who are looking at cases rise. You're looking at desks rise. And they're thinking to themselves. God is a movie worth it especially now with a lot of people can get these at home in the same day. The can you tell me about this. The streamers that have so much. I mean we're talking movies but just streamers that have so much on the line in terms of trying to distinguish themselves in this crowded field. We know there's going to be winners and losers and content. When what happened dr death. Suddenly everybody had to get peacock to watch. Doctor i mean it matters if you have a hook if you have something and are they being made right now or is production being disrupted with delta. Now they're still being made a lot precautions taking place. I know at least for me as reporter. Who's working with studios. Hbo we a show with them. You have to be vaccinated for example you got to take all the covent productions precautions so there'd be made maybe a little bit slower. The thing that you said. Joe is huge. Which is what are the humor's do and for me. I think they see every single movie. Release as a stress test on the box office which will determine whether or not they can quit war things to screaming whether or not they should the studio. I'm watching right now. That really is looking at every. Data point is disney. They've got a big labor. They hit coming up with. Marvel's new shank tie and that's expected to break records show which is unbelievable. The labor day weekend usually not that great but if they think that they're going to be able to do well in the theater they might not hold as many things on disney plus so for the streamers right now. They're looking at the theatrical releases and are saying what does this mean for swimming risi's needed for our profits and if they think joe that they're gonna make more money especially long-term by the way once you put things in either of these your second week in the box office sleep typically goes down so they going to make more money not bring things on streaming right now they might take that chance you got somehow already tied with with what we're doing can have you back but you got any suggestions together. I mean you know. I'm going to ask you that. I tried to watch the new steve martin martin short thing. I don't know i i got. I couldn't get through the second episode. If you watched it. I watched it. I say very impressed next head last season. I think it's for apple. Tv plus and. I'm excited to see where that goes for them. Moving forward. what did you say morning show to. Did you say what is okay okay. I know morning show is coming back. And martin. Short was in that to which was weird. Alright which is weird casting for him. He played like harvey weinstein. All right very good. Thank you thank you. Sarah big screens and homemade popcorn. The theaters got a lot against them. I'm pulling form because it is. You know it is like a date and it's fun to do that but it seems like a lot of headwinds but i'm with sarah tedas best thing on tv. It cannot wait for the next episode was base of your life choices. On the way he he reacted the exactly good apec. Did you get walter's email. He's he's kind of busy. I haven't seen what they say. Anyway he just would like everyone to know that he gives trump immense credit for operation warp speed on the cover of time he was extolling the virtues of patents for big drug companies advisor in the dern in by on tech have accomplished and he goes on and on. It's he's funny though he does. But i told him haven't seen cable does any know that there's foils seen the show doesn't he know you're going to back them into a corner and make them a straw man caricatures that allow me. Thank you walter. And thank you joe for actually reading is letting people know that he in fact he says here he is not a marxist. That's the chauffeur today. Thank you for listening as always squawk box is hosted by joe kernan becky quick and andrew ross sorkin weekday mornings on cnbc at six am eastern to get. The smartest takes an analysis from our tv. Show right into your ears. Listen and follows black cod. Wherever you get your podcasts. We'll meet you back here tomorrow clear. Thanks guys outlast means. Pg brings long-term experience actively investing through thirty market cycles to deliver for our clients joined the pursuit of outperformance at pg dot com. That's pg im dot com.

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The Job Hunt; Cathie Woods Car Call; The Delta Wave

Squawk Pod

28:38 min | 3 weeks ago

The Job Hunt; Cathie Woods Car Call; The Delta Wave

"Out steer means pige navigates market volatility with an active investment approach designed to capture opportunities globally. Join the pursuit of outperformance at p. Jim dot com. That's pg im dot com bringing show musically this is squawk pod. I'm cnbc producer. Cameron kosta today on our podcast. It's jobs friday a big jobs report but a small really small jobs number a mere two hundred and thirty five thousand jobs added in august but it may not be as bad as it seems former chair of the council economic advisers. Jason furman built as having about three percent as much impact on the economy as the first wave of the virus. Did a team of economists breakdown. America's hiring landscape co variants still weighing on the economy and on our health former. Fda commissioner dr scott gottlieb leap. I think that there's a perception that we're sort of through this delta wave here in the northeast i don't think that that was the true delta wave i think that that was a delta warning i think are true delta waves going to start to build after labor day. Here in the northeast. Those stories plus kathy would makes a call on electric vehicles and chips in short supply. This is the other chip. But for some reason every time i read it. I'm thinking of what i'm really worried about. And that is you know if any of the toes are in short supply as football does doritos. Okay homer it's friday. September third twenty one. Squawk pod begins right now becky by in three two one place. Good morning. Welcome to squawk box here on cnbc. I'm becky quick. Along with joe kernan andrew is off. Today it's friday. It is indeed friday but not just any friday. It's jobs friday. The first friday of the month aka the day the labor department reveals how many jobs were added to the us economy the month before. But that's not all this particular jobs report. The one for august was critical for the federal reserve. They're trying to decide. When to taper the bond purchases they started last year to bolster a us economy rocked by cove. Nineteen so the big jobs number increased a miniscule two hundred and thirty five thousand. Not so big a number. In fact economists were expecting or in hindsight it kind of seems like they were hoping for at least seven hundred. Twenty thousand jobs added this two hundred thirty. Five number is the lowest level of growth since january of twenty twenty. Here's our senior economics. Reporter steve. policemen. Let me tell you where we didn't have jobs. Goose said a big goose egg on leisure off metality. That was what we had pointed out earlier. This week was the place that may have seen the delta variant effect. We had a retail minus twenty eight and a half thousand another big disappointment transportation up fifty three but that was not that has been stronger in the past. The big miss on the one of the parts of the big on the part of the private sector forecasters was the expectation of the a huge influx of workers in the education area. The private sector education did add forty thousand. But when i look at it. I'm going to double check this number here again. The local education it was it was minus five point seven on local and minus twenty on state. I have read reports. Becky expecting two hundred plus thousand on the education so there might be a little bit of mismatch. That would make this miss. Not that bad because there is some expectation that we'll be hiring it doesn't appear to have been caught up or maybe it was a papered over by the seasonal adjustments. So i don't think it's wrong to think that the misses not as bad as you see as it seems from the headline but it's still a mess. It's still suggests we had i think clearly a delta variant affect nealer richardson chief economist at payroll and hr company adp explained. Why it's not that there isn't a hiring demand out there but there are still these. Lingering issues concerns and the lack of full-time affordable childcare never have spoken about childcare in the jobs market so much together because they are so critically important and right now we're dealing with the bus driver shortage another aspect of whole scenario of getting kids back to school which is critical for working families. You're really seeing the timing. Mismatch co the theaters. And the fact that there is a deceleration in economic growth going on in the second. Half of the year is all consulting so originally as i said. Economists were looking at this number closely because the federal reserve was going to be looking at it closely. Have we recovered enough for the fed to pull back on. Its efforts to buoy the us economy. Here's steve liebmann again. I think that the fed is gonna pass on taper announcing taper this this month so time will tell the unemployment rate ticked down two tenths of a percent progress. But not nearly as much as we'd all expected here's jason furman chief economist and cabinet member for president obama. I think there's no question that the delta virus is taking a toll on the economy. What's interesting is how much tinier that toll on. The economy is than the toll. It's actually taking on health. We're headed pretty rapidly to daily death toll from delta that exceeds the death toll that we had in april from the first wave. But then you look at these numbers. Delta may be subtracted. I don't know six hundred thousand jobs that we would have had absent delta that we didn't have last time around we lost twenty million jobs delta's having about three percent as much impact on the economy as the first wave of the virus did people are labor. Markets are still pretty tight on this more than ten million job openings job openings. Keep rising one of the big data points. This month was wages up. Zero point. six percent on that is a tight labor market with a lot more openings than unemployed and that also means we're poised to add you know a lot of jobs in the coming months as people either get over their fears of delta. The delta virus starts to fall or time starts to search to fix all of this. This is not the blockbuster progress we saw in july. But the economy's still moving in the right direction as jason said employers are still looking to hire becky spoke with katie. George mckenzie's economist. We are really seeing a new war for talent. And i'm employers are working very hard to attract new workforce editions and really changing the way they think about their employees value propositions what what does that mean. They really have to to pay up offer. More benefits compete with other companies to get that same group of workers all of that but what we see is the front runners are really playing a long game and what i mean by. That is really investing in workforce training and skill development and long-term meaning that these are employees. They don't want to have turnover. They wanna make sure that they are hiring and keeping these people around for years to come it exactly. I think we're seeing more and more a sense. That the kind of attrition we've seen right now is really unhealthy and that people are trying to create jobs that are jobs today but careers long-term so it's creating a problem for employers right now. I mean you hear statistics. Something like seventy percent of people want a new job this year and employers are worried because that's actually having an impact right now absolutely because obviously losing employees who are loyal and to have the skills that are required means that there's a lot of work to be done to attract new talent and to upskill. And here's julia polak ziprecruiter's labor economist. Job postings online active job postings. Our content across the united states rose thirteen percent between july and august. That's a really substantial increase so employers are still looking to hire new workers and they're not laying off workers in response to the small downturns and activity that we are seeing in some sectors. They know from that previous experience. How hard it is to get work. You lay off back. And so many are are hanging onto talent as much as they can. Next unsquashed pod breaking down coves variants and their risks for kids with dr scott gottlieb former commissioner of the fda all the case growth that. We're seeing in states in the south of most of it right now is happening in the schools and fortunately among younger children as the schools become sources of secondary. Spread anticipating nextwave right after this. Cnbc's workforce executive council is the premier group or c. suite human resources executives from leading companies across the country. It offers a members only portal giant plus exclusive industry contact with access to breaking news calls and digital networking experiences the networking resources. Hr leaders need now. Apply to the workforce executive council at cnbc councils dot com slash wnyc. This is squawk pod today with joe kernan and becky quick. here's becky. Covert cases arising but americans are still planning to hit the road this labor day weekend. Reservations for the long weekend or up forty six percent from two thousand and nineteen before the pandemic. That's according to the short term rental property management platform. Guisti joining us right. Now is dr scott gottlieb. he's former. Fda commissioner and a cnbc contributor he also serves on the boards of both pfizer and alumina. And he's the new book that's out this month. That's called uncontrolled. Spread why cove in one thousand nine crushed us and how we can defeat the next pandemic and scott. I kid you not in the last twenty minutes. I received an email invitation to a birthday party out in the hamptons. This weekend for someone. I've never met with dancing from five to nine and all kinds of other things going on. I take it. That's a bad idea. Yeah we'll look. I think we need to recognize that. This delta wave that we're experiencing in the united states is really happening against the backdrop of relatively normal behavior. I think people are taking some precautions in their personal lives and scaling back a little bit. But by and large things are open people going out. the epidemic is clearly peaked in the south and pete weeks ago and south. It's now very apparent in a data all the case growth that we're seeing in states in the south. Most of it right now is happening in the schools. Unfortunately among younger children As a schools become sources of secondary spread but cases in adults declining even hospitalizations declining in states like florida. So it's situations improving. I think that there's a perception that we're sort of through this delta wave here in the northeast because we've seen delta cases go up and we've seen them come down and places like the new york metropolitan region. We're also seeing positively come down. I don't think that that was the true delta wave. I think that that was a delta warning. I think are true. Delta waves going to start to build after labor day here in the northeast northern part of the country this is going to be a highly regionalised epidemic and so i do think that labor day and the return to school of going to be incubators for spread that's going to lead to that delta wave now whether we see a wave of infection as dense and severe is the south. I don't think that's going to be the case. Because we have a lot more vaccination. We've had a lot of prior infection which we also know is protective but we will probably see a build cases. Here in the northeast. I don't think that we're done with this. I hope we are. But i don't think that we can conclude that just because the cases are coming down from the mini surge that we saw over the summer if it's tied to the schools and obviously we're sending our kids back to schools Obviously nobody underage twelve get vaccinated. What are we supposed to do about it. Just watch and wait. Look i think that this is. This is very contagious in the school setting. We're seeing that now in the south and we've seen situations where sue schools became sources of commune transmission. That's what happened in the springtime with thirteen. Fifty one in michigan when michigan had a very dense epidemic and so did massachusetts it was because they put their kids back in school really for the first time. Right in the setting of that wave of Infection at thirteen that Be one one seven. Excuse me infection and the schools became a source of commune. Transmission for that variant. The risk is the same thing happens with this delta very so i think the schools need to go into the year with with in mind that they have to implement mitigation. That's gonna hopefully control spread masks use of keeping kids in define social pods improve ventilation think schools should be making much more use of testing. We've seen a lot of studies right now. If you do routine testing the schools once week and preferably twice a week you're going to pick up infection before becomes dense epidemics in that school setting. So there's things that schools can be doing but the schools are a risk factor for spread within the schools and also becoming sources of community transmission. Haven't let my kids play sports until the spring. They didn't get to do anything this time last year and i want to let them play sports again this year. I am i wrong. No my kids are back in extracurricular activities. As well playing sports i think activities done outside or lower risk than activities done indoors and i don't think we can keep our kids hermetically sealed for two years in a row and so we're going to have to take more risk for the sake of allowing children to get back to some semblance of normalcy. But you know. I think again you need to think of risk of something that's cumulative with over the course of the day it's not necessarily binary even if risk may be binary in terms of when you come into contact with the virus when you contract it. It's going to be an ice latest setting but if you do certain things that you know are going to introduce a child to more potential risk think of things maybe you can withdraw the lower the cumulative risk over the course of the day so you know we're prioritizing obviously getting children back into school that's number one keeping them safe in that setting trying to reintroduce extracurricular activities that are important to them. But you need to go to an indoor birthday party and things like that things that you are sort of discretionary but higher risks. Those might be the things you wanna think twice about. If you know. You're introducing a child into settings that are going to have some risk because it's very important to them like sports like school. We hear all of these breakthrough cases for people who are fully vaccinated Maybe they didn't take every precaution. Damascus every time they were inside. But if you see these breakthrough cases and now we hear about this new variant move variant. I mean what does this mean for life going forward. Is there a point where we actually are going to be able to go back to normal or these new variants going to pop up all the time and continue to To hinder things. I think we're going to go back to normal after this delta wave. Hopefully this is the last real waiver of infection that we're going to experience but it's going to be a normal because is going to become an endemic virus. It's going to circulate every year. It's probably going to be a winter. Pathogen as krona viruses are after we get enough immunity in the population. And it's gonna continue to drift will need to reformulate vaccines from time to time. People will need to get re vaccinated people who've been infected and they're relying on the immunity from prior affection probably will need to vaccinate at some point the not gonna have lifelong immunity from a prior infection so this is going to become like a second circulating flew in the challenges. We already have a flu. And if you have this circulating alongside flu i think the cumulative productivity impact society to businesses is going to be too great for us to return to life as we knew it. We're going to have to implement more precautions and congregate settings that means trying to get people vaccinated at work. It means improving air filtration handling in indoor settings. We've greened buildings now. We're going to have to blue them because you know we sort of hermetically sealed buildings to make them more energy efficient but that might have mitigated against the kinds of precautions. We need to try to reduce spread of a respiratory. Making things made us more dangerous. Potentially cause we've sealed buildings very tight. We need to improve air and ending systems. People are going to have to be encouraged to stay at home if they're sick or have his contact breathing out a cold at in the middle of winter's going to be frowned upon people. The poincare testing exactly. We're going to have to make more access to home diagnostics. Which the fda is doing so. We're going to change our behavior. Because if we have this circulating alongside flu given the productivity impact. That flu has each year. We're not going to be able to tolerate that as a society. Both from a financial standpoint also public health standpoint. So we're going to have to be do things a little differently. That doesn't mean life is going to be a whole lot different. We're just gonna have to change certain practices in the wintertime in the fall. And this is going to circulate. Okay back to the question. That has become my obsession as a parent. When can i get my kids who are underage twelve vaccinated because you hear all the time we have all of these great vaccines. Don't worry you can take the vaccine. You can protect yourself. But i can't protect two of the people i love the most. When does that change. Yes so as you know. I'm going to border fis or some more familiar with the timeline. For that vaccine to pfizer vaccine for children age five to eleven is basically the same vaccine. That's made available for adults but in a smaller dose so it's one third. The dose ten micrograms visors going to have data on that vaccine september. And they plan to file for authorization or approval some point in october. And then it's a question of how long the fda takes i think. Typically the fda has taken about six weeks to review these applications. Maybe two months. But i think in this case there's at least a chance. The fda is going to gonna wanna longer term. Median follow up on the patients on the children in that clinical trial. So that could push it out a little bit longer. So i think you're looking at best case scenario maybe an authorization or an approval early in the wintertime and maybe gets pushed out a little bit longer depending on how much follow up the fda once i respect space was october was a halloween. Is that not the case anymore. That that's when it's going to be filed with the with the fda so the data's going to be available in september but the applications probably going to be filed by the manufacturer in this case visors some point in october. Give or take a week. So once it gets filed assuming the fda takes at least six weeks to review that application that sort of puts you in early december timeframe if the fda takes longer once longer term follow it gets pushed out a little bit more. So we're talking going through the holidays potentially and having this comeback. I think. I think we're talking about getting through this delta wave so i i don't think you're gonna have a vaccine available for children that's authorized in this delta away because i think this is going to play out over the next two months We're going to see a waiver. Infection course through the northeast. It's already courses. Its way through the south. My my presumption is that after we get through this delta wave prevalence level starts to decline. So you're getting too low lower prevalence levels across country now. What we saw in july where two cases per one hundred thousand people per day but maybe twenty cases per one hundred thousand people per day which is probably. What new york is that right now. So you can live relatively normal against that backdrop with just some added precaution. So i think after this delta wave we're going to get down to those prevalence levels and it'll probably be persistent through the winter so you know assuming nothing untoward happens. We don't have a new variant courses way through the population overall risk should decline after we get through this delta surge of infection scott. Thank you as always thanks. A lot will be next text on squawk pod it's electric tech investor. Kathy would says it's over for gas powered vehicles there. Outspeeding abandoned in favor of eady's but cnbc's fill lebow says all cars are in high demand half the vehicles. Half vehicles in showrooms right now are out the door within ten days. That is a record high. We're back after this. Cnbc's workforce executive council is the premier group c. suite human resources executives from leading companies across the country. It offers a members. Only portal chat plus exclusive industry contact with access to breaking news calls and digital networking experiences the networking resources. Hr leaders need now. Apply to the workforce executive council at cnbc councils dot com slash wnyc. Welcome back to squawk pad from cnbc. Our next story is about kathy. Would just to refresh your memory. Kathy would is a wall street. Legend pretty much. The business world gushes over her every move in her portfolio some have even venture to say she's the best stock picker ever read it traitors. Love her to. They have dubbed her queen. Kathy aunt kathy kathy bay her arc innovation. Etf did nine times better than the snp and twenty five times better than the dow in two thousand twenty twenty five times. She's famous for her results. Obviously but also for her big bets on innovation bitcoin for example and extraordinarily relevant to today's conversation tesla. Here's becky. gm and ford or idling. More plan says the global chip shortage takes a toll. The kathy would says. There's something more to the story. Philo joins us right now to follow up on a tweet that had the auto world and investors buzzing phil. Hi becky you see this tweet. It came out late wednesday night very early thursday morning. And this is what kathy would had to say in a head to do with auto sales. They came out on wednesday and the pace of sales of those auto sales down to thirteen. Point one million units. She tweeted auto sales in the. Us have dropped nearly thirty percent from eighteen point. Five million at an annual rate in february two thirteen point one million in august while the auto manufacturers are blaming chip shortages which are real. I believe that auto buyers are abandoning gas powered vehicles in favor of electric so we decided to check. What are the numbers in terms of. Ev sales and we're talking about pure ev sales here. We're not talking about plug in hybrid electric vehicles. A quarter of a million have been sold and that was a year today. Hundred up one hundred and fifty percent and that's two point six percent of the market. Where's the market going to be through twenty twenty-five if it's two point six percent right now. The expectation is that ev sales will gradually ramp up to a little over a million in twenty twenty-five which would be between six and eight percent of the total market so the word abandoned is what i'm hearing from a lot of people that are saying well people are abandoning. They'd be moving towards vs much quicker. Keep in mind some of this or a large part of this has to do with the supply of vehicles tesla is the largest automaker in the world and here in this country. It has a gigafactory that will increase. Its supply that scheduled to open a little bit later on this year. So they'll have the plant in fremont california as well as the gigafactory that'll ramp up production starting next year and then over the next couple of years and then when you're taking a look at general motors and ford. They've got a couple of big reveals that are going to be coming out a couple of big vehicles launching. I should say coming up. You've got the hummer electric esotique because it is technically a truck that is going to be coming out later this year from general motors. And then you've got ford f. One fifty lightning those delivery start early next year and that's part of the increase in supply that will be adding to the market and allowing people to buy more electric vehicles. But we wanted to run those numbers guys because a lot of people have said to me are people abandoning gas powered vehicles for electric vehicles. Or is this the gradual transition that most expected i would say it falls more towards the gradual and steady transition that most are forecasting. Nfl her thesis would make sense if there were cars and trucks that were sitting on lots. That couldn't be sold but the report you brought us yesterday is that those cars and trucks are sitting on the lot for what it was like eight ten days and then they're out the door sure half the vehicles half. The vehicles in showrooms right now are out the door within ten days. That is a record high. And that basically means becky that when you and i have gone out to look for a vehicle. They've said to us. We don't have what you're looking for right now. You wanna place in order in may be ready in six months eight months whenever it's ready wilt call you you come in you do the paperwork and leaves it's going out and saying hey that's over there and it seems like it explains much more anyway. Thank you great to see you. You bet broadcom earnings and revenue beating the street. The company is offering beat guidance on the current quarter pointing to strong demand for its chips because of the adoption of five g. technology and becca. Every time i read this did you see them on the lease story. There is a global chip. Shortage of snagging talking. Yeah potato chips. Ahoy rich crackers. That's a big story in the journal. Day from on the. This is the other chip but for some reason every time i read it. I'm thinking of what i'm really worried about. And that is you know if any of the toes are in short supply as football does doritos. Okay homer name name one name one. You don't like to s- tito's name one. You don't like fritos in you not my favorite barbecue. Frito chili flavored frito though so much jerky tofu shrimp chili chip member bubba gump for bubba gump and the global chip shortages getting worse. But we're trying to chips forcing gm and ford to temporarily close factories. Gm said it's going to pause production of the company's top-selling silverado. Pickup ford says it will stop making pickups at its kansas city plant for the next two weeks the cuts compound an already short supply trucks cars in suv's on dealer's lots across the country. Someone wrote in what happens if the power's out and you need to evacuate a hurricane area and you got an easy becky well. That's a really good question. I guess you take your other car. Okay you hit that you abandoned. Apparently right i thought she you know in the past she said things like you're going to abandon gas powered cars for flying vs in two thousand twenty two and that's why sometimes you know you might raise an eyebrow little with some of kathy's it's not the case you can't find most cars on the lights and it's because they haven't been produced attributed to that i think is like i said she's got she's got skin in the game. So that's her thing was just looking at things with blinders. If you don't look at other data points you can't point to one day. Say this means that why it's happening and i have thought i've got new car coming. Took a year and a half to get it. Can you hear me portion anyway. And i actually thought it almost took so long that i must up. Maybe i should be buying that Can so i've got about it. Yeah i've thought there really cool looking. They're very cool. Nice backseat my kids growing up. But i have not abandoned. That's the show for today and for the week. Thank you so much for listening. Squad boxes hosted by joe kernan becky quick and andrew ross sorkin weekday mornings on cnbc at six eastern ticket. The smartest takes of our tv show right into your ears. Subscribe to squawk pod wherever you listen to podcasts. And if you like what you hear or if you have few suggestions for us send us a tweet out squawk cnbc. We'll meet you back here on. Tuesday have a great long weekend we clear. Thanks guys. outlast. Means pg brings long-term experience actively investing through thirty market cycles to deliver for our clients joined the pursuit of outperformance at pge dot com. That's pg im dot com.

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Billie Jean King: Icon, Champion, Trailblazer

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32:40 min | Last month

Billie Jean King: Icon, Champion, Trailblazer

"Outlast means pm rings. Long-term experience actively investing through thirty market cycles to deliver for our clients joined the pursuit of outperformance at pgm dot com. that's pg. Im dot com bringing in show musically. This is squawk pod. I'm cnbc producer. Katie kramer today. On our podcast. Billie jean king. I have a saying that pressures privileged. Because i grew up dreaming about playing wimbledon. And i always try to ask myself. Am i make pressure a friend or a foe. Tennis champion activist and trailblazer. She really is. That's why she gets mentioned in the same vein with a conversation spanning the olympics her legacy of activism and speaking in sports mental health right now with new asaka speaking up and simone biles during the olympics. I think it's good that we own it. And we speak about it. Plus the rest of the news that ghana squawking. Johnson and johnson's making moves and dancing. Humans trust robots just another day tesla. This is the p. T. barnum part of the job that you on. Musk is a master at. It's friday august twentieth. Twenty one squawk pod begins right now good morning and welcome the spots here in cnbc. Unlawfully along with joe kernan becky nanjiani off. Today that was not a real robot by the way in case. You're wondering out there johnson johnson. Because of that companies vaccine one shot vaccine that had lower efficacy but our nor a defectiveness but it was just one shop. There's a si yo shakeup. And i think of this guy's fairly young but he's been there awhile. Johnson johnson. Alex gorski is going to transition to an executive chairman role on january. Thirty said in a statement is the right time as he focuses more on his family due to some family. Health reasons he served to see you for nine years and vice vice-chairman joaquin guate- will take over. Sco he led the companies pharmaceutical business. Before coming a depth before becoming a deputy of gorski he'll also be appointed to the companies To the company's board in gorski. Alex has been friend of the show and the He thinks his nine year tenure will be viewed favorably given some of his predecessors and some of the hit a myriad issues Under the last guy gotta go all the way back to To ralph Than the next guy was I don't have as good a memory as you. Joe is one hundred seventy percent since core skied took over which is pretty good there. this Dance performance part of tesla's official. Ai day last night and for those of you listening. I'll paint a word picture for you. We're looking at a loan dancer. Any skin-tight suit doing some funky dance moves. It would hurt myself to techno music. Suit is all white. And it's got a black hood and opaque black face mask but pretty clear i. it's a human yvonne. Musk watch from the wings with his arms folded before thanking the dancer. Who walks offstage. Let's get to fill the for full rundown number one the if there is an actual prototype. It's it's smaller than than that right. I mean the one that they are actually talking about phil. Years in the future is like only five five hundred and twenty pounds and doesn't look like five one hundred and twenty five pounds by eight hundred twenty five pounds but a heck of a performance. Wasn't it yeah. I don't know if you like dancing. I can't unsee alon dancing. And i don't think i'm going to be able to unseat dancing but my question my very serious question to you phil and you know. He's a science fiction buff and talked about universal basic income being necessary when we do have road. How many years away from from an ai. Robot actually being able to do those mood. Because i've seen these dogs necessary in society to have a robot can no but if you could have something. That's that agile. I think that's years and years and years and years away but we have seen those dogs fill that look like exactly like sure. You saw the water world's series th the rewriting looks just like the monsters in there. So how many years would you say you look. How many times. How many times have we seen boston. Scientific put out a demonstration video of a robot of some fashion dancing and moving. And i wouldn't say acting but mimicking the same actions as a human. So i think that the technology to a certain extent is already there. I think the real question becomes a how useful is this. Can that be replicated on a wider scale. And we'll talk about that in a little bit. You guys want me to. I go over what happened with. Ai and then you go. Let's do the plan for human. I bought okay. So we'll get the news out of the way. Where did we say yesterday. This was going to be a presentation if you really wonky. If you're into software if you're into artificial intelligence was your kind of event. They basically laid out how they wanna use. Artificial intelligence to improve autopilot autonomous driving and look what they demonstrated in. What they talked about is pretty impressive. It makes you feel like yes. They're on the right path. Here remember are only at level two autonomy. They're nowhere close to level four autonomy. Let alone level five where you just get in the car it goes. There is no reaction at all. There's no steering wheel nothing at all. Tesla's developing a chip for training. Ai networks. It's next ai training computer. We'll be ten times the performance of the current one and then at the end of this and we said this yesterday that he would use this event as a recruiting tool. Oh they were flat out saying come work at tesla. And if you're into this you would look at this demonstration and you'd say on this is pretty cool. They're going to build a humanoid bought and that's the plan they planned to build it. It is expected to be ready next year. About five eight what he can carry up to forty five pounds. The weight will be one hundred twenty five pounds. He can lift one hundred fifty pounds. Here's elon musk. Talking about the humanoid botton why they built it. If basically you're gonna start with just dealing with Work that is boring. Repetitive and dangerous basically. What does the work that people at least like to do. And by the way i said why they built it why they plan to build an again. It is not yet built. He says it'll be ready by next year. Keep in mind in the past. He has said next year would be the deadline in the past for certain things. Like a million robo taxis. That never happened so whether or not we see this in some fashion in the next year is is going to be interesting to see. But let's be honest. This is the p. T. barnum part of the job that elon. Musk is a master at if you were into this. If you were thinking. I wanna do artificial intelligence work. If you saw this demonstration you'd immediately be reaching out to somebody at tesla. Saying i'm your guy i'm your girl. Whatever you want to say and tesla would be interested in hearing from you and that's part of what what happened last night. It was a recruiting pitch. I knew i knew wasn't a new as a human a new number two. It definitely wasn't me. Because of the and i knew it wasn't you lebow To be honest There's no way unless they had some kind of I titanium the type of reinforcement. So i knew that yesterday we had a guy who fill. I know you've you've probably got some twitter. Whenever we have gordon johnson on. We get all this this. Oh yeah back. And he made the point that you made. he's he. He went over like five other times where there were upcoming developments that you talked about and gordon said oh for five. So why do you believe anything that comes out. My question is why should we believe anything. That's going to be certain set at a day to all the prior days were defined by complete fabrications. There's something close. That's a little harsh roughly because it isn't what he's done is unbelievable right. He's he's suggesting. Gordon was suggesting that elon. Musk is pretty much making stuff up and trying to pull one over on people. I know you had gene munster on right afterwards. And he said look it. Has he been over five and some of these things that they've promised in terms of when they would hit the deadline. Yes but they have made advancements in many areas impart because they have set these goals. We don't hear autonomy day from ford and gm and from toyota. I think that it is safe to say that. Tesla continues to advance faster than other car companies and should be rewarded on valuation but in terms of if you listen to him and he says we're going to do this by this date. He's even set in the past. Joe he has said look. I'm not that great with these. These expectations is what i would like us to do but in reality he even knows that when he has set out. Some of these deadlines. It's not going to happen if he took that off. Do you think underneath would be one of the blue man from from that group or something or or maybe from From it wasn't him because he's a heavier set guy. What about daft punk. I'm told daft. Punk has a has a similar look. It's just so you know joe. My son one year for joe. One year for halloween. My son went in a more suit trick or treating. It's around this house somewhere. I may put it on the the best. I'm thinking slasher films. Never go out of style. That's a pretty scary looking ding there and member. I mean they got. They did the edward. Mooch scream mass. They made six movies after someone thought. Hey this'll be good to have a serial killer with that scream mask on so you can go a long way. Robot is built to be friendly and it's a robot that you can actually outrun. You can outrun this robot. Just in case you remember the asthma. You remember what speed is five miles per hour. Yeah just saying it's supposed to be safe. Does not guarantee and ai thing is going to be safe. Because they don't need us once they get really good at what they're doing the plaza and feeding things and excrement all the things that we do our week week. We are weak. We are weak. When they really get in charge and muskets greasing the skids towards our eventual probably obsolescence. But phil. thank you Speak for yourself right obsolescence. Maybe i know from where speak. But from whence i speak but the future is daunting as we hurdle towards it. Maybe we should have thought about genetic engineering a little bit to making any comment. I'm not making any comments next. Unsquashed pod icon. Champion trailblazer billie jean. King how she broke barriers in tennis and laid the foundation for women athletes everywhere all of us in our twenty s were willing to forego our careers for the future generations and the three things free considerations were that any girl in the world that she's good enough would have a place to compete never to we would be appreciated for accomplishments. Not only are looks and number three finally to make a living playing tennis less conversation. You'll only here on this podcast with our own. Joe kernan bellied superfan. Or do you want to. I'm recording all you off all that right after this. Cnbc's workforce executive council is the premier group of see suite human resources executives from leading companies across the country. It offers a members. Only portal and chat plus exclusive industry contact with access to breaking news calls and digital networking experiences the networking resources. Hr leaders need now. Apply to the workforce executive council at cnbc councils dot com slash w. We see welcome back to squawk pod. Joe kernan begi quick and andrew. Ross sorkin spoke this week to sports icon and thirty nine time grand slam tennis champion billie jean king. She's written a memoir about her pioneering life in sports and beyond and after the show. I heard a rumor. That for joe meeting is being recorded talking to billie jean king was emotional. Really emotional. so what are we gotta did so. I had to investigate broadcast news. Of course. yeah so you think. I'm like william perk billie jean Affects me so much she. She makes me remember he. He conjured up a tear but it was after he had already done the thin. So mine is live tonight. I know i was doing a record. This i'm recording. Yeah tell you absolutely okay good. So what do you wanna know billie. Jean king exploded onto popular culture with the battle of the sexes. A much publicized tennis exhibition match nearly fifty years ago hitting her against a former champion. Bobby riggs this. Material is from the nbc news. Archives rigs dancing unite kick line with cheerleaders sweaters his name and he and twenty nine year old billie. Jean answer questions from the press. Do everything on the tennis courts better than i can. But i don't think the she could stand up to the stretch strain and for the big man who put women down. Is that what you're saying. I'm doing all her credit for having all she sits politely. Actually in front of about a dozen. Nineteen seventies microphones and flashing cameras. Very well with a lot of girls timber nineteen seventy-three. Did you watch it. yeah. I watched it. I remember that. I was one of the ninety million I didn't remember why. I mean i thought it was given to police gene now when when when i didn't remember that. He had beaten margaret court margaret corey not enough and so it was not a slam. Dunk that billie jean was gonna missing. Also a wimbledon winner. I think it can be also won. Wimbledon is that true. Yeah his career in the thirty s and forty s was huge. Hope putting the tennis player it so to take on with with the entire feminist world basically on your shoulders i think that was more of the same the same pressure plus you know. He was a male chauvinist thing. He said that they know as i know. And as billie. Jean knows if there's no way a woman it can play tennis with. Hey coupon man tennessee total. I mean i was kind of stuff that went on back. Then so you know we come along and you know he derided her made fun and he was everything male chauvinist to asada fucking and so was a lot of drama a great You know sir the media to be able to promote and sell the biggest more than any story and mystery. Some final in professional tennis are mortified at the circus atmosphere surrounding this match but all the hoopla has done one thing. It has gotten a lot of people watching tennis. Jorge luis nbc news. Houston i don't like to get age and experience and miserable everything but in my lifetime there were separate lunch towns in the south. So when billie jean was coming through all these things are a lot of cultural. And societal things happening in the sixties and seventies and and i thought of her i guess is just a really tough minded tennis pro in and watched everything she went through and didn't realize the personal struggles that she was facing and i guess when you go through so much adversity and she did and and if you reaching there were plans where she was unable to stand up for what you believe because there was money involved in our sponsors in wall. G admits that she didn't feel comfortable with who she was. She was in her fifties. So you can imagine the struggles to twenty through her thirties forties and yet you still able. You know to be one of the greatest tennis player of all time. She really is iconic. That's why she gets mentioned. In the same vein. With mohammed ali or sports transit can transcend everything else. And you know just to come a really important. I don't know i. It moves to affordably role. Orden live sports have come a long way back from the depths of the pandemic last year but the delta covert variant is now a big concern leagues and organizers for everyone we just saw summer olympics without spectators and last week the us tennis association versace's into allow full capacity at the us open which starts later this month and i will now be banned from the tournament. Qualifying rounds join us now out talk about that. And so many other things former tennis pro sports icon of billie jean king. Her new memoir is called. All in an autobiography billie jean. Thanks for joining us. And we'll we're going to talk about things that other than cova but that is front and center for For a lot of us. I still am trying to figure out who the other ninety nine people in the last hundred earned. The last century were as influential as you. But that's that's that's really something being one of the most influential people of the century and i wouldn't disagree with that. Who are the others. Many others i dunno life. May i do know. There were no presidents mentioned not there's about two or three other athletes mohammed ali and i Jackie robinson. I think that was the other two. So we are in a world where i mean in the olympics. Some athletes said that they found it difficult to perform at their best level without the without the excitement of the fans watching this. Do you think it would matter for you if you were playing today. If you're playing tennis in an empty stadium. I it makes a huge difference but You have to wrap your brain around it. If you're gonna be an athlete. I mean that's your job is professional athlete. We are entertainers. I know what i would do. I'd brought my mind around everyone all over the world watching. I've really tried to bring that in as if they're with me But everyone's different every athletes different as you. Well know every person but it's been difficult but we're trying to worry about safety But also there's media Contracts media content is huge. It's a huge revenue stream. Also there's Gaming betting so there's a lot of income streams coming in when you do. Have these matches happen or in any other sports. I mean we really depend on that money for the sport so It's vital that these athletic contests happen. I did love watching the olympics. I must say this year I loved it. I thought it was fantastic and for and for tennis. It was great because i kept it on one channel. I think it was olympic channel. Which i thought was so helpful so many things in your life that i want to talk about. I'm looking for the the exact quote but That are that are in your in your memoirs in one of the one of the quotes that that struck me. Was that back when you started. You're not you're living the world that you wanted didn't exist at that time the world that you wanted to live in. It's still doesn't. That's what i wanted to ask you. Does it exist now. And then i couldn't. I couldn't help thinking of of a. You've come a long way baby from virginia. Remember the old ads for virginia slims which is which was the tour. Which was the tour that started with nine or eight colleagues that that really put ladies tennis on the map. We've come away but we we've come a long way. We have a long way to go and a lot of it is due to you billie jean that the you've changed and and helped move us along but not to where we need to be a very important thing that happened in one thousand nine hundred seventy when you said eight other colleagues and i were called the original nine. We're just inducted into the international tennis hall of fame. where the first group ever to be inducted. They usually do not do that. And that was the birth of women's professional tennis and what made it so significant. Is that all of us in our twenty s. Were willing in some actually a couple of teenagers. I think we're willing to forego our careers for the future generations and the three things three considerations were that any girl in the world. She's good enough would have a place to compete. Never to we would be appreciated for accomplishments not only are looks and never three finally to make a living playing tennis That we love so much and we all come from amateur tennis few years before that. We're we're making fourteen dollars a day so that was really important and then also getting equal prize money in the majors in the grand slam was really important to us because we were getting a different percentages probably like thirty to forty percent of what the guys were getting. They're getting rid of events so we really needed to step up and we did finally get equal prize money in two thousand seven all four. The us open which is coming up. Soon was the first one in one thousand nine hundred seventy three so. We're really really lucky that we finally did that. So women's tennis in the leadership you look at you look at the different well. Forbes magazine Every year The women the top ten money makers are always women tennis players. I think they finally had a soccer player this year at number ten. So we've been leading forever but we want to uplift all the other women's sports get equal pay for equal work and type of thing so Soccer's trying very hard But we need more sports for women. I mean let's face it baseball american football. Nhl there's no. There's nothing for women yet you. We're not there yet. One of the points you make in your memoirs is that each generation has worked to do a continuation of what the last generation did so. And we've made. We have made progress in in racial issues. In sex sexists yeah. Lgbt issues and all these things but you point out. The next generation has to take the progress that's made and then and then take it even further and we're seeing that happen right now. It's a lot better. Kings quote. Coretta scott king has wonderful. There's so many struggles. And i'm not saying it exactly but freedom is never really one. You have to earn it and win every in every generation. So that's why black lives and all these is so important that everyone continue to fight for freedom and fight for representation by everyone beckett. Hey bill i just wanted to ask you a high. It's great to see you. I just want to ask you about the tournament with bobby riggs. Like how much were you. What would happen if you didn't win with that way on your did you think about it at the time on. Oh wait on me tremendously. That's probably one of the reasons. I won the match because of that Thought that if i do lose what's going to happen. Because we just gotten title nine passed in nineteen seventy two which is the first time that schools private public high schools universities colleges finally when they receive federal funds. They finally for the first time had to spend it equally on men and women and also before that we had classroom quotas for women. If you wanted to get your doctorate at harvard. They only allowed five percent of the classroom to be women. The reason the women when So much at the olympics is because of title line. We finally got athletic scholarships for the first time after nine hundred seventy two. When i played bobby riggs. We couldn't even get a credit card on her own still so we had a lot to lot on my mind. Also women's tennis is only in our third year of professional women's tennis. So i didn't want that to go south and i didn't want the men's tennis and to go south either so I just really really had all that on my mind. I knew it was about social change. I knew it wasn't it wasn't about tennis. It was about social change. So that's that's why it was so important but what happened is that you couldn't get on ten scored after that match which are game just exploded after that match amazing ninety million people. So billie jean. We need you to to. I want you to weigh in on a lot of things and the simone biles and asaka situation and and i know that you like everybody had to think. Think it through the complex issues. I also wish we had time to talk about Renee richards and transport you dealt with something long ago and in the book you talk about how after it was all said and done. Everybody was glad that that renee richards was able to play. The women's circuit was able to She's a great lady and after the decision was made to include her people. Were happy about it across the board in tennis so it. Can we translate that to how to handle this today. You you have the answers for this for these doctor. Dr renee richards was phenomenal and she was trans gender woman and we were the first to have a transgender woman on our tour in any sport and It was a great education for me. And she's a great friend and my apologised still. She's retiring soon but it translates into everything. A mental health right now with naomi asaka speaking up and simone biles during the olympics. Among did the right thing because it helped her How the us team when metals and she was very courageous. I think to talk about it and they only has been We do have to address it because you listen right now. During cova more youth having challenges or depressed things are not right. So i think it's good that we we own it and we speak about it because when you own your feelings like if i can. The book talks about me. Having an eating disorder talks about my sexuality challenges and the emotional challenges. I had when you can really talk about it and have people share in it. It does help and also to take ownership. Whatever you're feeling is very very important. Gene how do you think about balancing the the issue of mental health and being a great performer. And the reason. I i i'm asking it. That way is because in many ways a great athlete when you when you put on a great performance on the court it is about effectively. Being able to tune out the distraction being able to tune out the noise and tune out what might be described as mental health issues that we confront. Yes but i think it's good We confront them. Because i think we have a platform in sports. But i'll always try to think about. I have a saying that pressures privileged. Because i grew up dreaming about playing wimbledon. And i i always try to ask myself. Am i gonna gonna make pressure a friend or a foe and we are performers. We are athletes. But we're really perform as we entertain were part of the entertainment world. And i think as we're growing up is really important that we have rookie schools. That explain the challenges because part of our job is to speak to the media. The media without the media for instance. Women's tennis would not be where it sat. We would not be getting the money that were earning without the media. And that does that means traditional media as well as social media. But we need both. And i i. I used to sit in the room after every match and talk to them. Most of the time. They're only guys but eventually you had more and more women. But i always thought that each person their this is their job. So we're all helping each other have a job and make a living and we're we're in this together. That's the way i've always approached the media. I think i've always thought that you can either make him a friend or a foe. And i've always i've always got. I love writers anyway and i love people who right and so i always got along well with them but i spent a ton of time getting to know the human beings. But we're really all in this together. So i i would try to get understand if you wanna be a performer. If you wanna be a professional athlete. Then this is what goes. This are the obligations that go with it and it's not easy but and maybe there's a different way we should approach it now and i think i always listen when young people speak because they're the next generation of leaders to make change in how we want positive change. There's you know we've got climate issues. We've got all kinds of issues so This mental illness. I think it's important to address it. I think it's good. We're talking about it. I don't know there's a different way to do it. But i used to always take at least five minutes i used to say. I can't talk to anybody for five minutes throw. It's across the locker or whatever. Tell her out but then at five after five ten minutes then you just okay. Ready to go. Do my job with the media. There's stuff in the book. We take it for granted all the things that you went through. We don't remember the the environment. I there were still separate lunch counters in my lifetime so we don't remember what you went through and how difficult it was for you and you didn't always maybe you weren't always as looking back is there. Were times where you probably thought. I wish i had even been more trying. No one could have done better than it has done more for all these things and i just having look through the book. It's i wish we could talk more about that. We breaking news and we got to go and it's past thirty. Thank you but please have come back on. And i'd like because you you had to struggle. You had to struggle in your the who you are. Now is the product of just unbelievable a victory over over all those struggles. So it's crazy. Appreciate it okay. Cnbc's workforce executive council is the premier group c. suite human resources executives from leading companies across the country. It offers a members. Only portal and chat plus exclusive industry contact with access to breaking news calls and digital networking experiences the networking resources. Hr leaders need now. Apply to the workforce executive council at cnbc councils dot com slash w. e. c. And that squawk pod for today and it's friday so for the week squawks hosted by joe kernan becky click and andrew. Ross sorkin thank you to melissa leaf or sitting in to talk about today's top stories to get the smartest takes an analysis from our tv. Show right into your ears. Listen and follow squawk pod. Wherever you get your podcasts. You listen on apple podcasts. Would you be so kind to give us a rating or write a review. He can do it right in the app. That's have a good weekend and we'll meet you back here on monday. Outlast means jim rings. Long-term experience actively investing through thirty market cycles to deliver for our clients joined the pursuit of outperformance at pge dot com. that's pg. Im dot com.

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21st Century Space Race; AB InBevs Hot Stock Summer; Buttigieg on a Bipartisan Bill

Squawk Pod

34:48 min | 3 months ago

21st Century Space Race; AB InBevs Hot Stock Summer; Buttigieg on a Bipartisan Bill

"Out steer means pm navigates market volatility with an active investment approach designed to capture opportunities globally. Join the pursuit of outperformance at pj dot com. that's pg. Im dot com bringing in show musically this squawk pod cnbc producer. Kramer today on our podcast getting a trillion dollars off the ground in infrastructure framework is in place but not much else transportation secretary. Pete food is yet. I think it's reassuring to see. The legislative work is possible. Now we still got a lot of work to do this year to actually deliver and somerset's with other people. Ab inbev zeo carla's frito. Vaccinations of progressing asked and that is getting consumers back to our normal lives and his diet rub. You meet your friends physically those stories plus a t shirt for your issues and doomsday prepping. Well positioned for all worst case scenario on wall street and joe kernan imagination. They're here. they're ready to come in here. At slimy slithery tentacles. And like you know. What are you gonna do. It's friday finally. June twenty fifth twenty twenty. One and squawk pond begins right. Now becky by in three two one. Good morning everybody. Welcome to squawk box here on cnbc. I'm becky quick. Along with joe kernan. Andrew is off today. President biden announcing that the white house has reached a deal on infrastructure with a bipartisan group of senators. We had a really good meeting. Answer your direct question. We have a deal and I think it's really important agreed that none of us scott what we always that we wanted. I clearly didn't all i want. They gave more than i think. Maybe there were climbed to give him the first base but this reminds me of the days we used to get an awful lot done up in the united states congress. We actually work. We've got five parks. Do bipartisan deals to compromise. The deal includes five hundred and seventy nine billion dollars in new spending of that one hundred. Nine billion goes to roads and bridges sixty six billion goes to passenger and freight rails forty-nine billions for pro public transportation Fifteen billion dollars will go to electric vehicle. Infrastructure and electric buses and transit and seventy three billion dollars will go towards the power grid. You've got sixty five billion dollars for broadband and another fifty five billion dollars for water infrastructure to pay for that. The proposal calls for the irs to increase enforcement to ensure that wealthy people pay the taxes that they already oh under the existing law it would also redirect unused state and local corona virus relief funds to infrastructure and proposes public private partnerships and bonds for the funding dug. Through some of this. There's things in there like the future. Five g spectrum sales. We're going to go with this s. pr sales. I saw that to the strategic petroleum reserve. Like we're going to sell it down to me. This looks like this was moving. A bunch of chairs jury rigged. It looks like a you know. He's gold. I would think some of these were things that were already maybe allocated for other resources or for the general budget so it didn't look like a bit of Kind of chicory. When you chicanery yes when you get through it. Senators back the framework including eleven republicans attempt ten democrats. They will probably need to win support from democratic leaders and win over the vast majority of the democratic caucus in order to get the sixty votes they need to pass this bill in the senate to keep the republicans on board. You can see. There's no tax increases anywhere really. And here's what the president says about. He said i didn't get everything i want. Bill what he really wants. This is what we could agree on a day but then he goes on to say if the other bill doesn't come to my desk containing the rest of the agenda. This is the only one that comes on. Not signing it. Only one comes to me. Not the only new comes me. I'm not signing him. And then we've talked about this earlier speaker pelosi at some similar comments and choose this blood. Make sure you understand this when people say well. I'm not gonna vote for this. Unless i see that there ain't going to be no a partisan bill unless we gonna have the reconciliation plain and simple so that the market is trading up on this. If this is a done deal and happening here stuff like that i. It makes me think it's not gonna really if it is happening. That's what i was thinking. We were going to talk about okay. The market more money so it's another trillion and love. It's love the five hundred seventy nine billion. When does it become. This is too okay. So let's do six trillion and they're also asking for six. Trent does the dow can go up another twenty percent on six trillion. Where's the difference between the one trillion that'll reserve raises rates. And forget but somewhere between one trillion. What we're doing six day someone's gonna sit up and take notice at some point and and it will be when the federal reserve sets up and take notice that the market will have to take notice because they'll be fine with it until the fed says it's going to get inflationary and we're gonna crack down with by raising rates porn with like keeps any stimulus taken positively with with interest rates the slow and you wonder about and then if there's an interesting piece if you re back that i i'm fascinated by mansion and his power right now and and the interplay between shumer jordi leader schumer and and mansion and they try. They're doing this this weird ritual where they wanna keep on each other's good side but there definitely are some disagreement so mansion bought a houseboat. Did you know the almost heaven. That's nice and it's more on the potomac when he got there in two thousand and ten so we invite senators and they all come and they have cocktails and who knows you know. It sounds fun. Are you implying. Monkey business no. No no no nothing. It's nice if senators politicians on both parties would have a couple of cocktails. They might do more. Bipartisan talking to each other once in a while. I haven't been doing much lately but for mansion to do. They need fifty. They need all fifty. They can't a single person on reconciliation and he said i'm not for the fifteen dollars minimum wage. I'm not for the twenty eight dollars. But then with the voting bill shoot. He wasn't for that schumer gave him one thing in an in an amendment and then he stayed on board and he stayed with the caucus so we were discussing this this morning. I'm shocked there's really taking place here. And everything they say is a bar. Horse-trading it's horse-trading so that they can so that they can make their constituents happy and that we talked directly with josh gottheimer. Yesterday i asked him about that. Can they buy your vote if they put the salt deductions in this. Can they buy your. I said it in that language. I didn't catch where it comes from. All politics are local because all these huge issues that we have if it comes down to something for in the house for their constituents by the way schumer. Pretty good of horse-trading nancy pelosi's pretty good horse-trading biden knows this. He was in the senate for a very long time. That's how deals get done. It's president twist break lot. We talked about this too. He wouldn't be the first weird president whispering last one. some we're thanks tended probably things. We don't even know that some of those weird things may not have been true nike soaring this morning company reported earnings of ninety three cents a share. This cracked analysts said expectations to fifty one cents He didn't carry a you know you to carry the one. I don't know all it was phenomenal. What they Revenue of twelve point three four billion dollars beat estimates of eleven billion and then the biggest market still north america sales more than doubled sales more than doubled the pandemic record five point four billion dollars. But even you'll see it some things even pre pandemic. They're up just an unbelievable amount italian a second but the company was selling more goods at full price relying less on markdowns digital sales up one hundred and fifty percent versus the same quarter in two thousand and nineteen so not last year but before the same court in two thousand nine nineteen one hundred fifty percent. So that's pre pandemic for your guidance of fifty billion dollars exceeded expectations by one point. Five billion dollars first time in the company's fifty year history. It's got a a a more than twelve billion dollar record quarter In in terms of revenue It doubled because everything was shut down so a lot of the stores in in in twenty. Twenty you know. It went from just about six billion dollars to twelve billion dollars. All those stores in the first quarter a year ago were still closed down. But now they've done a better job of reaching out to consumers directly and that's a huge change the that means more trouble for all of these retailers when when the brands themselves can reach out directly. And you don't have to go into a store to get these things to think about. Sam walton one man can change the world. It happens a lot howard. Show us talk about phil knight phil knight had never been born like like in. It's a wonderful life. You watch out different. Potters ville was or Bedford falls was before that happened. Would've phil knight had never been born. Did you read dot carr's book. The it's amazing there'd be something else i guess but but you all the social nike. It's just were competitors that he fought the whole way through and really kind of grounded out. Against but i to get to these levels to create things. That's what always impresses me. The the idea of having a dow component that was created in. Somebody's lifetime watching that company. Get to those levels and there are a lot of them. You look at microsoft. You look at home depot intel. There's there are a lot of these companies that were created an in the founders lifetime achieved the sort of status one person really consequential life. It's just amazing and if aliens are watching because we see. ufo's all over the place. If they're watching. They must be like well. It's it's a big world but lou things can happen. It's really small compared to what's going on probably in the anything about these things i've got issues within the t shirt on. I wanted that. I have issues and i think it was in the gym and someone actually said i love that t shirt. I need one of those who doesn't need. Why are you on amazon. This for you. I have issues also this morning Big banks are on the docket to watch. Save all pass. The latest round of stress tests administered by the federal reserve. Twenty-three banks were tested in the fed. Determined that could survive and worst case scenario. I can think some scenarios couldn't survive really. I'm afraid to say they've already. I mean they've run a pretty rigorous stress test. Of course we've all seen things the last year and a half would not have anticipated. But they've done well through that we can think of some things you clear oblivion be friday and a war world's ed baxter here to ready to come in here. Does slimy slithery tentacles. And like what are you gonna do in our theory that we did you. I mean you remember will. Smith was up against amber their hair on day. Tom cruise and i remember the series which was pretty cool too because the or the things that came. Were exactly like those robot dogs that did compared to the original war. The word where llahu radio on the radio. Yeah i love door. So well wells. We were very very close as a result the fed said it would end temporary limits on dividend payments and share buyback. There's a great winston churchill's story about about that and and orson welles really. Yes because i apparently someone dropped orson welles named i. It's a great story. But even people like winston churchill can be impressed by my holiday. Coming up secretary pete. The one point two trillion dollar infrastructure framework may have gotten the green light from the president. But there's a lot more road still left to lay to fundamental questions. Not which month which date. Which part of wichita passes the fundamental question is. Are we going to deliver for the american people. Squawk pot is back right after this. Cnbc's workforce executive council is the premier group c. suite human resources executives from leading companies across the country. It offers a members. Only portal and chat plus exclusive industry contact with access to breaking news calls and digital networking experiences the networking resources. Hr leaders need now. Apply to the workforce executive council at cnbc councils dot com slash. Wnyc this is squad from cnbc. Today with joe kernan and becky quick. Here's president biden says that he and a bipartisan. Group of senators have reached a deal to allocate hundreds of billions of dollars towards upgrading. The nation's infrastructure. But it is not a done deal. It first has to get the support of at least ten of the olympic eleven republican senators. Who worked on that compromise plus every single senate democrat and they may not okay the bill unless it's paired with another one to be passed through budget. Reconciliation party's divided but my party is also rational thing they want but all that they have in the bill that it'd before them is good but they're going to vote no. I don't think so joining us right now. To talk more about the infrastructure deals so far is us transportation secretary buddha judge mister secretary. Thank you for being here today. Thanks for having me on great to be with you. you know. The market looked at this news. Pretty optimistically yesterday. I have to say. I was pleasantly surprised to seal. The deal was getting done But some of the language we heard later some of the walking back gave me some pause. the idea that this deal will not be signed by the president unless it's paired with the other half of the deal the other part of the deal that got kind of split off from this and similar comments coming from nancy pelosi really makes me think that we're not that much closer to getting something done. What do you think. I think this is an extraordinary deal. I mean when was the last time you saw senators from both parties coming together to do something. This big Look there are parts of the president's vision for this country That the republican party won't support but there are parts that we really can do together in fact the question that's been asked of us for months is okay. Is it really true that when you look at infrastructure you look at what needs to happen around broadband around water around transportation. Infrastructure is really true that even on this democrats and republicans can come together and yesterday was evidence that the answer is yes. This is going to be great for the country. It's going to be great for the economy and it's a truly historic level of investment. We're talking about more for passenger rail than has been done since the creation of amtrak we're talking about in major investment in our roads and bridges as well as a lot of things that are going to benefit our sustainability as a country. Clean energy transmission A lot of steps that are going to Be critically important. And it's so much better so much better for the country so much better for the policy when we can actually do it together across the aisle something. A lot of americans were beginning to despair over whether it's possible on any issue. That's how i felt when i heard the president. Come out with those ten senators. That's not how i felt. When i heard they were tying it all to everything else being done i. I mean. this isn't a deal if you still have to say the other four trillion or six trillion dollars or whatever it is the bernie sanders is working on has to get approved. I i think the president made it clear speaker. Pelosi made it clear lead. Schumer made it clear. Let me make it clear that there will not be a so called. Bi partisan bill without a major recall package. And that made me think okay. This is not going to get done. No i think this has been understood from the beginning. you know. Most of the senators most of the republican senators. I've spent time with this year. So far understand and accept that there are some elements of the president's agenda that We're not gonna be able to do with them. But of course we're going to still pursue them. Republicans have understood and have not asked us to abandon the rest of the president. I that was always going to get done later. But i didn't think it would be tied to that getting accomplished. My thought was and i think most of the republican senators. You're talking about just from speaking with them. Thought yes we'll do this part of it We can't agree with the rest of it but that's okay. They can figure that out later. I don't think they realized that had to be figured out first before this gets done. I think you lose a lot of them. I if that's what this is tied to what we're doing them at the same time. And i think the fundamental question is not which month which date which part of which bill passes the fundamental question is. Are we going to deliver for the american people. And yes the american people expect and demand that we deliver things like childcare other things that aren't in this compromise like improving veteran's hospitals of course we're gonna continue working on that that's how to tracks strategy works. Well we'll do one part on one track and the other part on the bipartisan track. And we are proud of what we were able to put together on. This bipartisan track. It's not perfect. We didn't get everything we wanted. The republicans didn't get everything that they wanted. But as the president says that's how compromise works. And i think it's reassuring to see the that kind of legislative work is possible now we still got a lot of work to do this year to actually deliver but this is incredibly encouraging and the substance of this steel obviously transportation secretaries the thing that i'm most excited about because it will transform what it is like to move around To drink water to to have access to the internet in america. It's not just good for the economy. it's good for our future. I guess everything hinges on whether you're going to be able to get the fifty votes in reconciliation do. Do you have mansion and cinema. Have they signed off on some sort of plan for the larger part of this because they've been the ones who have expressed lots of concerns without them. It doesn't happen. Yeah you can't guarantee how. A senator is going to vote on a bill that hasn't yet been written. But what i'll say is that this atmosphere of compromise and collaboration. I think makes progress more likely and more on all fronts and we're going to continue to pursue that something that Not just democrats but americans expect us to do when you talk about something like childcare You talk about some of the other things that we know need to have happened around clean energy. These are things Not just democratic party priorities. Their american priorities but there is a part of the president's vision an enormous part of one point two trillion dollar part of the president's fishing that we can actually do together we can do republicans and democrats side by side. That's what you saw yesterday and that's something. I think the country has been hungry for us to do mister secretary. We've i've appeal to your your transportation secretary urges before i didn't get didn't get the complete answer i wanted to last time. I'm going to do it again. Get it to you this. Let's say all these other ancillary things that you're talking about. Let's say that. That's just not going to go that nate from mansion or the caucus. Or whatever and that your deal. Your transportation focused deal get scuttled. You wouldn't be the slightest bit chagrined or or unhappy if you know going for the moon with the human infrastructure or whatever you wanna call it you wouldn't be grand if you had to sacrifice all this stuff that you were going to get because you don't get bernie sanders kitchen sink bill. Of course we need and want to do all of these things and i care deeply about the transportation infrastructure elements that we struck a bipartisan. Deal to get done. But the american people don't expect us to walk away from childcare. The american people aren't expecting us to walk away from clean energy or these other wildly popular deeply important policy priorities. It's just that we have a common sense recognition that there are some things that we can do together across the aisle and some things that we can It's like the rescue plan unfortunately It was necessary for the rescue plan to be passed on party lines. It still was right thing to do. And it's making america better off but it's so much better when we can do at least part of it together and that's what this deal represents market was up yesterday because investors assume that this deal was going to get done and probably get done sooner rather than later. What sort of timeline would you put on it now that we realized the two bills aren't split that they're actually linked together role. There's no time to lose. Congress works in very complex ways as you know there are markups in committee on Bills that are that are relevant to this. Thing's going to the floor over the summer. I think July is going to be a big month and then we head toward that end of the fiscal year. What i'll say is We have an enormous sense of urgency about this. Because the american people rightly are impatient for us to deliver results. And so is the president. Mister secretary wanna to thank you for your time today. Thank you great to see will be coming up on squad pods. Ceo of the world's largest brewer anheuser-busch inbev will crack open a weekend. Cold one with carlos retail level was just like the olden board nine to go back toward. Tell me about it. And the news space race it's us versus sputnik again bazo versus brinson. Back after this water exchange is now a podcast. Brian sullivan join me. As we hit the biggest money stories from around the world breaking down the risks and rewards of global. Trade the news. You need to know. What real world actionable advice and even a little fun and unique content. You won't get anywhere else like the most random but interesting thing you'll hear all day subscribe to the worldwide exchange podcast today. You're listening squawk because good morning everybody. Welcome to squawk here on cnbc. We're live from the nasdaq market site in times square. I'm becky quick. Along with joe kernan. Hello we are. Two bars and restaurants are back in full force in much of the country's sports games and live events are also back worldwide with full stadium. So will this be a boom for. Apn beta it's the world's largest brewer. The stock is up about fifty percent since the beginning of the pandemic. Join us right now to talk about it as carlos brito. He is the ceo of anheuser. Busch inbev he stepping down from his role on july. First after fifteen. Years as the head of the company and thirty. Two years working at bud and carlos Pretty huge achievement. We can talk more about that in just a moment but but thank you first of all for being here. It's good to see you. Thanks for having me so. Let's talk about what you're seeing in the world right now as things reopen. How has this changed your business. How has this impacted things. Does it really feel like we're back in full force. Some countries for sure. I managed the us uk for example vaccinations of progressing and that is getting consumers back to their normal lives repetitive. Grab a beer to go to france physically to go to ballparks girl to buds restaurants bars. Go back to traveling. Some other countries are still behind in terms of vaccinations. Still some restrictions. But you know at least. There is light at the end of the tunnel. Some tunnels are longer than others depending on the country but is going towards led lights. So it's good. We had the ceo of rite aid on yesterday. And i was kinda surprised by some of what we saw in her numbers In the front of the stores sale same store sales were down by twelve. Percent and part of that was because people weren't hoarding up toilet paper and cleaning supplies but the other part is they weren't hoarding liquor and buying it they're like they had been in full force a year ago. We're actually seeing the highest turn inventory turn levels that we've seen in many many years. We're almost three three times in terms of our inventory turns which are up eight percent and that's really reflection of how strong our new merchandise mixes. It seems to me that during the pandemic people didn't stop drinking they just found different ways that they were purchasing it. How how did you deal with that. Because it must have been just chaos trying to figure out how to get to the consumer as restaurants star shutdown event. Shut down airports shutdown. Would you do and hour you switching back now. Yeah i'm here proud of what about our people in our guys and supply chain sales at to be very agile very flexible. As as you said it was a big shift in dissipation among channels packaging brands because consumers combined in buzzer restaurants. They had to resort to grocery stores and they found their way to their love. Products of course void was still slightly down the us for example. But it was very sean. In the grocery store visits so a lot of the occasions migrated to the whole home. Became the hub for living working. So the hub. The home became had make up a lot of their occasions. Migrants the home but We found out ways through the grocery stores to consumers. Have you unwound that process though are you. Are you supplying to the grocery stores less to the the the places and back to normal bars and restaurants. That's that's not an easy feat. Yeah and in the notch more balanced. But we'd be prepared for the recovery normalization out for bid. Let's vaccines be ruled out. We saw some states in the saugus tumors reacting to this new role and we saw that a loved in. Your wobble was just like the old normal in that people are dying to go back toward habits in restarted preparing our supply chain back toward bortles more draft beer in more of a normal balance which we will what would like to have so you have different tax for different occasions for different channels and consumers are back in revered side about the summer which is going to be an amazing summer so much so that we have this promotion. You know that the white house announced in that we're going to give a free beer at two on july. If you've got to trust will challenge by the white house. Yeah i like that. How many beers you're thinking you're going to give away. We'll see him in but it's all about celebrating freedom celebrating all of us being able to go back to normal edge so team out and it came up with this idea that You know people excited about this new orleans not just rather cornered in that says more people get vaccinated. The more communities feel safer in the more pupil back to toward habits. And that's what we said. Hey a short beer. We just heard recently that alcohol is going to be banned at the tokyo olympics. This is a way of kind of bowing to the japanese public that that doesn't want the games there to begin with. We're seeing alcohol. Sales either cut back or stopped on a lot of the airlines because there's been so much. Air rage from passengers. Recently has any of that filtered. Its way back to you. And what will the impact from the tokyo olympics Not not selling alcohol being actually. Yes there were talking just yesterday. We were talking to our japanese colleagues about you. Olympics in what's going to be banned from what our understanding wise was going to be in stadiums but in stadiums no be social people in the state in anyways so if people are going to be really watching from their homes again. The home became the hub and beer consumption japan. Which is a very small whitish anyway. We'll be at home. So that's what's going to happen and it's going to be more for. The two stadiums consumers would be on the in watching games. Carlos fifteen years at the helm there. It's kinda hard to think of a company without you being there. What did you learn along the way. What advice would you give To your successor. I think my successor. Resplendent as i was through the ranks here in the company's abandoned company for twenty five years. Michelle is a great leader in my vices. Always been i who then what our company has always been most about people so a lot of time in the right people create environment with these people. Stay in and then with dig about big things to do. We tried to get his people inspire that they can achieve much more than they think they can under own so powerful and then we create an environment where people feel that they own the company that we are owners. Because that's what it is. It's myself and one hundred sixty thousand colleagues around the world that brought this company from two countries one in europe latin america brazil belgium in became the biggest global brewers the most profitable with operations in all continents. And i was there with my call during the journey and it was all about people. Becky i mean when we started expanding was because evil or is offering was about creating a company that was so interesting offers so many opportunities for people to grow that the great talents were bringing on out of college would find opportunities to continue to develop themselves within our company many carlos very quickly. If i look back at the trends in your industry over the last several decades i i would have said micro breweries popping up and then the last decade. Or so. It certainly been about consolidation. What what's the next trend for the next decade. What we see now is emergency The fourth category so the cell service cocktails stowed the the barriers between wine beer cocktail or blurring into a lot of innovation in between drinks during each your section of all beverages. We've been very active. It's the amazing. Category is growing in coast. Specifically shoe needs of floor calories low carbs gluten free in many instances more coed in that something. It's great for us because it's very profitable and it's something that we've been very active with dr trump brands into something beginning to from the us. For the countries around the world. And we've been in the forefront of getting distress to our global footprint. Wanna thank you for your time today and again. Thanks for being with us as you up your career there. It's really great to see you and we appreciate your time over the years. Thanks so much. The best shares of virgin galactic blasted off this morning. So when you see that you just you just read it or do you you. Just i wouldn't try and read it with a little more enthusiast but when you when you see something that lane did someone at tried so hard to do you just trying so hard to do you. Just let it flop all right. Let me try. i'm not gonna. I'm not you know back up. I'll say This is how it's done ready shares. The virgin galactic have blasted off this morning. You don't think people at home are going. Just they wouldn't be until your side. Thank you richard branson space. In fact they blasted into space. They changed it adding more. They're messing with me again. I can't play the plants friday. And you're in love so gonna just torture meeting with these hackneyed. His branson space tourism company says the faa has granted a license to fly passengers on future spaceflights. That's a key step in getting the venture off the ground. Three more virgin space flight tests are planned. The second will carry virgin founder. Sir richard branson. The current question will Dispaced before amazon founder. Jeff bezos who people signed a petition. Saying stay there even done that for brandon. I don't think but basis scheduled to go up on july twentieth and rocket made by his space company blue origin earlier. This month the report from a california base blogger said virgin galactic is considering reorganizing. Its flight schedule to launch brands. And over the july fourth weekend there is a us versus sputnik again now it's basil's versus to see who gets up there. It's up there. I yeah i like this. Can i try this one for go ahead. Shares of nike are running ahead. They didn't put that in there now. I'm just trying to make a few came in. You came up with that. I can do because i don't think they're clever enough to think about that interesting. Get to it because they were trying to assert so many read. While you're reading rockets. What else can we do. We can come up with some other ones. Eddie and that squawk pod for today and for another week. Squawk box hosted by joe kernan becky. Quick and andrew ross sorkin. You'll hear all three if you tune in monday morning at six eastern or any weekday morning on cnbc and to get the smartest takes and analysis from our tv. Show right into your ears. Listen and follow. Spock pot wherever you get your podcasts. And if you like what you hear would you be so kind to leave us rating or write a review on podcasts. When we get back here on. Monday have a good weekend. We are clear thanks guys. I'll steer means. Pj navigates market volatility with an active investment approach designed to capture opportunities globally. Join the pursuit of outperformance at p g m dot com. That's pg i m dot com.

joe kernan phil knight fed schumer cnbc becky Ab inbev President biden cnbc shumer jordi senate josh gottheimer
Robinhood on the Road to Rebellion, & AOC at the Met: Tax the Rich

Squawk Pod

27:49 min | Last week

Robinhood on the Road to Rebellion, & AOC at the Met: Tax the Rich

"You gotta take a listen to this. It's swap pod that's right. Cnbc's flagship business news. Show is a podcast. Squawk pot control to it is not just the show folks to even better because it's only audio. Join me katie. Kramer as i take you inside the squawk box control room and beyond the headlines of our tv broadcast with joe kernan becky quick and andrew. Ross sorkin every weekday. Subscribe to squawk pot on apple podcasts. Spotify stitcher or wherever you get your podcasts bringing show musically this is squawk pod. I'm cnbc producer. Katie kramer today on our podcast the road to the red rebellion and the revenge of the retail traders. How did we get here. Robin hoods chief. Legal officer dan. Gallagher draws a map you wanted retail but come back into the market since the seventies retail. Participation has declined robinhood upending almost by itself and representative alexandria cossio cortes making a red carpet splash at the met. Gala dress said tax the rich to those stories plus update your phones. You don't think the exploits are coming at you. Mike you rating is not as high jers. It's tuesday september fourteenth 2021. Squawk pod begins right now today. We're starting our podcast on the red carpet. Hundreds of celebrities convened on fifth avenue in new york city for the fashion event of the year. It's back the met. Gala youtube stars musicians actors and even politicians this year's theme in america a lexicon of fashion one big style statement came from representative alexandria cossio cortes who wore addressed designed by aurora. James brother valleys that by now. Just the next morning has nearly broken the internet if you haven't seen it yet it's a white off the shoulder gown understated. In the front with the words tax the rich displayed in huge red lettering. Across the back. The irony being that tickets to the met gala. Go for around thirty five thousand dollars a piece. Because you'll cortes wasn't the only politician there and not the only one making a statement fellow new york representative carolyn maloney attended any purple white and gold gown celebrating the suffrage movement. Afc revealed on social media that her dress was borrowed and she and maloney as members of the local new york delegation to congress likely didn't pay for their tickets but this is all happening while congressional democrats are fighting for a tax hike on the wealthy. Here's the congresswoman on her fashion history. Statement when i were i kind of partnered who really having conversation about what it means to be working class women of color at the met and we said you know. We can't just play along but we need to break the fourth wall and challenge some of the institutions. You know while the matt is known for its spectacle we shop conversation about. Joe kernan becky quick and andrew. Ross sorkin digested the met bold red carpet this morning. Here's joe get invited to that gala that you didn't go to many people number one but have you ever address said tax the rich to and but i'm not going to talk about her because they say republicans. They like to talk about her but she is. She's the the real celebrity politician. She no laws or anything but she's really is a celebrity politician. It's amazing all. She has figured out how to work. Work us the media just as well as the president. And i know that she knew that the tone probably wouldn't be taken as a great thing to go to thirty thousand dollars. That's why she did it. The whole point of it was to go and be a billboard was to have this conversation. We're going to share. The picture. I think is the question. Andrew doesn't understand the i get. I know the irony is the but the irony is the brilliance of the marketing of it. All i mean as you know. I disagree with the message. But what do you mean you with them. I don't. I don't love because i don't love the idea of taxing abigail disney on the rich for the sake of tax. And you ask them in. You're not on their side when they're oh no because i think there's truth messages one is you can save money. Does the country need. And how do we do that. Knew any of the wealth bats completely different message. Which is if you're wealthy. You're terrible and therefore we wanna tax you different message wealthy and you're able to spend thirty to fifty thousand dollars on a ticket to be at this ball. That's the celebrity politician she does. Does she go to washington and actually try to do lots or not really. I don't the better question though and more important news. Joseph he's whether you have updated your iphone overnight because of yeah. This was a shocker. I think i'm okay but we'll see. Can you do it a high value target. You don't think you're you're actually. Don't think the exploits are actually. Don't think that you. I don't think that many people really my cue rating is not that not as high as yours. that's for sure. The company urging customers to install a new security update amid a potential security breach concerns research. Group is warning that in israeli spyware company developed a way to take over nearly any apple. Phone computer or watson. Malicious software takes control of device. I first sending a message apples. I message app. And then hacking through a flaw in how company processes images researchers say. The group has been exploiting vulnerability since february. The head of the light coin foundation says that the group screwed up and their words when one of its employees re tweeted a false announcement about a partnership with walmart. That statement said that the world's largest retailer would begin accepting crypto. The coin crypto is a form of payment online that led to a nearly thirty percents spike in the price of light quite walmart quickly issued a statement saying the press release was fake and says it's now looking at how it was issued like coin jumping seeing that big spike and guys. This would be something. Where the sec could probably try and figure out who profited. Who stole during those times and maybe try and trace some of this back except that we haven't decided that a cryptos is security and so i'm not sure whether it's and this is. What's so wrong about this wild west. That's happening right now but well that's an argument for it being mindset right in some form or another but who's agency that's supposed to regulate that if it's not a security security do this that's supposed to regulate how's it. Work is it blockchain blockchain blockchain. Bitcoin i mean there's a bitcoin element able coins. There's like i said. I know a little bit about bitcoin but any of the other stuff i've been. There's no rationale for point. Is there a rationale for acorn. I'm sure there is and the coach coin was to tell a joke. That was the rationale. I guess in the nfc world and that's really all you need me well into it is buying digital marketing company. Mail chimp for about twelve billion dollars in cash and stock its biggest acquisition. Ever last year the maker of turbo tax quickbooks bought a credit karma for just over seven billion founded twenty years ago. Mail chimp serve small and mid sized businesses with half of its revenue coming from outside the united states. Tried to figure out what the hell mail chimp was. Have you heard of it before this. Yes you you've dealt with male jim. I the mail chimp for years. They never raised in the mail chimps. They never raised any money. And these guys. I know the whole thing. It's amazing it's a great story. It really is now. Do you never received an email from the bottom i. I'm afraid to open up emails at organize. Can't i be hacked. That's that's when my apple phone will get hacked by the male chimps male chimps in the board apes and so these guys. There's two of them. They're not worth twelve billion to great story. And what does this allow any time. Yeah but not carried interest. See becky no good good piece in the in the journal today democrats get a lot of money now from carrying in for so it's like. Oh that's the one that manages the slip every tax reform bill. But they talk about you. Don't you know i. I'm not sure because it's a great vibrant industry that i worry about the unintended consequences and other partnerships. The democrats are absolutely sure you need to do it until it starts lining their pockets in terms of political disgrace. Disgrace like you totally understand. Why shameful you understand why. They're now they don't even accept that. I can understand why because i find it so shameful. That's part of problems that you voted. Why and the reason why is because they wind. That's big campaign contributions yes. I think it's disgusting. What else do you want me to tell you. I don't know you sway those people one way or another they clearly. I don't do your work on this next unsquashed tom. The road to the retail rebellion the money trades and laws that set the stage for robin hood. With the company's chief legal officer dan gallagher before was not new. It's been around since the eighties. The sec is study. that mandated disclosures. What's new here is no commission trading. Each number kevin o'leary here money court is all about dispute resolution. Businesses have problems and i'm here to resolve plenty court with kevin o'leary new series wednesdays ten eastern. Cnbc tv welcome back to pot. Twenty twenty one has been the year. The memes came to wall street. Now it's up one hundred again over four hundred and forty dollars back in january the sharp rise in the stock price of a few companies beloved by retail traders on reddit message boards like wall street. Bats game stop. Dole took wall street by surprise. Here's what are squawk box. Tv broadcast sounded like january twenty seventh of this year. I'm speechless and i remained speechless. There's something remarkable watching the little guy. It'd beat the big guys shore but that assumes the game's over it's not clear that the game is even remotely over crazy crazy. Twitter commentary robin hood. The free trading app was the platform of choice for much of this new crowd of retail investors spurred by the ease of the interface. And maybe the extra time afforded by the pandemic but the company made a decision amid all this price volatility to restrict activity in the mean stocks while it was trying to meet its own financial obligations and that god ceo latino and a few others in front of the house financial services committee. Why did robin hood restrict the by but not the selling of game stop in a high profile hearing in february. Look i'm sorry for what happens. I apologize. And i'm not gonna say that robin hood did everything perfect. And since then key part of robinhood model a practice called payment for order flow or you'll hear it and peek rules right off. The time really started to capture attention payment for order flow aiming ford or flow payment for order flow. How does the flow work. A brokerage like robin hood receives payment from a market maker hedge funds like citadel securities for directing the order to them. And this is how robin hood and other brokers can offer the zero commission trading favored by younger investors. It used to cost hundreds of dollars just to make one train as the market maker for robin hood. And the game. Stop january drama. Ken griffin ceo of citadel was asked to explain it to lawmakers we simply play by the rules of the road him and for order flow has been expressly approved by the sec. It is customary practice within the industry. If they choose to change the wolves the road we need to drive on the left side versus the right side. That's fine with us. I do believe that payment for flow has been in fortin source of innovation in the industry. Robin hood went public into i and payment for order flow. Stayed top of mind. Here's latin have to our andrew. Ross sorkin on the day of the ipo. We're going to have to keep a dialogue with the public with the with the media about what payment for order flow. Is i think you probably see me over the past couple of months. Engaging more openly In the topic and the truth is i think it could be better explained and we. We could continue to do that. And i think we'll continue defending it as something that has led to a much greater diverse set of people participating in the market but are looking at this investor innovation closely. Here's what the new chair of the securities and exchange commission. Gary gansler said on squawk box about the retail revolution. Just last month people wanna take risks. That's all right but we could to provide some of the basic protections and broad manipulation the trading platforms there on we're not currently under regulatory regime that protects them like they're reading the new york stock it just as i think there's gaps and i think that's not good for investors and i don't think it's good for the technology and following that gansler told barron's that payment for order flow specifically has what he calls an inherent conflict of interest so banning it by the sec. It's not off the table on squawk box. Andrew spoke to dan gallagher. Robin hoods chief legal officer and a former sec commissioner himself and he defended the back end payments that brokerages received for directing clients trades to market makers saying benefits retail investors. Here's andrew with dan gallagher. More into you down. Hey andrew how you doing. I'm good thank you for joining us. This is rocked the marketplace the debate over payment for order flow. Coming into relief if you will or high relief in this whole situation around game stop and what that conversations created but a curious what you thought of and whether you believe right now it really is on the table. Has there been communication between your firm in the sec. Overpayment ford or flow look undoubtedly. It is on the table when gary says something like that Chairman gansler it for sure and you know in my heart though andrew and you know i've got a lot of experience the sec. I think they're going to take a deep look at this issue. I think they have to by law. Go through a very arduous process. Right they have to go through notice and comment rulemaking. They have to take comments and they've to study this issue and when they do that and this will take time but when they do that. They're going to arrive at the conclusion that payment for order flow is undoubtedly in amazingly good thing for retail investors. And they're not going to ban it so i think we're going to go through a process. Here we look forward to engaging with the sec with sharing gansler and his staff on these issues. But i think that the overwhelming evidence that we see is that payment ford or flow is so good for retail investing and from our perspective at robin hood. It's the lifeblood of no commission no minimum balance brokerage. This is what has brought in a whole new generation of investors millions and millions of investors. Speak to this issue that when we've talked to ken griffin at citadel retail investor has a better execution than they can on exchange cross the orders that we execute for them and for the retail brokerage firms. They have an important source of revenue that helps to fuel their business model and the ceo of were to on the other side. Both of whom provide this service of payment for order flow. We are providing a price that is at or better than the national best. Best offers a better than you could get it on. Exchange and every single broker including robin hood is routing making those routing decisions with that in mind and only that in mind. Do you believe as as apparently gary gansler does that. Your customers are not necessarily getting the best possible price they could. I think we're getting excellent prices for our customers. I think our execution quality statistics. Prove that out. I think you've heard doug si-fu very convincingly and clearly show the numbers which clearly out that the price improvement for retail customers when using wholesale market makers is much better than you'd get on exchanges. So again i think the overwhelming evidence here is that the current market structure works. Well for viewing. If you're right the why do you think arrogance. There's not just putting on the table but he's been pretty blunt about his view that there's a possibility that customers are not getting the best price now. Best price is different than excellent price. That's that's that's a separate component of this and then the other issue on top of it is what kind of data firms like sit l. a. really getting and how they may or may not be using that data and of course we've heard from firms those firms saying they don't use that data but nonetheless gary against our seeming to take the side of some of the folks on reddit and others that have questioned that yet. Look on the data issue. You should know. The amount of data that the wholesalers receive as we send the orders over the very very limited. It's very specific to the order being executed and again doug who i think would be the most clear on that issue so far that they're not using data for any purpose other than to execute the order and But look it's a good issue. I'm not saying any of this is not ripe or interesting for the sec. To look at. I do think andrew to go back to your your first statement about this being related to game stop. It's not related to games. Now this is a false narrative like so many other. False narratives happen here in washington that somehow payment for order flow or gamification. Was the reason for the game. Stop january twenty eighth Saga right you know. There was a false narrative about what happened on that day. There was a false narrative of collusion between hedge funds and retail firms like ours. When that was proven to be false. Everyone moved on to something else. That's been sitting around in the gadfly universe for years but clearly one of the issues is how much effectively the city does over to our skimming off the top and what that really means to the customer. Now may may very well be that. That's still a good deal. I i you're not going to. You won't dissuade me from the view. That might actually be a very good deal. But how do you convince the public of that when they're going to be times where the customer is gonna lose. It may be on the whole that everybody wins. But on a very micro level it may be different right. Yeah look. I think the customers we need to be clear in our communications with customers about our protocols right the way we route orders has nothing to do with the amount of payment ford or floor receive. We charge the same to all the market makers and we route our orders to the to the market center. That's going to give our customers the best execution and so again. We need to be clear about that. But i think the notion of skimming off the top. What we're really talking about here. Injury is a spread right spread between the bid and the ask as represented by the n. b. b. o. The national best bid and offer the market maker capture. Some they give some of that to us and often they give Price improvement to the customers. And that's that's is old as as time memorial here that you capture the spread as your one of the things that people are saying actually that the quote unquote best price. That there's flexibility if you will in what the best price actually is. Yeah well. I think that's what i've heard from a chairman. Gansler statements is the n. b. b. o. Vibrant enough is it reflective of the market activity such that that spread is narrow as it could be and i think. That's an excellent issue for the sec. Study one issue that that we at robin hood have put out. There is that sub penny pricing on exchanges. Could help this. That could narrow spreads not exactly a statement in our own interest right But one that's good for our customers and so we're going to support and engage in any discussions that result in tighter spreads and better execution policy for our customers. What would happen to the business. If gary gansler and the sec where to come to the conclusion that payment for order flow was now something they were willing to support it anymore. Now andrew as. I said we're going to go through a long process here. A proper process here takes a long time. I don't think they're gonna come out to that conclusion. Because i think again. The evidence is so strong that payment ford or flow is good for retail But you know when we get to that point which will probably be you know well more than a year from now. We'll have to look at all alternatives on the table. Dan somebody who thinks about public policy and the public at large. What do you make of the the usage of the services of robinhood by the public in terms of this meam stock phenomenon. The arguments that it's been game fide the arguments that there are a lot of new folks that have got an online which may be a good thing in in some cases for the markets but also may mean that they're not as educated as you'd want them to be about these issues and the ra- i gotta tell you i on behalf of our customers insulted. Every time i hear this right the notion that our customers are stupid that they need protection. They need the government in the nanny state to come out and save them for making bad decisions. I think they're insulted. They of course have never had voice before right. They were not engaged in our markets They were ignored by traditional wall street. They were ignored by the wealthy in a system. That was created to perpetuate access. Only by the wealthy here comes. Robinhood gets rid of commissions by the way and this is funny when we talk about payment for order flow payment forward flows not new. It's been around since the eighties. The sec is studied it. They've mandated disclosures Around it what's new here is no commission trading. I was looking at the numbers. The publicly available numbers in the five years or so leading up to the to the elimination of commissions in two thousand nineteen by by all the major retail brokers about thirteen billion dollars in commissions charged to investors. Robin hood comes along. Upsets that apple cart. And guess what that money goes back to investors so not not only have. We engaged them. Have we brought them in. We've let them do it in a cheap manner right We haven't charged commissions. We haven't charged account minimums or special fees. And it's engaged. This whole new demographic and injure you know. When i was on the commission i gave speeches of my democrat colleagues gave speeches. It was not a partisan issue we wanted retail to come back into the markets since the seventies the number of retail participation is decline robin hoods upending that almost by itself. How do you feel though about what might be described as the social media enabled sort of runs on stocks and some of the commentary that you hear from folks on social media around certain meam stocks you can think of. Amc or game stop or others where arguably and even the ceo of amc would would argue to you that the economics of the actual business had become disconnected from the stock prices yet. Look this is a big issue. This is the real issue. I think that the commission should be focused on coming out of january twenty eighth and and again. Nothing is new in washington andrew. What i was an intern at the sec. Working in the enforcement division in the nineties. I worked on the first internet enforcement case and in that case i was reading yahoo finance boards about a pump and dump in the bulletin board stocks. And you know that's the same thing we have a third party provider you know here. It was rented and certain pages on read it in january providing a forum for people to exercise their first amendment and to exchange ideas and that trove market activity undoubtedly and he has a real hard time you know regulating that there's no authority to regulate it and then going in and figuring out who's a mouse caesar and who's not very very hard very time consuming and i were back in that job. Dan how would you do it in. How do you balance the first amendment rights that everybody should have looked people. Come on our program and they talk up stocks. They talked down. Stocks talked their book. Now hopefully they disclose and we require and ask them questions about where they're coming from and why they're why they're taking these positions. But how do you think about that. Look if i was back there. I would be making sure that the enforcement division was taking a hard look at all of the folks who lied who lied around all of this activity in late january. Who said i'm i'm diamond hands. But they were selling You know who who put out false accusations by the way and there's some pretty high profile people who simply put out false accusations some involving us about the market activity that day. I'd be looking at those cases and breed be bringing enforcement cases. I would let people know. You can't just freely go out and lie and manipulate a market in that way. And so i. I hope and expect they're doing that. Andrew but it. I don't know if referring to this but i think you may be. Would you be bringing their four case against somebody like deport who who made an allegation effectively against against the company suggesting that you were in with citadel i'm not gonna talk about any specific false allegations But you know. I would be looking hard at all of them. We're gonna leave the conversation there dan. It's great to see you this morning. Hope we can continue this conversation on the air in the very in the future as this continues on. Thanks thanks for having me under that squawk pod. We'll be right back each number. Kevin o'leary here money court is all about dispute resolution. Businesses have problems. And i'm here to resolve money court with kevin o'leary new theories wednesdays ten eastern on cnbc tv. And that's the podcast today. Thanks for listening. Squawk box is hosted by joe. Kernan becky quick and andrew. Ross sorkin to in weekday mornings on cnbc at six eastern together. The smartest takes and analysis from our tv show right into your ears. Listen and follow. Squawk todd wherever you get your podcast and hey tell us what you think. Leave us a review on apple podcasts. Or send us a tweet anytime at squawk. Cnbc we'll be back here. Tomorrow are clear thanks guys. Outlast means. Pg brings long-term experience actively investing through thirty market cycles to deliver for our clients joined the pursuit of outperformance at pge dot com. That's pg im dot com.

robin hood Ross sorkin sec alexandria cossio cortes becky quick dan gallagher andrew joe kernan gansler Katie kramer Robin hoods robinhood Gala dress carolyn maloney Joe kernan abigail disney apple
Warren Buffett & Charlie Munger: Taking the High Road

Squawk Pod

31:32 min | 2 months ago

Warren Buffett & Charlie Munger: Taking the High Road

"Outlast means pm rings. Long-term experience actively investing through thirty market cycles to deliver for our clients. Join the pursuit of outperformance at pge dot com. That's pg. Im dot com. Charlie's my charlie's mike and this is warren's mike warns mark this is squawk pod. I'm cnbc producer. Katie graber today. Part two of a wealth of wisdom our special series with warren buffett. Becky quick sits down with the oracle of omaha almost ninety one years old with many insights to share profit and personal. You really wants people arrived you better than you are. And you'll move in that direction. One of those his partner of nearly sixty years charlie munger. The buffett munger magic. The way to get a good partner was to be a good parker very back is and they just work so fabulously well and they work so well at berkshire and with a succession plan in place. How berkshire hopes to maintain that culture. We always know both of us more money on the high road than there was no road tracing their roots back to a small town nebraska grocery store. That was the last time. I did real work. And staying smart savvy and successful for all these years. When i was young you know. Time is the limited assets plus six hundred billion dollar business. Can't be all success all the time. The stock ever bought was all hair. Berkshire hathaway becky crack reflects. Uncovering the business and the friendship of the men who built it. I'm gonna tell you about one of the ten largest companies in the world. That's run out of these two floors in our mahala. Twenty five people. Okay yeah where. Where's the bridge that you want to sell me on top it right. It's wednesday july. Seven twenty twenty one. Squawk pod begins right after this outlast means. Pgn rings long-term experience actively investing through thirty market cycles to deliver for our clients. Join the pursuit of outperformance at pge dot com. that's pg. Im dot com. Gotta take a listen to this swap. Pot that's right. Cnbc's flagship business news. Show is a podcast. Squawk pot control to is not just the show folks to even better. Because it's only audio join me. Katie kramer as i take you inside the squawk box control room and beyond the headlines of our tv broadcast with joe kernan becky. Quick andrew ross. Sorkin every weekday. Subscribe to squawk pod on apple podcasts. Spotify stitcher or wherever you get your podcasts. This is squawk pont from cnbc. Berkshire hathaway chairman and ceo. Warren buffett and vice chair. Charlie munger have a wealth of wisdom between them. Ninety-year-old buffet is a man of many words. True to his oracle nickname about forty thousand berkshire shareholders travel annually to nebraska. Each spring welcomed. Them all the city's delighted to have you here and buffet holds court. We have with us. Journalists carolina fortune naked. Quick of cnbc. And we have andrew ross sorghum of the new york times they have received questions from shareholders all over the country. Andrew told me that he received a couple of hundred is this morning so they have selected among the best of berkshire related questions that they've received and ninety seven year old. Charlie munger a world war two veteran. Who still goes to work. Every day is a man of fewer words but maybe his or more pointed like this at an annual meeting in two thousand four. I would rather throw viper on my shirt front higher compensation consultant on warren buffett. And charlie munger have been business partners more than five decades. We were sort of made for each other. We've never had an argument in this whole time. We are strong minded in that time. The pair have built berkshires. Unique portfolio companies brands like the nsf. Railway geico duracell see's candies and basically left them alone. The way to get a good partner was to be a good partner and these are very effective ideas and they just work so fabulously well and they worked so well at berkshire. I caught up with squawk box. Anchor becky quick. Hi how are you. I'm good how are you over. Zoom about the buffett. Munger magic neither one of them ever really wanted to work for bosses or have a boss or work in corporate culture. They both said that they wouldn't survive it. They'd get fired. And i think that's why berkshire is the way that it is. They like to let people have their autonomy. They like to let the. They've got more than sixty businesses that they own outright and they let the managers run those businesses for a company that is now one of the ten biggest companies in the world by market capitalization. It's an incredibly decentralized organization. I mean there's twenty five people at the headquarters in omaha which by the way they don't even have a building that they run their corporate headquarters out of they. They lease a couple of floors from somebody else. And that's where the whole thing's run run from. If i were to tell you the details of this you'd think it was a scam. You know that. I'm going to tell you about one of the ten largest companies in the world. That's run out of these. Two floors in our mohammed. Twenty five people Okay yeah where. Where's the bridge that you want to sell me on top of that right. Berkshire is worth more than six hundred billion dollars. Today it's growth started in the late nineteen sixties. Warren buffett convinced his friend charlie to join what they remember as hunting expeditions looking for undervalued companies with strong balance sheets one acquisition was a mid-century consumer loyalty program called blue chips towns now the float from that company the money stamped buyers had spent that had not yet been redeemed for rewards was used to fund further. Buys thanks so much for letting us bigger. Okay and munger talked becky about these early days. I'm comfortable from mongers house in los angeles. then we bought companies. We bought the first insurance company at berkshire and in one thousand nine hundred sixty seven today and there by that time refined my ideas about writing and with the float so on you kept the redemption centers for blue chip open for a lot longer than anybody else did. And and you've also talked in the past about how charlie is the moral authority is that another example of him saying we will redeem every stamp that came through. Because it's the right thing to do well. Of course it's the right thing to do and i always say we don't deserve as much credit as we get for being halfway decent because we early recognized we'd drink way more money on the high road. What do you mean yeah. I mean if the high road is more profitable to us over a lot of credit for choosing it. He'll get the credit of the people take. It was painful. We always know both of us that there was more money on the high road than there was on the low road long long ago. People don't even know about this but we own two small insurance companies at berkshire that both what broke Except we did a lot of go broke. I mean in other words. We could've walked away from him and left the mind macos ever separate companies. We paid up We took care of them. I mean it. We didn't walk away And we haven't spent our lifetime you know working things to try and figure out ways to walk away from debts or have things in in dentures and play games like they. Have you know with credit. Default figure out ways to take advantage of the lenders. I it's just not our game if we all money we're going to pay it back born and raised just a few miles apart from each other in omaha. Nebraska buffett and munger were first introduced in the late fifties by a friend. Dr eddie davis one of buffett's i investment clients but they had something in common from there even earlier days. Both worked at ernest buffets grocery store in omaha. There's a restored replica of that place. In the durham museum in nebraska. And about ten years ago. We are live this morning in omaha at the museum in front of a very special store. Warren buffett brought our cameras and our microphones to that recreated storefront actually. This is my great grandfather. My grandfather did work at the store but it was originally sydney buffet and sons and that was the last time i did real work. Charlie wasn't at the museum with us that year but he recalls doing about as much work by learn how hard it is to work for ten hours for shovel wet deep heavy snow all around with his driveway and everything in the store my grandfather and he said well much. Should i pay you boys the dimes to little dollars too much. Maybe we learn from the grocery store with waited while we're gonna grocery store. I wanna talk about dads because both warren buffett and charlie munger even though they're over the age of ninety now talk about their fathers. And they're in the influences that their dance had on not just their growing up experiences like who they became as individuals and both men have this deep deep sense of goodness and moral character and decency and and being around other people that they feel embody those traits as well Warren buffett's father died in nineteen sixty four. But it seems like he's still influencing berkshire-hathaway still influencing these kinds of decisions. You know there's a picture of warren's father and his office so it's kinda like he's watching over everything and i think it's a great touchstone to to think of people that you don't wanna disappoint It's a great lesson. I've learned from worn over the years. You want to surround yourself with people who make you wanna be better And it is true. You know we all know this to be the truth even though we may not think about it from time to time. But when you're a kid if you were hanging out with people who are not a great influence. It brought you down When you hang out with people who make you wanna be a better person because you respect them and you don't ever want to disappoint them. I think that's what brings out our best self in all of us. Who the hell knows where you get your value from exactly but basically you have a few people that are teachers to you in life or not formal teachers and the most important people to your jelly or your parents never heard my dad. Say them in my life. You know be sure you pay all your debts. But i just watched how we lived and you want to have certain people in life that you don't disappoint that you don't wanna disappoint. You'll be people that that make you a better person than you. Otherwise would be charlie. Does that for me now. But my had early on and and i think i. I didn't know his dad but from everything i've heard about. His dad had the same experience. Chinatown more about. You're done well. My father was a lawyer and he was the some of veal. Another lawyer who became the only federal judge and lincoln nebraska nebraska's capital city and grandfather. Munger was a marvelous guy and a great family man to i was surrounded by hagrid. People in my parents had good friends. Who are people so. I had a very privileged life in terms of my associates. Had terrible trouble. We'll come out to los angeles and succeeding in life. I thought i couldn't ever get group of friends that were as good as my father in law. I finally realized that they had a very unusual bunch of friends in omaha and it was just a peculiar accident of history so i was surrounded by great people deserve no credit offer. I was just forced to imitate the right. People didn't know any other dad is charter. We talking to older people all our lives. I like what i like. Seven or eight years old talking to older people and now of course the problem is our older people run out of that constituency. But but i if i would go to the dundee presbyterian church to singing. The kids acquires walking home. I drop in four or five houses where i talked to a housewife there. But there were women. They were smart. They didn't have much to listen to the radio. So i talk to them. I always enjoyed talking to over people. I think charlie wasn't the same horse. Well i married. Help build this house one of her relatives after meeting me. Should've that is the oldest young man i've ever heard but i think the even when i was young but the youngest old man that you'll make and and charlie just the relationship that you had with your dad to oh marvelous relationship and that's a great blessing to have bought her mother and father and they oh budgie wonderful friends. It was just. I was very lucky. I suppose every city has some unusual people but you know hiram carson was the chief engineer the gas company ripe age was engineer of the power company. The sylvester was the city editor of the newspaper. Every every one of the great you know urologists. Yeah country to fly in from vienna his operations on doctor and all he was very got 'em violin just einstein a very unusual man and i reminded him of charlie. It's he was better. Coordinated are that doesn't say much charlie and i have fairly summer skills athletics which are not much. Warren buffett bought his first stock at the age of eleven during world war two. I don't know what you were doing at eleven. But i wasn't buying stocks. He bought shares in an oil a few for him a few for his sister. Doris at thirty eight dollars a share and then sold when it hit forty bucks now tween. Buffet was not the patient investor of today that oil company cities service soon hit a stock price of two hundred dollars in this anecdote and in so many others. Warren buffett and charlie muggers deep rooted mid western values the foundational experiences and the people they knew omaha are never far away. Who else do you look up to. Who else would you consider. Heroes if your dad was the first person for each of you. Where does it kind of go from there. I've always meeting people that i admire. I was great admirers of biologist named garrett hard and i like his books i like the guy like his wife. I i've always had people admire. That was friendly with so as warren. Yeah yeah belly. Angle is interesting young man. You'd ever want to know he. Gam other doctor graduated high school sixteen or something and he was not harvard medical school when he was twenty years. Old you know very smart man. They'll angle got together. Twelve doctors in nineteen eight or fifty eight or fifty nine and we had dinner at the hilltop house restaurant and billy a- they'll said these guys were all in their low thirties and i was in my twenties and he said you ought to get ten thousand dollars each of this guy and then forget about it for fifty years and one doctor among the twelve said well what happens if he loses our money and billy. Billy looked at me says well dummies. Then we form another partnership and he was the only guy that joined the other the other eleven join and three of them are still alive their nineties one just hit one hundred and but that was the guy dummy before he was very witty. When i'd come back to my uniform and he was in medical school he wasn't a uniform and the war. It's charlie munger. You dirty draft dodger. He's he's a. He was breezy and witty. Very nice. ma'am. We've been able to associate with people that we really like. That's one of the luxuries of life and we're still doing and we're still doing doesn't look like an annual meeting. It doesn't feel exactly like an annual meeting twenty twenty berkshire hathaway annual meeting was like so many things last year virtual and it hit on an important topic in a really strange time. Munger and buffet are surprisingly not immortal. They need a succession plan. Frankly i don't know what i'd be doing today. If i didn't have jeetan greg. That's vice chairman. G jane and vice chair greg. Able the two men run operations for two halves of the berkshire business on my left. We do have greg. Able and greg is the vice chairman in charge of all operations except insurance greg. Greg manages a business that has more than one hundred fifty billion in revenues and across dozens of industries and has more than three hundred thousand poise. And he's been at the job a couple of years at berkshires. Twenty twenty one annual meeting still virtual for shareholders. In early may of this year charlie munger inadvertently hinted the greg able would take over for warren. Buffett is ceo. Decentralisation won't work unless you have the right kind of culture accompanying yet but we do greg. Greg we'll keep the culture the people in berkshire you couldn't find him or high-grade greg able. He's just so much. There are other people who are able. But he's not only able. He's just extremely high-grade and and he's got a good sense of humor to boisterous we are but he's very humor. Warren leader confirmed to becky that. He thinks highly both men. That should anything happen to greg. The torchwood then pass to g. Jane who's ten years older by the way are left. You're right you're right. We have the jane energy was born and raised in. India graduated from college. There and i met a g on a saturday and nineteen eighty. Six and a jeep came to the office and saturday. I was opening the mail on and i said Much you know about insurance. And he said nothing and i said well. Nobody's perfect and let's talk about some and by the end of the morning. I knew i had somebody that was going to lay grayton insurance business hand starting from that point this improbable company in omaha They came the largest property casualty company in the world in terms of net worth so really as big as the businesses and six hundred billion dollars is pretty big. Berkshire-hathaway is run by a very tight core group. We've made a lot of money. Fine but what we really wanted was independence and we have had the ability since pretty much little after we met. Naturally we could associate with people that we wanted associated with if we if we associated with jerks. That was our problem but we didn't have to sell that. We've had that luxury now. Sixty years or close to it. That beats that beats twenty-five room houses and six cars that suffers. But really as great as what you wanna do in life and associated with the people you want to associated with life and it's and we both had as its spirit all the way through. How quickly can you figure out if somebody is someone you want to associate with. It's amazing quickly. We do it. And how few bad mistakes we've made y'all how did i know charlie. I knew what i met. Charlie you know after a few minutes in the restaurant that You know this guy was going to be my life over it. We were gonna have fun together. We will make money together. We gonna get ideas from each other. We were going to vote. Behave better than if we didn't know each other you know. Time is the ultimate limited asset. And why why spend time doing other things with other people and as you do need somebody. What really gave us was the independence. This is what we are live. I learned something from charlie almost every talk with but he's but he's never said i'm giving you a lesson. Yeah i well the same with my dad and my never said do this. Don't do that. He just was way off. Track one time you know. I know you can do better. Basically got i know you will That was better than being now here derby. It'd be to be you really watch. People remind you are better than you are and you'll move in that direction if you hang around with people that are that for a while as while you were you downward drift toward the people that you associate with and we've had the luxury of deciding what we associate with and not everybody has that luxury. Obviously but that's the real reward of capital it's given us ability to little wanna live. I don't think either necessarily risen wonderfully if we'd gone to work bottom on army and tried to work up to general always. It was an. He thought he was smarter than commanding officer at a new enough. That you're not supposed to show it to the commanding officer but people can tell smart there. And so unfortunately that's not a desired attribute. Of course charlie was the law firm the original offer. He was working as he was not a partner but it was it was working for clients and he thought he was smarter in the clients. And of course it was. But that's really not a level. You don't want to radiate that. Make a lot of friends that way. Coming up screaming lawyers crooked naval becoming judges of character and getting good at it it was like they had neon sign on their fourth and said crook kirk crooked pod. We'll be right back. Cnbc's workforce executive council is the premier group c. suite human resources executives from leading companies across the country. It offers a members only portal giant plus exclusive industry contact with access to breaking news calls and digital networking experiences the network resources. Hr leaders need now. Apply to the workforce executive council at cnbc councils dot com slash wnyc. Welcome back to squawk pot over the sixty six years. Warren buffett has run berkshire hathaway. He has made hundreds of deals but believe it or not. He says acquiring berkshire hathaway which was textile mill. He started buying into in the early sixties. The dumbest stock i ever bought was here berkshire-hathaway it wasn't a great idea. The time the truth is now committed a major amount of money to a terrible business. Berkshire-hathaway became the base for everything. Pretty much that. I've done since nineteen sixty seven. When good insurance company came along. I bought it for berkshire hathaway. I really should have bought it for a new entity because berkshire hathaway was carrying this anchor. All these textile assets so initially it was all textile assets. That weren't any good and then gradually we built more things onto it but always we were carrying his anchor for twenty years. I fought the textile business. Before i gave up at if instead of putting that money into the facts dobbins originally. We just started out with the insurance company. Berkshire would be worth twice as much as it does now. Sometimes it's the mistakes you make along the way that you really learn the most from and that make you better business people and better investors and. That's you know something. I think people always forget they always want to know. Somebody's best trade when you ask their worst trade. Sometimes the trade may have been painful but man they have learned a lot and have saved them time and time again down the road. Was there any deal you ever did. That made you really nervous. You guys are so laid back about things and it's it's different in terms of. We've we've made a deal. Were to where we fall. We were in with a different person with all are but one insurance deal that we made we given our fountain pen to somebody and they just start behaving very badly with our fountain pen. We were gonna stand behind. We didn't know how how mess we were in. And that was a time when securities where really cheap. It was a nine hundred seventy three and four. I'd say that mistake didn't cost us a dime if you counted in terms of general accounting but the opportunity cost getting involved with those bad people turned out to be billions of dollars tens of billions of dollars or even mark in the early nineteen seventies buffett. And munger were trying to grow their conglomerate using the companies they already owned to acquire more and it didn't always work out. There was screaming crooked lawyers crooked people and the judge told him to quit doing something that they were doing was groggy have and they had the ability because of the laws of agency and a whole bunch of things it suck the man who signed the dumb contract with. he's terrible we will was the prophets. Were unreasonable to get associated with bad. Associate we've had people of course you're gonna have losses and we that you worry about. I mean we were a lot. Yeah we got a couple of we. Don't worry about if we lose money in something we lose money and we're going to lose money in something but but we'll make money over time But it takes something out of your life and in this particular case it caused us to be have to be very cautious at a time when opportunities were screaming because we did not know what these guys they were out. Every day saying our name to policies that a judge would probably say had a right to not because Well they had a parent agency and the judge told them to stop. They kept doing it every piece of paper. They had it out with our name on it. That was and stocks. Were right at their cheapest. So how'd you get out of the deal in the nineteen seventies. How'd you get out of it. We just soldier our way through. We finally stopped it. I crossed the ocean a few times even but we lost a lot of money but it was the aspect that we really going back. Three million dollars. You know all three million but this this was something that's our name in effect but we have no like that for a great many interesting thing is. I didn't make the original deal when you saw these guys. Finally it was like they had a neon sign on there. For the said crook kirk crooked. These well disguise now they. That's what people representing them that the just the soul of staid respectability floodings birds during becky. Sit down in the backyard with warren buffett charlie munger a recent headline came up credit suisse's five and a half billion dollar loss stemming from its business with over levered arca goes capital management a family office with limited disclosure requirements that had slain of investments that plummeted in late march of this year forcing credit suisse to sell large stock positions at a loss. Think about massively stupid. And of course it was the lure of the really easy money the was paying you being the prime broker for a jerk but he was convicted insider trader that came out of the craziest part of the hedge fund industry and they were getting unusual profits by extending unusual credit. I mean it was just. The world was shouting at croke fool. And they didn't listen. They thought this is where the easy one he is crooked pools. There's one rule a long time always it. You can't make a good deal with a bad person. just forget it now. If you think you could drop contract. That is going to work against a bad person. They're going to win but one thing they probably enjoy litigation and you know and they don't they know more about it than you do. I one thing i've had just don't have lawsuits. I mean we're an insurance visitors some legal but berkshire hathaway an entity or may personally or anything. But it'll get what we don't want to spend our life doing that sort of thing at and besides the bad guys win that they don't more games they may lose eventually in the but there's no way to spend your life. China wasn't just credit. Suisse that got pulled in by that there were a lot of firms that were doing business with goes and yes yes. They were all foolish. But credit suisse managed to boost full of all. No fulls here. We'll have more of the wisdom of charlie munger and warren buffett on our next episode of squawk pot. We're doing something a little different this week is you've heard so. Please let us know what you think. Tweet us at squawk cnbc or write a review on apple podcasts. And please like and follow squawk pod. Wherever you get your podcasts. Thanks for listening. We'll meet you back here tomorrow. Outlast means pgn brings long-term experience actively investing through thirty market cycles to deliver for our clients joined the pursuit of outperformance at pge m dot com. That's pg im dot com.

warren buffett charlie munger berkshire hathaway charlie berkshire omaha becky quick nebraska berkshire greg andrew ross Munger warren Katie graber becky munger Katie kramer joe kernan