now. good morning. welcome to "squawk box" here on cnbc. we are live from the nasdaq market site in times square. i'm becky quick along with joe kernen and andrew ross sorkin. andrew, welcome back in studio. >> thank you. nice to see you. >> good to have you here. >> doing good work down there. >> in d.c. in the swamp. little swamp. it was humid here. >> swampy in my backyard. i was amazed. it must have been raining hard last night. >> a heat. >> anybody else love getting up when it is raining really hard and dark? >> i actually do. i like it. >> 3:30, pouring rain. >> it's dark and hot. let's look at the u.s. equities at this hour.

you will see the dow pulling back ever so slightly. down 17 points. s&p futures down less than 2 points. you have the nasdaq indicated higher up 3 points. these markets keep melting up. yesterday,the s&p 500 and nasdaq closed at record highs. they were driven by gains in nvidia. it's nvidia's market. nvidia closed higher by 5%. it is up 12% for the week so far. shares up 20% since the blockbuster earnings report last month. you continue to see this. week to date up 12%. the market cap yesterday overtook apple's $3 trillion. it only took nvidia about three months to make the leap from $2 trillion to $3 trillion. that is phenomenal. it's mindboggling how they have done this. it has been nvidia's market.

if you look at treasury yields, you will see we have seen a little bit of a pullback to some extent. right now, the ten-year yield 4.3%. we saw it below 4.4% yesterday. you have the two-year yield at 4.73%. you have seen cuts around the world. bank of canada cutting rates. there are expectations that the ecb will do so today. >> it is possible that nvidia really does grow into that value. it is there already. it does, but nobody else makes money in a.i.? >> for a while, that's possible. >> like the internet. >> yeah. >> what you probably will see is microsoft and amazon making money on the cloud computing. >> $3 trillion. that fast. >> unbelievable. >> that's more than gamestop, i think, isn't it?

in the meantime, we are one week away from the tesla meeting and shareholders voting to reauthorize the elon musk pay package that was voided by the judge in january. we have a big interview coming up at 8:00 a.m. exclusive with tesla board chair on the company's push to pay elon musk. we will talk to her about that effort and what it is like to be a member of the board of tesla. >> you would like to be a fly on the wall. >> i think everybody would. breaking overnight. federal regulators reaching a deal allowing them to proceed with anti-trust investigations into the dominant roles that microsoft, openai and nvidia play in the artificial intelligence industry. new york times report that says the justice department would take the lead in investigating whether nvidia violated anti-trust laws and the ftc would take the lead role in

exae examining the conduct of nvidia and openai. the ftc opened a probe in microsoft's deal with startup inflection a.i. and possible efforts to avoid government anti-trust reviews. two retail stocks moving in opposite directions today. shares of lululemon jumping after the revenue beat estimates. the comp store sales in the americas were flat. the full-year forecast did signal optimism for the second half of the year. that stock this morning up by 7.3%. then shares of five below are plunging. r revenue missed estimates. that stock is down more than 47% for the year to date. down 16% this morning. >> changing the name. look out below.

in the meantime, back here in new york, governor kathy hochul has shelved the pricing for drivers entering south of 60th street. the plan has been put on pause indefinitely. the lingering effects on the working families and new york city economy from the pandemic has cost an extraordinary amount of money if you go on the streets where they installed some of the cameras and systems in those places. i don't know if you have seen it all. there is an extraordinary infrastructure cost that's already been in place. she says indefinitely. i don't know if this comes back. this was something that mayor bloomberg wanted to do for a long time. they did it successfully in london. the question is a timing issue. maybe the time is not right --

>> there's an election looming and congressional democrats are facing a ton of pressure over this. if you ask people in staten island about this, they are furious. if you ask people in queens, they are fur iious. >> the conundrum is if they don't do this, the only way they will ever make up the mta budget and everything else in the city is to tax business. to talk about trying to tax something more popular or less popular, what will happen is -- >> it sounds more popular to me. >> go tax the businesses. >> then they will go. >> or they can charge people to ride the subways and buses. have you seen the amount of money they are losing because people are not paying fares? 20% declines in revenue.

people are not paying buses that were free during the pan pandemic. this is a situation where they can't get their arms around what is happening in the subway system and people refuse to pay. >> i take the subway daily. >> i was looking at the numbers. how much it has dropped because people are refusing to pay. the fare drjumpers. people are refusing to pay the fares is unbelievable. >> you are not say fare jumper? >> no, i'm not. that's amazing if true. 20% of the people are jumping? the revenue may be down by 20%. that is part of getting people back on the subway. >> i'll show you the numbers. >> you ride to meetings later in the day? >> all the time. it's just over here. >> >> when you have meetings? >> uptown to downtown to uptown

yesterday. came back from d.c. >> that's a $100 uber ride? that might have cured you for good. that's what i mean. >> transit ridership is d down .23%. estimates that the transit system lost $200 million from fares before the pandemic. before 2023, that number grew to $690 million in lost revenue according to the citizen budget commission report. $700 million in lost fares for people refusing to pay. >> a longer conversation over this. viewers may not want to go into it. it is very expensive to police $3 fares. >> they are looking to prevent people from things you can't jump over. >> they do.

times square and other places have it. you have to build it out. that is a infrastructure cost. where do you get the money from that? all of this from congestion pricing. we will talk to new jersey governor -- congress member josh gottheimer, who opposed the congestion plan for obvious reasons. it is our our planner, but we have nothing do with it. the ecb will release the latest rate decision at 8:15 a.m. eastern time and widely expected to announce the first cut since 2019. amazing. five years. much more on that story throughout the morning. uk prime minister rishi sunak has put forward jpmorgan chase ceo jamie dimon and the google the founder eric schmidt for honors. all have to be approved first by king charles. the proposed awards follow an

honorary knighthood. >> we gave eric schmidt a founding role at google. he was brought in as the ceo. >> exactly. >> novell before that? >> exactly. >> wherever he goes, it is w wheelbar owewh wheelbarrows full of money. the only guy that rattles it is balmer. he has to have $20 billion. >> balmer has more than gates does >> both those guys. not founders. coming up, lyft kicking off the investor day this morning. we will breakdown the sector.

later, texas governor greg abbott will join us on the plans for the new stock exchange down in texas. in his state. we'll be right back. as a mother of a non-binary child, i'm proud. i want all of my friends and colleagues to be given every opportunity that they deserve. without facing hate and without facing bias. that's why i choose to become an ally because i have the power to reach out to communities and i have the power to change minds. i want to use it for good. (aaron) i own a lot of businesses... so i wear a lot of hats. my restaurants, my tattoo shop... and i also have a non-profit. but no matter what business i'm in... my network and my tech need to keep up. thank you verizon business. (kevin) now our businesses get fast and reliable internet from the same network that powers our phones. (waitress) all with the security features we need. (aaron) because my businesses are my life. man, the fish tacos are blowing up! so whatever's next... we're cooking with fire.

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the u.s. ride sharing sector is expected to see positive demand in growth according to evercore ride sharing survey. the report comes as lyft kicks off the investor day. joining us is mark mahaney. as i was per using your report, mark, it is interesting. people are doing it more frequently than ever. the future is bright. have i missed anything? >> you got it. people under appreciation how long the growth is. here is my favorite data point. when you asked people how you get to the airport, 40% to 50%

of people say personal car. here is my bet, within 5:00 five to ten years, those numbers will converge. why you drive to the airport and try to figure out a place to park and get the shuttle. this is one use case. it takes time to change consumer behavior just like it took 20 years for online retail to go from 1% to 20% of retail sales. it will take that period before ride sharing really obviates the need. >> i feel bee btter when i retu. cars looking for people. it's not difficult. have you done it, sorkin? can you find an uber at a really crowded airport? that sounds -- >> a lot of money. >> it sounds -- i don't know. i think there is a reason. >> i took my lyft in.

i'm here for the lyft investor day. i took the lyft last night. >> you found in problem? >> the cab line can be just as long. it depends. what i find interesting, if you were to take a video of airports over the last ten years and watched uber and lyft cars come in and taxi cars come in, you see a shrinking line for taxis and rising line for uber and lyft. there are benefits to it. people appreciate the reliability. >> a second s-curve is possible. that just means re-acceleration again? >> rising penetration and rising frequency. you can still have 50% to 60% of the population using ride sharing. the percentage using on a weekly basis is the number that will rise over the next five-to-ten years. there is still ride growth to come.

that's the basic point. >> uber. i think someone sent me some stuff yesterday, that i was unable to enjoy, from taco bell. that's going to be a big part. uber eats? >> uber made a top pick. we had a pull back in the stock over robotaxi concerns. >> what about autonomous? >> i think it will be beneficial for three reasons. it increases the number of cars and supply. it lowers the per unit economics. lyft and uber. if you own an autonomous vehicle and want to make money off it by having people use it or own a fleet, the best is to match up the demand aggregators. i think there are long-term winners as robotaxis roll out. >> you don't talk about lyft as much. what are the positives and negatives versus uber? >> this is a turn around story.

you had a new ceo come in about a year ago. one of the early amazon employees, not the co-founder, one of the early employees. there has been a successful turn around so far. the ability of lyft to gain mark share is tough. it is hard to come out with a new feature that lyft cannot represent licate the day after. it is a good asset. we don't have a buy on lyft. we prefer uber. >> you do both? >> i am ambidextrous. >> what would go into your decision on whether to take a lyft versus an uber? >> i will occasionally arbitrage the price.

i have a chase reserve credit card or whatever that has, and that has a deal going with lyft. you can use that. i also have a platinum american express card which has the deal with uber. i need to use the first $50 or $25 a month or something like that. >> how do you keep track of that stuff? >> i make sure i use enough of them so i capture all of the fees. >> you need one? take him to lunch and you don't need to touch it. >> how do you feel about getting into the autonomous vehicle? you would expect mixed results. 40% of the people would include autonomous vehicle in uber or lyft, i would. 30% of people said no way in heck. i think over time people will say if it is autonomous or not. how long will it take to get

here and how much will it cost? i think most consumers will go that way. i think the ride sharing services will be around. i don't think they will be displaced. >> the answer, if i was answering your survey, in the physical city, i would be very happy to take the robotaxi. if i was going on highways or the fdr or west side highway, it is very true, the traffic death in vehicle in the city, not on a highway in new york city, on the island of manhattan, is super low. nobody -- people are getting injured, but nobody is dying. nothing is going faster than 25 miles an hour. >> pedestrians. >> pedestrians is a real issue. for me, in a city, it is easy to say yes to the robotaxi. i would wait longer for the highways. >> you use the $50 you get back and you don't think congestion

pricing is a problem for $15 to get down here? if cnbc did not pay for your conse congestion pricing? if it costs you $15 extra to come into work every day? >> i don't know. obviously, i would be against congestion pricing. is that what you are asking? >> yes. if you were actually paying the bill. >> if you are paying the bill, you would be upset about it, no question. >> and lyft is high risk? much higher? >> yes, because it is less diff diversi diversified. uber gives you more dive diversi diversification. there are more options. >> you have uber hurting lyft? >> yes. i have found interesting this industry started four years ago with no profits in sight and now both are generating nice free cash flow.

both showing over time growth begets props profits. i have a preference for uber. >> thank you, mark. coming up, we will talk to a professor sounding the alarm on savings. and don't miss our interview with tesla board chair robyn denholm on the elon musk pay package. we'll have much more with that in the next hour. "squawk box" returns after this. 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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welcome back to "squawk box." some experts sounding the larm about the retirement crisis.

blackrock ceo larry fink talked about this earlier this year suggesting it may be time to rethink the retirement age of 65. our next guest says the call to work longer is misleading and thesis she outlines in "work, retire, repeat." teresa -- thank you. >> you're not the first one. >> focusing on retirement, security and professor the economics at the new school for research. congratulations on the new book. walk through your thesis and maybe how it differs with what i think a lot of folks are saying about how we may all have to work longer. >> working longer is more of a convenient untruth than any kind of plan or analysis.

first of all, you hear everybody is living longer, so why can't we work longer? not everybody is living longer. the longevity gains have mainly gone to the wealthiest americans. men have gained a lot more years of life than women. in some segments, life expectancy is going down. living longer is not same thing as being able to work longer or more attractive to an employer. half the people who are retired say that they didn't retire. they were retired. they were pushed out of their jobs because of a layoff or a reorganization or their own health, physical or mental, or the health of their spouse forced them to withdrawal from the labor force. we saw huge exits of older people. i'm not talking 60s or 70s. i'm talking people in their 50s.

only half the people between the ages of 50 and 65 have employed. this just isn't true on its face. >> if you are right, people are physically living longer, even if they can't work longer, what would you do? the economics of that are very dangerous. >> right. fortunately, most americans don't want the government just to pay for their retirement plan. whenever they are asked do you want to cut back on social security or work longer or save more for retirement? people choosy want to save more for retirement. many people when asked would put more money toward their social security so they can get more social security money. what is important to realize is people feel they need to save for their retirement, but they

need a safe, effective, automatic platform to do it. the 401(k) system just doesn't cut it. we have run this experiment for the past 40 years. 40 years ago, 401(k)s became the popular way that some employers, those that chose, would provide retirement accounts. now after 40 years, only 50% of the people are in the retirement plan or i.r.a. or a plan that is a tiny part of retirement coverage. at any point in time, half of the work force is not saving for retirement. when asked, they want to. we need a bold proposal to help everybody save for retirement as soon as they are in social security. >> how do you feel about forced savings? similar to australia? 401(k) plan that is a requirement? >> it is actually the only way

that countries advance capitalist market economies found people would be secure in retirement. a universal pension system just like our universal social security system. i'm in favor of mandatory savings. just like i'm in favor of mandatory social security. why? it's not because i'm ideological about it, but practically, it is the only system that works. we know that the most important financial power in our markets is the power of compound interest. getting people in early into a pension plan is about the only way they could have enough savings at the end of their working lives to supplement their social security. you know if you start saving in the 20s and 30s, you will live off that income from the 70s and 80s and that will come from the

market and not your own hyde. 15% starting at your 20s or 30s is actually not a radical idea. it is radical in the united states. >> treeeresa, we have to jump i second. at a time when so many americans, especially lower down the ladder who need the cash today just to get by, this is a counter argument, effectively, to the forced savings. i'm with you. i like the forced savings in con concept, but the practicality is difficult. >> you have hamburger helper for years. >> lower-income workers under this plan in progress, the retirement savings for americans act was supported by republicans. democrats and charles schwab and

uber and other platform economies say if people are forced to save and they're low income, that money would go to their own account and most low-income workers actually want that. the government, under this plan, the government for lower-income workers, would match that money by 5%. it would cost some money, but right now, we spend billions. >> teresa, thank you for joining us. congratulations on the book. it is a fascinating topic. thank you. >> thank you so much. bye-bye. when we come back, save the date. boeing's outgoing ceo is set to testify in congress. we have the details straight ahea ahead. as we head to break, let's look at yesterday's s&p 500 winners and losers. >> announcer: executive edge is sponsored by at&t business. next level moments need the next level network.

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good morning. welcome back to "squawk box."

we are live from the nasdaq market site in times square. if you take a look at the futures this morning, the dow down 30. the s&p is virtually flat. the nasdaq is up 15. this comes as we continue to see gains. the s&p and nasdaq setting new highs once again yesterday. if you look at shares of gamestop this morning, that stock jumped 19% in yesterday's session. it is now up 33% for the week. it is off 2% this morning. it's been up four of the last five trading sessions after keith gill, the trader known as roaring kitty, posted a screen shot of the portfolio with what appears to be a large position in gamestop. in the next hour, the ceo of robinhood will talk about how his platform handled the surge of meme stock trading. boeing's outgoing ceo dave

calhoun will testify on capitol hill about whistleblower safety allegations. boeing saying it welcomes the opportunity to go before the panel and share the steps the company has taken to improve safety sand quality. people pile on. i don't know what to make of it. the latest is the two former employees of boeing. the articles, they point out two other whistleblowers died earlier this year, within months, these two are more determined than ever to tell what they allege are dangerous practices at boeing and calling the safety a ticking time bomb. what a weird story. two of them died weirdly, and these two, reference in the pieces and still coming forward. is that implying there is danger

to their safety? >> it has been weird if you look at the reports. >> that's what they've been saying. >> what a long, torre torturous fall. it is unfortunate and hard to watch. >> one comment on boeing. i interviewed lina khan and c kantor. we consolidated because we wanted a national champion. that may have been a good thing, but has turned out to be a l long-term bad thing. had we had competition -- >> how do you just have more than a duopoly? i guess china and russia. you fly on the russian airliner. >> i would take boeing any day

of the week. it started with europe con consolidating with airbus. >> it did. i wonder if we had one or two other players in the u.s. and if you had a better outcome. >> we have south america and canada air. nice jets they make up. they don't make the big hub and spoke. coming up, the ecb expected to cut rates for the first time since 2019. we will dig into the latest market reaction. later, don't miss the interview with tesla board chair robyn denholm on whether to reinstate elon musk's pay package. "squawk box" is coming right back. >> announcer: currency check is sponsored by interactive brokers. the best informed investors choose interactive brokers.

welcome back to "squawk box." leaders from the largest private equity firm are gathering in europe. we have leslie picker with the latest. >> reporter: good morning, andrew. thank you so much. thank you to jean heins. obviously, a pretty under the radar firm, but giant in the investing world. $1.2 trillion in assets. a lot of that is in public markets. you are here at super return which is a private assets conference. that is, in part, due to the private build out of the business, which you have big goals for. i'm curious what is driving your decision to center the markets and are you concerned by the

overall popularity of the class and crowding in the asset class and ultimately, when a cycle happens, how to perform? >> thank you for having me on. i'm excited to be here. we started, you might not know, we entered the private business in 2014. it was driven by one of the growth investors who was a public growth investor recognizing the trend that companies are staying private for longer. that may seem obvious now, but back when he pushed the firm to get in the privates business, that was not obvious. we started with the late-stage growth fund and over the years, we now have four and i would say four private equity funds and one hybrid platform. when you think about the platforms, late-stage growth and bio-tech and climate and diverse founders and fintech. it's very adjacent to the public equities. i'm a healthcare investor.

bio-tech, the team that works with me on the bio-tech, was strong. that was the reason we got into it. the last couple of years, we have been getting into the private credit space. we have half of our business now is fixed income. we are very balanced. it is unusual. we are very balanced with public equities and public fixed income. as we enter the private credit business, which you know has so many different categories, we're starting in areass strength. we have a very positive footprint in credit. we have a very strong footprint, as we said, in late-stage private equity and our second module is lending. we have an the lot of ambition hire teams in the next five

year. >> reporter: on the macro front, you write about the end of easy money era and the unwinding of globalization as such with frequent economic cycles and higher inflation and greater differentiations in countries and policy decisions. what does that mean for markets? >> i think that means we will see more volatility. that is actually quite good for us. we have been in a one-way market for the past ten plus years. when you have more volatility, you have more dispersion. i think that will be good for active management. i will say that. clearly, we have not been operating in a market where you have high interest rates. i'll put my ceo hat on and not my investor hat on. i think myself and fellow ceos and across all industries, and i interact with many ceos, have been operating in a lineal world. now we are operating in a

non-lineal world you have to deal with inflation. no ceos had to deal with inflation except in latin america in the last 30 years. i think we're all learning how to deal with the volatility. i will put my investor hat back on. i will expect from that you will see air pockets. when you don't have a lineal world and you have a more unpredictable world with supply chains and covid, i suspect we will see air pockets. >> reporter: we appreciate your time. jean, thank you for joining from the super return conference here in berlin, germany. joe, i'll send it back to you. >> thanks, leslie. space news. an update on the starliner mission that launched yesterday and today's spacex star flight. that's next.

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boeing launched its first starliner flight with astronauts yesterday. it took off at 10:52 a.m. from cape canaveral, with two nasa astronauts aboard and planned to dock with the international space station today, just after noon eastern. and separately, spacex plans to launch its giant starship rocket from its texas star base during a 100-minute window that opens at 8:20 a.m. eastern. so, not quite two hours from now. starship in the previous starship test flight back in march, the spacecraft successfully reached orbit, but the vehicle was lost as it re-entered the earth's atmosphere. in today's test flight, spacex hopes to show that both the

upper stage spacecraft and the rocket's first stage booster can both make controlled safe landings back on earth. pretty amazing. >> it is. when we come back, new york governor kathy hochul putting the brakes on new york city's congestion pricing program for now. you can hear the cheering in new jersey already. congressman josh gottheimer has opposed this plan from the start and he will join us next.

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new york governor kathy hochul putting the rollout of congestion pricing on hold indefinitely saying it could hurt the city's postpandemic recovery. the new tolls were scheduled to go into effect later this month. new jersey residents have a good

reason to celebrate for now. and joining us is one of those celebrating, that would be new jersey congressman josh gottheimer. congressman, thank you for being with us this morning. >> thank you for having me. >> so, should we look at this as a temporary victory in terms of what you were hoping for? governor hochul says not now, but as andrew points out, the infrastructure is put in place, the cameras are set up, i'm hearing a lot of this was because of political pressures. you're facing congressional candidates who have to run in november, and they were getting massive pushback from places like staten island, places like queens and other new york areas where their residents were going to have to pay for this. you think after the election this comes back? >> i don't. not in the short run. this is, becky, as you know, a huge win for new jersey and new york families in terms of their pocketbooks and people were going to have to pay $15 a day extra, $4,000 a year, outrageous. and it was going to lead to more

traffic and more pollution in northern new jersey and the outer boroughs. i think a lot of elected officials heard what i've been hearing for years, absolutely not. people can't afford this and we shouldn't move forward. i think finally, i want to thank governor hochul for doing the right thing here, i think realizing this makes no sense, especially now people can't afford to pay more and it is going to cause more problems. i look at this as a huge win. we fought to the very end, fighting for five years, fought to the very end, just 25 days to spare, threw the kitchen sink at new york and then some. we got it done. we're going to save people thousands of dollars a year. >> did you talk to governor hochul about this? this was really kind of a hail mary last minute solution to this. >> not in the last day, but i have. and expressed my deep concern through the years as you know. and what it would cost. listen, i think now the key is to make sure we get back to a cooperative relationship to make sure new york can get -- can thrive and bring people back and their small businesses are okay

and i'm focused on new jersey and making sure our families have easy commutes and can save a few bucks. and this is more than a few bucks that they get to save, thousands of dollars a year because of this indefinite pause. i think the word indefinite is key here that they used. >> congressman, i totally understand where you're coming from and i get why this is a win for you in many ways. clearly, there is now going to be a big call it billion dollar hole in the budget in new york. and so there is going to be a question about how that is ultimately going to get paid for. and i know you're saying that you don't want that on the back of your taxpayers. the argument is that's going to end up on the back of new york businesses likely and then a question about whether they want to stay in this city. given that we all dearly care about this entire ecosystem, and that we have built on purpose lots of infrastructure around new york city to incorporate folks in new jersey, westchester, long island, there is a whole system built around this. what would you recommend to the

extent -- i know it is not your responsibility, but it is everybody's responsibility to some degree, what would you recommend to fill that hole? >> i believe it is all of our responsibility. it is why i believe in the port authority in the new york/new jersey relationship. we have $6 billion through the bipartisan infrastructure bill which i helped and pass for the new york transit system, they have to clean up the mta. this is a huge issue i've been talking about for years. they lost $700 million to fare skippers last year alone. people didn't pay. they got to fix that, right? there is $600 million the buffalo bills get for a new stadium, the owners there, don't give it to build the new stadium. move that money to invest in mass transit and the city. there are a lot of things they spend money on, there is mismanagement they can fix. and clean things up and we'll continue to get $2 billion every year additional, andrew, for mass transit in new york, from the federal government. >> congressman, i get that. but i don't think that, in truth, that's the fairest answer because as we were discussing

earlier, you know, it is very hard to police this stuff in terms of fare skippers, for example, on a $3 metro card. the amount of money it costs to actually have cops physically standing there everywhere, you will never make the economics of that work unfortunately. you never will. even some of the capital costs to actually implement some of these new things so you hopefully can't jump over. it is very hard. >> the number of fare skippers has skyrocketed. you're talking 45% of local bus riders not paying their fees to board at the last three months of last year. that's up from 21% in the last quarter of 2019. >> i'm not saying we shouldn't fix it. i'm saying there is a much larger piece of this puzzle than just -- >> i'm with becky, you can't allow lawlessness and people not to pay to ride and that number surged because they're not running it well. we have great law enforcement in new york and they have done a great job over the years. we have to let them do their

jobs and i just disagree with that premise. also, you have to watch the dollars that are spent. they blew an extra billion dollars on an second avenue subway stop because the oversight wasn't proper. they built it way too big. there is places and instance after instance where they're spending far too much money and not watching the nickels people have to pay every day and we have to hold them accountable. >> do you -- do you support the unions, the construction unions that were responsible for the price tag being oftentimes six and ten times the price it should be in almost every other city in america? >> i don't blame the hard working men and women of labor, if you're asking for better management. this is about a management issue and they don't manage it well and they got to do a much better job. >> who do you think is managing those things? when the cost overruns happen, how do you think that happens? this is why -- that's why i say, congressman, this is a very complicated topic, so i can see you're very happy today, but i'm saying, to actually solve this really is so much harder than you're laying out.

>> i'm not saying any of this is easy. the bottom line is they had -- the problems have increased over the years and you should look at the management. that's like at any organization. you don't just throw up your hands and say, oh, well, it is too big of a problem to take on. if you went in there, i guarantee you in a week you would find ten things you could fix. the bottom line is i think things need to be fixed, but more importantly i think today we should focus on the fact that the answer is not just taxing people more and especially hard working families like nurses and electricians and firefighters and cops and teachers. that's not the answer to stick it to people so they get more money to blow into a bottomless pit. you got to fix the problem and spend money responsibly. i think that's -- one of the critical lessons today, you can't -- >> taxing people who aren't using the -- >> josh, you think it is possible to reform the management, labor management practices of public unions? >> do i think it is possible to reform the practices? i think -- you know how i feel

about this. you should look at everything. >> tell me. >> we have a responsibility. you should look at -- but the bottom line is this is a management problem and it has been for years. it is actually running things better. you got to run the railroad better. at the end of the day, you don't just turn around and whack hard working people and hope they're going to make the difference because you have no way to fix it. that's not the answer. $15 a day congestion tax wasn't the answer. i think everyone heard enough from people saying you can't do this to people, you got to make life more affordable, not more expensive right now. >> i'm somebody who would be potentially impacted but i was not going to pay this tax. cnbc was going to pay it for me. i can push it back to the businesses. there are a lot of people who can't do that. the shortsighted thing of this is you're trying it lure workers back to midtown manhattan because you want them in the buildings, paying for lunches, going for drinks afterwards, having dinner here, all of that revenue that would feed into the city and i think if you tax

that, they are far more likely to work from home because they can. postpandemic we have shown them that's possible. i think everybody brings good points. andrew's point about the police is a fair one, you put over time pay for police in the subway skyrocketed from $4 million in 2022 to $155 million last year. it is difficult to do this. but there is a breakdown in society where 44% of the bus riders aren't paying and -- >> i think, congressman, the other piece of this i think that is being missed in the puzzle is the folks who are driving into new york city already are already part of the, i don't know if it is the 1% or top 5%. because the truth is, there is already a tax on the system. parking in this city will cost you $50, $60 a day, if in the more. crossing the george washington bridge is costing you -- it is a $75 project to begin with. >> there is a breaking point. >> maybe there is a breaking point, but we're talking about $10 or $15 more.

the idea that somehow you're hurting the -- the folks who can afford paying $75 may very well be able to afford paying $95. >> you got to -- >> go ahead. >> i disagree with you there. come to new jersey, you're talking about nurses who have no options -- zero options for them for mass transit in a lot of place where i live in northern new jersey. sussex county, which i represent, they're not the 1%. they're not living high on the hog. they have no other choice. they have no mass transit. it is not like new york, they don't have any mass transit options. we can't add trains. i was excited to get money for the new gateway train tunnel to have more capacity. we have limited options. or no options. there is no bus service since the pandemic in a lot of places. or very limited bus service. they have to drive. and as becky said, a lot of these people work incredibly hard, they try to make ends meet, whacking them with another $15 a year -- that's $4,000 -- $15 a day, that's $4,000 a year

after taxes. so you're talking about $7,000 before taxes. that's a lot of money for somebody who is working incredibly hard to make ends meet and that's who we're fighting for here. i'm going to keep fighting for people, that's the next issue, for hard working folks. that's what we did here. i think it was a very big win for them. and it is going to be a good win for new york not just for new jersey, right? you don't mess with jersey on these things. also, you don't mess with small business owners anywhere who are trying to make ends meet too or anybody else trying to get by. and i think that's the lesson here. >> congressman, thank you. we all feel -- it is a very interesting problem and we're all trying to solve it. thank you. >> thanks so much. >> it is past 7:00 now. 7:07 right here on the east coast. you're watching "squawk box" on cnbc. i'm andrew ross sorkin with joe kernen and becky quick. we got some breaking news for you. robinhood agreed to acquire -- bit stamp for $200 million in cash. it is going to bring robinhood

more than 85 tradable assets from its spot exchange in products like staking and lending. in a few minutes, we'll speak with robinhood's ceo vlad tenev all about that and so much more. when we come back, congress races against the clock to curb a.i. election interference. we will take a look at some of the measures that lawmakers are considering right now. "squawk box" will be right back. daughter: hey, dad. dad: hey, sweetheart. daughter: what are you doing? dad: i'm gonna clean the fence. daughter: it's a lot of fence. dad: you wanna help me? dad: aim at the wall, but get closer. daughter: (gasps) what the?! daughter: alright. dad: side to side. when you work with someone who knows a lot and cares even more... you can do this. ...you're unstoppable. (♪♪) wow... are you kidding me?

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people couldn't see my potential. so i had to show them. i've run this place for 20 years, but i still need to prove that i'm more than what you see on paper. today i'm the ceo of my own company. it's the way my mind works. i have a very mechanical brain. why are we not rethinking this? i am more... i'm more than who i am on paper. welcome back, everybody. lawmakers are trying to make sure a.i. doesn't interfere with the nation's elections. emily wilkins joins us now, she has more from washington. hi, emily. >> good morning, becky.

lawmakers were now in a race against the clock to ensure that 2024 elections are not derailed by deepfakes. we have several bipartisan bills that are gaining momentum after they were approved by a senate committee and given the green light by senate road map that laid out what the future of a.i. legislation in the senate is going to be. these separate measures, couple of different things, one of them would ban deepfakes from political ads. another would require ads that use some degree of a.i. to include a disclaimer and would also require federal agencies to get together and create some guidelines for election officials on a.i. now, deepfakes have already showed up in elections, including a robocall that used a.i. to mimic joe biden's voice. and look at this a.i.-generated image. it shows trump hugging dr. fauci, posted by an x account affiliated with ron desantis' campaign. you can tell some of the images do not seem to be real, appear to be generated by a.i. senators like amy klobuchar are

worried that it is only going to get worse. >> we're very, very concerned about what is going to happen here because you are not going to know if it is the candidate you love, or the candidate you don't like. and to me it is a hair on fire moment. >> klobuchar sponsored the bills, each of them with a republican colleague, so they are bipartisan. but lawmakers aren't the only ones who want to see more guidelines. several companies including openai, salesforce, ibm, microsoft, they all endorsed a bill to ban a.i. generated images that are materially deceptive, so showing lawmakers doing things they haven't done. klobuchar says she is encouraging senate majority leader chuck schumer to ensure the bill gets a full senate vote soon, saying it cannot wait until november. but, guys, certainly the senate calendar is always an issue to work with. but at the same point, you have seen schumer come out and say he really wants to seeing some on a.i. done before the end of the year. and that this point, this could be the thing that winds up

moving. >> yeah, emily, i was going to ask you the same thing. it feels like this is the type of stuff that congress always talks about and never acts on. we were talking this week about how social media has been out there for 20 years now. facebook was created back in 2004. on the scene for that long. you had congressional leaders talking constantly about doing something to protect kids online, nothing ever gets done. i feel like this is more of the same. unless you're telling me this is a situation where they're worried it is going to personally impact them and their elections, so maybe they do something about it this time? >> well, becky, i think you're incredibly right to kind of point out that there is so many concerns about internet security, data privacy and all these have taken so long. at the same point, congress seems to work well when they have a deadline. that's going to become a question, do they actually see the elections as a deadline and needing to get this done as soon as possible? you've seen deepfakes impacting other elections, you saw a number of them used in india. i think for a lot of lawmakers very haven't encountered this on

a one on one level. it is not in their campaigns, not in their races yet. interested to see what happens, though, if we start seeing some of these, do you start seeing that action. >> okay. emily, thank you. we'll see you later. >> thanks, becky. coming up, robinhood acquiring a european crypto exchange. we'll talk about it and the new deal, the return of meme stock mania and more with vlad tenev next. oh, charades! - okay! - love it! umm... first word. - tons - nostril! uh-uh... bill! uh-huh... - hip-hop! - limping! mmhmm! medical bills! uh-huh! - pancakes! - cash! who pays you cash when you have medical bills? grrr! no idea. [tapping] gap! the gap left by health insurance? who pays cash to help close that gap? aflac! oh, aflac! get help with expenses health insurance doesn't cover at aflac.com pictionary?!

welcome back too "squawk box." robinhood announcing it has agreed to acquire cryptocurrency exchange bitstamp. joining us to talk about this news and so much more, vlad tenev, robinhood ceo and co-founder. great to have you at the table this morning. >> thanks for having me. >> let's walk through this deal and then get into meme stocks and everything going on in the markets right now. >> sure. >> what does this do in terms of what you're doing with crypto and everything else? >> yeah, it is really three things that got us excited. one is this is an international business. and it accelerates our plans for international expansion, particularly in crypto. second, it brings an exchange to robinhood, and we have been thinking for a long time that

the world could use a robinhood exchange, we have a lot of ideas about how we can improve upon that. and as we talked to our marketmakers, we see there is a clear need for another player in the market. and then the third institutional business, this allows robinhood to enter a new business, serving marketmakers and other institutional customers. that's something that is very exciting for us. >> what does a robinhood exchange look like and what does this say or does it say anything about regulation in crypto and the u.s. versus elsewhere outside of this country? and where you think the growth opportunity is. >> yeah. the business is global. bitstamp, that is. it is europe-based. and as you guys probably know, europe, you know, we make fun of us europeans. i can say us europeans, because i'm american and european, lead in regulation and in this particular case, meca, the

crypto asset regulation, is going live so there is an established regulatory framework. and unfortunately, you know, europe is a little bit ahead in this regard. i don't think that the u.s. is too far behind. i think that it is always kind of darkest before dawn as they say. and you're seeing some positive signs. >> this will sort of, though, foreign customers, if you will, meaning american customers will not be able to necessarily use some of these services, right? >> well, again, i think it gets a little tricky with institutional business. a lot of these customers are based globally and have offices around the world. we haven't yet gotten to the point where we're going to discuss the details of exactly how the integration is going to go. but we do anticipate it serving global customers. >> the reason i ask, there is a staking business and as you know staking right now is a hot topic in washington. coinbase is in the middle of a

brouhaha, that might be a polite word for it. i'm thinking of how you're going to keep the business -- to the extent that any of the businesses have to be separated from now. >> we have already had to go down that road. so, we launched solana staking for customers in the eu, but given the regulatory environment here, we have been unable to launch that product for customers in the u.s. there are differences in asset listings between the eu and u.s. so, i mean, we're going to have to continue doing that as we expand the business with the exchange. >> okay. can we talk about the roaring kitty of it all? what do you make of what's happening right now? >> look, i think for us, it is an opportunity to show how much we have grown since 2021, since the first of the meme stock frenzy incidents. and i think the really

interesting thing is that these events have really been starting in the overnight sessions. so sunday night where pretty much the only game in town is robinhood, if you want to trade stocks. i just announced yesterday that we passed over $20 billion in cumulative volume in 24-hour market and that's been growing really, really quickly. so, not only is there this new element where we can continue to kind of differentiate ourselves as the leaders in innovation and technology in trading, but we can also show just how the reliability of the platform has improved since we have gone public and in the past four years. >> what do you make of those who say what is happening with this roaring kitty situation is an example of a mockery of some sort of what the markets are supposed to be, that they're supposed to be sort of values driven in some -- there has got to be some metrics that make some sense and we're into meme

land all over again. >> yeah, i mean, i try to stay away from sort of, like, passing judgment on any particular style of investing and trading. >> has some judgment, because there has got to be -- you must have a view about this. >> yeah, i mean, personally, i consider myself sort of a long-term buy and hold investor. but robinhood itself is a neutral technology platform. we believe that any product that is available to institutional investors, and actually probably more, like a broader set of products. i think the accreditation rules need to be looked at and those are overly restrictive too, but if an institutional investor has access to a product, retail should also have access to it and have the same abilities to trade as institutionals, as long as they're suitable and pass all the checks. >> lawyers and others come on the broadcast in the past couple of days because there have been reports as it relates to roaring

kitty, morgan stanley is thinking should this guy be a client? should we have him on the platform? is the s.e.c. going to look at this? is he communicating with people on private subreddits or on text messages or whatsapp with other people. do you think, so the reason i mention this, there is some people who look at that and say, he individually needs to be looked at in some special way, but other people say, he's doing what everybody on wall street has been doing forever. how do you sit on that? thinking about robinhood and what robinhood is supposed to mean. >> i don't have any secret information more so than what you guys have and what you're seeing on social media. i do think that there is a lot of new tools that the regulators have to monitor trading activity. the consolidated audit trail, they can sort of see more information, a lot of these have been implemented in the past couple of years.

so, i would imagine that they're seeing something that we -- that hasn't been revealed yet and they're investigating. but, again, i don't really -- i don't really have any insights that are special there. >> i don't even know how i feel. i don't know what -- how you should really -- what constitutes insider trading at this point and how do you distinguish roaring kitty from three hedge fund guys? i don't know how to do it. do you? >> i think maybe not insider trading, but maybe manipulation. manipulation. if you're saying one thing, and showing that, if it turns out not to be true, i think the s.e.c. would have a case for it. if it turns out it is true, i don't see it differently. >> if it is true you sat forward in your chair -- >> just the ownership stake he put out, implying he owns that much. >> it is a good gig if you can have it. you could make $80 million -- you already got it, but make $80 million overnight from just

circulating a meme on twitter. >> i can't really speculate as to what's going on there. >> i'll bring it back to your business. i want to get an update on the credit card. the cashback credit card. that was a big, big deal. >> yeah. yeah. >> what has that done to the business in the past couple of months. >> so here's what we're seeing. we had a thousand -- a million -- over a million people sign up for the credit card in the first month since we announced it. and i think that was a very positive sign because as you guys probably know, the incumbent credit card businesses spend upwards $500 to acquire every single customer. and our bet was that by actually making the economics and the value of the product good, people will spread the word to each other and we can save on that. >> how much of that was new customers. part of the question mark about that big cashback number was whether you would be able to do that for, you know, for a very long time or not. or that would be just an

introductory price to get people into the system. >> yeah, yeah. i know everyone is trying to get me to pledge and do all these promises, i'll tell you, i don't see a scenario where we're retracting that offer. certainly one could imagine that they would exist, but we have done a lot of work on the economics, and credit card businesses are among the most profitable financial services. so, what we're really doing is sharing some of the profit that would normally be going to credit companies' bottom line to our customers. and what we're seeing with the people that we have invited so far is that nearly half of the customers that we send invites to from the wait list actually end up going through and getting credit cards. so, the wait list numbers are very significant and will translate to real customers. >> very quickly, we're running out of time. you made a pie chart, five years from now, about where revenue came from in your business. do you think it is still mostly the u.s. or now that you have

bitstamp and other products you're building outside of the u.s., it becomes -- what does that look like? >> i think over the long run, it is very possible that over half of the revenues will be international and i think that if you look at some other companies, interactive brokers, for instance, they have shown that that's actually possible with the globally scaled platform in the brokerage space. and, you know, they don't have a big crypto presence. we have been an early mover and leader in that space as well. so, yeah, i don't see why more than half of our revenues can't be international over the long run. but, we're also going to be aggressively growing the u.s. business. so, yeah. >> thank you for coming in. appreciate it. >> really appreciate you guys. >> you bet. thank you. "squawk box" coming back right after this. >> announcer: time now for today's aflac trivia question. june 6th is the anniversary of d-day. what was the code name for the

invasion of normandy? the answer when "squawk box" rern tus.

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today's aflac trivia question. june 6th is the anniversary of d-day. what was the code name for the invasion of normandy? the answer, operation overlord. and welcome back to "squawk box." i'm dominic chu with your morning movers. we're crunched for time this morning. i'll make it quick. nvidia is the newest member of the $3 trillion market cap club overtaking apple and market value by a hair. and it is less than 5% away from overtaking microsoft as the world's most valuable company. and let's be honest, that is an upside move and can happen with nvidia on any given day. watch nvidia, microsoft and apple shares. couple of retail earnings headliners, lululemon, shares with getting a bounce in a tough year for shareholders after it reported better than expected quarterly results, boosted full year profit forecast and added a billion dollars to the stock

buyback plan. and 5 below, getting hit hard after missing revenue expectations and offered a weaker than expected current and full year revenue guide. the core customer base of lower income and value oriented shoppers continues to feel the effects of stubbornly high inflation. 5 below down 16%. lulu up. i'll send things back over to you. access to cheap and reliable electricity could reach critical mass for all of us, but also for big tech. peter huntsman will tell us why silicon valley could face an energy crisis near term. at 8:00 a.m., an exclusive interview with tesla board chair robyn denholm on the elon musk pay package. "squawk box" will be right back.

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our next geuest says silico valley is facing a coming energy crisis. peter huntsman says access to cheap and reliable electricity powered by fossil fuels will soon pose a major risk to big tech. peter huntsman joins us this morning. this is a very specific thing that you're talking about, peter. you don't need to think very long, very hard about global

energy demand and the viable ways that we're going to be able to satisfy for both developed countries and less developed countries. and it is going to involve fossil fuels for the next several decades at least. >> think of the billions of dollars, hundreds of billions of dollars we spent in this country. we still have over 60% of our electricity production coming from fossil fuels. and it is much higher if you look at the reliable and cheap electricity. so it is not just about electrons, it is about the reliability, affordability for the average person out there. i'm not sure a lot of people go through this. nothing to do with inflation, cost of living, everything. >> a.i., take your pick, bitcoin, whatever new technology you want to talk about is going to use -- going to need even more energy than we previously had, along with everything else as the rest of the world comes hopefully to our standard of living. you're going to need more energy. we're going to need to provide

it somehow. and for some reason the climate lobby is very, very powerful. and the way we're going right now, for example, in europe, you point out europe is deindustrializing. what is the endgame? >> that's a very good question. because there is a detachment from reality here. the reality is everything in the studio, everything that we're wearing, everything that we eat, it is processed, it is stored, it is transported, by something that either comes out of the ground in the form of oil or how things are made. we seem to just have forgotten that, how things go in that entire process. over 500 different chemicals that are used to make a cell phone. now, we want cleaner chemistry. but when the epa takes three to four years to approve new chemistry, new chemicals, how do you improve that? how do you make things better? how do you make things faster? it is all about chemistry and basic science. >> peter huntsman, what do you expect to hear from peter

huntsman? you may have a horse in this game, but you really just are looking at the reality of the situation that a lot of people aren't -- i joked to you, that you will see the people organizing a climate demonstration on their cell phones. it is made of plastic, which is being transported using electricity that is generated from -- they're driving the demonstration in a minivan. >> i would say it is our products that produce the wind blades and produce the solar panels. i'm not antiwind. i'm not antisolar. we need reliability. we need affordability. and we need solutions. that means that there is a limited -- there is a finite amount of a number of these things and we got to work together with a.i. coming on. we're building data centers, new data centers take a little over a year to build. it takes ten years to permit in of the new gas burning power plants. it takes even longer for wind and solar. so, that's the disconnect we have. >> so you look into this, and

you're not a climate scientist obviously, but how worried are you that if we don't cut back on all these things that there is an existential threat 10, 15, 20 years from today. that's what we hear. >> i don't think the threat is going to be 10 or 20 years. i think it is going to be three to five gryears from now. >> i'm talking about an existential threat from rising oceans, from increased, you know, the claim of increased hurricanes, increased tornadoes. i'm not talking about running out of energy. i'm talking about the existential crisis that we hear is coming from climate change. if you believe that, you should go back to living in the stone age, if you really think that -- >> my essential throw is around the average person -- >> having energy. >> you talk about the fees coming in and out of new york city. that's nothing if electrical prices are going up 40%, 50% because there are shortages.

that's three to five years out. if you start looking at 10 to 20 years out, well, i'm 61 years old, i've heard this now for 30, 40 years, it seems like we're always five years -- we're never a year away, never 30 years away, five to ten years. >> three to five years out, electricity prices you think will go up 30% because we won't be able to meet demand? >> look, is it 30%? the last -- the last available electricity, how much is that going to be worth? not 30% up. it is going to be multiple times up. and when we have consumers and utilities that are competing against these multitrillion dollar high tech companies. >> the data centers. >> the data centers and so forth, they want to buy up the reliable and the affordable electricity, i have no problem with them doing it, it is a free market. heaven bless them. on one hand, we're out here is aing saying we don't want hydro

carbons, on the other hand we're adding capacity. >> you have regulators who say you can't raise prices. does that mean we'll have shortages? >> if that's the case, yes. you're not building the capacity. it is projected -- not huntsman numbers. it is the projected amount of electricity that is going to be needed to power all of this, if that indeed comes on, we're not building the electrical capacity today and the electrical capacity that will be built will have to be hydro carbon-based. cannot have reliable wind that is going to be running 100% of the time. >> we're doing well now in terms of -- price sets demand and supply and producers in this country are producing a lot of -- there was a time during the campaign when president biden said i will end the fossil fuel industry. it looks like the numbers fly in the face of people that complain about regulations for oil and gas because we're at record levels. could it be better than what we're seeing right now? >> well, joe, as i said earlier,

it is just one word, reality. we say we're going to be a hydro carbon free power grid in 2035. that's the administration, i'm not in here to discuss politics. i'm here to discuss the realities. when we say we're going to be hydro carbon free, what are we moving to? everything we produce is made from hydro carbons. not just people say you can go with wind. wind doesn't make things wind doesn't actually make our cell phones and our computers. and medical devices and so forth. >> i'm afraid to tweet. i already tweeted out. maybe i'll just leave it at that. i tweeted out a funny climate change meme that basically shows -- i'll describe it. i don't want to -- i wasn't going to show it. okay. you got a donkey, i don't know what that represents. he's pumping up some hype into a big scary climate change monster, and there is the public running saying, here, take my

money, and it is going into the bucket of the dnc. i put ha. i thought it was a joke. a funny joke. a joke. harmless, right? harmless, but some truth to what the climate lobby does in terms of overstating the possible calamitous future, is there not? >> i would like to see more solutions and less fear. there is a great deal of fear that is being peddled out there about the basic science of manufacturing, the chemical industry, the energy industry, and so forth. we need to be working with a.i., a.i. is -- welcome to the party, guys. we're all going to be -- >> welcome to the party, pal. >> welcome to the party, pal. we're all competing for the same electrons and we need to make sure we have a sufficient amount of electricity, of manufacturing capability. these are middle class jobs, income, goods and services we use every day. >> well, i can feel it now that it is going to be -- his name is peter huntsman. what do you expect to hear from

peter? that's what we'll hear. these are all facts. doesn't matter. >> i'm not -- i hope we're looking for solutions. that's really what we need here. >> i enjoy segments like this. we'll see. not everyone does. some do. >> thank you, peter. >> joe, becky, thank you very much. >> thank you. when we come back, a.i. and the future of healthcare. cleveland clinic ceo dr. tom mihaljevic will join us about how to change patient care. we'll talk more about a.i. quk x"ilbeig bk."sawbo wl rhtac at morgan stanley, old school hard work meets bold new thinking. to help you see untapped possibilities

and relentlessly work with you to make them real.

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so you don't have to compromise. powering smarter savings. powering possibilities. life's daily battles are not meant to be fought alone. - we're not powerless. so long as we don't lose sight of what's important. don't be afraid to seize that moment to talk to your friends. - cloud, you okay? because checking in on a friend can create a safe space. - the first step on our new journey. you coming? reach out to a friend about their mental health. seize the awkward. it's totally worth it. welcome back, everybody. artificial intelligence is changing the way so many industries operate and healthcare, which is more than 17% of the u.s. gdp could show significant change in patient care as a result. joining us right now to talk about this, healthcare technology and much more is the cleveland clinic ceo dr. tom

mihaljevic. thank you for being here. >> thank you very much for having me. >> we talk so much about a.i. and right now it feels like we're talking about all the things that could come to fruition potentially. we have not focused on healthcare and what it means. you've been digging into it pretty deeply. what is the promise for a.i. and what that could mean for patient care? >> we're very enthusiastic about application of a.i. and patient care in general. in every segment of patient care. you know, today there are so many advances in knowledge and information that we say the limits are our own human ability to synthesize all the information and provide the best possible care for our patients based on that information. >> the best possible latest research for whether it be cancer, whether it be heart disease or something down the line. >> it is too much to catalog. too much to catalog. artificial intelligence is

crucial technological advancement that will allow us to do that. >> how are you using it right now? >> we're using artificial intelligence in clinical applications already to diagnose, for example, a life threatening illness that have symptoms and best example is s. the blood stream infection, that is one of the leading causes of death in hospital setting. yet the beginning of sepsis is be so subtle clinicians even very, very attentive cannot detect it. if we add information provided to us from multiple different sources and use artificial intelligence that leads to early detection, earlier treatment and far better outcomes. >> for years, how many biotech companies, the landscape is littered with people that tried to take on sepsis. maybe that's it. once it gets started the release, you can't stop it, but if you get it early, you don't need the perfect monoclonal

antibody to fix it. if it's early enough, you can stop it. >> absolutely right. every minute, every hour counts. so ability to detect it early is crucial. and the ability to detect it early at scale. >> for cancer, seems like the same thing. >> oh, cancer is the best example. i mean, new knowledge in cancer, new therapies in cancer have blossomed. as a result looking today, let's say, 1970s, the chances of survival all types of cancer was 50/50. today it's 75%. so we're moving, making so much improvement in cancer care, but to make an even bigger leap we need artificial intelligence to help us synthesize the knowledge. >> and also detection? cancer, catch it early enough drn-you can't, a much better chance of survival. >> there's synthesizing of knowledge, molecular tests and

immunologies and much more to it. use artificial intelligence and actually cancer research and other biological research. >> the problem is the computing power to use these things is so expensive, and most hospitals operate on a profit margin 3% or less? >> correct. >> how do you possibly afford piling money into resources for this right now on a broad scale? not just for the top-funded hospitals out there? >> a major limiter of the use of artificial intelligence nationally or globally. do we have health care providers that actually sophisticated enough to take advantage of artificial intelligence? the short answer is, no, we don't. therefore, unfortunately only a fragment of u.s. population has an access to the best of what u.s. health care has to offer, because the provider network is so fragmented. the largest health care

networks, the most sophisticated maybe have 2% or 3% of market share. >> government looks at consolidation in the hospital business and says that that is the reason for why prices have gone up in some places i've seen. even in a "wall street journal" article recently put this out. is that the kcase from the hospital perspective? >> not really. i mean, not really. we're the largest industry in the united states, as mentioned. largest sharer of gdp. yet the largest health care provider in the united states has 3.5% of the u.s. market. there's no industry in the united states where leading providers have such a small market share. even more important, death fragmentation limits availability of the best hume's health care has to offeramerica >> so what is the cause? 17% and growing in health care. how do we get our arms around that and try to shrink the

expansion while looking for better and better -- >> scaling makes sense. scaling particularly leads to lower costs, higher efficiency and it is one part of the answer. the other part of the answer we actually have much more to offer our patients over time. we're speaking about modalities, both treatment modalities and diagnostic modalities that are very costly. the price of health care continues to grow but i believe a meaningful consolidation would really allow us to. >> a -- to a. decrease costs. also better use of technology, and, b., most importantly, offer the best of health care to more people in need. >> the other issue is cybersecurity. these are such sensitive records that you all hold. i mean, the holy grail has always been having one electronic record that follows you everywhere all doctors and hospitals have access to using making sure that you understand

it. we're not there yet. decades after talking about this. and we see massive attacks. like the recent want that united health had to deal with. >> yes. >> the vulnerabilities that are there also require a lot of money. >> tremendous vulnerability. as providers struggle with a very low margin or half of the hospitals in the united states are currently actually losing money, it is difficult. it is difficult to envision a large investment in cybersecurity. very few systems have a sophistication and ability to protect their business and their patients from cybersecurity attacks, which i would believe is, i would say, is the greatest risk for ability to continue to provide care to our patients, is cyber security. >> what would you do if you could be czar for the day trying to figure out what needs to be done? talk one or two items you would fix when it comes to our health care system? >> i think we have to start to look at the scale and the

consolidation of the providers would be one. the other, look at leveraging of our information and sophistication in digital technology to really lower cost of care, improve the quality of care at scale. >> the doctor is ceo of the cleveland clinic. thom, thank you for being here. come back when you're in town. >> thank you very much for having me. >> you come here, i don't know -- i hope i don't see you anytime in cleveland. nothing about cleveland. steak on the lake, but -- it means, i'm, like, running to cleveland clinic for something -- who knows? >> by the way, the valley is beautiful. a national -- >> as long as the river doesn't catch on fire. >> oh! come on. >> you know what? guardians are good. and you've got -- >> cavaliers. >> yes, eyth are.

it is 8:00 a.m. on the east coast and you are watching "squawk box" right here on cnbc. i'm becky quick along with joe kernen and andrew ross sorkin. amon today's top stories,

boeing's outgoing ceo dave calhoun set to face lawmakers later in the month. testifying before a senate subcommittee june 18th. calhoun facing questions about whistle-blower safety allegations and quality controls at boeing aircraft. jm smucker reporting quarterly results. earning of $2.66 a share. that is 33 cents better than had been anticipated. the food company said its recent acquisition of hostess brands help boost results. revenue $2.1 billion a slight miss. stock up by about 2. %. flight attendants as american airlines are one step closer to a strike after the union representing the group reject add company proposal for an immediate 17% pay raise. the union says both sides are set to meet with federal mediators next week in a last-ditch effort to reach a deal. now over to andrew joining us with a special guest. andrew? >> thank you, becky. the tesla shareholder meeting is

one week from today. mark your calendar. at stake is the big vote on elon musk's pay pack ratch and move the company's home from delaware to texas. joining me right now in an exclusive interview were tesla board chair robyn denholm. we are thrilled to you have. >> thank you for having me. >> you have been working mightily hard talking to shareholders from around the country, business institutions and retail shareholders what is going on at tesla, and about this pay package. we've been debating this pay package virtually every day now for weeks if not months. i've been very outspoken. a lot of people know my own views about it. but i want to understand your views of it not just lead of the board but personally. how you think about what is going on right now. >> yes. so i think for me getting out and talking to shareholders is really important, and today's a great opportunity to actually speak directly to retail

shareholders who perform quite a big part of the ownership structure of the company. and so for me, the ratification of the pay package is really about fairness. fairness to our ceo. if you look at what's happened at the company over the last six years, tremendous value creation, and he's led that front. obviously, the tesla team has been instrumental in it, but if you sit back, shareholders have benefited tremendously. up to $730 billion of value creation. employees have benefited tremendously. they're all shareholders in the company. so their stock has risen. customers have been fbenefited. the only person not paid is leader of the company, elon. >> you know my view. i believe a contract's a contract. but there are others who say, by the way, the court has suggested, that this is just too much money. what do you say to that?

>> well, it's not about the dollars. it's actually about someone who took a huge risk from a pay perspective. no compensation would have been awarded had he not hit the mark. so for me that risk/reward is very important in corporate america. i think it's very important from a, from a, reaching for the stars, if you like, or mars in this case. but to me it's about really setting things up, and elon embodies that. so big, ambitious goals are things that drive innovation, and i think the options underneath this pay package were very well earned. >> let me ask you this -- if a pay package is not approved by shareholders, what do you think would happen? >> yeah. well, obviously that's something

the board has spent quite a bit of time deliberating. when assessing all the different options after the january judgment came out, this is the best option. ratifying the plan is the best option. clearly, if it doesn't pass, then there are other alternatives, but none of them are as good from a shareholder perspective as actually ratifying the plan. people have asked me, why didn't you renegotiate? well, actually, from a legal perspective ratification is really taking the same plan and putting it back in front of shareholders with all the requisite disclosure that the judge asked. >> and some lawyers suggested even if it is approved by shareholders again, that a court could strike it down, and not, not accept this new radification, if you will? >> that is possible, but quite frankly if you sit back that's actually quite detrimental from a shareholder privacy

perspective, which end of the day that's another reason why we're fighting so hard to get this ratified. you know, shareholder votes have been sank kra sancrisinc. >> ratifying from a technical perspective, ratifying the prior plan as opposed to creating a new plan? >> exactly correct. >> one thing misunderstand, maybe help explain this. it would cost hate more from sh -- cost a lot more from shareholders in this perspective that you wrote down cost of some of this 2018, $2.7 billion? >> $2.3 p. $2.3. >> yes. >> today cost closer to $25 billion. >> exactly right. >> explain that. >> so the actual return for shareholders, $2.3 billion the

charge taken for the 2018 plan has already happened. share count and the options is already in the diluted share account. that's already happened. if that plan is overturned and we have to put in a new plan. f for example exactly the same type of plan it would costs $25 billion. >> what do you make of the argument that elon musk already has a huge stake in this company. that he's already incentivized, already motivated and not going to walk away from this company, if he didn't get this package? >> i think i'd turn that around. what i would say is, put yourself in his shoes. you've worked really hard, incredibly hard, over six years, to lead the company through transformative growth. noble thought that these goals were possible in 2018. i remember talking to shareholders and what they would

sap to me is, robyn what are you going to do, what's the board going to do when he doesn't meet the goals and is demotivated? so for me, after all of that effort, to then have somebody overturn that package, the deal that was struck, how would you feel? >> a personal question. when you put that package together in 2018, did you think he was going to hit those milestones? >> i had tremendous faith in his abilities. i thought they were extraordinarily ambitious, and from my perspective as well. talking to shareholders, the shareholders were saying to us, the base, if he, if he hits these goals he's worth every cent of the options underlying the plan. >> to the extent -- again, if this for some reason is not approved, or if court were to try to prevent this from being approved what would the next

steps be? is it possible elon musk, by the way, could ultimately sue tesla? >> well, the good part about the legal system in the u.s. is anybody can sue anybody. but by the same token, that's not something that we, that he has talked to the board about or anything like that. it is possible. is it probable? i don't know. but from a option perspective in terms of different alternatives, as i said, putting in a any package is an alternative, but none of those alternatives are actually as good as ratifying the plan for shareholders, because as we talked about before, increased costs. there would be demote ivation. >> when you read the tea leaves what do you think? they're recommending against? >> i have them and i would say

iss report in actually the substance, they got a lot of it right. what they got wrong was what ratification is, because the headline was, you know, why is the board putting forward an all or nothing? well, reality is under ratification it has to be exactly the same plan. and we use the law in delaware that allows for ratification to actually put it back in front of shareholders, to hopefully reduce any uncertainty, get this thing passed, and actually been, put this chapter behind us. >> right. >> there's no question things will be challenged. we're not naive as a board, but from a legal perspective and motivation perspective from a shareholder perspective, this is the right board. >> and recommending against one of the things they said was that a lot of the shareholder base may be new. they might not have been the same shareholders there in 2018. they may see this as a gift, an

opportunity effectively. in my mind like a wallet on the ground with money in it and someone gets to pick it up all of a sudden. which you talk to shareholders, how much of it is the ron baron's who came out vocally on our program just yesterday talking about the way he felt in 2018, the way he feels now? is that a different kind of shareholder than somebody who may be newer? >> yeah. i think, firstly, engagement with shareholders has been great. even the challenging ones. the ones who actually pushed back. that's part of our role, to actually work with shareholders. what i would say is, if someone bought in to the company subsequent to the '18 plan put in place, they knew the plan was there. the disclosure around the plan, the milestones that needed to be hit, you would have to have been sitting under a rock not to know that this plan existed. so my view is, anyone buying in to the company, buying shares in the company, knew that this plan

existed and what the milestones were for elon and actually what the underlying options were. very, very clearly. >> one of the questions i hear from shareholders and critics is there is the ecosystem that is elon musk. and that the board of tesla has effectively allowed elon to pursue too many other paths. talks about a.i. being one of the great sort of futures of says tesla and, of course, also creating something called xai. its own business. how do you think about the various component parts of all of the things that he's working on and how much, not just time, but mindshare you want him devoting to your shareholders? >> yes. i think that is the question i get all the time. from mow perspective the world is better for the ecosystem of elon. having said that, i'm here working for the shareholders of tesla. i don't work for the shareholders of any of the other

companies. what we do as a board is, we make sure that those things that are in and around the company from elon's other companies are actually fair for tesla shareholders. that tesla benefits for anything that happens in and around any of these other companies. the rigor we put around related party transactions is very, very steep in terms of how we, how we educated the tesla leaders in terms of even notifies the legal and finance team. the compliance aspects of what we do from an audit committee perspective. >> do you feel you can push back on him personally? i mean, do you ever say, no, elon. you cannot do that? or i don't want you doing that? or i'm not happy about this? >> absolutely. and the board does that all the time. i do that all the time. i'm not going to do it in in public. to me that is the antithesis of

good governance. good governance is making sure we're getting best for our shareholders but in a respectful wear. elon is an amazing asset for the company and the future of the company. >> people have asked about the independence of the board relative to elon, and given how big a presence he is and how important he is to the company, just how much leverage, if you will, he has versus the board? >> no. well, the reality is that backward and forward between the board and a ceo is part of being a board. but part of understanding how to do that well with anybody, let alone someone as, you know, important as elon, is to understand his motivations. to work with him on different things. to challenge but also to lean in to different areas. >> this talk in the context of a.i. important to contextualize this. wanting a 25% vote of the

company. threw out that idea at one point at least because future of a.i. and dangers of a.i., if this package is ratified i believe he gets closer to 20%. sort of made references on a call to, buybacks and things maybe closer to 25%. ever come to you and said i need to have voting control? >> no. so what that tweet was about and that conversation, which is, he's tried to clarify, is actually around the governance of a.i. >> right. >> a.i. is an incredibly important technology for tesla but also for the world. and so -- so for me it's about, and who better in the world than elon to actually understand the pitfalls as well as the opportunities that a.i. creates. and i think the other thing is, a.i. is two letters we use all the time, but it's actually a whole broad range of different technologies. i call it a horizontal technology.

it applies to health care. tesla isn't going into health care anytime soon. it apply to other parts of the economy. >> actually, can we just -- we're going to take a quick pause for half a second, because we actually have breaking news, ecb out with numbers and we're come back to you in half a second. joe, send it back to you. >> wow. exactly the right time, andrew. european central banks about to relise its interest rate decision. over to steve liesman. did it happen, steve? >> just coming across the wire here. it lowered its three interest rates by 25 basis points. deposit facility goes 375. goes to 375 from 4. main, marginal goes from 4 to 4.5 and main refinancing rate should go to 4.25 from 4.5. we'll leave that right there, joe. the question becomes, whether or not this is a hawkish cut.

in other words, do we get, from christine lagarde later this morning in the press conference, happens at 8:45, additional guidance about more as we come meeting by meeting. first cut by the european central bank since senptember 2019. the first market bank to cut after switzerland and canada and the question we ask this morning is this the end of this inflationary period been through, end of these high rates, beginning of a global easing cycle with the big question whether or not the federal reserve gets onboard. a chance to talk about that i think at 8:30 and after that, joe. >> probably worth pointing out quickly. look at the euro again. immediate reaction at least was one that was no change basically. this was such a widely telegraphed cut that no surprise on that. steve mentioned, listening to the context, christine lagarde later. >> in fact, looking at additional commentary here that they will keep rates sufficiently restrictive for as

long as needed. central bank wants do a lot of rate cuts may not be saying that kind of information there. >> yeah. >> what people are going to be looking for -- go ahead, joe. >> speaking out of both sides of their mouth basically, steve, right? doing it, but still ready -- >> going to fall. >> still ready to, you know, still ready to -- if anything happens, it makes us think that we're doing the wrong thing, we're ready to act, but i think you're right, steve. it is a watershed kind of a moment, that it could be a harbinger of cuts everywhere. including here. once a major region does that. bitcoin's almost 727,000. you're seeing sort of reaction to things like this. >> this is the first time since the creation of the euro. europe first. >> five years already. five years already, steve. time flies. >> looking here at the reaction in u.s. markets. you know, joe, it's all about what it means for me.

i don't see much reaction in the 2. i don't see much reaction, where's the 10. 431 -- aww. a basis point. then i'm going to check the dxy and euro here. this was so well-priced in. at least at the moment, joe. two things we're going to wait for are the -- ecb's growth projection to staff. growth projection as well as their inflation projection. that will tell you more about where they're headed with this. there was only one additional cut priced in, joe, for the year for the ecb. and then might be worthwhile to check the fed probabilities. hold on one second. i'm not seeing much change there. it's still -- you know, september's 70%. that's come back, joe. you know, we had a situation where it had been really odds-off and now odds are much more on for september. no movement at all in july to speak of. >> all right. if it was us it would be obviously more of a watershed

moment. becky points out, first time they've moved -- when we do it, that's the big dog. this is kind of -- you know -- you might say -- it matters but a totally different dynamic going on over there than we do. and when we do that -- >> given the amount of debt priced in dollars around the world. just for noryour memory. one time they moved ahead of us. in 2011 when they raised rates in what is maybe one of the worst monetary policy decisions that were made. jean-claude decided he would race interest rates to stimulate the economy and ended up backtracking off that. sometime they moved independently. i think this is a little more coordinated. we had a global inflation. that global inflation is easing. one of the things happening, joe, is that interest rates are becoming more restrictive. because inflation has fallen, relative to to where it was, and that was long a reason the fed

talked about they might cut just for that reason, because they've become too restrictive on a real basis relative to underlying inflation. >> all right. thanks, steve. andrew, back to you. >> thanks, joe. and we were talking with robyn denholm, of course, chair of tesla. you appreciated that, this news. both watching intently. >> yes. >> but getting back to where we were and really in the middle of a question about moving to texas. and there's a question mark, i think, among investors about, a., the decision to why you want to do that and, b., how that affect this very case? >> firstly, it doesn't affect the case as all. we've been very clear. the common case actually is being tried in -- in delaware, and it will continue in delaware. >> right. >> because it's actually not finalized yet. so, but in terms of the move to

texas, we obviously moved our headquarters, our business headquarters to texas in 2021. >> right. >> the epicenter of tesla today is texas, from a business perspective. you know, the board has looked at a move to -- the legal, to marry the legal and the business headquarters. >> right. >> and we've formed a special committee, and went through a gold standard process in terms of governance. >> right. >> in order to decide where we should be located. in terms of other states in the u.s. but for tesla, texas is the future. we're not running away from delaware from a legal perspective, but the legal system and what is happening in delaware from a legal certainty point of view with a lot of cases being overturned, and judgments actually not keeping

shareholder privacy front and center is actually concerning to us as a board. >> do you have any questions about incentives longer term for elon. which is he's obviously enormously wealthy. how will you incentivize him in the future? we're only six years into what is a ten-year plan and there's still five years can of vesting that has to take place. i'm not sure shareholders appreciate that piece either. >> when we constructed the 2018 plan without the help and also understanding the motivations obviously golling drive elon in terms of motivation, but we wanted to put this in for the long term. so it is a ten-year plan. even after he exercises the shares he must hold them for another five years. that hasn't even started yet. he has not exercised one share under this program. so we have a lot of runway under this existing plan, which is why

we want to ratify. >> back to the ecosystem question one second. indulge me. a report out by cnbc actually earlier in the week about nvidia chips. i thought maybe you could help with this. >> yes. >> because -- the report suggested effectively, this goes to sort of the related party transactions piece, that given the elon ecosystem that elon was moving chips that were originally scheduled to go to tesla to go to his other business, xai and how a tesla shareholder is supposed to think about that, if, in fact, it's true? >> so it's not true. so from a tesla perspective, you saw on the q1 earnings call we actually lowered our capex guide for fiscal year of '24. we have built out significant compute with gpu capability already. we have a second phase. actually building a new data

center in texas, as we speak. it won't come online until august. we had originally a sort of, picture the whole year. we pushed some of that out into next year. so what happened to those chips on the nvidia side, they were not tesla's chips. they were nvidia's chips. we moved out our purchase order to later in the year to line up with the data center build. >> is there a good -- talking earlier also about pushing back. what that relationship is like. >> yeah. >> here's a good example of something where elon wanted to do something and you said, no. one of the reasons i raise the question, shareholders have said to me, look a great example of the s.e.c. put in place, elon's tweets were supposed to be monitored. then not to be monitored. people want to understand what the dynamic really is like? >> no. there's plenty of areas from a board perspective that we have a constructive dialogue, a great

debate. you know, and sometimes things move the way the board had originally come out with it and sometimes they move back to towards it. it is a positive, constructive dialogue. >> a debate over buybacks at what one? >> yes. a very significant debate over buyback buybacks. >> where do you ththink that stands right now. >> we didn't have a buyback. we do the same for all shareholders. having that debate is part of being an effective board. >> let me ask you another question, which is, elon's very public about debating folks on x and the like. >> yes. >> has increasingly made comments that are considered political. there's a big debate going on in this country obviously around our politics, but also around evs. more popular in blue states

rather than red states and how the politics are emerging's what do you tell him about speakiing publicly about politics? >> yes. everyone is entitled to their own view. obviously when you hold sway and have a huge following, you do need to be careful with what you're talking about, but by the same token, it's the interpretation. he's entitled to his views, i don't happen to put mine on twitter but i have views myself. from our perspective. >> do you monitor his tweets? >> absolutely. >> how does that work? >> it's very interesting, actually. the range and breadth of tweeting that happens. but definitely things that he talks about that are not associated with tesla but are associated with politics or anything else, and we, as a board, aren't comfortable with the point of view or they've

been misinterpreted or whatever, we'll lean into that conversation. again, not in public. because quite frankly, that's not helpful to anybody, but we will have conversations. i will pick up the phone. you know? the rest of the board will as well. that is part of our role. >> final question. can tesla exist without elon musk? >> it can exist. but from my perspective, the right thing for tesla at this time is for elon to continue to be at the helm, and this ratification of the comp plan is exactly about that. >> robyn denholm thank you for joining us this morning. really appreciate it. thank you for your patience with the news and everything else. >> thank you. >> following your progress. "squawk" coming right back. talking more about that ecb number in just a moment. car, where are we going? we're here. (♪♪)

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really not me right now, but -- okay. i'm going to toss it now to rick. rick -- >> yes. >> go for it. >> hi, joe. yes. non-farm productivity may be the special sauce of the u.s. economy. expected it be unchanged.

comes in up 0.2%. definitely better than expected. rearview mirror, not revised yet. it was up 0.3. up 0.2 even though better than expectations. that's still the weakest since the first quarter of last year when it was a negative 0.3%. unit labor costs a bit light. 4. expected. 4% arrived. 4.7 last time. unrevised. 4%. how does that figure in? obviously 4.7, last month higher. highest going all the way back to the first quarter of last year. now, let's look at the trade balance, shall we? on revision takes minus 69 and change down to minus 67 -- 68. initial jobless claims up from a slightly revised 221,000 leaving it at 229,000. which oddly enough it is enough to make it the highest level

since the first week in may when it was 232,000. so 229, 232 comp first week in may on continuing claims. remains under 1.8 million again. 1 million 792,000. last month's slight revision almost right on top of it. 1 million 790,000. just amazes me how steady these are. and when we continue to think about quits, job openings and so many other metrics involved in the labor market, even those thee it initial continuing claims are considered some of the moat relevant realtime information describes the labor market, it certainly seems at odds with some anecdotal evidence that's actually moving up on the food chain from anecdotal to more significant. i question sometimes some of the accuracy how states report and whether this ongoing number and how tame it's been at these low levels, how accurate it really is.

as far as the press conference, of course, i can't tune in to christine lagarde but i see extra helping of volatility. interest rates moving around quite a bit, but as we hover here right under 429, we are basically up, what? 1 basis point on 10s. 2s at 472, about unchanged on the session. and as much as everybody wants to discuss the ecb and how everybody's running at different speeds with regard to their economies i personally think it hopes the door potentially bringing percentage of interest rate cut maybe closer or maybe september move higher? maybe even closer. why? even though i think there's sticky inflation around the globe and especially in the u.s., and especially in energy, the asymmetric approach to the investment community based on being led by central banks continues to underscore the

easing side of the equation. i think that's gravitated to based on ecb's actions today. becky, back to you. >> rick, i would say what steve's already told us about the ecb statement. makes it sound like they are dipping their toe into this. cut once and then wait and see, and our inclination is not to move too quickly on any of this. sounds like they are waiting to see what the fed does next. >> no. i wouldn't debt isagree but a br effect on other central banks over the next several sessions than maybe we're pricing in currently. >> rick, stay with us. adding other voices to the conversation. our own mike santoli, senior market commentator and steve liesman and the chief economicr other thoughts on these econ numbers we just got? >> first of all i wouldn't disagree with rick that the ecb cut creates market realities

that may be motivated or force other central banks to do other things. it is being taken a bit like a hawkish cut today, and i'll tell you the reason why, becky. it's because the staff boosted their inflation forecast by 0.2 for 2025. what you see in europe, rick is 100% right. not a big change in the u.s. in europe yields are actually higher. look at the ten year deutsche of the two and ten year. both of a little higher on the day. they're not seeing it as a free for all, hey, we're cutting. i think we dodged a bullet on unit laker costbor cost. came in at 4. jobless ticking higher. a sign of softness. not seeing continuing claims follow along with that and maybe in the months to come. leave it there i really want to hear from john has to say. >> in a moment. first check in with mike. because these moves that we're

seeing right now, you know, this is a, yeah, okay, all of this telegraphed knew it was coming from the ecb and they are being appropriately hawkish, i guess, the statements they're making so far. this is wait and see. steve pointed out even though never seen the ecb cut first saw the move raising rates in 2011. turned around reversed course because nobody else followed. at least the united states didn't follow. >> absolutely not. a single mandate. they were reacting to high oil prices and possibility of further inflation. that's a different scenario. right now it does seem like everything is leeaning in a similar direction pt i find interesting the way the market is digesting things this week in particular is massive rally in treasurys. you know, the yield's down big the last couple weeks, and the market has shown a heightened sensitivity to hints the u.s. economy is slowing more than anticipated or intended, and i don't think it's a panic, but

shows you that the things that usually rally in a soft landing-type scenario with yields coming down didn't until yesterday. so the market's hanging in there. i think it's okay. jobless claims, again, make that the case there's a further incremental softening in the labor market. yesterday's services number was fine. seeing mixed messages and the market is not just taking yields down by cyclicals by small caps the way it did before. i think there's a question as to whether there might be a little bit more deceleration than they watt there would be. >> what do you think, john? maybe start with the ecb? because that is the biggest news of the morning so far. >> well, i think so, and although i'm not an ecb watcher i did send over the notes there wouldn't be a starsignal what t after the cut. same true of the fed later in the year. that the markets are used to.

they're used to central banks cutting when the economy runs into difficulties, and actually easing policy.lation comes downa fixed interest rate, real interest rates, interest rates adjusted for inflation rise. and that would represent a tightening of the policy. these central banks don't want their policy to get tighter. so this is a cut in rates to prevent policy from becoming tighter, and now the question is, and i've been saying this for two years. once qe in the u.s. came to an end, markets and rate policy came to an end markets are in search of what the longer-run real interest rate is. i think it's a lot higher in the u.s., for example, than the 0.6% that's in the fed's forecast

numbers. i think probably much closer to 2, where the market is. so this isn't an easing of poelts. i policy. it's a cut in rates preventing policy from going higher. >> we can point to a lot of things in the markets that would suggest otherwise? >> i totally agree with you. especially looking at equity markets. financial condition do not feel tight. further signal interest rates in the longer run don't belong down at the central bank that the fed suggested. they suggested a longer run. interest rates belong only a little above 2.5%, and that doesn't feel right to me. i completely agree with you, becky, financial conditions look a lot easier, but nevertheless, by the inflation adjusted interest rates, traditional benchmark, would say policy's probably close to being about

right, and as i said, this is not about starting a sequence of rate cuts. so what it was mentioned earlier, this feels something of a hawkish cut in rates. it is. because it's not start of a -- lower interest rates, and i think the same would be true in the u.s. later in the year. >> thank you all. coming up, should e-trade baroinn arg kitty from its trading platform? jon fortt here to weigh in on that next when "squawk box" returns. [ a.i. copilot ] glad you called, j. [ a.i. copilot ] it's time for an upgrade. awesome. ♪ ♪ [ inner monologue ] i knew what i had to do. because they never stop. no time to waste. this isn't sci-fi. this is precision ai.

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i trade, platform owned by morgan stanley, reportedly looking at whether to kick people king keith gill off the platform after his social media posts of gamestop shares going higher. always said it's -- almost calms it hello kitty instead of roaring kitty. jon fortt is here to weigh in on that whole thing. >> i would love to see that impact on the market, hello kitty. not a comfortable choice. yes, e-trade should kick keith

gill off. a weird market in the way like 2021, stocks have been crazy. crypto surging risk in and retail investors chasing a story heard from keith gill, "it's too good to be true." recall how we got here. deserve sit, covid everybody stuck at home online. day trading takes off thanks to robinhood and from the permian soup emerging roaring kitty on youtube and twitter. you get the deal. using a cheap code to the stock market. a bunch of rich guys trying to hold the stock down boating agaboating -- betting down, and convince others, gamestop shoots higher. gill did it. it worked. got rich. made a movie about it called "dumb money." a month ago runs the play again. in 2024, gamestop's not doing well as a company. no illusions any more. this time a social media era

earning billions with power of his memes. even if gill isn't breaking letter of the rules and regulators reportedly looking at that, e-trade isn't obligated to risk it with him. >> and no other end. is there? >> well, joe, always. "on the other hand." on the other hand, e-trade should not kick keith gill off the platform. send him a frue basket. probably hasn't done a darn thing wrong. i'm no security monger but from reading, two major ways to get in trouble with regulators in a case like this. one, you said you like a stock and maybe cryptocurrency without disclosing you're being paid to pump it. that doesn't seem to be at issue here. two, the misleading. suggest people should buy something and drive up the price to turn around and quickly sell. this week the rory kitty account posted evidence he didn't sell. all he did resurface with memes

that have in masses interpreted too mean he was buying gamestop and they should, too, and stock wend up. sounds like transparency to me. he bought it. eight years ago warren buffett bought 10 million shares of apple later told the public shares went up. nobody called that market manipulation. they pay attention because he has history moving the stock by kicking him off would risk a user revolt and a bad idea. being influential isn't against the rules. joe? >> you know -- i mean, usually with your second thought, today i believe you were more on the first -- it's just not -- i know you can sort of in a blunt way make the buffett comparison, but, i mean -- buffett buys something. he's looking at cash flow, positive -- there's nothing going on here, other than trying to stick it to the shareholders. >> what about ackman icon?

wasn't icahn sticking it to the shorts? did anybody this herbal life was the next nvidia? come on. it's the market at work. why can't keith gill do it like carl icahn? >> telling the truth. if you're not telling the truth that's a different story. if those aren't actually your positions. >> self-correct, probably. everyone would like to be hello kitty, roaring kitty, but everybody can't be. >> not even using words. >> becky pointed out earlier. zero sum game. people on the other side of that 80 million that don't have the 80 million he now has. right? and you right at the very beginning, gamestop's not doing any better. >> how about that michael douglas speech to charlie sheen in the room with the painting. just moving it around. you know? except it's the little guy who's winning this time, and that

might -- "on the other hand" -- >> the little guys losing to add up to 80 million. >> have i convinced you maybe there's an argument on the other side versus the -- >> i knew that but i agree with the first. >> you can get the "on the other hand" newsletter. qr code on the screen, or if you don't like to try to rip out your phone too fast type in cnbc/otoh, both arguments. see if i actually believed the first one more. >> you want people to go there. can't just tell us. i understand how that works. 245u6r7g. the state of texas planning a new national stock exchange for blackrock and securities. dozens of investors raised $120 million for the exchange with a goal making first trade by late 2025. listings by 2026. for more bring in texas governor greg abbott.

governor, thanks for joining us. i know -- i don't feel like being nice to you. i meant, not the nasdaq stock and in new york city, we have the new york stock exchange. everything's moving to texas. can't you just leave well enough alone at this point? what are you doing? >> so first of all, listen, i have great respect for the nasdaq and new york stock exchange. one thing we believe in that is competition. as well as capitalism. we want to make sure that texas, which i think may be the number one state for listings on the new york stock exchange, is going to provide the opportunity to expand capitalism for companies whose only agenda is capitalism as opposed to other certain ideologists forced upon them by these other exchanges. we know the difficulty factor about starting something like this. >> you know, i was just playing devil's advocate.

you know, when you look at a lot of the things that go on in new york city and a lot of the regulations and perhaps a financial transaction drive. you've got esg, you know, board members of certain companies that have to esg. i think it's pretty rich that blackrock -- blackrock, really the company that spearheaded all that stuff, is helping out ere. i don't -- i don't understand how that works. >> well, blackrock has been working to try to eliminate, if you would, the tarnish on their reputation by using esg. remember, texas passed a law that -- and esg and punished companies like blackrock and now the esg movement is changing dramatically and this is particularly important to the state of texas, which is one of the reasons why we wanted to establish capital markets here in the state of texas because they've got the prolific oil and

gas industry that's not going away, it's going to be here for the rest of your life, and we need to make sure that texas companies and companies similarly situated are not going to be cut off from capital markets in new york with policy decisions made from the left in places like new york, and we think because of that, because of some other reasons, there actually is a big market opening for this stock exchange in the state of texas. >> yeah, and i know it's been something that the state has wanted to do for a while, probably will work this time. can we talk about just some of the border stuff that we're seeing now. >> sure. >> some of the president's comments because, you know, both sides know how to work things obviously and know how to utilize -- i don't know whether it's electioneering, but does he have a point when he says that the most comprehensive bipartisan border bill that republicans didn't back it because donald trump told them not to back it, and now he's

forced to have to do something? republicans gave him that ability to use that talking point. >> so it's a complete false narrative, for one, there was never a border bill that came close to being comprehensive. remember on the senate bill, that was cobbled together to be added on to the ukraine funding bill, and i can tell you from having looked at it and having dealt with the border, what the border bill proposed by democrats in the senate proposed to do was going to open up the border even more. remember this also, there actually was a border bill actually passed by one of the two chambers in washington, d.c. and that is hr 2 by the u.s. house of representatives. that is a border bill. if biden and the democrats really wanted to do something about it, they should have started with negotiating the border bill passed actually out of the house of representatives and try to make modifications they wanted to make to that.

but more important is this, what biden did by this executive order does absolutely nothing to close the border, to deny illegal entry, to stop the massive number of people coming across the border. to the contrary, it actually increases the enticement to people coming into the country illegally. think about what you've seen in the aftermath that have executive order. have you seen any stoppage of people coming across the border? have you seen any enforcement action by the united states on the border? of course the answer is no. this proposal by biden is grasping at straws, getting close to the election that not only will not do anything to secure the border, it will entice more people to cross the border illegally. >> and you -- well, we can talk about this all day and we've got about a minute left. i've seen that there's four leading individuals now for vice president, but there might be a dark horse, might be a dark horse in the end.

has it ever occurred to you that you could be a dark horse for former president trump's vp pick, governor? >> listen, it actually came up by president trump on another network show where he brought it up. and, listen, it's always nice to be thought of, but the fact of the matter is my focus is solely on the state of texas and what i'm going to be doing to advance the state of texas. you know, i could tell you this and that is the most important political job in the united states obviously is president, but the second most important political job in the country is being governor of texas because if we lose texas, we lose the united states of america. >> you mentioned another network, so i might as well just think about what kind of questions you would be asked on other unnamed networks, but do you think it would tarnish your reputation to be picked as a vice president for a convicted felon? >> not at all, because the

reality -- i will tell you what, i'm a former trial court judge and the reality is the rulings made by this trial judge in new york are completely wrong in so many respects. look at the jury charge alone. so there's every reason to expect this decision to be overturned, but also most americans view this as a miscarriage of justice, and you can see it in the fundraising numbers, the polling numbers that trump has been able to receive in the aftermath of it and also, maybe in part because of this, maybe for other reasons, you're seeing trump gain more support in the black community, in the hispanic community, in all communities across the united states of america. this is not a prosecution, this is a persecution. >> governor, it won't be until after the election, though, the appeal. it almost reminded me, though, of -- do you remember harry reid said mitt romney never paid a dime in taxes and after the election, after he lost it came out that he had been paying all

along and harry reid said, well, it worked. they've got this to use now, democrats, between now and the election. it's the most -- probably if you google it now, convicted felon is the most googled term in the english language right now for how often it's being used. >> all i can tell you, joe, is what the public has shown in the aftermath of this, that is that it is not hindering president trump at all, he seems to be gaining from it as opposed to losing from it. >> governor, thank you for coming on today. good to have you on. good luck. >> my pleasure. >> "squawk box" will be right back. every shot is an opportunity. and success requires drive, resilience, - wow. - get it there. and sometimes luck.

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welcome back to "squawk box." christine lagarde saying in prepared remarks, explaining why ecb cut this morning by 25 basis inflation has eased, domestic price pressures remain, however, pressures are gradually diminishing. she said the ecb will keep rates sufficiently restrictive because the ecb is determined to return to the 2% inflation target. not much additional progress expected this year in the stat

forecast. the economy she says will continue to recover. back to becky. >> all right, steve, thank you very much. we continue to watch thi. ♪ good thursday morning, welcome to "squawk on the street," i'm carl quintanilla withimid faber at post 9 of the new york stock exchange. coming off all time highs for s&p, nasdaq, futures a bit mixed as the ecb delivers that long awaited cut in rates since 2016. the ten year bill 4.3. the big tech ai boom, nvidia the second most valuable company, and rallying ahead of the open. >> plus ai dominance