good morning, everybody, and welcome to "squawk box" right here on cnbc. we're live from the nasdaq market site from times square. i'm becky quickalong with andrew ross sorkin. joe is out today. it's hump day. here we go. you're going to see right now there are some green arrows across the board, dow futures up. the nasdaq up by 26.5. the major averages all closed at 52-week highs for the third session in a row. it's actually four days in a row of winning streaks, but three days in a row of these new 52-week highs. what you've got is the dow industrials now up more than 10% for the year to date. s&p up by more than 20%. and the nasdaq composite running

away with this. it's up by about 38%, actually almost 39%. the s&p and dow actually rose to their highest closing levels not just for the year but since january of 2022, and a lot of the strength coming from technology. semiconductors closing as an all-time high. let's take a look at treasury yields. yesterday we got the cpi numbers that shook things a little bit. you can see right now, the yield on the 10-year is sitting at 4.189. treasury secretary janet yellen said yesterday she believes the u.s. is on the path to a soft landing. speak at a "wall street journal" conference, she described soft landing as the labor market remaining strong and inflation coming down. she said it doesn't appear that

the 2% target will be as painful for americans as had been previously expected. secretary yelin will be on "squawk on the street" coming up at 10:30 a.m. in an exclusive interview. netflix released viewer data. it's the first of what it says will be regular reports of actors. for the first six months of the year, the top performing program was, drum roll, please, "the night agent," which had over 800 million hours viewed. >> what is that? have you seen it? >> i did. it was a while ago. it's a spy thriller. it was great. it with us fun. it was actually very, very good. now that i see the beginning of it, i'm reminding of all the things that happened. anyway, i won't say what happened. nine out of the top ten titles

were netflix originals. the highest was the movie "the mother" starring jennifer lopez. >> netflix originals, is that different from what we've seen in the past? there's not a lot of other content or is that kind of the norm? >> i'm imagining two things. one is the netflix originals are what they promote because they made it themselves, and, b, most of the others, i think, would have been syndicated. people are repeating it for the first time. you've seen it once. maybe you haven't seen it. i don't know. in the meantime ukraine's president made the rounds in washington yesterday working to drum up support for his country. ea eamon javers has the latest. >> a huge difference.

volodymyr zelenskyy burned manier shoe leather than a capitol hill lobbyist as he worked both sides of pennsylvania avenue looking to shore up support for a massive military aid package. he met with both the senate majority leader chuck schumer and minority leader mitch mcconnell. it presents the biggest obstacle to the military aid he is seeking. a couple want to cupful support, which the pennsylvania opposes. they were cutting this behind-the-scenes video of the oval office hug between biden and zelenskyy during their meeting at the white house and releasing this video on x even before the two men conducted their joint press conference later in the day. president biden announced $200 million in preapproved aid for ukraine, which he acknowledged is short of what zelenskyy was asking for.

speaking in english, he argued ukraine is succeeding in its war with russia and will do even better with more support. >> no matter how he tries, putin hasn't won any victories. thanks to ukraine's success and defense, other european nations are safe from the russian aggression. >> white house officials released some data which in includes aim 9 air missile defense and artillery rounds and other supplies. so interesting to hear him speaking in english, directly addressing the american audience he knows he needs so well. back to you. >> i know it seems not very likely anything would get pass birthday ever the end of the year. i think there's only a few more sessions of congress before they leave for the holidays.

what are the odds that something gets done in the new session once they get back in january or the new year? >> becky, you're exactly right. on the other side of the break, there's a deal to be done here. it's a question of whether the biden administration wants to concede whether it has to deal with the republican majority of the house, which wants a lot of spending on border security and border security measures as part of this deal. the biden administration doesn't like the idea of linking those two things and being forced to negotiate. but there's a deal to be done if they want to do it. we'll see what happens. >> eamon, thank you. eamon javers. >> you bet. nikki haley won a key endorsement last night. chris sununu speaking at a campaign last night in manchester. he said, we're all in, speaking of anyky haley. he was reelected last year. he's popular in the state.

last month he was looking for a candidate to beat former president trump and could connect with voters on a retail level. later this morning we'rer going to talk to ken langone and why he's backing nikki haley. on the other side, mike novogratz is switching candidates. he's been a longtime supporter of president biden but he's goinging to back dean phillips. he think both biden and trump are too old and, quote, we need new fresh people. novogratz will co-host a fund-raiser for dean phillips on saturday and encourages you to give $3,300 to attend that fund-raiser. interesting. >> langone will be sitting down with us for about an hour today. >> we'll hear all of it. coming up on the other side, yesterday's cpi -- is that you?

>> no, it's you. >> -- inflation is slowly, slowly going. come up up next, we'll get the latest. and then as we mentioned, we've got a lot going on in the 8:00 hour, in addition to langone, we're going to speak to virginia governor glenn youngkin. "squawk box" coming back after this. >> announcer: this cnbc program is sponsored by baird. visit bairdifference.com.

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i'm a little anxious, i'm a little excited. i'm gonna be emotional, she's gonna be emotional, but it's gonna be so worth it. i love that i can give back to one of our customers. i hope you enjoy these amazing gifts. oh my goodness. oh, you guys. i know you like wrestling, so we got you some vip tickets. you have made an impact. so have you. for you guys to be out here doing something like this, it restores a lot of faith in humanity.

it's day two now of the fed's policy meeting today and markets are going to be getting another read when the ppi data is released. that's going to happen at 8:30 eastern time. we'll talk more about the state of the economy, the markets, and

maybe more from jay powell. good morning to you. what are you expecting at 8:30, before mu importantly, 2:30? >> i think a third consecutive hold is a given this afternoon. i think the bigger question is what's the path forward. that's going to be the more closely watched piece of the equation. between that stronger than expected report and cpi, i think powell has more rein than he had on the 1st to push back this expectation of more rapid cuts. we're calling for a dot plot that's likely to ujds warm market expectations. i think we see two 25-point basis cuts and i would expect to see a nod to the easing of financial conditions since that november meeting.

>> let's talk about what the inflation sounds like. you're talking two cuts. >> i think there are two cuts baked in the dot plot. we're admittedly the most hawkish on the street. and if rate cuts come in, it's for the wrong reasons. it's tied to the inflation landscape. i think they're going to try to buy the option analyst as part of the rhetoric here this afternoon. >> nerms in terms of the rhetor you're powell, today's not the day to say, well, we're really thinking about easing in to 24 and we'll talk about that. why not say we're going to be verdey data dependent.

you need some of the work to be done for you for the jawboning unto itself. >> i think that's right. the market has gotten over it. i think he needs to lean into a more hawkish stand. i think the suggestion is they'll keep a tightening bias and suggest if they need to hike, they will. it's more about maintaining control and ensuring they've got conf confidence. at this point based on yesterday's numbers, we've got a ways to go before the reality and the easing of financial conditions is problematic for them. >> speaking of that, just on a natural basis, how long do you think it will take to get to 2% from where we are now with the supply chains and everything else? >> i think there's not a major economy barring china that gets to 2% inflation by 2024. our call is 2.8%. we're well by 2025 before we

start seeing the cuts. we think that doesn't play out until the fourth quarter. >> for everybody else who's so-called playing at home right now, how do you see the equity markets reacting as a result of what you were just talking about? >> i think we're reasonably optimistic as we head to the end of the year. i think we're seeing the cuts priced into the market are reflective of bullish sentiment. when we talk to players, they're looking to rerisk. in my eyes, this isn't about contributing to the 45 cuts that are mentioned, rather a deeply rooted belief that warrants those cuts. >> okay. meghan, thank you for all of that. we will see what happens as we said at 8:30 this morning when we get the ppi data and later when we hear from jay powell.

we'll be talking with you a lot more soon. thanks again. >> thanks so much. when we come back, apple addressing several security and privacy concerns for iphone users. we've got the details right after this break. and later we will talk to former economic adviser brian deese about his expectations for today's inflation data, the fed's next move, and the prospects for a soft landing. "squawk box" will be right back. (sfx: stone wheel crafting)

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the feature is called stolen device protection. it will determine whether the phone is at a location not usually associated with its owner and require facial i.d. recognition in addition to a passcode for users to perform sensitive actions. that would include viewing stored passwords or wiping the phone and would require a one-hour delay to change a password or face. it's meant to address a specific scam in which a person friends a victim and steals the phone and turns off theft protections. the new feature will require users to opt in and be included in the software update set to be released in the. coming weeks. i'm sure itwill raise other questions about whether apple not knows where you are, but they're going to be basically telling you the phone is in a place it doesn't need to be. >> with find my phone, we have

other devices connected. >> sometimes you probably leave one and it tells you that one is missing. >> or it was last seen at this hoe indication. >> right. i have my headphones -- my airpods are constantly telling me they're not with me even though they're with me. >> it doesn't work perfectly, but it is kind of a safety check and i appreciate it. >> have you had the air tag track you? that's not your air tag yet. >> no. >> that's interesting. when you get told there's an air tag following you. >> how does that happen? because somebody sticks it on you? >> that's the worry that somebody would stick it on you. in our case, one of my son's friends had an air tag in his bag and we trove for a couple of hours and he was with us so the phone said there's an air tag and i thought who's got the air tag and i realized that. >> i kind of like that. if you're going to release these things that are used against you, you should have the

countermeasures. meantime apple says it will require a judge's consent to give consent to push notification data to law enforcement. it was not formally announced, but it appears on the tech giant's website, and that happened in the past few days. they've got a similar thing going on. it comes after senator ron wyden revealed they had been assessing that which allowed law enforcement agencies to carry out surveillance in how people were using their apps and could in some cases contain private or encrypted content. >> they're being forced to do this. >> yes. >> because apple was always the one saying, no, we're not going to give you the keys. >> right, but now there's a question about the keys and giving access to the keys. elon musk, bloom brg is reporting that tesla is setting to sell shares at $90 a share.

that would be up from 95 last week. they boosted the company to nearly $180 billion and it could be a boon for two mail superior space east coast shareholders, cathie wood and ron baron, reaffirming its 2022 decision to renew the subsidy to provide broadband to rural communities, saying it did not meet any basic requirements. i don't know what those requirements are. interesting. when we return, we will talk to the makers of this wearable ai device. let's take a look at it, about their vision for the future. that's a pretty tiny device. >> it e's super cool, a little controversial. we'll talk about all of that. >> what's controversial about it? >> we'll talk about it after the break. >> there's a tease.

that's tiny. as we head to the break, let's take a look at yesterday's s&p winners and losers. "squawk box" will be right back. >> announcer: executive edge is sponsored by at&t business. next-level moments need the next-level network. enty of ligh. 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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good morning, everybody. welcome back to "squawk box." it's humg p day. so far, so good. dow futures indicated up by 58 points, nasdaq up by 33 and this is coming up after four days of watching this. all the major averages closed at 52-week highs yesterday. the dow goes back to 2022. we can talk more about that a little later. >> okay. i've been very excited about our next guest. our next guests are a husband-and-wife duo.

we have the president and ceo. good morning to both of you. you're wearing the device. >> yes. >> this is potentially depending on what you think is going to happen to the future of wearables and tech, the future of how we're going to interact with technology. you guys are former apple folks. i don't know. can we get the cameras so people can see what we're talking about? >> little things on their lapels. bethany, you can see a little bit because it's silver. >> for those who don't know you, i watched you on ted. the whole internet freaked out. this is a fascinating new sort of way to compute and interact with technology. tell us what it does and how it works if you could. >> yes. it's the ai pin. it works by using natural language. touch on the touch pad and

gesture and is capable of doing just about everything that you can do on a conventional phone with a lot of new things like contextual observers to bring things in. it's privacy first. it's not always recording but doing things on demand. >> is it doing anything right now? >> it's not. it's doing nothing right now. >> it's a screenless thought process. but it's mostly voice. some hand. >> yeah. so the hand is -- it can bring up a laser projection system which i can show you right now. maybe you can get that on camera. >> i see your hand. >> do you -- >> what's that telling you? >> this is a display when you need it. it's capable of doing a lot of things, but it's not something you need because the device is built to be multi-modal. you can use it however you want.

>> like what? tell me what you would use it for. >> just about anything like sending texts or checking it on any notifications you do. >> how would i know without seeing a screen that someone is texting me? >> there's a speaker that's built in and a user l.e.d. >> that's what i want to ask you about. is the expectation that people are going to use this with headphones on or no headphones on? sometimes i'm sneaking under the desk to look at my email. i can't say, hey, siri, tell me my email because i don't want the whole room to hear my email, so how does that work in this context? >> the device is powered by ai os that is powered by a lot of things you could do manually under the table. it figures out who's really important and elevates those to you through a beacon to let you know a colleague or family member is in touch or something urgent has come up.

at that point you can raise your hand up and see what's important. >> why is that better than the watch that apple has out at this point? >> i think the biggest thing here is it's ai powered so it's dot a lot of the heavy listing for you so you engage when it's seriously important. >> seriously if i'm at a meeting it buzzes or something? >> it will ill huilluminate. >> but if i go like this with my hand, everyone can see it? >> we have a personic speaker that is a small bubble of sound that's private for you. you can turn it up if you want to play music to have it be louder but have it be very private just for you. >> like whispering in my ear? >> ron speaks very low. he speaks very quiet.

he can speak to it in a very low voice if you want. you can use bluetooth headphones if you want. >> can i ask you about entrepreneurs and getting into the space as an independent startup operator. >> yeah. >> what gave you the courage to do this? i imagine at some level you have to say to yourks there's amazing technology here, but there's the apples of the world if they try to take what i'm doing, they could. they could put a lot of this technology into their watch if that's the factor they tee sided on. walk us through the thought process about that. >> at the heart of it, wee believe ai is going to drive the next generation of compute, but for you to fully get the power of it, we needed to rethink everything. we don't do apps. there's a burden with having to know that an app exists, downloading it, logging it into your kts.

ai allows all of that to disappear. the way the platform disappears is twith a device called cosmos. we do the heavy lifting. all you have to do is ask and we'd find it for you. >> no apps? >> no apps. it's all about ai streaming experience. >> what's the price point? >> $699. $799 for what she has. >> dare i ask, at that price point, what kind of sales do you have to have for this to be a profitable venture? >> not too much. we worked really hard to make sure we've got that going for us, and our margins is pretty decent on the software side or hardware side. >> it's $24 a month, but it

includes your connectivity, powered by t-mobile. >> i would call? >> yeah. it has a phone number. you can use ai to send messages and craft messages so you don't have to do all of the work. if i can send the message and also get notifications. >> just from a privacy per speck tish, how do i know that you're not videotaping? >> it's a great question. >> it's a great question. we've got something called a trust light. it illuminates. you can see it's on. that's the only time microphone or anything is engaged when it's actually being used. when it's not on, it's not being used. it's something built directly into the hardware so you and everybody else around you knows. if it's overtampered with, the device will become immobile ietzed and you'll need to get it

serviced. >> we believe it should be more transparent than the devices you have today. i'm sitting across from someone. they could be recording with a smartphone. we have no idea. we believe we needed to build something that would be more transparent than the devices i have. >> sure. if i'm going like this, you might assume i'm taking pictures. >> with this one, that's the advantage of the trust light. i can't exploit if e the l.e.d. if i'm recording you or taking videos or photos, you will know. >> in terms of ai, is this your own model or is it on top of someone else's model? >> it's a great question. we have our own model. our platform alongs for any kind to plug into it. it gives you choice ultimately and we'll be able to deploy to

different markets. the. >> they're location-specific, region-specific. >> or domain-specific. >> do you think this is something, such a fabulous product it's an independent product? it's the next apple? do you think you sell it to the next biggest hardware player? >> that's a great question. do you want to take that? >> one of the things we learned when we launched immediately was a huge outpouring from the development community. we know people want an sdk. they want it so they can build experiences from the device and plate form. so, yeah, i think we believe -- >> what is your thought on use for screens in the future?

>> screens are amazing for consumption. if you want to watch youtube for an hour or instagram, you can do that on the phone and it becomes essentially a television. >> do you think most people have both? >> i think what we see a few years from now, this device is able to control every other device you have and you can commandeer that. if you want to sit in front of a television and watch something, this is driven by that. you're building an ai model for yourself that knows what you do and what you like and it's completely secure. >> you don't think that -- there's a world with screens. unfortunately i think we're going to be addicted to the screen forever. >> i think you can't escape screens. you don't have to have a screen to use computers. you can use a new kind of info

system to drive everything you want. >> ai takes the heavy system away. today they feel a little bit like a burden. that's a lot of manual effort you have to put in to drive the counsel computer. >> here's what i've wanted since "devil wears prada." have someone whispering in your ear. it hooks up with a contact list? >> yes. we made a decision in the beginning we're noipg goep to have that. right now our disease collects memories. >> who's the person i met at pebble beach in 2017, the one with the three daughters who all play volleyball? i can say that to it? >> yes or will i be in new york on this day, where was i on this

day? as long as you ask the system to remember things, you corecall it. >> it's pulling everything off of guy mailmail or what -- >> right now you sync whatever you use. we're going to be adding more account support over time, so we'll be connecting eventually into mail and other systems so you can pull additional data over. yeah, you lock into your account and get the data that way. >> how do you secure privacy from that per specspectivepersp? >> i think it's always improving over time. we'll always have security

measures. in terms of securing your data is another piece as well that's always something we're working on. atz you saw from apple today, there's always going to be people who are going to try to exploit that, and you jufrts have to stay ahead all the time. >> one of the things with our device, if someone takes its off of you, it locks and someone needs a passcode. >> how do you know? >> youm have a setting. rm we set it as a default. >> passcode oughtable? audible? >> we use the laser. >> use the laser. i don't know if i want a face recognition. call it the bill clinton feature. he knows everybody's nalts. the asus tamts feature. >> yeah, that's what i meechblt

devil wears prada. >> thank you so much. >> appreciate it. when we come back, winners and losers in the retail sector ahead of the final holiday shopping push. that is straight ahead. and a reminder for you, you can get the best of "squawk box" ua our daily podcast. sqll squawk pod on your favorite podcast app and listen any time. we'll be right back. >> announcer: this cnbc program is sponsored by baird. visit bairdifference.com.

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welcome back, everybody. vertex released a result on its experimental pan pill. angelica peebles joins us right now. good morning, angelica. >> good morning, becky. vertex says their pain pill has succeeded in a stage two twiel. it's a type of nerve pain that people with diabetes has developed. they're studying the pill while we're expecting rulgts from that early next year. stocks are up 2% premarket. this is something investors have

been really excited about. this is such a big opportunity. there's so much excitement and so much need for a nonopioid pain pill. >> the reason for that, it's not addictive. it's a much safer situation? >> that's the idea. of course, that needs to be proven out, but the science suggests this would not be addictive. it works differently. it doesn't work in the brain like the opioids do hopefully it will provide some of that same relief. >> when you say it has to be proven out, that's what it's designed to do? >> it will look at how efficacious it is. i don't know how they man to look at whether it ee addictive or not. again, the skriep activities don't think it should be

addictive. >> do you know what the mechanism is? >> it's called a sodium channel blocker. that's where the pain signals run through. so say you have a paper cut and then that pain signal goes up to your brachbl the idea is by blocking the channel, you block the signal. there's a few different types. this is now the 1.8. that's the idea here. it's not actually in the brain near those addictive centers where the opioids work. >> very intereinstg. angelica, thank you very much. "squawk box" will be right back.

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walmart named as the best idea for the retail sector in 2024. the firm sees walmart as a retail tech leader with strategic investments in e-commerce, digital advertising and a.i. not what you normally think about when you talk about a grocery store. joining us now is the author of the report, oliver chen, td kalyn's senior retail analyst. this is pretty interesting. everything we just talked about is not what i would have thought of for a retailer just ten years ago. >> yeah there is a rell tug of war here. revolution happening with artificial intelligence, digital

advertising and marketplace models. the future is the platform that really incorporates all three of these things. digital advertising is a very hard margin effort opportunity. it is an $80 billion market growing at 17%, and walmart has a lot of room to grow. it is only 1% of sales versus 70% to 80% at amazon and google. >> they have been getting into the digital ad division for a number of years. i was surprised when i first heard about it. kudos to the walmart management team for seeing these things and trying to move in new directions. >> executing across all these buckets is complicated, but curb side pickup, omni, thinking about all of these interactive choices for consumer, walmart's really advanced. also adding lots of products in the marketplace model, that's great too. as we think about artificial intelligence, it will profoundly impact merchandising, inventory and labor as well. and walmart is well on its way

to doing this. >> what do you see it doing in terms of not requiring as much staffing to do things they're doing right now or doing different things? >> certainly that's true in terms of repurposing staffing and robotics and microfulfillment. that's very important for pick and pack. as we think about merchandising, greater full price selling, raising full price selling by 5 percentage points can impact eps by 5% to 10% or more. finally, inventory, there is excess inventory with safety stock. as you get the right stuff at the right place and the right time, you can have less inventory and raise return on invested capital. >> it seems like a little bit of a treacherous path to pick this as your best stock as we head into potential recession. people are looking for that to happen this year. is this your best stock among all retail names? is this your best stock overall? how does that work? >> it is our best stock overall. we see walmart as a defensive play as well. keep in mind that it is the biggest growth serve. it is focused on value. at the same time, general

merchandise has been bumpy. the consumer is facing inflation and the consumer confidence level is volatile. so, we think walmart is well positioned in that it is every day low price value in addition to being this technology opportunity too. you get defense and offense. we like costco, but walmart is our top choice. >> walmart coming in on this, you're anticipating a recession, one that will drive more customers to walmart where they're trying to -- >> they had great momentum with traffic. what we are seeing is disinflation or deflation. so the next year we'll be focused on unit growth as well as conversion. walmart had great momentum in traffic. i'm optimistic for the consumer. why is that true? the consumer still has spending power at 3.7% unemployment. nominal wage growth is growing above inflation. but the consumer rapidly shifted away from general merchandise and walmart is navigating this well. 60% of walmart is food, though. >> right, but that's a much

lower margin business. >> it is. >> just the idea. we had bank of america on yesterday from the bank of america institute, just talking about how people are still spending on services, but not on goods. that's where they're cutting. >> they are cutting. that shift is happening. but walmart doing digital advertising, it is a very high margin business. thinking about the future in this new nexus, there will be have and have-nots with a.i. and others. that will help margins in the long-term. we're modeling margins to go up 4% to 5%. >> you mentioned you like costco too. does it have the same a.i. factors going for it? >> costco is earlier in the journey. the big takeaway for costco is it is a membership model.retent happy customers. back to the basics with costco but very much improving mobile experience, rapidly improving. the kirkland brand is legendary too. >> you haven't mentioned amazon. is that in your universe? is that things you cover too? >> we don't cover it, but what we do admire aboute eamazon is w

it has done a good job with digital advertising and a pier in in artificial intelligence and this company innovates. as we think about walmart, healthcare, fintech, the whole ecosystem will be important. >> can i ask you, maybe a curveball of a question, we talk about amazon all the time in the context of antitrust and what the government is doing and what the government thinks of the power and influence that amazon has over everybody else. given that you can see -- you watch consumer and consumer behavior. do you think amazon has some kind of unique lock-in to its consumers that is either unfair or is able to influence pricing across the entire retail sphere or not? >> well, we're excited about sellers having other options and other marketplaces such as walmart. what amazon and walmart will try to do is really conquer fulfillment as well and the whole value chain. what is happening is great alternatives, target has a marketplace too. and both of them will focus

on -- >> unfair for amazon or one of these places to have -- they're saying we need to do the fulfillment ourselves because then we can guarantee the customer is going to get the product in two days, rather than using, you know, third parties and the like. >> yeah. >> is that a plausible argument or not? >> the name of the game is getting goods as fast as possible to consumers. on walmart's side is using stores as fulfillment centers and amazon is a brilliant supply chain entity. so, that is what everybody is racing to do, robotics and a.i. will be a big part of the future. we believe in bricks plus clicks. we believe in the physical stores and the journey ahead for amazon will likely include more grocery, more physical. >> okay. >> oliver, thanks for coming in. >> my pleasure. happy holidays. >> you too. >> news just out. the stock pfizer, this is getting hammered right now, updating its full year guidance in the wake of the acquisition of cgen which expects to close

this week. it sees full year 2024 revenue in the range of 58.5 to $61.5 billion, which includes the expected contribution from that acquisition, but that is below estimates of $62.7 billion. sees full year 2024 adjusted eps now of $2.05. expected operational growth of 8% to 10% of revenues. angelica pupils is running through the numbers and will join us in a couple of minutes. you can see that investors are running through the numbers and that stock is down nearly 8% right now. we got two big hours ahead. "squawk box" will be right back. >> announcer: squawk picks is sponsored by wisdom tree, the modern alpha pioneer.

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. good morning. futures ticking higher and more inflation data is on the way this morning. we have got a look at what's moving in the free market straight ahead. the fed's decision on interest rates. what investors should expect when jay powell speaks. will there be a hint at when rates could start to come down? we'll hear from former national economic council director brian dietz. plus, the china select

committee issuing its blueprint for economic relations with china, including increased tariffs and restrictions. we have the details and two members of the committee as the second hour of "squawk box" begins right now. good morning and welcome back to "squawk box" here on cnbc. we're live from the nasdaq market site in times square. andrew ross sorkin with becky quinn. joe is off today. a lot going on. the futures, we should show you where pfizer is sitting. the dow up 50 points. nasdaq up about 40 points. s&p 500 up about five points. meantime, treasuries, you think about the ten-year and the two-year, right now the ten-year at 4.179%. the two-year, 4.176%.

oil, crude looking at $68.83. now meaningfully under $70. see whether that translates to the pump. and criypto, risk on, rick sk o what jay powell is going to do next, $41,000 and down from high of $44,000. >> it is a big day for the markets with more inflation data coming up at 8:30 a.m. eastern time. and then the fed's decision followed by chairman powell's news conference later this afternoon. our senior economics reporter steve liesman is in the middle of all of this and joins us from washington this morning. steve, good morning. >> becky, attention at the fed meeting will focus to the extent at which the fed and jay powell push back or affirm the market's expectations for rate cuts next year from the current level of 5.38. they're going to look to a fresh set of fed forecasts and the policy statement. the fed had a bias to hiking its statements since it began raising rates in the spring of

2022. the current language says in determining the extent of additional policy affirming that may be appropriate to return inflation 2% over time. before the fed ever cuts, it is going to shift to neutral. those words come out of the statement. likely to stay there today. c p.i. yesterday showed little new downward pro burress. less pressure on the fed to make that shift. fed officials signaling a hiking bias in the forecast. 12 had seen an additional rate hike this year. that's not going to happen. 13 cuts from that level of 562 for 2024. most saw steady progress coming on inflation. on average, fed officials forecast 50 basis points of cuts next year but saw some them as high as 6, some as low as 4.38. no shift to neutral yet despite what the market may want, but large gaps between hawks and doves for 2024. some might acknowledge the fed has to cut or risk growing too restrictive.

big question about whether the chair does that. a higher for longer consensus where even the doves will see a restrictive rate for next year and likely into 2025. eventually maybe early next year the fed makes that shift to neutral saying it is confident that current policy will bring inflation down to the 2% target, but just not there yet, whatever the market may think. so the market sees sout springt cuts. >> so, steve, obviously what we heard from the cpi will have an impact on how they're thinking about things. what are the expectations for ppi today? >> so, the ppi today has become more important. there are differences in how the fed's preferred inflation indicator, the pce and the ppi are calculated. a lot of the differences can be seen in the producer price index and so when we look at that, we get a better idea of the fed's preferred inflation indicator.

might show a little additional progress in part because we look at business profit margins in the ppi that fold into the pce number. it is a lot of acronyms there. that's one big important factor today as to whether or not we get a little more dovish signal from the inflation numbers. but i just don't think it is enough. the market is where the market is. it is going to forecast and the market may be spot on right. it is just that i don't think that powell, where the fed are in a position yet, to acknowledge where the market is. >> what is the expectation? >> the pce expectation, i just got to look that up, one second here, becky, it is right at the top of my thing here. we're looking for this morning, here it comes, 0.1 on the producer price index and 0.2 ex-food and energy. 0.2 ex-food energy and trade. those numbers should be pretty good showing the inflation rate is not increasing, but still

some inflation in the economy. especially in the goods area, where we had disinflation, it is the service sector i believe powell is going to pound again today, where he's not seeing the progress he needs to see. >> yeah. that's what we saw in the cpi yesterday. steve, thank you very much. we'll see you later. meantime, for more on the fed, want to bring in our next guest, brian dietz, an m.i.t. innovation fellow. brian, let's talk about the fed, and the economy, and let's talk about the politics of it, if you will. first, to the jay powell of it. what do you anticipate and expect and if you could take us into the mind, given all the conversations you had with him over the years, of what you think he's thinking right now. >> look, i expect the principle mantra that will come out of the fed and that is in chair powell's mind today is patience. i think he's going to want to

signal an ongoing willingness to do what it takes to see through this transition. and to not really move and not appreciably move in any way. i think the issue and practice as you're seeing the market increasingly absorb these largely positive data, positive data on inflation, positive data on labor market resilience, and start to make its own judgments about 2024. i think for the purposes of this meeting, and for communicating, i anticipate a somewhat stoic effort to try to stay where they are, stay where they are and reinforce this notion of patience. >> do you think that the fed and jay powell talk about, think about, consider the price of financing our debt and deficit? meaning at these rates, obviously an increasing portion of the tax base, the revenue is being used effectively to pay interest? it is going at some point to

become a demonstrable problem if it isn't a problem yet. is that something that you think he considers, doesn't consider? >> i think that their focus is squarely on the price stability mandate and the employment mandate. so i think their near term focus is on trying to understand and interpret where the inflation data is going based on what we're seeing and what we know. and frankly, i think on that front the data has been improbably good. we have seen all of the requisite elements of a soft landing come together, not in some future date, but in terms of where we're actually experiencing in the economy right now. so, i think in the short-term that is their -- that is their focus substantively and i think that will continue to be their focus narratively as well, how to continue to maintain these conditions in the short-term. look, the fiscal challenge is operate obviously in this

context. but i think that, you know, principly, cook for gocongress role to play here. >> let's talk politics. the political question of where our economy is, we keep getting relatively good numbers, but i wonder whether those numbers translate into feelings about the way the american public feels. if you look at the polls, they don't suggest that the american public looks at this president, this administration and thinks that the economy is doing tremendously well. you can look at some of the numbers and you can make that argument, but it doesn't translate. how do you think about that? >> well, look, it is an important question, but before we get to the politics, it is important to reinforce the substance here, which is there has been this view and a lot of people put a lot of money behind it there is an inevitable

recession call in the economy. and there has been a lot of money lost and a lot of people's viewpoints up ended here. in part because you missed what has been happening at the household level. and this connects to the politics, which is, you know, over the last year, it is striking, we have seen an almost 30% increase in real personal savings. so this notion that the american consumer was just going to run out of steam eventually and we just needed to see and track when it would run out of steam missed the reality that over the past year household balance sheets have been strengthened because real wages have turned positive. that goes to the politics. people are obviously expressing their sentiment today. and i think it reflects the reality we had in enormous inflation shock in the economy, and that is going to take time to work through. there is evidence and there is research that suggests that you have to -- that shock has to subside and get through the system, but i think if we operate for a couple more quarters with inflation in the

zone that it is now and continuing to come down, with gas prices now in most cases falling to at or below $3 a gallon, with the stock market performing the way that it has for the last several months -- >> do you think -- the president, when prices go up, you look at the gas pump and you pass an exxonmobil station, and you see the price up, people blame the president typically. when the price comes down, do they say, oh, i'm going to applaud this or no? >> well, look, having been in the white house and navigated through the period in the wake of russia's invasion of ukraine when the price of gas went up and hit $5 a gallon, i'm very sensitive and aware of the dynamic that you're describing. i think overall we know two things. one is, perceptions of the economy have gotten increasingly polarized along political lines. and so when you look at that polling around sentiment in the

economy, one of the things that it reflects is the increasing polarization we're seeing everywhere and we see reflected in that data. number two, we do know historically that as economic data improves, it leads to improved sentiment and in general the incumbents benefit from that. in this particular case, the biden administration, the president have a very good story to tell about hard decisions they made that have helped to lead to this economic outcome. but i also think that we're going to need to continue to sustain this period of real wage growth and moderating inflation for a period of time so that people actually believe and reflect and start to rely on it in their lives. >> brian, we got to leave it there. thank you. wish you a happy holidays. look forward to seeing you again soon. >> thank you. all right, coming up, if you are planning to shop online and try to get a gift under the tree in time for christmas, today may be your final day to get it.

what? we got the details right after the break. i got some shopping to do in that break. plus, paramount is considering further cost cuts and a potential sale. we will take a look at how a deal could reshape the media landscape. "squawk box" will be right back. >> announcer: this cnbc program is sponsored by truist securities, experience, expertise, execution. -no problem. so what are all those for? uh, this lets me adjust the base, add more guitar, maybe some drums. -wow. so many choices. -yeah. like schwab. i can get full service wealth management, advice, invest on my own, and trade on thinkorswim. you know carl is the only front man you need. (phone rings) oh, i gotta take this, carl. it's schwab. schwab. (feedback rings) have a choice in how you invest with schwab.

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news out moments ago from pfizer on guidance for its earnings coming up. cnbc health and pharmaceutical reporter angelica peeples joins us right now with more on that. what do you see when you look through the guidance and the numbers they're issuing. >> good morning, becky. the covid vaccines and the antiviral pill that pfizer makes is really the cause here of this weaker than expected guidance. pfizer is saying for next year they expect earnings in the range of 205 to 225 a share. and that compares to 317, the current consensus estimate. meanwhile, revenue will be between 58.5 billion to 61.5 billion. and that compares to the estimate of 63.17 billion. so those numbers much lower than what the street is expecting. and the big difference that i see is that pfizer is saying that they expect about $8 billion from their covid vaccine

and their antiviral and the street is expecting about 14 billion. so that's a big difference right there. and they're saying that next year they expect about 3 billion in sales. from the acquisition of seagen, the cancer company that they're acquiring. they expect that deal to close tomorrow. that's why right now pfizer is announcing the updates. they have a call later this morning. we'll be on that to hear what else they see from some of the other products. but that's what stands out right now. >> that is a big hit for a stock that has not looked pretty all year. looking right now at the climb of 6.5%, for three months, down 21%. if you go back further, a drop of 50% from year to date. >> they can't move past this covid story. as much as they're trying, this is the narrative right now. they're trying to get investors to focus on the seagen acquisition, as well as some other new products they have

launching or that they have already started bringing to market. but, this just remains the story and so we'll have to see what they say today about other products and what they're seeing there. but, again, it is all about covid right now. >> angelica, thank you. >> thank you. meantime, if you are planning on shipping on santa's sleigh, you better finish shopping online today. cnbc's retail reporter courtney reagan joins us from -- >> that rhymed. >> what did you say? >> that rhymed? >> it does. what do you got going on there? are you doing your shopping right now? >> i need to. i have a reminder, three or four things i have to buy today and get shipped out. i can't believe it is already the deadline. what is it, the 13th? >> i know. frankly you're running out of time if you're still looking to order online today. you might not have heard of ship bot or been familiar with them. but chances are you probably had a digital order fulfilled by this third party logistics company. they work with thousands of

retailers and brands like target, lowe's, macy's, major marketplaces and even social media sellers. and today is the cutoff here for ship bob. many of their clients to get guaranteed delivery before christmas. it is expected to be the company's last big day for orders because sales do usually slow after that standard shipping cutoff date. deadlines for the most affordable domesticshiping options from the major shippers like fedex, dhl, u.p.s., usps might get to you by the holiday, but it might cost you more because all of the delivery cutoffs are also this week. so that means that these omni channel retailers, those with two-day shipping options are likely going to be the biggest beneficiaries for the last minute shoppers. walmart, target, best buy, are really pushing their buy online, pick up in store curb side or delivery from store option. for store-based merchandise. and that goes up until the evening hours of christmas eve.

they do usually see usage pickup for those programs here in the final days before christmas. and you got amazon and walmart that offer free two-day shipping options for some of their membership programs on some of their items. walmart shipping cutoff has december 21st for a number of items to get there before christmas. amazon added a new arrives before christmas feature on its search and product pages to help you out. and then, of course, you got a lot of retailers using this week's expected delivery and shipping cutoff dates to sort of push more promotions and more sales events. so maybe you'll get a deal, but you got to act pretty fast. back over to you guys. >> this feels earlier to me. the 13th, that's 12 days before christmas. and i feel like you used to be able to order the 16th, 17th, the 18th before they started putting the deadlines on some of these things. has shipping gotten worse? i'm still waiting for some packages that i paid expedited shipping to get and they were supposed to be here by monday or

tuesday, still haven't arrived, my stupid christmas cards. nobody is getting a christmas card this year. >> i know. i'm in the exact same boat as you. it does seem like there are bigger bottlenecks in the system. even if we weren't aware of it earlier. i think the volume of packages that are going through the system is part of it. also, remember, the way that christmas is falling, you got christmas eve falling sort of on the weekend, right, on the sunday. so that is impacting some of it. i think a lot of it has to do with volume. i'm still waiting on my christmas cards. i placed some orders over black friday that still haven't arrived. >> same. what the heck? >> i know. >> this is the one thing that will hurt online shopping. it is so convenient, so great, but you hose us on these things and i'm not trusting you next time. >> absolutely. and i think that is part of amazon's competitive advantage because they started to condition us for this fast shipping option. now it is really what we expect

from all retailers, but really, really tough to follow through on that, especially this time of year with the packages going through the system. >> i used the same shippers, the same places year after year, i have not had the same experiences. i'm wondering if this is a cutback from places like u.p.s., from, you know, from any of the fedex places. because they used to be a lot faster too. is this repercussions because of cutbacks post covid, cutbacks after, you know, worrying about being able to make their profit lines? it does not feel like things are as quick and as reliable as they used to be. >> i totally agree with you and we really haven't gotten super straight answers on that other than talking about the busyness this time of year and the volume. but it definitely seems like there is something more to that. because this is always the busiest time of year and there is always a pickup in volume. at least relative to the rest of the time. but like i said, yes, today is

the cutoff for shipbob and many of its retailers, but also dhl and fedex and u.p.s. and usps either today or in the coming days this week. so something is going on, right? >> i think so. anyway, courtney, thank you. we'll see you back there from throughout the day too. when we return, is sharon redstone weighing a sale of paramount. we'll discuss the media landscape next. "squawk box" will be right back. >> announcer: now for today's aflac trivia question. what year was the s&p 500 index created? tus. nswer when "squawk box" rern coach saban, this goat done 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!

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and now the answer to today's aflac trivia question. what year was the s&p 500 index created? the answer, 1957. more drama building around the future of paramount global. the company is reportedly considering layoffs to rein in costs. there are also multiple reports about the studio being up for sale and that decision could be up to shari redstone who controls paramount through her family holding company, national

amusements. joining us now is rich greenfield of light shed partners. rich put out an interesting note on this, all this smoke, is this fire or is this really just wishful thinking? what is the answer? >> i think it is very hard to see any strategic buyer. you think about where we are in the media landscape right now. you got a bunch of companies that are, you know, have working off their leverage, take a company like warner bros. discovery, and you look at sort of how their share price even with all the cost cuts from their last merger has really not led to shareholder value. stock is probably down 50 plus percent from when the deal closed. i don't think they're in a position to buy more cable networks. that's the problem. everybody as you said would want a studio. who really wants to own more linear tv cable network broadcast networks? that's not an asset class that people are excited to buy. between the lack of interest of

strategics, combined with the regulatory environment that probably would make it difficult, especially in a presidential election year, you're sort of left with financial buyers. and then the basic question is if you're a financial buyer, looking at paramount, what would be the urgency to buy right now? all signs point to a tougher ad market, we talked about cord cutting on cnbc with you all many times before, that's getting worse. what is the urgency to step in and buy paramount now? it doesn't feel like there is, like, this feeding frenzy like -- there is no bidding war. i think it is a question of at what price can a financial buyer earn a compelling cash on cash return and my guess is the stock would have to be meaningfully lower for that to happen. so, i do believe she'll sell the company, i just don't think it is going to happen anywhere near where we are today or anytime soon. >> when you say anywhere near, you mean anywhere near the stock price with the premium built into it? >> correct. i think this thing has to get -- for a private equity buyer, if you're -- if you're trading

paper, and this is simply a stock merger, with substantial cost savings, it could happen here, it could happen higher or lower. there is a wide array of possibilities. but if you're talking about private equity, you know, actually putting cash, like paying out cash to either buy the parent company of paramount, which is national amusements or buying paramount directly, private equity firms need real return on capital. they need to see how they're going to make a true cash return. and i just think at this type of valuation, knowing what is happening to the earnings streams of this company as well as the broader sector, this is not paramount specific, you had bob iger talk about the challenges of linear legacy media assets. this is not unique to paramount. they may be in a worse position but this is industry wide. i think it would have to be meaningfully lower for a private equity firm to get a compelling return on our map. >> you bring up iger. iger said in july they were

going to be looking at the potential sale of assets, getting rid of some things, momove ing around, didn't seem like there were any buyers coming up for those, so they changed course. you got an interesting theory though, just the idea of paramount plus, the streaming losses that exist, you today say they should shut it down and just become an arms dealer basically. >> it is not even just me, becky. we had that view for a while that paramount is just -- they were too late, and they're too small in the scheme of total engagement. maybe they could narrow it down to a much smaller streaming service, but trying to sort of compete as a global competitor to netflix and amazon prime video i think is just too difficult. and i think if you look at sony and how much profit they make by just being a pure arms dealer, there is probably a model where paramount could scale back paramount plus dramatically and not just our view, we were out in hollywood a couple of weeks ago, there is nobody that believes paramount plus should be an ongoing business.

everyone believes the first thing they would do if they acquired this company would be to shut or scale back dramatically paramount plus' ambitions. the open question is, if everyone believes that, what is stopping the company, especially if their balance sheet is getting, you know, stretched a little too thin in a very difficult market environment for levered companies? >> rich, can i pick up the conversation, i don't know if you saw the netflix news about programming on netflix and how many hours were watched, what were the highest rated shows, what was the takeaway for you from that, in terms of the scale and scope of what they're doing and how do you think that really compares to what you're seeing taking place on linear television, other parts of digital, and the like? >> look, two things stood out. one, there were movies that i don't think, you know, we all know that netflix has big massive globally watched tv series. i think people have always sort of been skeptical about the movies. we hear a lot of people say, oh,

you put movies on to netflix because they're crappy movies, movies go there to die, nobody cares and then you see a jennifer lopez movie watched by 125 million households globally, you know. that is more households than any movie other than "barbie" and "super mario." you didn't pay an incremental fee like going to a ticket, but the reach of how many people saw a j. lo movie that i don't know if you saw it, i never even heard of the movie "the mother" but it was seen by 125 million households worldwide. >> i watched it. >> it is stunning how big movies can be on netflix, despite not having the cultural relevance and so i think that's something for everyone to think about is does a movie have to have the zeitgeist of being in a theater or can it just be a quote, unquote blockbuster even if it is not talked about the way you would talk about a "barbie". that's something i don't know the answer to. it was stunning to see those

numbers. and then your second part of your question, just seeing how big the overall scale is, my guess is netflix now knows nobody else can put out these numbers. if disney, bob iger, others, like paramount plus, for instance, they can't put out these numbers. you would see how tiny the viewership is on a relative basis. and it would substantially favor netflix competitively. >> rich, thank you. appreciate your time. >> thanks. coming up on the other side of this, your premarket movers and what fed chair jay powell may say about rate cuts. meantime, the house china select committee releasing a bipartisan report to call for a reset on the u.s. china relationship. nearly 150 recommendations. we're going hear from china select committee members, mike gallagher and have that conversation in just a minute. [ "i'll be seeing you" by the five satins ]

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welcome back to "squawk box." i'm dominic chu with this morning's premarket movers. we'll kick things off with

headline news driving e ing the premarket action. tesla, around 700,000 shares of trading volume, the electric vehicle giant is recalling nearly all of the vehicles it sold in america in order to fix an issue with tesla's so-called auto pilot system. regulators at the national highway traffic safety administration or nhtsa say they were not enough controls in place to make sure drivers still paid attention when the driver assist features were being used. tesla is going to deploy an over the air software update pushed out to all vehicles that will provide controls and alerts to encourage drivers to remain engaged while using those features. over 2 million cars are affected including models y, s, 3 and x made between october 2012 and december of this year. a couple of analyst calls this morning. general electric is moving between gains and losses modestly so on thinner premarket volumes. analysts at bank of america are naming it a top pick in 2024 with industrials. they're forecasting ge to have the fastest earnings growth in their coverage universe powered

along by rising profits in aerospace and fewer losses in renewable energy. so those shares down .2%. and we'll end with consumer finance shares of capital one financial and allied financial higher at this point premarket. analysts at morgan stanley upgrading both to equal weight, underweight before. capital one's price target bum upped. they think trends are peeking and could slow down next year. and ally, up to 31 bucks from 23. they think interest margins have run its course with the fed rate hiking cycle at or near an end. capital one up half a percent, ally financial up. back over to you. >> dom, thank you very much. for more on the markets as investors wait for the decision on rates later today, i want to bring in cameron dawson. just watching the markets, four days in a row of gains now and all four of the major averages at their highest levels for the

last 52 weeks, you think the market is starting to feel a little overbought here? >> yeah, if we look at measures like the rsi, clearly we're now in overbought territory. what is interesting is we got there back in november. but we were able to digest that with time. so being overbought doesn't necessarily have to be a very negative thing. but it is important to note that we have moved very far, very fast to the upside. one of the things we're watching very closely is we move into '24 is if markets remain strong, we continue to drift higher, where does that leave us on things like positioning and sentiment? we're in areas where positioning is overweight, but not extreme, sentiment is optimistic, but not yet extreme. but we are nearing those areas and likely that could become a very important watch item for 2024. >> does it feel like there is a little bit of fomo out there, fear of missing out as you get did to the end of the year and things keep melting up? >> i think certainly. one of the things this reminds us of actually is the beginning

of 2018 where we did have as you said a meltup, where you didn't really have any macro -- to scare people out of markets and people thought they had to get in. and that's where you see positioning chasten to things, areas that had been strong this year. but then it comes to the point where we have to assess to say where does that positioning reflect versus where expectations are for earnings, where valuations stand. but, again, that's likely more of a question for 2024, versus the last two weeks of this year. >> so we have the ppi number coming out in less than an hour's time, also got jay powell speaking later today. what are you watching from those two events? what do you need to hear? >> from ppi, likely it will be benign, simply because of energy prices. they have continued to fall and that's a very important part of ppi. but then when we look to powell, we'll continue to probably get some pushback against the aggressive pricing of cuts into

2024 of over 100 basis points. when we think about the dot plot, it is likely that the dot plot medium will only endorse 50 basis points of cuts. then there is the question of will the market care? powell pushed back against this cuts pricing, just a few weeks ago, and the market shrugged that off and said, no, we think you're still going to be cutting a lot. it will be vinteresting to see the market reaction as powell will likely strike more of a hawkish tone than what is being priced in by bond markets. >> you said the market you thought was overbought in november. but that we caught up with it in a matter of weeks. what happened to change to say, okay, in a few weeks this all of a sudden makes sense? >> yeah, we got to that overbought state and about mid-november. but instead of having a big correction back to trend, we just sort of traded sideways. and so now as we -- we're back in that overbought state. like i said, it can actually be a sign that people are clamoring to get into the market, and that

you have good momentum, breadth is better. we'll have to be very aware and cautious about where positioning will end up, where valuations end up, sentiment, all of that put together to say how much good news, how much soft landing nirvana is already priced in. >> yeah, and because when i think of something growing into it, i think of earnings catching up with expectations. but you're talking about just sentiment catching up. >> yeah. and i think that's also a very good point is that in this meltup that we're in, and have been having, you're seeing earnings estimates get revised slightly lower. it is not low enough yet to sound off alarms to say earnings are going in the opposite direction of the market. that's another important thing to watch in 2024. you have double digit earnings growth priced in for '24 and '25. does that create a high bar for earnings to jump over just to surprise to the upside? and so watch earnings estimates mostly into 2025 because if

those start to drift lower, that may be a key risk for the market. >> cameron, thank you. >> thank you. >> still to come this morning, home depot co-founder ken langone will join us at the top of the hour for a wide ranging discussion. a lot to talk about. a lot of time with him too. take a look at this morning's premarket winners and losers in the s&p 500. quk x"ilbeig bk."sawbo wl rhtac

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take a look at shares of pfizer. they have, well, they have fallen. they were down a little bit more before, close to 8%. the company updated full year guidance in light of the acquisition of seagen which it expects to close this week. it sees full year 2024 revenue 58.5 to $61 billion. that is below the estimate that analysts had of $62.7 billion. pharma stocks also sliding across the board in the premarket. watching moderna off close to 4.5 to 5% there as well. on the other side of this, china select committee issuing a blueprint, including increased

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first time i connected with kim, she told me that her husband had passed. and that he took care of all of the internet connected devices in the home. i told her, “i'm here to take care of you.” connecting with kim... made me reconnect with my mom. it's very important to keep loved ones close. we know that creating memories with loved ones brings so much joy to your life. a family trip to the team usa training facility. i don't know how to thank you. i'm here to thank you. welcome back to "squawk box." a bipartisan report going for a reset of u.s.-china economic relations. and join us now, chair and ranking member of that committee congressman mike gallagher. china's select committee chair and china select ranking member.

thank both of you. first of all, how much of of you guy, in agreement? start there. because in this day and age there's oftentimes little agreement between both sides. >> well i think the fact we have a report that has 150 recommendations, that's a bipartisan report that our committee got behind, i'm not sure that's ever happened in recent history. it's a testament to the work of our members. it's a testament to work of the ranking member, who's been a fantastic partner on these issues and not everyone is enthusiastic ar every single one of the recommendations but peel will lg to come together, without compromising principles. i think everyone share as sense the status quo is insufficient when it comes to the ccp and need to do more to defend ourselves and expand partnerships with key allies and as well as enhance domestically. for that reason i'm proud of the work done and think it's a

bipartisan blueprint. not just a laundry list of recommendations but a strategy how to move forward, congressman, tell me this -- if you're an american business reading this, multi-national business that does business in china you should be thinking, what? >> i think you should probably think be the three different categories of actions we covered. with regard to trading saying basically tired of economic aggression of xi jinping, cyber hacking, dumps of goods. theft of the economy and viewing topics in conjunction deciding how to set tariffs with regard to china. the second issue of basically preventing technology and resources going to china to build up its military i think companies should think about investments in china and how

those relate to the particular topics which entities are questionable investing in that might fuel chinese military modernization or human rights abuses and finally we covered the very important topic investing in our workforce, making sure we're equipping our workforce with tools necessary to compete in the 21st century, fixing our education to invest in the best and brightest. and investing in the future. what businesses should look like reading our report. >> the idea to stop effectively underwriting the ccp and effectively stem the flow of u.s. capital and technology that's going to china. we've had a big debate even in the past couple weeks, for example, nvidia. makes remarkable chips and now selling throttle chips and there's a debate whether it's better to sell china throttle chips or not to sell, or to sell

them, actual chips that work, because if you sell them throttle chips are you forcing them to leapfrog or create its own technology which may ultimately compete with ours and leapfrog us potentially? >> i think that's a perfect illustration how complex this aspect of the competition is, and i think that this is actually, took us seven months to produce this report. because we are so thoroughly economically entangled with china. we're not suggesting it will be easy to lessen economic leverage over us. why it requires a basic bit of humility. chips, we talk about in the report -- two things, actually. strengthening our export controls making sure we can build upon the october framework that commerce put out and earn loopholes in the reforms as well as making it easier to build chips back here in america. this also applies to critical

minerals with sensible nepa reform respecting the high environmental standards we have here in america. if we don't we won't win ourselves off dependency of production of chips i ss ss in pacific. >> the other side of this, heard it from ceo of nvidia. a worry, potentially, that by cutting off access to these chips now, you may be worried about his own business but the flip side, inspire them more to go their own? by the way, you probably are seeing a what they're doing with the huawei phone, which surprised everybody, i think. >> sure. i think they're going to be doing that regardless. they are absolutely trying to innovate. trying to take technological leadership in production of semiconductor technology up to this point haven't been able to. in part because we do possess the world's leading researchers and technologists, and

innovative companies in design of these chips. all that said, our constituents and the american people do not want us to be exporting those items to the ccp that they will then use in the modernization of their military. or that could be used in the perpetration of human rights abuses. for instance, against the uighurs with the uighur genocide in xinjiang, activity using a tech know surveillance state with artificial intelligence to repress these people. the subject of our tenth hearing tonight. >> we look forward to hearing more about that hearing coming up. i thank you both for joining us this morning. if we don't see you before the holidays, happy holidays. thank you. >> happy holidays. >> thank you. when we return, we've got the countdown to inflation data. plus, a wide-ranging interview with invemed chairman and associate co-founder ken langone who will join us right after this break. later, virginia governor

glenn youngkin, to him and quk x"ilbeig bk.

good morning. it is fed day. investors and economists ready and waiting for central banks' latest decisions and rates. what's at stake for the economy. meantime, haeds ahead of that, in 30 minutes from now. tesla updates nearly every car its ever sold in the u.s. after problems with the company the autopilot system. we'll bring you details straight ahead as the final hour of "squawk box" begins right now. good morning, everybody. welcome back to "squawk box" right here on cnbc. we are live from the nasdaq market site in times square. i'm becky quick along with andrew ross sorkin. joe is off today, but with us on-set for the hour is invemed

associates chairman and home depot co-founder ken langone with lots to talk with him about and welcome. >> thank you. >> far too long since we've seen you. >> nice being with you. i got the chair, too. >> big time. yeah. >> a lot to talk about with ken and jump right into it in a moment. first a look where the u.s. equity futures stand at this hour. right now still in the green. dow futures up by about 35. nasdaq up by 35 as well and s&p up by just over 3 points. of course, anything could happen between now and when we get the ppi data coming out in less than half an hour's time. treasury yields. look at that quickly too. ten year now sitting at 4.1%. the two year at 4.7%. >> up to date with today's top business stories. pfizer shares are sinking. just update '24 guidance. fell below wall street's expectation. off close to 7% now.

pfizer raised price-cutting target. less demand for pfizer's covid vaccines and anti-viral a big culprit in the cut. tesla recalling almost every vehicle ever sold in the u.s. more than 2 million cars. government officials saying a two-year investigation finding deficiencies in the autopilot driving system. al recall doesn't mean test owners have to bring cars into the shop. instead fixes come by a software update. sort of a virtual recall of sorts. then for the first time, tell you that netflix taking a, telling viewers and taking them behind-the-scenes showing them a little bit which films and tv shows are more popular. a streamers saying season one of original action thriller "the night agent" the most popular show over the past six months on the service. co-ceo saying from january to june of this year 55% of netflix viewing came from original films and series. 45% came from licensed titles.

becky? >> trite our special guest. ken langone, of course, invemed associate chairman, co-founder of home deep and chairman of the invemed langone health board. start with pfizer. what we just heard, we tauvd about pfizer in the past. covid vaccines created sort of revolutionary at the time and making people feel like they could go out but now is really khowst costing the company. >> haven't got the crisis or demand that they had then. on the other hand, pfizer is an amalgamation of a lot of drug companies. think of who's in there. upjohn, pharmacia, warner lambert. there's about seven or eight of them in there, and -- and frankly i think they never really got their arms around consolidation at levels like research, for example. like, there's so much to be done

there, and i'm not throwing a rock at anybody, but i look at what was done at eli lilly and the results. simply said not cutting back on r & d but focus and make sure we get more bang for the buck than possible, and they did it. i feel bad for pfizer. 20 years ago, pfizer was presumed to be "the" company in the health care industry, and we have a wonderful relationship with bill, the chairman when he ran it, it was spectacular. bill was on the nyu langone board and incredibly generous, but there was a focus. i think you know, these handoffs, these management handoffs, are tricking, and there were a couple of handoffs at pfizer that frankly didn't work. now, i'm bragging. look at the companies that i'm involved with and handoffs and how they've gone.

most recent one is parker, palmentier, don williams to her. and manneer, hope depot pshgs john to david at lily. irony is, pretty much no surprise. the irony is, look at the succession plan ge had when jack wasthere and it blew up. so that transition, that handoff is very, very critical. >> how much of this, though, is a transition handoff with -- how much just chasing covid and moving things at such an incredible pace to focus on the covid vaccines maybe wasn't time to focus on the -- >> i think budget something like $8 billion, $9 billion, i don't know exactly.

plenty room to do things besides one thing. i'm not throwing the rock at the guy because running a drug company is a complicated, challenging thing, but i'm back to eli lilly again. and mind you, nothing's cheap at all. i own it. so i'm pitching. >> okay. >> but, anyway i think lilly will be the first trillion dollar drug company in history. why? their pipeline. god bless john linkletter in the dark years when everything was falling off a cliff, he was firm in his commitment to spending the money in r & d and -- and -- protecting the dividend. didn't get increases of the dividend. the last were made up. i think five years 15% increases, but john put the horses in place, and got a team out there with david and dan, who runs research and a strategy now, it's all about the people. i don't know -- i don't know how

you address pfizer's problems, though, because it's -- it's huge. it's spread out. >> eli lilly. you've been, that was your top pick. looking back at 2015. how long have you been in lilly? >> i sold a little -- first device company ever bought, we sold that to lilly, closed november 30, 1977. so all the stock for almost 46 years. i owned stock. two crisis. oroflex nine people died from, not becauses it was a bad drug but because doctors misprescribed it, and the other time they bought the pharmacy management company not a grilliengrill igrill -- brilliant move. stock down and i had money in my pocket so we bought more. so from 2004 to 2018 eli lilly

stock did absolutely nothing. counting that, going back 46 years, the 46 years i've owned it, dividends compacted 14. % a year. a better one than that, though. 14.8%. since september of 1981, what's the number one performing stock in the s&p 500? >> and the answer is -- >> home depot. >> going to guess home depot, 28% a year compounded. from all of those years. >> it's unbelievable. i'm rather be lucky than smart. anybody out there, i'm lucky. i'm not smart. >> houw often do you trade? >> i call -- no. i call, what should i do? he tells me what should i do. another example. genius. nerve her a losing year. you don't give back, you give it back got to make that back where

you are. one of stanley's -- seriously -- i add base and people i know. when dave cody got involved bought a lot of that and did very well. when jim ketz involved with simply good foods, again, to me, it's simple. it's always about the people. nothing more. nothing less. i've added recently but they're minor positions. >> to what? >> well, i have one called -- >> talus? >> just done -- hold on. at 88 years old you get a little shaky in the head. i'm doing all right. okay. let me see. >> talus? >> here it is. it's -- it's -- here it is.

here are some of them. boom, boom, boom -- >> he's -- >> prosept buy owe robe biorobo. bought a lot of the, the stock blew up but we don't sell. i mean, i got young china. a little nervous about that because of what's going on with china, but david gibbs is spectacular. good handoff, again. >> speak to that, though? you said you're anxious about china. >> yeah. how can you feel good about a country, or an investment in a country where your country is posturing itself and their postures themselves only for

trouble? you know? why the hell do we raise an issue about -- leave taiwan alone. >> what would you do, then? >> i don't think china wants to go to war with us. they got 300 billion people to feed. stress in the system now. real estate. i mean, they got enough on their plate without taking us on and we've got enough on our plate without taking them on. the tragedy is, the lack of leadership in america. both parties, by the way. you know, there's enough blame to go around for everybody. both parties. you look at this -- this childish behavior regarding speaker of the house. that's like the gang that couldn't shoot straight. so -- and i'm a republican, by the way. so you heard me, give a shot at my people. >> i know. >> okay. >> i know. >> but, seriously, i don't invest overseas most of the time. i got into china by virtue of being vested and a break from david novak to -- hmm -- good

guy. he's retired. david gibbs now. oh -- greg creed. >> yeah. >> these were brilliant choices and they all did very well, and the same is true -- i mean, look at depot, frank to greg now to ted decker. by the way, i think depot is setting itself up for a glorious five or ten years. big time. big time. >> because -- i mean, that's the big -- >> first of all, they're recognizing that when you deal way pro, a big pro, a lenore, somebody like that, you got to have systems that accommodate that pro's, that customerseculi speak. when you do that you got to spend some money. by the way, home depot has spents 12ds billion or $13 billion the last years for

infrastructure. for example, something as simple as a flatbed truck. delivers 15 pallet-loads of plywood you don't put it on a van but on a flatbed truck with a hoist. i mean, these are all the things you have to do, and -- by the way. i got a new gig. you won't believe it. >> what? >> i open add restaurant. >> no way? >> where? >> in florida. the kid that runs gallagher steakhouse here in manhattan. ever been in there? >> i have. >> fabulous. great operator. i was buying it, owning a restaurant, we went into a partnership and opened one, i-95 and it's flying. gag gur steakhouse and i'm having -- she said, spends more time on a cull every day and what the numbers are -- >> ken langone will be with us throughout the rest of the show. we've got a lot more to talk about with him. and we will continue this

conversation in just a moment. speaking with virginia governor glenn youngkin on the economy, the '24 race to the white house and so much more, but next, former s.e.c. chairman jay clayton joins us, anti-semitism on campuses and stay tuned. you're watching "squawk box" and we are coming back and mr. langone will be staying with us. ( ♪ ♪ ) ♪ (when the day that) ♪ ♪ (lies ahead of me) ♪ ♪ ( seems impossible to face) ♪ ♪ (a lovely day) ♪ ♪ (lovely day) ♪ ♪ (lovely day) ♪ ♪ (lovely day) ♪ a bank that knows your business grows your business. bmo.

up next on "squawk box" right now we are going to talk about the ongoing fallouts the heads of harvard,my-the-and university of pennsylvania heavily criticized for sterile and lawyerly answers. described it worse, calling for genocide of jews violates their school's code of conduct. in the backlash, the upenn president resigned, heard about that, and joining us to talk about the path forward for these schools and others. put this in sort of governance category. former s.e.c. chairman and cnbc contributor jay clayton. had a lot of conversations. ken langone hanging out with us the full hour. curious what both of you thought

what took place over the weekend on the penn side and yesterday on the harvard side? >> let's talk about going forward here. because we've obviously had governance change at penn or at least leadership change, but are we going to have change on campus? and, look, i think liz magill, no one thinks these an anti-semite but a fantastic scholar but not hired to be an agent of change or agent of self-reflection. universities need self-reflection and change. still have it. the anti-semitism problem hasn't changed. preferred speech problem hasn't changed. i would say isolation problem hasn't changed. in fact, we've seen it in press reports where faculty are saying, who are these trustees? to raise their voice and say, hey, you know, there's a problem on your campus? you need to do something about it? tell you who they are. the people with the fiduciary duty. people who have the responsibility to look at

whether the university is delivering on its mission. i think we all know they're not doing a good job. >> ken langone, should her job be kept? >> no. absolutely not. she especially. she should be by virtue of her race and history there, i don't -- i think when somebody says something as horrible as what was said, i would say you're out. sue me. i'll take it all the way to the supreme court. i may lose but you're going through a lot of anguish and i'm letting the world know we won't tolerate that kind of thinking and behavior. by the way, jay, too many trustees are atrade of not being trustees. dynamics of being a trustee -- the most important thing for a board member or a trustee to be, not be afraid of being fired. call them as you see them and do the right thing. too much of this recognition of status by putting somebody on

the harvard board or the bucknell board or the penn board. they have failed. >> experience with this, ken, at bucknell. you got involved. >> oh, i -- >> what's it called? open discourse. >> open discourse coalition, and by the way, our president there is fabulous. i went to them, said i was very concerned about the kids hearing both sides of issues and wanted us as a fellow, name of robby george at princeton did it there. charlie johnson invited him to lunch. heard him. this is what we ought to do. went to john, something we got to do. let the kids hear both sides of the argument. let them make up their own mind, hear both sides. he was for it. pushed back from the faculty, for obvious reasons. they didn't do it. we stet up independent. it's thriving. john and i are now working how do we integrate it into bucknell because it is working.

>> and so important. i've taught at penn over ten years. i can tell you that the students are not ready. they self-censor in the first few days of class. the first, i'd say first five or six days of class. you can't discuss some of these issues, because people just pull back. for example, i teach financial regulation. financial regulation question is, what about disparate impact? what do we think about that? something the fed should worry about? a question if i ask in the first two, three crickets. no one really wants to discuss it. >> what do you mean? >> people are afraid something they say may result in them being cancelled. probing a question about how much we take race and other factors into account setting financial policy is a sensitive issue in a college classroom. until you get there. until you get people to open up. >> let me ask you a question. i think it's actually a

complicated question not a straightforward answer but i'll ask it, which is, i think we'd all agree that genocide to jews as a comment is abhorrent. and should not be something that would be allowed on campus policy. in my campus policy. >> right. >> okay. >> at the same time, part of the argument i think you're making and that has been made is that there is this cancel culture based on what you said. >> yes. >> okay. and now, you see where i'm going with this? >> uh-huh. >> the question is, are we asking for language that we like, that i might like, or maybe not other language that i don't like, or are we saying, i mean, are we saying it should be a free speech, whatever you want situation on campus? which then unfortunately might allow some of this abhorrent conversation, or should it be a -- a more restricted speech but it might include what i just said that is abhorrent but also something you may not think is abhorrent?

see what i'm saying? an >> a straight answer. choose one or the other. >> it's hard. >> either choose you'll have almost a first amendment, you know, limitations. you can have terrible speech, things that offend people. or if you're going to choose to rein that in do it consistently, but what college campuses are doing, you saw it in the testimony, is, when convenient they say, the first amendment doesn't allow me to censor that. >> i agree with you, but saying can which the -- asking which is the better choice? >> which is the better choice? >> let me tell you i'm bothered, because we want to make this thing as simple as, to be for people to understand. >> yes. >> and a lot of these arguments, these academic arguments confuse people. one of the things that's happening on campuses is what i call "academic coercion." a kid sent a draft how to write a term paper to a friend of mine's son, went to bucknell.

sent the paper home for his father to read. father said, i read it. you don't think this way. needed to get an a in the course. sure. it's -- it's flagrant. >> such a shame. >> it's paralyzing the academic board. >> saying what you have to because you need to do get along. >> that the point. the whole thing, jay. i'm sorry. i think we have to disregard the constitutional rights of free speech on issues, how could anybody say anything so horrible as from, from the seat to "the daily rundown" whatever the hell it is, we know what that means. it means get the gentlejews out there. >> take the first amendment and bring in speech we know is abhorrent and we can identify it. we know what people call from the river to the sea, call for genocide. there's no place for that but

there is a place to discuss many issues people on campus are afraid to discuss. >> right. exactly right. and that's something -- if you're going to have academic effort, it should be wide open. >> what is your sense, i think also a political overtone to this, which is we think that some of the sort of thought police that's in these classes going to the paper issue you're talking about, have moved sort of uniquely progressive or in a liberal way, let's just suggest. the question, how do you think you reverse that? if you believe that it is tilted, the pendulum has swung, how do you reverse that and that's almost generational. by the way, tenured professors. >> let me say something. there are about, i guess, 20 million jews in the world. think of all the accomplishments of the jews in science, in the arts. go down the list. incredible.

when you think of only 20 million and all they've done and truly gifted people, that may sound like i'm bias but i am, because thank gad mod most of m doctors are jewish. and think take care of me like a baby, i'm 88 and still going. the point i'm making is, they have done so much for s civilization. that should be the best answer and no more! >> andrew, your question, starts with self-reflection. have to start somewhere. is it a good process? is the tenure process a good process when 90% are of one political party? >> right. >> if you have a disparate result in almost any other aspect of society people will say, what went wrong? unfortunately i think on college campuses they're saying look at all that went right. that's a pretty scary place to be.

>> and almost attractable problem. jay, thank you this morning. data coming up we got to get to. thank you again. we do. breaking producer price numbers and will bring you the numbers and instant reaction at 8:30 eastern time just three minutes away. stay tuned. you're watching "squawk box." this is cnbc. 1%p.estimate, by the way, is of 0. u we'll be right back. go. and go and go and go. (tense music) but what if you. (tense music) stop! you work hard. it's time for a bank that'll work hard for you. everbank performance savings is built to put your money to work with some of the highest rates in the country. going, that's what got you where you want to be. we're the partners for your next move. everbank. advantage, you.

welcome back to "squawk box." futures ahead of inflation data. bring you that in a moment. less than 10 seconds. dow up 43 points. see whether that moves as we move ourselves over to chicago. rick santelli standing by at the cme. rick? numbers are -- >> we are awaiting numbers for the november read. of course, producer price index, scrutinizing especially the top line. last month minus 0.5%, weakest number since april. biggest negative since april of '22 and jumps up to unchanged. unchanged as expected. strip out the all-important food and energy, unchanged as welling. that's a couple of tenths better than expectations. in the rearview mirror is was unchanged. to find a number below zero, below zero here, you have to go back to april of 2021. it was minus 0.3%.

month over month food, energy and trade up 0.1. rearview mirror. 1 0.1% lighter. 0.4 lighter than rearview mirror. 1.3. makes 0.9 smallest read since june. just june of this year only up 0.3%. food and energy, 0.2. 0.4 less than the rearview mirror and 2%? smallest since january 2021, 0.9 and finally year over year food energy and trade-- that's 2.5. that's 0.3 less than we expe expecting. that's 0.4 laess than the last

look and way back machine to february of 2021 to find a smaller number. so cpi yesterday progress made on these numbers and seeing yields moving down not aggressively. ppi doesn't carry weight in many strategies on the wholesale side as the consumer side in cpi, and we want to pay particularly close attention to some of these year over year numbers and interpolate three and six-month forge for monthly numbers. close in this set of numbers to the 2% fed target. andrew, back to you. >> okay, rick. thank you for that. steve liesman is standing by. he's been trying to parse some of the data himself. curious what you thought. >> you know, i want to make a bold statement here that inflation is falling everywhere, but inside the cbi. rick is right. don't give the weight to the ppi. economists do in the following way.

there's stuff in this index feeding into the preferred inflation indicator, pce and probably flatter it. up the pipeline, before you get to the consumer, in other words, disinflation even deflation happening in places. i want to show you some charts from yesterday. take a look at how the cpi, ex-housing. fed has been there already. down below 2% for several months now. okay. so you say it's not fair to take housing out. l let's use another metric for housing. zillow rent index. not the government index. also fallen precipitously and that number and another number from the cleveland fed and dls lag, sorry, lead the shelter number by up to three kwaquarte. coming.

suggests the fed is noomumerica there and cpi is catching up to it. i think it's what the market is snipping out. this idea what is going to happen, andrew, and becky, is that these numbers are going to come down enough for the fed to be confident to -- cut rates sometime, perhaps, in the spring next year. it's just that powell can't say it until it's actually in the numbers, and maybe that's a shame, andrew. maybe that's the fed having to keep rates higher than they need to be for too long. >> steve, you can see the markets, and its reaction now. dow up 32 points. a little less than before. nasdaq up 40 points. appreciate your analysis on all of this. see you in a little bit. later, can't wait to see what fireworks go down with jay powell at 2:30 this afternoon. meantime, more on the markets and our special guest

ken langone. plus an interview with virginia governor glenn youngkin. stay tuned. you're watching "squawk box" on cnbc. more efficiency. more benefits. more growth. when you realize you can give your people everything, and more. thank you very much. [applause] ask, "now what?" here's what. you go with prudential to protect, empower and grow. with everything you need to deliver, you guessed it... more. one more thing... who's your rock? learn more at prudential.com

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welcome back to "squawk box." a look at futures. not much movement after that ppi

number came in basically in line with expectations. even a little better than anticipated on some levels. dow futures now up by 32. nasdaq up by 44. s&p fiutures up by 5. treasury yields, see that the ten year below 4.2%. 4.17. two year below 4.7% barely 4.68. show you oil prices, which are up a little bit this morning, but they've fallen below $70 a barrel. in fact, looking at wti, aww, looking up where it was. wti this morning up by 1% to $69.29 a barrel. when we come back, virginia governor glenn youngkin, joining us. news out the washington wizards and capitals are moving to his state, northern virginia. talk about that, the 2024 election. ken langone is here. he'll talk about nikki haley and why he's supporting her in this election.

a big interview thwi treasury secretary janet yellen coming later on "squawk on the street." stay tuned. we'll be right back. accelerate growth, predict trends, you need to begin with trust. introducing watsonx governance. helping you govern any ai, as data, models, and policies change, so you can scale it responsibly. let's create ai that begins with trust, with watsonx governance. ibm. let's create.

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chip? at&t business. just moments ago the governor of virginia announcing a $2 billion development braasch in the city of alexandria set to lure the nba's washington wizards and nhl's washington capitals to a new arena. joining us virginia governor glenn youngkin. governor, thank you for joining us this morning.

what happened? >> good morning. great to be with you. it's an exciting day in virginia. we just announced that we will be developing in partnership with monumental sports and the city of alexandria the most state-of-the-art sports and entertainment district in america. it will anchor the most technologically advanced innovation corridor in america with hq2, amazon at one end and sports and entertainment with campus in kpeen. $2 billion investment. this innovation requires innovative, the most, partnerships seen in my entire career. city of alexandria, commonwealth of virginia, monumental sports all winning together. i'm particularly excited the commonwealth of virginia is a big participant in this. we will not be making any up-front contribution, but will be supporting this huge

investment with incremental tax receipts and other receipts from the sports and entertainment district. this will be home to two great sports franchises, and i have to say that the work that we've done with my long-time friend ted leonsis tree will you rewarding and i might say this is even monumental. >> monumental at this point, reports i'm reading say they haven't said whether it will definitively move the pro teams from d.c. to virginia. can you confirm that they will be? >> well, of course, this process is very much like the process we went through when we announced amazon's hq2 coming here. which is question held this week a very important general assembly committee meeting where our major employment and investment committee unanimously approved this project.

now it goes to our general assembly in january-february during our 60-day session to approve the legislation. we have got great leadership across the bourse, house and senate, democrats and republicans support it but have to go through the process, but one we've been through before and i have great confidence in. >> monumental negotiating with d.c. ted mentioned he hinted open to moving the teams. asked the district of columbia planned renovation. they don't get it the thought will be they will move. with the deal monument sl agreeing to put down hundreds of millions of its own money for the project. correct? >> they are. they will make over $400 million up-front commitment to the development. they'll move their corporate headquarters to alexandria. we will develop this state-of-the-art arena along with a 6,000-seat separate concert venue. they'll be convention space,

hotels, residential and gathering spaces for the community. this will be like no other sports and entertainment district in the world, and as i said. i think it is absolutely fitting for it to be in the innovation corridor that is truly breaking barriers with what we're doing in order to advance technology. not just in the commonwealth but around the world. >> governor, there have been a lot of people thinking that you might get in the running for president for 2024. i think that that probably is not the case at this point. wondering what you think about how the field is shaping up for this race? >> i was very clear over the last many, many months that i am focus and virginia. today's announcement, i believe, is representative of the fact we've continued to stay focused on virginia, and, of course, there's a long way to go in 2024. our primary in virginia for the presidential will be, of course, on super tuesday, and i'm looking forward to virginians having a chance to come to the ballot and choose their

candidate that they want to support. there's a lot of good candidates in the race. and i, i think the most important thing that will come out of this whole process is that america can't afford to have another four years with joe biden. we've seen that weakness from the presidency extends into foreign policy chaos and border chaos. i know that we're hoping they'll be a soft landing in the economy. i'm planning for a mild recession next year. i think it's inevitable when you have interest rates as high as long as they are. already seeing recession-type activity out of a number of industries, and sectors. so we have to make sure that republicans put forth a great candidate and joe biden does not get another four years in the presidency, because america can't stand it. >> governor, if you're not going to be on that ballot, is there a candidate you would endorse at this point? >> i've been very clear. i'm letting virginian's choose their candidate and will support the republican nominee. as i said, i think it's

paramount, paramount for america to not afford joe biden another four years. >> whoever it is -- >> you've seen the results of bad policies. >> you would endorse former president trump if, in fact, he is the candidate? >> yeah. i've been clear. i'll support the republican candidate and, again, i think this is a matter of the future of the country, and we have to make sure that we don't have joe biden back. >> and ken langone is here and he likes nikki haley. right? >> i like nikki haley a whole loan. she's shown up pretty good and numbers moving in the right direction. i think she'd got a good stand on most things that need to be fixed. governor, nice talking to you, by the way, and thanks for your christmas card. i got it yesterday. is he gone? >> still with us. by the way, you can talk to him. he's not going anywhere. you can -- i didn't know you were on the christmas card level. here we are. >> the crisis in america, if it ends up being biden and trump, that's a hot-seat choice, my

opinion. i was asked the other day, i don't know how i'd vote. i don't know. i'm very concerned. we need leadership and we need things to get done. there's a lot of pressing issues in america which governor, you and i met, quite clear, your understanding of those problems. right now we're not addressing the issues that need to be addressed, because this show, this circus that's going on in america is a disaster. and we are presumably leader of the world. well, we keep behaving this way, we won't be. i worry if trump wins it's going to be four years of getting even. and that's scary. because we've got serious issues coming up that need to be addressed. i wish, governor, you had better results in your, in the last elections in virginia, because i think you've got a bright future and i think building a strong base in virginia is going to be

very helpful to your career going forward. that said, we as americans have to realize that we need strong assertive leadership that inspires up, that we look up to with respect, and right now, i'm sorry. i don't think the american people have much respect for either one of these two candidates. >> governor youngkin, your response to that? >> well, first of all, ken, thank you for the kind comments, and i just appreciate your continued wisdom on so many topics. we do have, we have extraordinary challenges in america today. and i do believe that they are challenges that are fundamentally caused by weak leadership. we have weak leadership internationally and what are we seeing? we are literally seeing war in the middle east, war in ukraine, saber rattling if not the

aggressive chinese military movement we've ever seen. we are seeing chaos at our border. our economy really struggled and, of course, while we're all hoping for a soft landing wa we've seen over the last two years is run away inflation by definition had to be challenged with high interest rates at a historic increase level in order to combat it. these are all results of bad leadership, poor leadership from the biden administration, and i think that's just the fundamental truth. and so, we know wie need strong leadership. we know we need to project strength around the world. we know we need a strong economy. we know we need a secure and safe border, and we know that we need a different leader from joe biden in order to deliver that. >> i agree with that 100%. my concern is we need to motivate the american people to understand that we've got to make some very serious choices that are going to be painful. we need to address the issue of

i entitlements. we need to address the issue of our military, which has gone, in my opinion, unfunded -- not enough money spent on it. but the bigger problem is we need people that we can respect as our leader. somebody like eisenhower or truman or george h.w. bush or george w. bush. they had deficiencies, but you respected them. this circus going on now with biden's son, to me, is a national disgrace. what the hell did that kid -- what was his talent to command $20 million fees? we know what his talent was. he won the birth pool. he was born to a father who had heavy influence, and that's what he was selling. that's enough for me to say, maybe biden shouldn't be impeached, but, boy, he sure should have his hand slapped. >> governor, what do you think of the other point that ken made just about the idea of the former president trump becomes

the president again, this idea of retribution, this idea of getting even and what that presents and maybe the divisiveness that it represents? >> well, first of all, i think what we saw during president trump's term was that he literally governed in a way that delivered good policy outcomes. listen, he and i have different styles, but his policies were effective, and they worked. there was a great economy. we had a secure border. we understood what projecting strength around the world meant. and that's the way he governed before, and listen, we have three branches of government. we have presidency and an executive branch, we have a legislative branch, we have a judicial branch. the reason why it was drawn up that way is for balance of power, and we don't -- we didn't have kings. we didn't have dictators, and god bless george washington for recognizing that and stepping down after two terms and establishing the role of the presidency. i think this is -- this is what

america was built on, and this is what i think america will do going forward. >> governor youngkin, want to thank you for your time today. >> is t'a great day in virginia. thanks for having me. ♪ ) ( ♪ ♪ ) ♪ (when the day that) ♪ ♪ (lies ahead of me) ♪ ♪ ( seems impossible to face) ♪ ♪ (a lovely day) ♪ ♪ (lovely day) ♪ ♪ (lovely day) ♪ ♪ (lovely day) ♪ a bank that knows your business grows your business. bmo. i think i'm ready for this. a bank that knows your business grows your business. heck ya! with e*trade you're ready for anything. marriage. kids. college.

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let's get back to our special guest, the chairman of invomed associates, the cofounder of home depot. let me talk to you first about the economy. governor youngkin just brought it back. you have a lot of companies, lot of investments. where do you think we are? >> i think we need a recession, a pretty good one too. we've got to start wringing some of the excesses out of the system, and you're not going to do it with a softlanding or a moderation. i hate to say it. but we're going to have to take some pain, and we're putting it off. >> you think the fed's done enough by raising rates? >> i wouldn't lower rates. i certainly -- it will hurt me, personally. i wouldn't lower rates. i'd keep rates up there to make damn certain that i'm doing what i can to squeeze the system to get it back to a sounder footing. i mean, we've lived on free money for ten years, and now we're paying the price. or 12 years, i guess it was.

think about it. i mentioned i bought into this restaurant. if i tell you the deal i got to buy the land, you wouldn't believe it. >> free financing, basically? >> effectively, free financing. one building that was there, the rent it pays more than paid for all my carrying costs on the debt. i got free money. i got absolutely free money. something's wrong. you don't get free money. >> when are we all going to dinner at this place? >> whenever you want. >> okay. >> by the way, it's fab. but anyway, how do i feel about the economy? there are a lot of things that need to be squeezed out of this economy, and we're not going to do it unless we take some casserole out. it's that simple. and i worry about the implications socially, in other words, people out of work and stuff. i'm hoping we can do it in a reasoned way, but i think we need to get to work and take

some of the excess out of the system. >> i don't want to let you go without talking about what you're doing at nyu langone, paying for medical students, free medical school for everybody who comes through. >> right, right. >> how and why? >> how is very simple. we had enough people who believed in what we were doing to give us the money. myself and druckenmiller and people like that. >> like a billion dollars that you have raised? >> close to a billion dollars. but these kids -- there's going to be a huge shortage in america of primary care physicians, ob/gyn and pediatricians, 110,000 in 2030. it's not going to be affordability. it's going to be availability. a lack of availability . we need to figure out a way to motivate these kids who were brilliant and who want to make the world a better place, thank god, we have to figure out a way to help them reach that and do it in a way that they're more concerned about making people better than how much money is in their pocket.

these kids make enormous personal sacrifices, physically, just the effort to become a doctor is a very challenging -- by the way, i don't get any greater joy than to see these kids showing up, white coat day, 21, 22 years old, full of piss and vinegar, want to go after it, and thank god we got kids like this. look at the benefit. i'm 88. i should have been dead, probably -- my grandfather made it to 72. we're all living longer. we're all living healthier lives, and it's all because of scientific breakthrough and because these kids are sacrificing themselves and their lives, and so, how do i feel? i feel great. we're doing great things. we got great leadership. bob grossman. let me tell you something, if you want to go through life and look good, just find a horse like grossman and ride him. i'm the jockey. he's my secretariat.

and he has put together a team of people that is truly outstanding. >> we want to thank you for what you're doing. i've been blown away by what i've seen. thank you for coming in today. >> happy holidays. >> happy holidays. folks, that does it for us today. make sure you join us right here back tomorrow. it's time for "squawk on the street." see you later. >> bye-bye. ♪ good wednesday morning, welcome to "squawk on the street," i'm carl quintanilla with jim cramer, david faber at post nine of the new york stock exchange. final fed decision of the year, futures holding on to gains as wet get more signals about disinflation from today, ppi, a goose egg. ten-year yields, about 4.16%. our road map begins with inflation and fed expectations. investors await today's rate decision as stock records continue to pile up. plus shares of pfizer are sinking. that ahead of the open on weak 2024 revenue and