attendance. it's wednesday, december 6th, 2023. and "squawk box" begins right now. ♪ good morning, everybody, and welcome to "squawk box" right here on cnbc. we are live from the nasdaq market site in times square. i'm becky quick along with joe kernen and andrew ross sorkin, and here we go. we made it already. it's wednesday. >> wednesday's good. >> hump day, guys. we're finally in agreement. this is the final downside of the week. here we are. >> this is a good day. >> the best day, the furthest from monday. futures are reflecting that cheer this morning too. you're going to see greener arrows. yesterday the dow and the s&p

posted a decline for a second day in a row, but you did have the nasdaq higher. treasury yields, we've been watching this prts closely. the 10-year, 20eer, 30-year were at their lowest levels. the 10-year a little higher. it's below 4.2%. the 2-year is below 4.6%, and that's below where we were yesterday at this time. we were watching what's happening with bitcoin. it's picked up substantially. check this out. up another 1%, past 44,000, 44,108. if you were looking at wti, wti and brent were at their lowest sentiments since july. all of the markets continue to be on the move. yields continue to drive the way. >> yeah, it is pretty staggering. the question we asked repeatedly yesterday, if it's coming, why is it stuck?

if we get to 30,000, it could go to 31,000. so we blink, and so what's the percentage gain on 26, the 44. >> one month is 26% if you're looking at the chart. >> yeah, but that's only a month. that doesn't get us -- that's from 37. that doesn't get us back to -- where we thought it might go through 25 back to 17 and who knows after that. nothing one knows with this crazy assets if you want to call it that. from 25 to 44, that's 19 on 25, right? we'll call it 20 out of 25. so that's 70%, 80%. >> 160% here. >> we blink and it went up. you're right. if you pie a pizza with your bitcoin, you're an idiot, unless you're not an idiot. >> meantime let's tell you what's going on in new york city, because the former u.n.

ambassador, nikki haley raising more than $500,000 in new york. that took place on monday. it was attended by a number of top wall street venues. there with many inattendance and a whole bunch of other folks. i don't know the full length of it all. but here she is in new york trying to raise some money. it's big money. the question is she now number two on the list? is that the thought? and is she -- >> she's definitely the one whose numbers have been rising, but the iowa governor has endorsed desantis. >> there's no question, his numbers have been declining and hers have been inclining.

>> do you think she would take the vice president spot if trump offered it to her? >> i don't know if he would offer it to her. >> does he if they trash him the entire time? >> he does nothing if he's not practical. he's off the wall with -- >> here i was -- >> you never know. anything is possible. you saw the interview last night where they said dictator? and he said -- he said, no, no, yeah, day one. i mean which is it? i think he's full of bluster. i think he's -- he's just saying that the board -- you know, he's going to play onto the fears of americans about on order, about the border, all things people are worried about. this is an interesting piece. i'll ask liz cheney later. are americans really in the mood

for more trump? voters think things are out of control. he'll either reassure some and absolutely terrify others. and then the weird thing is on the other hand, and we'll mention this to liz cheney too. or we can have an 85-year-old eventually president biden with vice president kamala harris, which as much as trump terrorizes the process, it's terrifying that some think -- that other alt tish is likely. so that's where nikki haley comes in. is it possible? >> is it possible with the system we have set up, the two-party system and in the end you have to go through the two parties. have you had strong party candidates in the past? sure, you can point to ross perot, but he came nowhere near being elected. >> i was an only child and i knew liz cheney was going to be

on. the world can only end once. we've had a 250-year democratic/republic. th that's pretty solid. >> that's really a short period of time. >> could this be -- would this really be the end of the republic? the sad thing is i can't give it a zero. i can't say that the chances of that are -- i think it's unlikely. he was colluding with russia and then the end of the world was going to be the first impeachment, the second impeachment, now these trials. i've seen it. his enemies do tend to overexaggerate things, but i can't say it's zero. can you? >> no. >> you think it's like 80%? i'm saying it's not zero percent. >> end of the world-type stuff that concerns me is nuclear weapons. what we're seeing with ukraine, iran, you know, there are things that -- with israel, there are

things that seriously concern me, and i think whoever detective whomever is in the white house has an impact on that, but i don't know what that means yonlds that. >> we don't want our own domestic putin, our own domestic xi. you remember when china's president president cringed when biden said dictator. we had a great founding father. we'll talk about that with her. maybe she's getting the same ratings or maybe not because she said it on ten different networks. diageo seeks to divest most of its beer portfolio. it's accounting for just over

14% for the prior year while spirit sales contributed 81%. meantime let's talk about elon musk because his ai startup raised up to a billion dollars in equity funding. it released a chatbot which has real time knowledge of the internet and will answer spicy questions that are rejected by most other ai filings. elon once said folks who own stakes in x are going to own 25% stake in this. >> wow. >> i always thought if that were true -- >> a lot of people would invest in twitter. >> you look at how they would get the investments back. you have the early investors who bought in with this $44 billion

price tag, one way to actually get value over time could very well be if you believe this is the next coming. >> that's a pretty sweet ticket. >> it could be a sweet ticket and one of the reasons i think he was giving those investors a piece of this is that he's training on x data. so if you think that the data's the goals and he's got the goals, that's the -- >> that's pretty interesting. >> never count him out. after saying what he said, it's liking okay, x is toast and then here he comes right back. and we don't know with him. five years, would you make any predictions about elon musk, what he is, where he's going in five years? >> that's what charlie munger said. he has no way of knowing and he would never bet against him. he said he wouldn't bet with him, but he wouldn't bet against him. >> do any of us know where we

are in five years. i just bought a dog. i hope i can get another. >> don't say that. >> corgis can live 28 years. didn't choose it. it's a grand pup. i love them. >> you and the queen. >> there's a reason. each one of her five was probably totally unique and distinct in character. >> big personalities. >> characters. they judge people though. >> all right. i like cats. when we come back, jobs and trade data on today's agenda. we've got your squawk planner coming up next. right now as we head to brake check out apple. they closed out at $3 trillion for the first time since august thanks to a 2% rise in apple shares yesterday. apple remains the most valuable

publicly traded company. you're watching "squawk box," and this is cnbc. ♪ >> announcer: this cnbc program is sponsored by baird. visit bairdifference.com.

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8:15 a.m. at 8:30, we'll get productivity and labor costs and trade data. after today's "closing bell" two companies report. t chewy and gamestop check to report. our next guest says despite the economic slowdown, the fed has to shift its focus from tightening to accommodation. let's bring in kevin. why do you think the fed has to shift to lower rates sometime soon? >> becky, the long-awaited economic slowdown is finally coming to fruition. gdp growth is slowing to 1 pnlts 2% in the narth quarter from a revised total of 5.3% in the third quarter.

and they're forecasting gdp of 1.5% next year and sustaining growth all the way to 2026. as a result of that, the fed is ultimately going to need to step in, lower interest rates as inflation continues to moderate. once they lower interest rates, well, that's going to open up opportunities of stocks and bonds over the course of the next two to three years. >> the fed's not going to do that in december when they meet, and jay powell sounds not nearly as convinced as you are that the rate cuts have to come soon. what are you thinking? you think this needs to happen by march? >> i'm looking at the end of the second quarter of 2024. we have to remember the fed has three tools in their arsenal to help combat record-setting levels of inflation. one is the fed funds target rate which they've raised by 25,000 basis points. two is their balance sheet which they continue to shrink to the tune of $500 billion a month.

their rhetoric is running in full speed as they continue to suggest they're going to remain data dependent and also keep rates higher for longer. the question is how much longer. i don't think they can go much past the quarter of next year versus pushing this economic slow down into a potential rm recessionary market. >> does that make sense if the fed is more accommodative in that time frame? >> without a doubt. it's primarily due to the markets reached that we've now reached the end of the rate height cycle. the next one will come when it sniffs the first rate hike. that may not come until the second quarter of next year, which is a reminder to all investors to try no not time the market. it's often an exercise in futility. you need to be in the market and positioned appropriately so you can take advantage of these

rallies do take place. the best days are indeed ahead. >> you don't think it's too late. go ahead and jump in? >> i don't think it's too late whatsoever. there are three sectors that have performed best which are often accompanied by declining interest rates. those sectors are consumer staples, health care, notably biotech, and industrials. one area we like within industrials is aerospace and defense, particularly because defense spending in our country is forecasted to increase by nearly 50% over the next decade for $1.1 trillion, and those defense contractors will be the primary benefactors of that increase in defense spending. >> kernan, thank you for your

thoughts today, kevin mahn. coming up, a live report from the summit in dubai. don't mid robinhood ceo vlad tenev. he'll join us on the squawk set at 7:30. "squawk box" returning after this.

a few years ago, i came to saona, they told me there's no electricity on the island. we always thought that whatever we did here would be an emblem of what small communities can achieve.

trying to give a better life to people that don't have the means to do it. si mi papá estuviera vivo, sé que él tuviera orgulloso también de vivir de esta viviendo una vida como la que estamos viviendo ahora. es electricidad aquí es salud. let's go live to the summit. diana olick joins us now. real estate accounts for 40% of greenhouse global emissions. that's construction and

operations of buildings. here at the cop, the united states joined 60 countries with a pledge to cut cooling emissions by o 2050. i spoke with the ceo of johnson controls who was here at the cop talking ai in air-conditioning. >> there's going to be a huge demand as heating and cooling grows across the globe. our job is to make sure it's got the most efficient equipment. water innovation around the refridge rant, and making sure we're working to deploy the digital platform so we can obviously make that equipment more efficient when putting it into operation. electrification of buildings is another. that's the concern for california. the transition mufrt still include fossil fuels

>> for california, we still see a need for fossil fuel 2045 to retain the most affordable pathway possible. but, again, using the negative carbon to take care of emissions. that's why at least 2045 is a facedown. beyond that there's probably a phaseout as technologies mature. >> taking key measures to reduce the power consumption of cooling equipment would cut at least 60% off emissions and save trillions according to a new u.n. report released right here at the cop. andrew? >> diana, thank you for that report. it's been a fascinating week. when are you back? when do you return? >> we're staying until the end of the cop. next tuesday. stay tuned for much, much more. coming up, the bundle is back after cable unbundling.

the streamers are getting back together. we're talking to veteran media member tom rogers. we look at yesterday's s&p 500's winners and losers as we head to break.

good morning and welcome back to "squawk box" live from the nasdaq market site in times square. we actually have some green this morning, unlike the previous two sections, the premarket we were watching. neither one turned out particularly well or particularly bad for that matter. shares of charter communications plunged yesterday. the cfo said the company could lose broadband subscribers in the fourth quarter. speaking at a ubs conference -- it was a she. she said subscribers dropped in october due in part to the effects of a dispute with disney and also higher interest rates. she said november was similarly soft. i wondered what happened to this one. >> yesterday i was hearing about this. they were talk about it on

"closing bell," was it? >> shares of our parent company comcast also fell abruptly yesterday after the charter cfo's comments. it was up, challenging 43, and all of a sudden it was at 41 and change. i noticed -- i don't know why. i don't really follow it. >> you don't? meantime let's talk about the bundle. the bundle it may be back. verizon officered a deal with paramount and max. we talk with the executive chairman and longtime friend of the program. tom, good morning to you. >> good morning. >> we've been talking about unbundling forever, talked about the prospect of rebundling, but rebujdling is now here. the question is what does it actually do to the margin of all of these businesses? >> well, this is a very different kind of bundling than the cable bundle. the cable bundle was more and more channels.

you pay for 300 channels. you probably watch seven, and it was the consumer having to dial with higher and higher bills. this kind of bundling is all about giving the consumer discounts, and with that discounting you can still take an individual, bundle if you want, break it down, which you couldn't do with the cable bundle, but very different impact on the con somer. in terms of market, unclear. all of these streamers need to drive scale including netflix. this is a way of create ing som kind of synthetic merger without some m & a having to go down which would amount to a dub

down. i think there's going to fw a lot of focus on this to see if they can actually use these bundsings vehicles as a way to drive scale. >> you said the idea of a synthetic merger. can you get the synergy? is there a scale? >> you can't get cost synergies, but you can get some of the effect of what the growth aspect of mergers might be by putting bundles of services together, you're talking about the disney charter deal merging with another where you take the cable bundle and put disney+ into it. you have the verizon bundle, which we just talked about. actually there's an even better

verizon bundle. there's the netflix/max-10 bundle but they'll now be offering a $20 bundle for five services which is netflix, marx disney+, hulu, and espn plus. you can imagine the third kind of bundle which is two streamers getting together as opposed to a third-party marketing like verizon. i don't know what the pricing on the paramount bundle will be with two streamers koegting together. if that's in the area of $10, you can imagine getting a bill and you're beginning to see some discounting here. you're going to have to tolerate ads. not my cup of tea, but obviously a way to get pricing down here. >> tom, is there -- one big gorilla, is netflix the one to take? if you bundle with netflix, they

get the bulk or espn gets the bulk of the money? how do these negotiations differ? hulu started out as three different companies coming together to try to make something work, and that didn't go necessarily as well as planned. i know that was the partnership that fell apart when disney made some of those swaps to thinks too. trying too figure out how this works is a little bit complex. >> you're absolutely right. there's a fourth kind of bundle, which is the disney bundle, internal bundle of the three disney services. we're figuring out those things within one company is a lot easier. i don't think we know who's subsidizing what in the horizon bundle. i think netflix being the obvious winner with the obvious scale may have the least to

contribute in terms of subsidy, and verizon, which has got some major issues with its mobile phone business and max, which obviously lost subscribers last quarter and has a lot of growth focus on its streaming service it needs to get going on may be contributing the most. but we really don't know how those negotiations are turnings out in terms of who is tribtsing what. >> tom, i don't know if you were listening earlier when the cfo from charter had to say, and you saw the price come down. roy's your thought on that piece of it? >> well, broadband distribution for cable has hit a bit of a wall in terms of the number of homes that are to penetrate with broadband beyond new home

construction. so it's beginning to be more challenged. they've had some success with being the low cost provider of mobile home service and bundling that in with broadband and using that as a growth vehicle. obviously pricing broadband is going to be the tool that they have to work with in terms of increasing revenue per subscriber, but that's where streaming service bundling, i think, is going to become very important for the cable operator like charter. they've kind of become indifferent on their video business as the cable bundle just got too expensive for them in terms of programming costs that they had to absorb and the margin on the video side of the business disappearing. but if they can shift that to the broadband side where they can come up with a really interesting way to package streaming services with broadband, there may be a way to reignite that charter and

comcast together, have a venture called zoo moe, which is a way to solve beyond pricing. the other is nobody knows what's on where. it's impossible to figure out where your program is you want to watch. they've come up with an interface that kind of boils the ocean. takesering out there from netflix and all the other streaming services and youtube and the res of the world. that package would broadband with discounting of services may be a way to get back a competitive edge when it comes to broadband subs. >> tom rogers, always great to see you, sir. >> thank you for having me. still to come this morning, reaction if the pharmaceutical industry to cvs health's overall drug pricing. and then former congresswoman liz cheney will

join us on political division and the 2024 presidential race. a reminder for you, you can get the best of "squawk." and you can listen any time. we'll be right back. >> announcer: this cnbc program is sponsored by baird. visit bairdifference.com. the first time you connected your godaddy website and your store was also the first time you realized... well, we can do anything. cheesecake cookies? the chookie! manage all your sales from one place with a partner that always puts you first. (we did it) start today at godaddy.com

we told you yesterday about cvs's plan to change the price of prescription drugs. it's moving away from complex formulas and moving toward a sim administrator model based on the price cvs actually pays for the drugs. they said in a statement pharma benefit managers games the system. to pay lip service to the policy makers, patients and downless organizations calling for change won't fix the problem, only substantive policy reforms will. it raises more questions including what fees are being paid and whether this move is an attempt for cvs to steer paetsch emgts to its own pharmacies.

pharma is the trade group that represents the big pharmaceutical companyies. guys, i couldn't help but think about this. the knives are coming out. this is hitting a real sensitive point. we had the j&j ceo on yesterday. he said it's not the drug companies but the pharmacy fed managers and insurance companies, even hospitals. you're going to see fingers pointing in every direction, it's not us gaining the system. it's them. >> right. which i think we had an idea everybody's getting a -- i don't know what it reminds me of, but everybody's got their hand out. >> yeah. >> they're all part of the problem. >> and the system is part of the problem. you cut deals with insurance companies, pharma benefits. i think yesterday it wuls said

58% of the discount that goes out or 58% of the pricing goes to other place, pharmacy benefit managers, the insurance companies, the hospitals. if you want to see fair pricing, it's got to do with algorithms. talk about this like this? this. let's talk about this, which is that, which is the dramatic ousting and rehiring of sam altman with lots of fingers pointing all over the place leaving some company insiders speechless including director read hoffman speaking at the live wooifr conference. the he's spoken to altman since the incident, but not to board members. by the way, i asked elon about it. he knows ilya about it. he didn't know. he said he didn't know what's

going on. he clearly had some concerns. >> the board member who is also the chief technical officer. >> exactly. >> we had the congressman on. he said he would be interested in having hearings. he wants to know what happened. if they have real concerns, they would like to know. you may see them call people forward to see what happened. >> yeah, it's happening. >> coming up, former congresswoman liz cheney. she's not just going to be on the show. she's going to be on the set. she's joining us on the political divide, the cover of drudge, her big night with rachel maddow that got 3 mill upviewers. we're hoping for something similar here. >> did you see rachel maddow said it's as weird for you as it

is for me. >> also there are reports e'shs considering a third party presidential run. she's coming up. >> announcer: executive edge is sponsored by at&t business. next-level moments need the next-level network. and this must be the ocean view? of aruba? huh. this listing is misleading. well, when at&t says we give businesses get our best deal, on the iphone 15 pro made with titanium. we mean it. amazing. all my agents want it. says here...“inviting pool”. come on over! too inviting. only at&t gives businesses our best deals on any iphone. get iphone 15 pro on us. (♪♪)

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president biden telling supporters at a private campaign event last night in boston he might not even be running for president if former president trump wasn't running, adding in his words, we cannot let him win. and our next guest making headlines after saying she would consider creating a third party and even running for the white house in 2024 to keep former

president trump from being reelected. joining us now is former wyoming congresswoman liz cheney and former house chair of the january 6th committee, my birthday, can you believe that? to have that -- now that's all that means to anyone. it used to mean to everyone -- >> your birthday. >> yeah. >> or three kings. >> she's out with a book called "oath and honor: a memoir and a warning." thank you you. >> it's great to be with you all. >> it's great to have you here. one of the things i thought of was your contention that it would be very dangerous if the former president was reelected, and he could potentially slide into some kind of dictator or pseudo dictatorship in the united states. it almost sounds exactly like what president biden was saying, and that's just weird for you to be on the same side. >> yeah, i mean, look.

i voted with donald trump over 90% of the time. >> my son told me that. >> i'm impressed. he's been doing his research. >> he did. >> but so from a policy perspective, you know, i have all my life been a conservative republican, longer than donald trump has been a republican certainly. >> he's still not a republican. >> that's a good point. but so this isn't about policies, but we all watched what he was willing to do, and the line of suggesting -- not even suggesting but taking steps to stay in office, to stay in power once he had lost the election, that's something we can't survive as a republic. >> are you sure we can't survive? >> 100%. 100%. >> that's the issue. i said this also before the show. the world can only end once. it's really going to only happen once, and we've been a democratic republican for 250 years. >> that's right.

but the reason we have been is because every single president, every one before donald trump was committed to the peaceful transfer of power, and that is a sacred thing that's at the hearst of how we've maintained -- >> that's not up to him. >> we know through the investigation that we conducted that he tried through multiple means to put pressure on the vice president, through pressure on the state legislators, through pressure on the justice department, and at the end of the day, when the mob was attacking the capitol, he sat and watched it happen . >> for hours. >> in that sense that is why it is unsustainable. it is a risk we can't take. that doesn't mean that i support the policies of the biden administration. i absolutely think what is happening at the border is abhorrent. i think that our national security policies are making some big mistakes on economic

policies are making some big mistakes. this is a moment for the country where we're facing threats we have never faced before. >> to pick your poison on how you want to lose your democracy. do you want to lose it theoretically with the trump boogie man. >> that's not theoretical. >> it is not theoretical when you're talking about it. >> there is a difference between bad policies and somebody -- what you're talking about are bad policies. you're talking about bad policies. you see no -- >> a 5-year-old president -- >> are you going to let me talk? >> a 5-yepresident with kamala harris waiting in the wings as well. >> we're in a moment, however, where we face on the other side a man who -- he doesn't deny that he thinks what happened on january 6th is a special thing. he glorifies it every day. he says that he's going to take

vengeance when he's elected again. he said even last night, yes, i'm going to be a dictator for a day. i see what you're doing. now, let me finish. what you're doing is you're saying, oh, my gosh, that's just him, and the problem is we saw on january 6th the -- in the leadup to it, the fact that he is willing to ignore the rulings of our courts. we're sitting here in the financial capital of the world. and the success and the freedom that this country has had economically, and from a national security perspective are because of the foundation of our system. and a president who will ignore the rulings of the courts, which is what donald trump has done, and will do, will immediately unravel that system. >> what about him, i'm just not going to go into it, i have my own problems with some of the moral and ethical decisions maybe that president biden made as a vice president. we'll see how all this other stuff plays out with him, but

you got a guy like governor abbott, i respect him, i admire him, endorses trump, the speaker of the house, pretty big -- think of nancy pelosi, think of john boehner, speaker, speaker, speaker, endorses donald trump unequivocally. >> let's talk about the speaker of the house. let's talk about the speaker of the house. >> every person who ever worked with president trump who -- >> i'm just telling you there are people that aren't quite as worried about a dictatorship -- nonzero chance that would happen. i'm not saying it. >> think about that you're saying. there is not a nonzero chance. what happened inside the republican party and i say this as a life-long republican, you have people enabling him. you mentioned the speaker of the house. i have very direct experience with mike johnson. mike and i were very good friends. we were elected the same year. but i watched him take steps that he knew were wrong. i watched him, you know,

describe himself as a constitutional lawyer to the house republicans to convince them to do things in terms of signing on to the amicus brief. >> you kind of are solitary. >> well, i -- solitary, frankly, solitary with the truth is a place i would rather be. i had a choice to make that i could lie for donald trump, and i -- >> there is a lot of people who feel duped -- >> that's what i want to ask you. >> given the -- that's what i want to ask you -- >> deplorables. >> i didn't say that. i didn't say that. listen, what i have said and this is really important that donald trump has betrade and lied to really good hard working people all across this country. they have bought his lies. now, there certainly are people who know that what he's doing is wrong and are collaborating with him. that is dishonorable.

and unethical. >> do you think the speaker is one of those? >> i do. >> here is the question then, do you believe the american public or those that support him are naive? >> or corrupt? >> i think about this because i think oftentimes i interviewed the vice president the last week and i was saying, look, given where your poll numbers are, given where the former president's poll numbers are, and if you are saying democracy is at stake, is it that the american public doesn't understand that democracy is at stake or this is actually what the american public -- or those that support him want? >> look, i think there are different groups of people. i think that you have some people who are really true believers, who actually believe that trump is saying is true. that's a very small number of elected officials. you have others who are duped, people who are good people, who have bought into his lies, you have a large segment of elected republicans who are going along with it. and i think what is happening is that because the policies we're

seeing from the left are so bad and so dangerous, you have independent voters who are the ones who really are going to make the decision saying to themselves, maybe he's the lesser of two evils. >> i'm saying that -- >> it is not true. >> in other people that are his supporters say, the end of the world, because he was colluding with russia, the end of the world in the first impeachment, horrible person. then we got -- >> i voted against -- >> second impeachment. and then -- >> a violent assault on the u.s. capitol. >> now i think all these -- they think that president biden is prosecuting and using agencies to prosecute his political -- we have all this ammo that makes them think that -- >> there are a lot of people in congress and the republican side who are spreading that lie of t the, who are suggesting we should look away from what happened on january 6th, we should look away from the fact that he was willing -- >> how do we get to getting someone like that -- >> i'm not going to endorse

anybody today. >> why not? >> i don't think would help any republican for me to endorse them, frankly. but i think the point people need to recognize and understand is we have seen it happen. this isn't me saying, imagine what donald trump will do. this is what he did. and what he tells us every day. >> you said the independent voters will make the decision here. >> a calming presence. >> we're all calming. >> you're not very calming. >> you need to explain yourself. you have a problem with how we're talking about this? >> no, no, i think it is great. i think it is really important to have these kinds of debates. i was struck by becky -- >> look at her. don't look at us. >> i have an important question on the independent front. if the independent voters are going to make the decision, are there enough of them to support a third candidate, to say we're fed up with choices that have been offered and we want something different, because the closest we have seen in our lifetime to something like that is ross perot and he was nowhere

near to being able to win the election. >> i think in a normal political year, that's where you would end up. our system is set up for two parties. so, i think it depends upon who the democrats nominate, depends who the republicans nominate. i don't think that's an assessment that we can make sitting here. i think it is going to take a couple of months to see how this plays out. >> isn't it hard logistically to get on enough ballots? >> there is a process and it is expensive and, you know, the rules and different states vary. but i think that as a general matter, as a general principle, if you say, okay, the people who will never leave donald trump, that's a minority of the voters in this country. and so if people recognize and understand that we have to work across party lines to make sure he's not elected, it is going to -- >> it is a minority, but might be a plurality among republicans. that's the problem. >> but it can't be. the stakes are so high that -- nobody voted yet.

>> related question on the democrat front. which is to say that, you know, you hear biden say he feels like he needs to run because he thinks he's the only democrat that could beat trump. do you think that's true? is there another democrat that you think you would feel more comfortable with? i know you are not a democrat, but -- >> look, people will say, well, you know, even talking about the possibility of a third party run, you have people who are against trump who say that's so dangerous because you could help him. i don't feel comfortable today being able to say that the democrats are in a position where they're going to beat trump. and i think the stakes are so high, we have to beat him. so, i'm worried about all the policies that we began this show talking about. and i'm worried about what we see happening around the world. now, donald trump is not the answer to that. but, the extent to which people don't believe they can count on america, we got this isolationism going in our party, and the democratic party has got other challenges and problems in that regard, these are big

issues and i don't have a lot of confidence that democrats -- >> to a lot of people, you're talking about trump and would immediately try to close the border, immediately try to get back in terms of law and order, would drill, drill, drill -- >> he would pull us out of nato, ignore the rulings of the court. he said last night, this is the second time, frankly, we have watched sean hannity try to throw donald trump a lifeline. >> didn't he used to -- >> i used to substitute for him. sean hannity on january 7th understood how dangerous donald trump was. he was texting kali mcenany, but he's doing everything he can to say, please, tell the people you won't be a dictator. trump won't even deny it. >> that's what i said, i think it is unlikely that the worst case scenario comes to pass. if i give it less than a zero chance it is possible, it is just unacceptable. it is unacceptable if it is -- andrew gives it 80. >> 80, no, i said, i said

anything more than -- the fact you're having the conversation should be a -- >> i agree. >> here is the bottom line, we can survive bad policy. we cannot survive a president who torches the constitution. and it is a terrible choice to have. but that's the choice. >> the worst choice. you wonder why americans are disconsulate and think we're headed in the wrong direction. >> but it doesn't have to be that way. >> well, we'll see whether anyone can -- the worst thing, at 70%, probably 70% republicans and 35% of the country, which is not a winning -- that's not a winning -- that's not going to win an election. >> can't win, right, right. >> all right, well, so you have been all over the place. you would dispute that this was the best interview you had? >> this was really actually much better than i thought it would be. >> really? >> now i want to know what you thought it was going to be. >> ask about the yield curve or something? >> a little nervous studying up on my economics, yeah. >> we have some people that do worry about that, since we're so

smart about financials. >> thank you. >> great to be with you guys. >> great to be with you. thank you so very, very much. 7:00 a.m. on the east coast. you're watching "squawk box" here on cnbc. we're live at the nasdaq market site. i am andrew ross sorkin, becky quick and joe kernen, all together now. i take a quick look at the futures right now. we're 51 points higher on the dow. s&p 500 looking to open about 9 points higher, the nasdaq up 43 points. let's take a quick look at treasuries as well. right now looking at the ten-year and two-year. the ten-year note at 4.195%. the two-year, 4.168%. let's talk markets now. markets. what are those? lisa ericsson, head of the public markets group at public bank u.s. wealth management, i do mean markets, i could be talking about the gold market or i could be talking about fixed income, which the ten-year hit 4.19%. usually we are talking about the

equities markets and what does all this mean for the s&p, for the rest of the year, and for next year in your view? >> well, joe, right now we have a balanced view on the u.s. equity market and the reason why is when we look at the balance of rewards and risk, we really see them as fairly equally weighted. so on the positive side, you really have a lot of resilience in the consumer and the labor market. but certainly on the con side we have had fairly restrictive policy, and those increases come through with a lag. and it is not clear that the fed is done on top of the fact we had some positive progress on inflation, but, again, we're not back to that 2% target. our best advice to clients right now is really to stay neutral to whatever their typical strategic weights would be as opposed to really trying to over or underweight. >> the fed might not be done? that goes against, i think, what a lot of market players are counting on at this point.

>> well, certainly the fed is closer to pausing and pivoting than they were at the beginning of this cycle. we just look at the fact that it is just not exactly clear when that is going to happen, and so, again, there is some uncertainty as far as, you know, when those easing conditions might actually start. and on top of that, you got pretty aggressive rate cut expectations in the market there is a little bit of risk where the market is anticipating, even as early as march of next year that the fed could really start cutting and, again, it is just not clear since they are very committed to that inflation front exactly how quickly they're going to move. >> if you had -- if you were a betting person, they said the first rate cut comes next year in 2024 definitely? there will be a rate cut? even that is -- it is a position that isn't necessarily a slam dunk. but if we do get one, when do

you expect it, what quarter? >> well, certainly, it is hard to, again, in our view predict the timing which is why we're at this more neutral position in terms of our u.s. equity bet. certainly the data would indicate that you got some really nice price pressure decreases, as well as the fact that, you know, growth is, again, in that kind of middle of the road scenario, so the fed is not necessarily having to react either way to that as well. so, certainly next year does look at, like, you know, likely possibility, but, again, the exact timing is up in the air. >> so the -- the last time that we saw the companies report, which was just in the last couple of weeks, what did they say or with their comments about the next quarter or next year, will estimates have to come down for most u.s. companies? >> so, we do have pretty aggressive growth estimates for

2024. i think they're running around 10% right now, which, again, really is a very optimistic scenario. and while companies certainly have been very resilient and good about keeping their profitability up, we are concerned that those estimates might be on somewhat on the aggressive side. and so, you know, we are watching the direction of those estimates again. we haven't seen a lot of movement. they have stayed pretty steady over the last couple of months. but we do know that as we went through the third quarter reporting season, the companies really were pretty guarded and not offering a lot of guidance. so that is a note of caution. >> we're going to have to end it there. a lot of people talking about balanced approaches to things now. i guess balance is always a good thing. but lisa ericsson, thanks. appreciate it. >> thanks. >> okay. coming up on the other side of this, the robinhood ceo vlad

tenev will join us. we'll talk all things market, crypto and more. later in the show, we'll hear from south carolina senator tim scott, live from washington this morning. "squawk box" coming righba.t ck

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all right, welcome back to "squawk box," everybody. a couple of market headlines for you this morning. adp private payroll report, that number for november will be released at 8:15 a.m. eastern time. give us a hint of what we might expect come friday. 8:30, productivity and labor costs. and october trade data too. today, amd will unveil its latest chip designed specifically for artificial intelligence applications in a clear challenge to nvidia's leadership in the space. and the new mi 300 x chip has faster bandwidth and more memory capacity compared to its rival, making it a strong candidate for large language processing. and the ceos of this country's eight largest banks including brian moynihan, jamie dimon and jane frazer are set to set the senate banking committee for an

annual check-in at 9:30 eastern time today. lawmakers are expected to question them about the full slate of new rules facing their companies, and how the proposed legislation will impact profitability. ranking member of the banking committee tim scott will be joining us in the next hour to talk about that hearing and much more. when we come back, more on "squawk," building out the creator economy. youtuber and punch labs founder mark rober is here. he'll join us to discuss his latest endeavor. el he'll show us some pretty cool things too. if your kids are at home right now, and haven't made it to school yet, you may have to write them a note. stick around. >> my kid's here. >> and vlad tenev will be our guest as well on the set. so much going on. we'll talk about the big move in

bitcoin, all of it after this. >> announcer: this cnbc program is sponsored by baird. visit bairddifference.com. (adventurous music) ♪ ♪ ♪ be ready for any market with a liquid etf.

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all right, let's get to the

creator economy where we follow the businesses of those who have made their living posting content online. our next guest utilized his over 28 million youtube subscribers, i think more than 28.5 million at this point, for crunchlabs, an educational technology company that creates subscription boxes that are filled with an engineering project for kids. you do it right at home. in the past year, he's sold over 2 million boxes with plans to keep on growing. joining us right now is mark rober, crunchlabs founder, youtuber, and, by the way, former nasa and apple engineer as well. it is really great to have you in studio. last time it was remote. this is better. >> this is better. new york is amazing this time of year. >> it is. you're somebody who i first learned about from my son, my 12-year-old son, who, by the way, woke up at 4:00 in the morning because he wanted to come in, which he never, ever

does, letting him miss the top of school for this. you have a way of reaching kids and it is content that i can approve of because he is learning, even though he may not realize it along the way. >> yeah, that's kind of the secret sauce, we try to hide the vegetables, right? and, you know, kids like it, and the parents like it because it is, like, positive content, where the kids are actually learning something. my goal, get as many brains as possible stoked about science and engineering, especially the young folks. >> you do it in such a way they really are tricked. i don't know if you remember the videos, he does the -- you got mad because somebody was -- >> 15-ton jell-o pool. that's a really -- it is really engaging thumb nail. you see this and you want to click on it and watch t soon enough you're learning about the science of the method and chemistry and failure being part of the engineering design process, which then makes you more resilient as playing piano or playing soccer. so it is all part -- on the box, it says think like an engineer.

that's the promise. >> and we're subscribers too. >> okay, nice. >> crunchlabs. that crunchlabs took off when you launched this last year. you were hoping, i think to have 100,000 subscriptions by the end of the year? >> yeah, yeah. that's -- yeah. we were open to having 100,000, that was the plan after two years and we did that in, like, less than six months. and so, you know, almost immediately profitable, and just in a position where it gives us more opportunity -- we have quite a road map. this is, like, the first sort of entry into the market, and then -- >> is this one for plus 8? >> this is 8 to 12 or so. you get a fun toy. the first one is a disc launcher like this. >> have it working? >> the engineering principle here is, like, flywheels, right? can i -- so you learn about flywheels, right, but then -- and this, you learn about linkages. this is a drawing machine where when you turn it on, you know,

this pen goes around and it creates a really cool pattern. so, each time -- each one comes with a video, where you learn the engineering principle, but at the end of the day, have to be fun. like, first and foremost, first thing is they have to be fun. >> you did all of this, with self-funding. you didn't raise any money for this. you were able to do it with the funds you already make from the videos you were posting online. >> yeah, which -- which is just -- it is such an interesting time to be alive, where you can do that, right? that's power of the creator economy. and then we reach 200 million eyeballs a month through the youtube videos. so then when you want to tell people about the next box or what you're work on, some of the new initiatives now we're doing with crunchlabs, i can tap a microphone and we have that audience, right? >> and it is for social media. >> for years, i've been worried about how hard it is to convince someone to be -- to go into engineering. and undergraduate school. and i'm wondering, hey, you got

to go become -- it is like, you go to engineering -- i want to go out during the week, university of colorado or wherever. what were you thinking and to be able to do it this way, organically, to get people maybe to want to pursue that, that's the only way we can do it. can't just tell someone. why did you do it? were you a -- >> mechanical. yeah. counterpoint, someone stole a package from my porch and as an engineer, if i want to will something into existence, i can do that. i made a glitter bomb bait package. >> but why did you decide to do it before -- you were in high school? >> yeah, yeah, yeah, i don't know, i thought -- >> were you nerdy? >> of course, i'm still nerdy, which is great. what a time to be alive for the nerds, where we can do stuff. >> it is amazing. it is so necessary, but -- >> that's right. i genuinely, though, i think you would find there is a lot of kids today who have the same mentality, especially when they -- on youtube, they can see all the cool stuff you can make. it is one of the -- i think a lot of kids want to be engineers

today because you can just see what you can do. >> then there is ee and then chemical engineering and then i'm just lost. out of the weeds, forget it. >> do you have any fear about a.i. making all of this less valuable or do you think it makes it more valuable? >> when you say this, which part of this? >> meaning being an engineer. >> building something? >> building something, i mean, i think there is a big sort of existential question people have about what our kids are supposed to be doing, a decade or two decades from now and what they're supposed to learn now that will put them in the best position to do whatever that is that they're going to do. >> i would argue, the safer bet as a mechanical engineer and computer programmer because you're making -- >> stuff with your hands. >> stuff with your hands. the robots haven't got there yet. >> i find a.i. to be good collaborative partners. even if you code, which i code sometimes, it helps a lot. >> once in a while, you code.

>> you worked on the mars rover. >> and working on the mars rover and now we make really cool, you know, to help inspire the next generation of mars rover builders. >> if we have all communications majors were loved, we had started substituting love for the f word. if we have all communication majors, we're loved. building bridges or sending up airplanes. >> yeah. >> what i love is the next step in this, where, okay, in the last year you created crunchlabs being sent home to people, a virtual camp that kids signed up for. it is the biggest camp short of some of the religious camps that are out there. what comes next? are you going to take on partners, take on outside money, because if you're really going to build this into an entertainment and toy company, and all kinds of products that are out there, that might take additional investment. >> yeah, that's right. right now to be honest, we just

don't need the money to do what we need, but if it is the right strategic partner, we are entertaining some of those conversations. because we have two big ideas. even in schools, there is a version of this that is made for older kids, there is a lot. >> just small question, social media, you have become a star on social media between youtube and all your other channels. >> yeah. >> so for those out there and people thinking about marketing and all sorts of other things, which one is working, which one is not? people talk about x these days, does that work for you? is instagram a thing for you? where is tiktok for you? >> yeah. for me, youtube is, you know, we'll average -- we have a high average views on youtube. youtube and instagram are kind of like the bigger things where if we talk about a thing, we'll see pretty quick action from that. >> you're on tiktok. >> yeah, yeah. >> you think that's -- that's less effective? i'm asking more because i think we have a lot of people who watch the program who are thinking, where should i be placing my ad dollars, you know, where should i be focusing my

attention as it relates to -- >> instagram is really great for instant results. pushing a product, getting results, clicking through. i would say youtube is more kind of brand building awareness, if you're placing an ad, on that platform. but if you have the most -- the best thing is if you have an actual -- someone who has a following, talking about your product, versus putting an ad on those platforms, right? >> a collaborate. >> a collaborate, exactly. you know the lingo. >> mark rober, mark, thank you for coming in. thank you for getting our kids excited about science and engineering. >> great to be here. >> thanks a lot. >> it is -- can you do something on your 28 million page? >> do a collab. >> got to pay for a collab where you're loved. >> that means a lot. you can just love off. coming up, a sneak peek at cnbc's new cross platform

franchise launching tonight called cities of success, a new series explores cities that transformed into business power centers, grabbing change across the entire u.s. economy, starting with a really good one. and then robinhood co-founder and ceo vlad tenev will join us. "squawk box" is coming right back. >> announcer: time now for today's aflac trivia question. president lincoln signed into law a revenue-raising measure to help pay for civil war expenses, creating what government agency? e answer when "squawk box" returns. took over our office. and he's using it to send out medical bills. good hands! hospital bill for prime?! gaaaaap! did you just say gap?! he's talking about expenses health insurance doesn't cover. good thing coach prime knows about...say it one time! aflac! because aflac gets you money to help close that gap! now how do we get this goat outta here? (whistles) aflac! meet one of my new homies! gaaaaap! get help with expenses health insurance doesn't cover at aflac.com. elephant would've been scarier.

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>> announcer: and now the answer to today's aflac trivia question. president lincoln stigned into law a revenue-raising measure to help pay for the civil war expenses creating what government agency? the answer, the internal refer knew service. welcome back to "squawk box." tonight, launching -- cnbc launching "cities of success," a primetime special hosted by carl quintanilla who heads to nashville to examine the key factors of the city as more and more people call music city home and carl joins us from nashville. good morning, sir.

>> good morning, guys. great to see all of you. we're excited to launch this new franchise, really, about american cities that have sort of reinvented themselves over the years and are now drawing in huge flows of jobs and capital and investment. nashville is going to kick us off tonight, a city where amazon is building some twin towers, oracle moved in, and bernstein moved from new york city after surveying dozens of other possibilities. wall street giant alliance bernstein shocked the finance world in 2018, when the 56-year-old global asset management firm announced it was shutting down its manhattan headquarters for good, moving 900 miles away, from new york city to nashville, tennessee, taking over $650 billion in assets under management, along with a thousand high paying jobs. now, the ab team reports to this

modern glass high rise, with the firm's logo emblazoned on top. the office is taking up eight floors and more than 220,000 square feet. it is a tectonic shift in the finance world, a bold move for the company, and a big win for nashville. right now, we go one on one with the former new yorker who now calls nashville home. bring me back to the time, though, where this was still an idea and the idea of relocating. was it a given that new york was not tenable long-term? what was the thinking back then? >> the thinking had begun before i had actually arrived at ab because we had leases that were expiring next year. and so it gave rise to the issue, okay, where to go. >> what was your reaction when you -- when nashville was put on your table? >> it wasn't one of the obvious places where i would have thought as the place. everyone had moved to other cities. whether it was charlotte or dallas.

what was particularly appealing about nashville to us was that there was no one quite like us here. we wanted to be the employer of choice. and for really talented investors, we have been pretty high up on the food chain for a long time. i don't think we were as high up in the food chain in new york, facebook was coming to new york, google was coming to new york, amazon was coming to new york. we saw that competition as threatening long-term in terms of our ability to retain and attract -- new york was getting increasingly expensive as a -- as a home for those people. and what we found was particularly in nashville, people were moving from all over the place to get in here. and why were they doing it? very high quality standard of living, very well educated, world class university, increasingly good transportation links, pretty nice combination when we looked at that and thought could we engage some of our most valuable people, convince them to relocate and

actually feel very good about that decision. >> all the things you mentioned, doesn't really feel like the incentives or maybe even the real estate savings, doesn't sound like they were your driving -- your guiding force. >> the incentives were pretty undifferentiated frankly compared to what we saw elsewhere. that wasn't the factor that determined the attractiveness ultimately in nashville for us. real estate is certainly much less expensive here. and it still is relative to new york and that's certainly has narrowed, of course, but it was a big gulf initially. i think it was really differences in labor costs and cost of living that are much more sustainable and i think that's what continues to make this place a very attractive target for people. >> cities of success nashville tonight, guys, 10:00 p.m. eastern time. we'll tackle the growing pains as well that are classic parts of the story of growth, meaning housing and education and public transit. and we'll see what other lessons other cities might take from it. we're looking at what other

cities might qualify for this kind of dynamic. nashville has this thing in spades, guys. >> so, this does feel like the beginning of something big, carl. are you -- i kind of see you with an rv doing a road trip situation. is there another city on your list already? can you give us a hint? >> oh, yes. yes. there are several cities. i would imagine we go west. i won't say how far. it does kind of remind me, remember back in the day, we used to talk with steve case about rise of the west and all about venture capital. >> that's what i was thinking too. >> yeah. feels very similar, just the dispersion of money which net net is probably a good thing for the economy at large. certainly on a microlevel, you see what seth was saying about standing out. that's much easier do in different towns. >> by the way, you didn't mention it, is music playing any role in all of this? >> music is obviously key to their culture, their quality of life, their history, i was

surprised to learn that the healthcare industry generates six times the revenue as the music industry. even though they have the highest per capita amount of music jobs of any city in the country. but i think that adds to the idea of why you might want to live here, right? live music and that entertainment aspect makes it a different -- makes it unique among other american cities. >> yeah. carl, we are psyched for you, psyched to watch this program tonight and for the whole series. the next one and the next one and next one. invite us on the road trip. thank you. >> see you guys. >> we'll see you. >> tonight, it is "cities of success: nashville," you do not want to miss it, 100 p0:.m. eastern time. "squawk box" coming right back. ( ♪ ♪ ) ♪ (when the day that) ♪ ♪ (lies ahead of me) ♪ ♪ ( seems impossible to face) ♪

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welcome back to "squawk box." bitcoin surging above $44,000 for the first time since april of 2022, trading platform robinhood disclosing this week that its crypto trading volume up 75% from october to november. joining us right now on the set,

no less, we're seeing him here in person, we haven't seen him in a couple of years in person like this, robinhood ceo vlad tenev. >> it is good to be here live. >> we want to talk about the markets, stocks. let's start crypto. >> 75% in a month? >> off air we were talking about what is going on with crypto. what you're seeing. that's a -- it has been a huge move, but it is also in terms of just straight volume it is a huge situation. what do you think is happening? >> i think there is a couple of things. i think a lot of people have forgotten that robinhood is a major player in the cryptocurrency industry. we do a lot of things, we obviously have done a lot with retirement, we have rolled out 24-hour market for equities. but along this time we had a crypto team that has been innovating, that's been building stuff, and our approach with crypto is to make it very clear to customers that they're getting a great deal on their

crypto at robinhood. we have done a lot of work clarifying how good our spread is, communicating that to customers, and we have seen our market share grow. and i think that now you're starting to notice it as the overall market is growing. and i think we can talk about what is driving that. there is a lot of theories out there, nobody knows for sure, because this is a decentralized asset, but there is optimism around an etf. there is optimism around the rate environment changing, the fed stopping the aggressive rate hikes that they have been doing. and there is also this idea that cryptocurrencies like bitcoin are an inflation hedge. >> how tied do you think your own value, the value of your business, the earnings of your business, are to crypto? i ask because you can see the stock moves as crypto has moved. bitcoin has really moved as a function of crypto.

so how big a component part of your business ultimately is the crypto piece? >> well, our business is much more diversified than the pure crypto companies. so i think we benefit from the crypto markets going up. but also there is certain things that robinhood has that crypto companies that are only doing crypto don't. one example is 24-hour market, and we added over 100 new symbols, we're up to over 200 now. and you saw this last sunday when bitcoin crossed 40,000. the twitter was -- or x, i should say, flooded with robinhood screen shots because people wanted to compare what is happening with bitcoin to what is happening with the crypto and blockchain stocks. and robinhood became the first and really the only place where you can actually not just see overnight trading of these equities, but actually

transacting them. so our screen shot share was quite high. i think that shows the platform, the power of the platform that we're building. >> what percentage of your customers are buying individual names and/or crypto versus buying either etfs or mutual funds or investing in a more stayed way, if you will? >> well, we publish this stuff. i'm sure you all have seen the robinhood investor index where we contract our customers, we also publish lists of the 100 most popular stocks and investments. we have shared in the past that bitcoin is actually the most popular reoccurring investment, so customers that are dollar cost averaging are choosing bitcoin as a part of their portfolio. but i think the question that -- the question between etfs and individual stocks is in some ways the wrong question because

robinhood also pioneered fractional shares. you can invest any dollar amount in any stock ranging from, you know, all the way to stocks like berkey, hundreds of thousands of dollars per share. you can create diversified portfolio using our technology and don't have to have an etf to get that diversification. before we came around, that type of diversification was impossible. you needed a brick and mortar entity like etf to make it -- to make it reasonable for customers. >> when things really get going, and i'm thinking about the meme stock craze, eventually there is going to be another period of euphoria, i guess. do you think the meme stocks will be different? do you think it will be the same names? are they ever coming back, do you think? >> i mean, we work hard to be an impartial platform. i don't really have an opinion on what stocks are going to go

up. >> it will happen again, won't it? >> i think the market goes through cycles. you're seeing that in crypto. i think you'll see that in stocks as well. we have been putting a lot of effort in making sure that we're there for customers when they need us, that we add more features, 24-hour market i think would have been very interesting back in 2021. where so much of the activity happens overnight and over the weekends. >> what have you done -- you say you want to be there for customers. what have you done since the meme stock gamestop phenomenon, we all saw the movie "dumb money," so that situation can never happen again, meaning that a stock on your platform that couldn't effectively be bought? >> we have done a lot. first of all, we have been battle hardened with our infrastructure to make sure we can handle that load.

we had days back in 2021 where we processed 20 million plus trades, 20 billion plus in transaction volume, so we have been battle tested in a way that not a lot of consumer financial companies have been. we have got a gigantic balance sheet. and we have also invested heavily in education and customer support and we have a lot more features for customers to support them on the investing journey. >> is there a different business? we also talked about the underlying business model of how you get paid. is that going to shift over time, you think, or it hasn't? >> it has already. if you look at our revenues in the past few quarters, interest has actually surpassed transaction income as our leading source of revenue. and it actually -- >> because of higher rates? >> it is higher rates, also we had to work to turn the business model into one that is more diversified. that's through the robinhood goal product, you get a 5% apy on your cash, which is industry

leading and that product has been growing very rapidly. it is through things like retirement, the 1% match that we're offering on account transfers uncapped, which has been very popular. this led to robinhood not just being a trading app, but being a business that grows wallet share with customers. >> is that a tougher business model if the fed lowers rates as so many on wall street think it is going to happen in first half of next year or by the first half of next year? >> if you remember, a lot of the initial criticism around robinhood, when we went public, was that we're very effective in a low rate environment when people are buying stocks. but how are we going to fare in a high rate environment? i think to a certain extent we'll probably have to demonstrate to the world that if we go back to a low rate environment, we're still going to be the place where people are trading stocks and that's going to go up, but we're also not static. we're continuing to roll out all of these new products, we're

lunching crypto in the eu, brokerage in the uk, retirement has been going very well. the high yield product, so it is not -- we're not going to continue to -- we're not going to stay still, we're going to continue to diversify and roll out many new products. >> you can't make a recommendation, but would you prefer to own bitcoin right now or robinhood stock? >> i think that's the definition of not making a recommendation. look, i think where we stand is we want to be the platform that allows people to buy whatever stock they want, whatever crypto they want. of course, subject to all the rules and regulations. and -- >> does that mean you're giving people enough rope to hang themselves or do you think that these are all viable -- you wouldn't get into a business if you thought it was going to zero, would you? >> i think in terms of the technology, and -- we believe in the u.s. capital markets, obviously, that's why we're offering -- >> crypto markets? >> crypto markets from the very

beginning, the technology and the ethos behind crypto, we felt that it had the potential to reorganize the financial system fundamentally and put power that was in the hands of institutions back in the hands of the people. and i believe that. a lot of the things that i've been trying to initiate in the equity markets like real time settlement, 24-hour trading, built in fractionalization to make more and more assets accessible, these are things that come for free with crypto because of the technology. and so i think over time, that technology will further penetrate the traditional markets and i think robinhood can continue to be a leader in making that happen. >> vlad tenev, so great to see you in person. thank you. >> thanks for having me. >> absolutely. >> fun to be here. >> you could do this all the time. >> i would love do it more. >> okay, good. >> california.

>> i came from england, but -- >> it is on the way home. >> it is on the way home. great way to break up the trip. >> coming up, bob kraft, and josh rales to battle anti-semitism on social media and america's campuses. we're going to speak to them next. we'll be right back. ♪ the biggest ideas inspire new ones. 30 years ago, state street created an etf that inspired the world to invest differently. it still does. what can you do with spy? ♪

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and m.i.t. testifying on capitol hill yesterday, defending their on campus policies, combatting hate. harvard's president was asked about pro-palestinian demonstrators calling for intefadeh on her campus. >> can you not say here that it is against the code of the code at harvard? >> we raise a commitment to free expression even of views that are objectionable, offensive, hateful. it's when that speech crosses into conduct that violates our policies. >> joining us on-set to talk about the rise in anti-semitism on campus and across the country is robert kraft. he is the chairman and ceo of the kraft gripe and founder of the foundation to combat anti-semitism. also josh rales, the president of the norman and roof rales foundation, working together to try to get at this issue what's happening on campus and, gentlemen, what we just heard is pretty shocking. there have been many other

comments that came out of yesterday but the idea that it's not violating anyone's speech until it actually causes someone to act on it, meaning, until someone's killed, hurt? pretty drastically? what do you think of this, robert? >> well, leadership is doing the right thing. and you can have lawyers around you and people advising you what to say, but people want to know that they got people leading them who want to do the right thing. i'll say this respectfully. i think the people leading the universities are really not trained to be operating people of a major institution. so they have to learn on the job, and they've got staff around them, burt yot you have make a payroll and in life you do the right thing. this obviously was not something

any of us were proud of, the way these answers came. >> josh, what did you think of it, and where do things stand on universities right now? do jewish students feel safe? >> there's a time for moral clarity. i think unfortunately the university presidents failed the task. when you ask somebody if their policies oppose calls for genocide, i think the jewish people -- of the jewish people and they say it requires context, there's just something wrong. jewish people should be able to walk on campus with the star of david and not feel they'll be harassed or intimidated whamplts do you think is driving this own view of this? meaning, do you say to yourself, there is genuine anti-semitism taking place not just among students that are protesting but among the leadership of these

institutions and that they have a particular view, do you think it's a view around freedom of speech that's just so broad, which obviously would be hypocritical in a sense because of other elements of the freedom of speech that isn't so free, where do you think this comes from? >> it's sad. you know, we've realized, and we've done a lot of research, and -- first of all, i think the role of social media in america today is horrible. to see the young people on campuses glorifying the actions of hamas, which is creating atrocities. you know? cutting children's heads off in front of mothers, or -- raping daughters, and whose policies

call not just for eradication of israel but the eradication of all jewish people in the world and infidels and you have young college kids standing up and praising that kind of grouping, it's just off, and we've realized they're getting a lot of false information, and it's coming from social media. >> that's the young people. i'm asking about the leadership of these institutions. where do you think this idea that some of this kind of speech is acceptable to them comes from? >> i think they're in a bit of a bubble. and they've lost sight of our share of humanity in this country. i think most americans don't feel this way. this is what's beautiful about robert's campaign, it's his ads, his message, the blue square, a symbol of unity, of, you know, fighting against jewish hate and hate in general is really

important. >> just progressive left lost their minds. i mean, if you can, as a professor, be fired for misgendering someone and you defend your right to say from the river to the sea, you have lost your mind. that's what a lot of this is coming from. it's seen as a oppressor versus oppressed plays into the entire woke zeitgeist we've allowed to take over campuses the past five years. why not talk about it? that's what it is, and comments from progressive squad, she is the head, the congresswoman that made those comments a couple days ago is head of the progressive caucus. >> well -- >> you don't want to politicize things? how can you not politicize things, when anti-semitism almost seems to be a basic tenet of the woke progressive left

today. >> you have faculty who have tenure who are leading some of this effort, and there's no accountability. i think the whole idea of tenure, there's got to be some responsibility with that, too, and that has to be looked into, but it's so sad what's going on. it's the greatest country in the world. i mean -- >> the weird thing -- >> we would have never imagined in our life we would hear said out loud, almost a possibility of a repeat of the holocaust. >> right. >> the question, say this by the way as an american jew who i think you know how i feel about all of this, but obviously there is a question about whether students should be able -- students or others should be able to debate the policy approach that israel is taking towards either hamas or the

civilians in gaza and how they do that and how that conversations allowed and should be allowed to manifest, and how that relates to some of the other comments about infidel and other things, but you -- >> you go back -- it's a very fine line. >> i say it because i'm sure people will watch this. >> i watched it. >> saying, but what about all of the civilians and all that? i want to acknowledge it. i think it's important. >> but since 1947, andrew. either you believe -- >> you don't have to tell me. >> i know. you either believe israel has a right to its history or you don't. >> for sure. >> that's a question that can be debated. a question about hmsamas. >> saying they thwart a two-state solution. >> black lives matter, weeded out in addition to hamas. >> saudi arabia was coming in doing a deal with israel, and

eventually, i hope, there will about two-state solution, and iran didn't want that. that was their worst nightmare. of course, hamas has been training for this. their leadership lives in luxury. they've been controlling what goes on in gaza, really, and have control of the -- look at -- look at the underground tunnels that have been built, and -- >> josh, do you think you have support of the mainstream media? "washington post" "new york times," tv? do you feel -- >> i think in the area of hate, yes, absolutely. >> how about in the area of just unequivocal defense of israel's right to defend itself and root out hamas? >> unequivocal, i see headlines every day in those papers.

>> and when i read them i go, that, to me, looks like it has a point of view that i -- >> can i jump in here? i don't see the papers -- most americans are good people. what our foundation with the blue square has tried to do is educate feel what's going on. they don't understand that there are only 15 million people, jewish people, in the world. 7 1/2 in america, yet we get almost 60% of the religious hate crime, and if we educate them to this fact and ask them to stand up and help us, stand up -- i think they think the jewish people are strong enough and powerful enough to solve this problem on their own. >> but that why you are putting -- >> our campaign is educating how they can help. why they need to help, and the difference it makes.

90% of americans are good people. they want to do that. >> for gaza's role as fighting is fiercer. not fears for another attack on israel from -- from the east, if this is not taken care of. nothing about, hamas has said, stated, they'll do this again and again and again. that group is still largely intact. so it's going to have to be -- you're going to see that constantly every headline you see will be like this. >> we can't do anything about those headlines, but we can do something and, you know i started this foundation four years ago, and we-it's unbelievable. a little thing. we started this mass media campaign beginning of april. we've had over 20,000 people without solicitation make gifts, $5, $10. most of them non-jewish, and we

now, people do -- most americans are good people. they don't like this hate, and they don't like what's going on, and they want to help. and this is what we see in our foundation, and josh and his family have come in and really stepped up to do something that, you know -- we had a lot -- >> play the long game and sustain an effort to fight this hate, in all forms. in all forms. you shouldn't have three palestinian young men walking down the street and be afraid of being shot. because of where they're from. so it's jewish hate, it's hate in all forms. we have to build a movement which is what robert's brilliance has been and stand up and bring more people in. hopefully we'll have a million contributions over the next few years, and we appreciate the attention you're giving this now. very, very grateful.

>> we were an entrepreneurial outfit that i started, and josh and his family are making the financial commitment. i don't know if you know the story of what they have done. >> i know that you grew up in the tree of life synagogue. >> yes, that's right. >> your parents immigrants? >> that's right. it really hit home and my parents, children of immigrants, and, you know, their folks came to the united states at turn of the century. so many did, in search of freedom, safety, opportunity. >> right. >> we've all benefited mightily. this man -- somewhat of great character and integrity and what a privilege it is for the rales foundation to partner with robert's organization and hopefully we can take it to the next level. >> you know, they committed $100 million conditional on me matching, and so we have a fresh

$200 billion to work at this effort. this is -- this project that we're on is not a two or three-year project. unfortunately, we're going to need it for decades. this allows us to completely be established and make commitments long term and we're going to go out and get another 10 or 20 partners to solidify this. >> thank you both for your time. josh, robert. >> grateful for your time. thank you. meantime, the senate, talk about this now, looking like it's going to take a test vote on funding for ukraine and israel. that's going to happen today, but that vote expected to fail joinings now virginia democratic senator mark warner who chairs the intelligence committee. on the covers of all the newspapers this morning. what do you think prospects are? sounds dire? >> well, here's what we know.

as chairman of intelligence committee i look at the intelligence assessments all the time. vladimir putin believes that the united states and the west are going to get tired and give up on ukraine. we're 21 months into this war. ukraine has managed to decimate up to half of russia's military without the single loss of an american soldier or a nato soldier. we know that president xi in china is following this very closely and if putin gets the green light, then i think that gives an implicit green light to she in terms of his aspirations. so i just can't believe we're going to walkway from this commitment. you know, we'll see what happens on the vote today. if it doesn't go forward, we got to stick at this. iky think of a more hhistoric m than if we walkway from ukraine. >> a political component of it. what is your objection to the

republican efforts as relates to the border? and immigration? and tying these things together? >> i have no objection. i've got no objections. matter of factly -- >> an objection, why we're in this place right now. >> do you want me to respond to the question? >> please. >> i think there was progress made on the issue of asylum. i think enormous progress in terms of changing the standard. i think there have been progress made on the issue around meaningful reforms count me in. the idea, though, that some are saying, unless we get the whole enchilada, so-called hr2. not a single democrat in the house or senate voted for, i mean, that's a bridge too far. that is not a traditional negotiating stance. >> do you, is there any -- >> let's meet half way. meet half way. >> what does half way look like, though? >> half way to me says, let's make meaningful changes in the asylum policies.

th make changes in the approval policies and deal with the border and same time add humanitarian aid indo pacific, but we cannot walk away from ukraine. >> do you sense that there's any movement behind the scenes that actually could take place to have a compromise on that? and -- and on the hr2 element where some democrats -- >> no. i don't -- every democrat in the house and senate has already voted against hr2. >> right. >> we spent three weeks on negotiations and last week i thought we were this close. see what happens today. we can come back to that, but, again, what history will remember, back and forth on this. whether we stood up and stood with ukraine or did what putin said we'd do and just walk away. >> dare i ask what you think the political calculus is or

political ramifications will be for republic and democratic party if this bill does not pass? this will become a major feature, i imagine, of the upcoming presidential election. >> we know president trump has said for a long time he doesn't think we ought to support ukr ukraine. i don't understand why. i know this. history will look back and frankly we'll all pick up part of the blame if we walk away and gish putin a green light. >> how much -- you know, there's an argument to be made that part of a president's role is to bring people across the line, even people that don't want to come with them, across the line. do you think that democrats will get blame in some regards if this does not pass? >> but -- here is -- the question is this. were there meaningful negotiations? absolutely. huge movement?

we already saw that there was, i think, close to a dozen democrats who said that if we went with these kind of border adjustments they would probably oppose it. that would indicate to me there's bipartisan movement. let's get back to the negotiating table, get this job done. >> okay. senator warner, appreciate your time this morning. we will watch this, of course, throughout the day, and throughout the week and months ahead and sure talk to you again. thank you. >> thank you. coming up, breaking topics dating november's adm report when "squawk box" returns.

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welcome back to "squawk box." approaching november's adp employment report. futures now you can see indicated up about 53 points now. on the dow jones nasdaq up 45 and change. s&p up 10. also we want to check out the treasuries in which the ten year hits new lows in yield earlier. not new lows but new -- haven't seen these left levels in month still 4.186%. then i don't know if it was

looked at, gold, did get above 2100. bitcoin above 44,000. goldman trading in a series of all-time highs along with some of the other, i think -- backed often when all said and done yesterday. >> all right. get over to steve liesman with the november adp employment report. steve? >> good morning, becky. 103,000 adp suggesting that private payrolls rose by 103,000 across the united states. against an estimate of 128,000. they revised down a little bit to 106,000, the october report from 113,000. looking at it by sector. 14,000 down on goods. 117,000 up in services. you can see that this is lighter, quite a bit lighter it has been the last several months, than the estimate for non-farm payrolls for friday, which include government and the

private sector. by business size, small biz, stepping back a bit just up 6,000, but medium and large-sized businesses doing well up 68,33,000 respectively. industries. interesting developments here. trade transport and utilities up 55,000. educational services up 44,000. second category stalwart. look what happened to leisure and hospitality. down 7,000. that's been a major addition to employment over the last several months. first decline that i can see for quite a while. manufacturing also down by 15,000. then this is interesting, because of all the data for me some of the best data they have. it's the wage data, and jobs data 5.6% continuing to go down. job changers 8.3%. again, continues to go down. becky, this is overall i think what the fed, what the market is looking for in this march, or

hoped for slower economy that is not necessarily crashing. 100,000 is right in line with what you might expect, given the growth in population, becky. >> all right. steve, stay with us. a lot more to talk about and want to bring in kneel la richardson chief economist and adp. hue would you describe declines seen overall? >> hi, becky. >> or anticipated gains i should say. >> right. i think it's end of an era. if you look at that industry breakdown that steve just walked us through, to see leisure and hospitality, negative 7,000 in the month of november, signifies that the labor market has changed. this sector, leisure and hospitality, was the dominant sector the past two years and took hit of the pandemic. was only 11% of jobs market going into the pandemic, to 40% of losses. it's the reason why we saw

outsized gains and the only sector that showed double-digit wage gains by adp payroll data and did so for 16 connective months. to see that drop in leisure and hospitality signifies a few things. one, not going to see outsized pay growth. two, other sectors of the economy will have to do their part including interest rate sensitive goods sectors slumping this year and, three, small firms that are overconcentrated in leisure and hospitality no longer getting that boost from the sector that had been dominating. in that sense, this is a, it's a shift in the labor market yet again going into 2024. >> how does this match up? steve made the point that, look, the market has been calling for a weaker economy, but not one that necessarily goes into a deep recession of any sort. how would you characterize the

overall jobs market historically in terms how it aligns with the economy right now? >> solid. trending wire in terms of trend. seeing leisure and hospitality go back to trend but still there's weakness in the labor market i don't like. i don't like to see manufacturing slump the way it has even though strike, over. didn't see that big boost come back until late november. there's weakness in the labor market i think is concerns, but overall, big picture, yeah, still on track for that soft landing talked about. weakness, show, that stay top of mind in the labor market. >> steve, interesting point. you made, that this is what wall street has been wanting. yesterday with the report, job turnovers lowest in two and a half years. yesterday dow and s&p closed down anyway. not asking you to make market prognostications but a little weird to see wall street getting

what it wants and to not see big gains on any of that. maybe because we had such a strong month of november? >> you know, becky, the way i look at things is you never quite know when the markets smelled something out. i felt market had a good run, if i'm not mistaken, leading up to that data. to have been a sellful used thing, the question being, the debate, what's the next driver here? okay. let's dial in a soft landing. dial in the idea that the fed is cutting rates. now tell me where profits are going to come from? tell me what's going to grow stocks, get people interested in the stock market? and i am very interested and sure nila is, too, what happens at 8:30? getting productivity numbers and labor costs. unit labor costs lead wages by about two months. that has been a big positive for

the economy, and the question becoming, is it a big positive for companies? are they finding ways to turn greater productivity and turn that into profits? the question, once you get done with adjusts talked about, gets down to nuts and bolts are making money or not. >> nila? >> well, when you look at the payroll data and, you know, making money or not is the key question here. when you look at payroll data, when you see is the premium from switching jobs has never been as small as it is now. the market has loosened up in terms of labor supply. so in that sense, if wages have been a drag to corporate earnings, we're going to see less of a drag going forward. but it does bend the question what is that dominant sector? that's the question i have. because right now we're seeing services still carrying the water for the economy especially education and health care. but what else is going to bring those productivity gains?

these customer, client facing industries are not known tos productivity boosters. that comes from manufacturing, from tech, from information. woo we're not seeing the job gains match those standards for productivity it calls into question, who's making money next year? >> steve, quickly, looking ahead, friday. what's the expectation for the jobs report? >> 190,000. which is still pretty darn strong. i think -- >> it is. >> -- interesting. a number not in line with softer landing idea. still accelerating. i will say adp has a kind of spotty record of hitting the number of the bls private sector, but one thing it did do was, it did signal the downshift in hiring much -- several months earlier. so we'll see if the downshift in the bls follows the downshift in adp. interesting to know. i don't look to adp for the

precise number. look for it more for the trend. trend in adp has been back towards normalcy. >> steve, thank you. nela, you called it. see if this is actually the end of an era. thank you both for being here. coming up, south carolina senator tim scott joins us lead republican on the senate banking committee get toing ready for a hearing today. america's top lenders pushing back against speaker-proposed capital buffers. talk about it with him, right after this. move to the cloud. - so, the question is... - cyber attack! as cyber criminals expand their toolkit, we must expand as well. we need to rethink... next level moments, need the next level network. [speaker continues in the background] the network with 24/7 built-in security. chip? at&t business.

welcome back, everybody. here are stories investors are likely to talk about today. apple is looking to india for its next iphone. the "financial times "reports the tech giant is encouraging battery make es to incries production in india or establish any factories think. 'bleer foxconn moved its production from china to india. and nvidia saying the company is working closely with the u.s. company making sure exports to china meet export rules. that announcement at a seminar. expecting a steep drop in fourth

quarter sales in china because of u.s. restrictions. the ftc trying to stop microsoft's takeover of activision blizzard, believe it or not. antitrust officials expected to tell a three-judge appeals court pam in california today a federal judge was wrong when ruling the $69 billion deal was legal. this is despite the fact that the deal has already closed and eu and british regulators blessed it. coming up, more breaking economic data revised. productivity number, next, when "squawk box" returns.

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all right. get to rick santelli for breaking economic data. what are you hearing, rick? >> productivity, becky. final look at third quarter as i said. expecting a number around 4.9. last look, second look, 4.7. up, up, up and away 5.2% nap is significantly better and once again seems though lately revisions can be large and late in the game, remains the best quarter since the third quarter of 2020 when it was up 5.7%. normally you see better productivity you see smaller labor costs.

not true this time. our last look was down 0.8. sorry. it is true this time. down 0.8. now down 1.02. that 1.02 biggest drop. since it was down 2. down 2% . the last quarter of 2022. a nice drop there. bothhanced on the last look. and trade balance for october. 64.3 billion minus 64.3 billion and that is the biggest going back to -- well, may of this year. excuse me. the smallest deficit going back to july of this year. what's important -- i like to put context here. go pre-covid, becky. biggest deficit we had was in 2018 at minus 55 billion. that was the biggest in ten years going back to '08. deficits have been significantly

larger in a post-covid world and coming down quickly as the number demonstrates. interest rates mostly unchanged after earlier the ten year made a new cycle intraday low yield hovering right around 415. we want to pay attention to the area right around 410, 411. it doesn't mean that's where the market's going to stop or going to be the low of the move. just means works out to a measured objective for the head and shoulders neckline we violated about four weeks ago in ten year note yields. back to you. >> may not move a lot low other than this, but, wow. ten year 4.16 is still nutty to realize how quickly we've fallen. >> yeah. no. it really is quite amazing. look at the adp employment number 103, maybe that goes part of the way to explain, of course, why yields are coming down the second week this level

of year. we know the jolt yesterday was smallest month over month job openings since march of 2021. so we want to continue to monitor all of that as labor in front of friday's big number, because there's very little doubt that job creation is slowing. labor market isn't as vibrant it it was and going to potentially add into this notion that we're getting eases next year. you know, an election year. there's politics involved and really, i think that explains a lot of the movement in markets the last several weeks, that many are pointing to the notion that the federal reserve, election year, going to be on their toes to make sure the economy looks pretty good. back to you. >> okay. rick, thank youage. steve liesman joins us with more. ste steve, what do you think? >> so an interesting story going on right now. if you go back to what happened in the pandemic, you had a

productivity surge, in part because of lower-waged workers among those who lost their jobs, more productive workers remained. lower-wage workers were brought ak back and one of the things that happened, productivity declined and everybody talked about d.c. mize in productivity now a resurgence. i think it's an interesting moment here where we ask ourselves, is this resurgence just a bounceback from decline or something more interesting going on. >> a little a.i., for example. for example, teaching and training new workers brought back on? and if you ask yourself what is the importance here, it is that, i don't know how to put it, becky. looking for a metaphor. productivity is to inflation as perhaps white blood cells are to infections. they get rid of it. if we could be more productive we can get rid of inflation a good reason as rick said with

adp numbers why you have bond yields down again. if we're more productive, it helps the fed do its job without really having to stall or stop the economy much more than it has already. one big wild card in all this is i do see a lot of economists talking about the idea if we're going to have this soft landing, the fed is going to have to cut and cut very sharply. i'm not sure that's in the cards. not sure that's the case right now, but i will tell you that's a lot of people are saying. that the stimulus soft landing will require fed to cut a lot. >> steve, thank you very much. >> pleasure. coming up on the other side of all of this, big banks ceos expected to air criticism on proposed capital rules to ed in washington ahead of that key hearing. we'll speak with south carolina senator tim scott. lead republican on the banking committee, with us route here on "squawk box" in a moment. first, head to a break.yn le

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welcome back to "squawk box" pap look at futures this morning. 91 points higher on the dauer. nasdaq opening higher, 80 points high perp s&p looking to own at 16 points higher. show you treasuries. talking to steve liesman earlier. looking now at ten year.

4.169. two year 4.953 and steve, surprised, just vociferous in the idea maybe they would have to lower rates in '24. the other side of jamie dimon's view of the world. gold prices now, tell what you, digital gold, talking about real gold, right now buy it cost you $2,047. digital vegs, bitcoin, fi that is what it is. bitcoin sitting at 44,000 dollars. joe? >> all right. in just about an hour, ceos from jpmorgan, bank of america, citi group and other financial institutions set to fare before the senate banking committee. this type of hearing usually an opportunity for lawmakers to check in on the nation's biggest lenders. but today the ceos are expected to use the bully pulpit to push back against regulations and larger proposed capital regulations.

joining us, south carolina senator tim scott lead on the banking committee. good to see you in this context, senator. maybe touch on other nagging issues we have facing us, but let's focus on what's going on today. what do you think is the right amount of regulation at this point? what are the ceos pushing back against exactly and do you agree with them or agree there need to be more capital and more regulation? >> the really question we should ask ourselves make sure the american dream is alive and well, healthy for the average person today might be growing up in poverty work paycheck to paycheck. think about the end game. how is a higher capital standard going to make our economy healthy or safer? the answer is, it does neither. therefore, having more regulations will not actually make our economy healthier and will not make our banks safer.

why would we go down a road what i consider a nightmare of regulatory burdens restricting capital in the marketplace meaning fewer loans for small businesses, fewer homes for first-time buyers and a strong challenge headwinds, against the american dream? why are regulators, bank regulators, think responding to a liquidity concern with svb, having new capital standards is the answer or the solution? it's not. they are literally providing solutions looking for a problem. >> it happens a lot, senator. >> unfortunately. >> the -- something happens, sometimes we respond to what caused the last thing when it has nothing to do with what's going to cause the next thing. >> right. >> do you find yourself sort of aligned with the industry? with the bankers and pushing back against your colleagues from the other side of the

aisle? is that what you spend most of your time doing at this point? >> think about the fact that, what has happened under this radical left move to try to make everything safe in america. well, we have higher inflation, which led to higher interest rates, which means we have slowing down of the economy, 2024, i think must slower than 2023. as a result of that, adding new regulatory burd'ses puts more capital on the sidelines. means that fewer americans will access to better jobs, higher income and, frankly, more businesses. all of that will reverse upon the american people, reverse the fortune of a strong economy brought to us through 2017 through 2020 allowing us to weather the pandemic, because we had a strong economic footing. this next year we'll see reversal of some of that fortune we've been able to benefit from the last couple years. if we have more burdensome

regulations, we'll have fewer economic outcomes that lead us in the right direction. >> there must be a left that's just right, though? we know a lot of people say that regulations were too laxed. i don't even know if that's what caused the financial crisis. regulations were too laxed. a lot of factors, but if they aren't strong enough, they bring in a period like that, which then results in calls for much higher capital, much tighter regulations? so it can almost -- there must be a level that's, like, a goldilocks. just right? not too warm, not too cold. >> thinking about the sweet spot. think about 2007 to 2009 and our response or reaction to the economy crisis of that time, between the stress test, made sure that the banks would be able to have enough capital, not to just go through it again, but to go through it, something twice as large as we went through. that kind of capital sitting on

sidelines then you actually prevented the next crisis where the real question is, are these banks too big to fail? my thought. every time you increase regulatory burden beyond what it is today you actually insulate these banks to making more bad decisions, not better decisions. because we have made, not "we," the left made g slips too big to fail. they're looking at creating utilities in the banking sector. that's not good for the american economy and certainly isn't good for the american consumers. >> i think you've made your point, and is it okay if we just talk a little bit about other stuff for a second, senator? >> sure. >> have you endorsed anyone? do you want to do it now? >> thank you, joe. you're a good man and always provide me with opportunities. i'll say the opportunity as i've said when i withdrew from the

presidential race that i will not endorse anytime soon and certainly it won't happen this year if at all. i think we have a field of candidates that will perform tonight, frankly. four candidates on the stage tonight. i hope we have a substantive conversation about the economic realities that most americans are facing. we have more than half the country that has been in an economic crisis or close to one in the last 12 months. we have the highest interest rates creating headwinds to first-time mortgage home buyers. we have small businesses now with, struggling and we have the high eest level of debt america consumers have it perhaps in our life too life. >> the debate has four people that are already probably 40 points behind donald trump. former president trump. so they may talk about that, but i don't know.

does it really matmatter? highlight issues. it anyone have a chance? no votes cast. ought to wait, probably a good idea to wait for that, but -- >> you make a good point. yeah. iowa caucus january 15th, we are five weeks away and will know the answer to the question quickly. i'll say without any question, you look at what the former president's done from the beginning of the campaign to wherever you are now, he has led not only double digits sometimes 50-plus points. i got out of the race because i came to the conclusion that the american people particularly republican primary voters are angry and they're looking for a candidate who will be just as angry as they are. colinas in a way they believe will be in the best interests of this country long term. i think there's a better way. the people have spoken, however. i can see how any candidate catches him right now. >> i don't ever think i've

actually seen an elephant in a room -- i guess in a circus or something -- a common expression. hate to go here, senator, but just, we had former congresswoman liz cheney on and she just, doesn't like any of the bind policies at all. thinks they're all really horrible for the country. and yesterday -- biden policies. she thinks certain things about the former president are disqualifying, and so dangerous and yet, i don't know. seeing talk about want to be dictators and seen some of the rhetoric, and she almost implied that -- any republicans that are backing the former president are almost enablers, either that or getting duped. how should we look at that? how do you look at that? a flawed president better than a president that has the policies of joe biden? >> we're all flawed, number one. there's no doubt that we're going to have a flawed

individual leading our country. that's just called humanity. the question to ask ourselves, what do we want from a policy position and who provides the best future for the average person in our country. number one. number two, i do think character matters. end of the day looking at two individuals at the very least leading both parties who have challenges. i have challenges, you have challenges, joe. the question would be, the american people will answer and answer it definitively, who do they believe will create the best future not for themselves typically but for their kids. 2017 to 2020 we had the strongest economic activity we've seen in a lifetime. we had lower taxes, became globally more competitive. saw lowest unemployment rates for african americans, hispanics and asians. year low for majority population, 70 year low for women are hard numbers to argue with. the same time we saw the republican party lead on providing historically black

colleges and universities with highest level of funding and making it permanent first time and saw us go through a pandemic with the strongest economy, as i said earlier, giving a strong footing. i like our odds and chances of winning back the white house. more importantly, we need to work this social fabric that's unraveling before our eyes. that's not on republicans or democrats. it's frankly on a very progressive wing within the democrat party fermenting anti-semitism and class warfare. we have to get beyond that. i'll spend a lot of mime time next year talking about strengthening the social fabric, making sure education is in every zip code from a quality perspective and making sure that our economy is on strong footing. if we do that as conservatives, we'll have a good future for americans. >> i like your new role.

the old role, maybe wasn't going to be, but i commend you and hope you do, do that and come on on "squawk box" and do it as well, senator, thank you for fielding those questions. it's a very strange time we're in. dangerous time, i think, when i. >> both parties are accusing the other nominee of -- i hear people saying that democracy is going to end on each side uses that term to accuse the other side of what's happening, and it's very strange. the next year is going to be crazy to watch. we hope you have -- go ahead, senator. >> let me say this real quick. having traveled the country for the last eight months, the one thing i can tell you, the american people are strong. we have problems within our government, but the people -- they'll still give you the shirt off their back. they'll go the extra mile. we should have confidence in the future of america, not because of the government, but because of the people. >> very good.

senator, thanks. appreciate it, and good luck today. we'll be watching. >> thank you, sir. >> okay. just a short time ago, "time" magazine naming its person of the year. can you guess who it is? there she is. you don't have to guess too much. taylor swift. taylor swift becoming spotify's most streamed aftertist globally. her record-breaking tour was so popular it broke something else, ticketmaster. potential finalists for the "time" award this year included barbie, former president donald trump's prosecutors and britain's king charles. i would say this is pretty much an easy choice. i don't think it was so difficult. >> the swift economy. >> the swift economy. coming up next, we're going to talk stocks, top stocks to watch as we make our way towards the opening bell on wall street. taylor swift is probably the top

stock of the year, actually. the futures, 86 points higher on the dow. s&p 500 looking to open about 18 points higher. u ay tuned. yoare watching "squawk box" on cnbc. of schwab. bringing you an elevated experience, tailor-made for trader minds. go deeper with thinkorswim: our award-wining trading platforms. unlock support from the schwab trade desk, our team of passionate traders who live and breathe trading. and sharpen your skills with an immersive online education crafted just for traders. all so you can trade brilliantly.

let's check in with dom chu with a look at some of this morning's top premarket movers and good morning. >> good morning, becky, joe, and andrew. we got a few pre-open headliners. we'll start with an earnings report from campbell's soup. that stock is up at this point. just around 20,000 shares of premarket trading volume. the food processor behind its namesake canned soups, also snider's of hanover pretzels. those shares, up. also, a couple of analyst calls this morning. shares of sphere are moving between gains and losses, currently down. this is the live entertainment company best known for its las vegas venue as well as the new york city centric msg sports and entertainment networks. gets upgraded from neutral to

buy. they cited things like profitability trends into the new fiscal year and an expanded slate of new entertainment offerings. we'll end on capital one financial. the banking credit card issuer is up about 1.5%. now up 2%. helped in part by an upgrade by bank of america from buy to neutral. it was $112. they cited things like better customer delinquency trends, relatively low valuations. i'll send things back to you. >> joining us right now -- thank you, dom, for that. talk more about the markets. dcla managing partner. so, my friend, what do you do? you got now until christmas. is there a santa claus rally in the making or not really? >> i think we got most of the santa claus rally in november. and i think now it's time for the data to kind of reinforce or confirm, was that the right thing to do? and andrew, i think the jobs report is going to be really important tomorrow.

i think stocks have reflected that the fed is going to be, at some point next year, cutting. i don't know if that's going to happen sooner than later. i think at this point, it would probably be later. if they do cut, is it going to be for the right reasons? i think you have to be very careful as to what you own in your portfolio, and i think being diversified is really important at this point, and i mean, owning the fab seven is fine, but i think there's plenty of other opportunities, and dom just mentioned something like campbell's soup. we don't own it, but companies that have reinforced what they're earning next year, that have an idea of where they're going to be. there's a j&j or cvs. we talked about it. i think you could be diversified in the food companies. they could be defensive. b budweiser. >> i was going to ask you, are health care companies, in this day and age, given what you heard from cvs yesterday, are

they defensive companies? >> they're defensive if they've told you what they're going to earn or most probably going to earn. they're not defensive if they say, hey, next couple quarters, we don't know what our earnings are going to be. if they have a much better window, they are going to be more defensive. j&j trading at 15 times with almost a 3% multiple. not only are they defensive, they can also have upside earnings growth if things go better, because we always know companies kind of underpromise and try to overdeliver. you can find other opportunities, and when you look at the market overall, you have, you know, almost 490 companies that have done nothing all year. >> okay, but it sounds like you're moving into defense rather than offense after this sort of, we'll call it the thanksgiving rally, i guess, for now. at what point -- >> i would say i'm taking profits from my companies that have done well. i still own meta, but i'll trim it back. same with google.

and i'll deploy it into other areas of the market that have better or equal opportunity. >> but play out '24 for a second, because we are walking into a presidential election year. that's typically, you know, given the circumstances, i think it's -- you can argue, historically, it would be a flat kind of situation. not necessarily some kind of -- there's going to be a lot of uncertainty, i imagine. maybe not. i don't know. and then you're going to layer on the fed on top of this about whether they can "stick the landing" or not, and you got jamie dimon on one end, and you have the market right now on the other in terms of what he's going to do. >> so, that's why i've been saying, get into some of the other stocks that can do well even if the overall market doesn't do well because they have secular tailwinds behind them. that's going to be the idea. you might not get that multiple expansion we got this year. you can own the mag seven but own other things in your

portfolio as well. >> we got to run. always great to see you. appreciate you helping us out through these issues on the fly. right now, dow looks like it would open higher. nasdaq up about 115 points. the s&p 500 up about 20 points. what a show, folks, right? >> that was. that was a lot. >> it was a lot. it was a lot of good. we're going to do more tomorrow. >> how's your readings? >> "squawk on the street" begins right now. ♪ good wednesday morning, welcome to "squawk on the street," i'm david faber. i am live from post nine at the new york stock exchange. jim cramer, he's at amazon's headquarters in seattle. there he is. he's getting ready for his exclusive interview with the ceo of amazon, andy jassy. that will be aired tonight on "mad money." and carl quintanilla, you ask? well, he's in nashville ahead of tonight's cnbc special presentation of cities of s.