a "squawk box" begins right now. ♪ good morning. welcome to "squawk box" here on cnbc. we are live from the nasdaq market site in times square. i'm becky quick along with joe kernen. andrew is reporting from the aspen ideas festival. he will join us a little later this morning. if you take a look at what is happening with the equity futures, it is a mixed picture. dow futures are up sharply. a gain of more than 100 points in the futures. this comes after the dow is on a four-day winning streak and the best week last week since may 10th. the s&p 500 and nasdaq have been up eight of the last nine weeks. the nasdaq looks like it would open down 20 points here this morning. if you check out what is happening in the treasury

market, the ten-year yielding 4.25%. 4.259 for the ten year. bitcoin is crashing. >> down from 70. >> we have been watching it all morning. down 4% today. >> i don't know. liquidation. i don't know. they have a lot of reasons for it. something about sales following the halving. i don't know, rates of mining. crazy, arcane stuff. for whatever reason, that's a pretty big drop from 75 at one point. breaking t breaking this morning. eu regulators accusing apple of

breaching sweeping new tech rules. under the digital markets act, they are not allowed to block consumers from other options or subscriptions outside the app store. eu regulators said the process is too limited by restrictions at apple which imposes on developers. the european commission opened a new probe into apple over con con contractual terms. it has made a number of changes to comply with the digital markets act and it comply was t the law. they are fined up to 10% of the company's global revenue. >> not of profits. 10% of everything you sold. >> $383 billion in revenue. they could use it. they could use it. they have no innovation or

technology companies that are domestic themselves. if you can't -- >> is there a point where you say forget it? i'm not doing business with you. $30 billion? >> i would do it. all of our great tech companies over here, i would be so bitter in the eu, that i would slap 10%. if you can't generate your own revenue in the technology sector, just steal it. wouldn't you? >> we will take it. >> you could get $1 trillion. >> $30 billion. >> the eu could use it. >> we don't think you are telling somebody and sending them off in a different direction to get a better bargain. okay. in other apple news, the wall street journal reports that apple and meta have held discussions about integrating the meta generative a.i. model into the intelligence for iphones. apple said it hopes to integrate

the gemini as well. the startups of anthropic has been in discussion to bring generative a.i. to apple intelligence. it is sounding more and more like an app store for a.i. bots. they will make sure you get access to whoever does. a smarter way for a consumer facing business. >> guiltily, every once and a while, if i have a question, i would instead of doing it on google, you ask. if there is no way that it can be sort -- they can't get any of the normal biases in. if i know that i'm not going to hate the answer because of the pre-disposition. >> that's why i like search better. i can go back and see the source for where it is coming from and decide if i like it. >> i saw something the other day. you can get an answer without looking all over the place.

>> i can usually get an answer instantaneously. an update on the cyberattacks on cdk that cr crippled dealerships across the united states and dan. cdk was planning to make a payment. cdk has begun work to restore systems and it expected that process to take several days. it did not comment on reports of ransom payments. the cdk outage interrupted sales and deliveries at 15,000 dealerships. shares of the canadian parent company, brookfield business partners, have slumped 10% since the cyberattack began. just down 10% in one week. auto dealer network one

automotive said the cyber incident disrupted processes in the united states, but the dealerships continue to do business with alternative processes until the dealer systems are available. that is where dealerships were doing things with pen and paper. >> can you imagine? u.s. prosecutors at this point are recommending to senior doj officials that criminal charges be brought against bowing according to the reuters report that they believe the planemaker violated the issues with the 2018 and 2019 crashes. they have to decide by july 7th whether to prosecute boeing. the two sides are in discussion over a resolution for the investigation. we'll get the latest on this story from phil lebeau later

this hour. eli lilly says it has applied for u.s. approval of its weight loss drug zepbound for the treatment of sleep apnea. the company released data from two substtudies on friday show zepbound reduced sleep apnea in almost 8100%. >> just so clear to me that you just should not be fat. asthma, blocked air waves. blood pressure, fatness squeezing your arteries. sleep apnea. all of this gets cured if you're not obese. >> lose weight. >> sleep apnea. you see the commercials.

they're gross. the things you wear. you have to clean them with the rotting spittle. you know those things. your spouse is next to you. you look like you are flying a miig. even that can be solved if you lose weight. i'll do it without needles. >> lose weight without needles? >> yeah. person administering my makeup today said i looked -- >> thinner? alaska airlines reached a tentative deal with flight attendants. you didn't mention it. >> you look amazing. haircut, too? >> no haircut. i put stuff on the sides. as the gray comes in, it gets fritzy. >> some product? >> yeah. it gets fritzy. maybe that's why i look so thin. it might be the hair. probably the hair. there is a tentative. >> you didn't get a haircut?

i thought you did. >> it might be thinness. i'm down. i'm starving. the flight attendants union deal was reached under mediation. details were not made public. the union described it as a record contract. it will be reviewed by union leadership and voted on by rank-and-file members. winklevoss. >> the winklevoss twins were refunded after the donation to the donald trump campaign exceeded the amount allowed under federal law an. >> check today. it may be under. >> a campaign official said each of the donors was refunded above the limit of $844,600. 10%. didn't they each give $1 million of bitcoin? >> yeah. >> it is unclear if the refund was issued in bitcoin or cash.

donald trump said he met the brothers for the first time at a fund-raiser in san francisco earlier this month. if it was $1 million, it was down 10%. >> before we send this back to you, i think you're under. >> moves pretty rapidly. when we come back this morning, we will get you ready for the trading week ahead. it's pa pretty light week befor friday. we get the core pce. later, chicago fed president austan goolsbee will join us in an exclusive interview. "squawk box" will be right back. >> announcer: this cnbc prom is sponsored by truist wealth. where meaningful relationships matter most.

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stocks are set to enter the last week of june near record highs. this is the longest stretch for the s&p 500 without a one-day drop of 2% or more since the great financial crisis. joining us now is siylvia jablonski. you are looking at eight of nine weeks that the s&p 500 is higher. is that the type of thing that

is great, it is time to jump in or as you get longer in the tooth with the long runs, it makes you more nervous? >> good morning, becky. it's a great question. the all-time highs we have seen in the s&p 500 and nasdaq has been rallies, we are in all-time highs in stocks with the mag seven run in things like this. i would not necessarily be itching to jump in today, but i do think we're seeing some pullbacks in the mag seven and i think that poses so opportunities for investors. for example, nvidia, the beloved stock of the year, is down 6% since the 18th. it looks like it is down pre-market. that is where you have fomo given the stellar run. >> outlineside of the magnifice seven, do you think there are other places with the rest of the market catching up? are you doing that? >> that's what we will need to change if we continue to see the

market rally year end. we will see that divergence and breadth of the market. i do like other years of the market. you talked about the weight loss drugs. that's a spot to look at here with lilly. they are having an epic run with the cultural shift with the weight loss drugs for different dis diseases. i think the a.i. sector will make things more usability and efficient. when you think about a.i., it takes power. uranium and energy and copper. you have to power this massive amount of data processing use centers and continue this to go forward the way it is suspecting it will. a look at u uranium and copper d the staples that will feed a.i. >> you mentioned the software companies are on sale.

we have have seen salesforce puk and adobe pullback. is there a reason? >> there is a reason for the pullback. they haven't embraced the full scale. what i think will happen is salesforce will harness a.i. and it will be useable for companies to optimize sales. once they get there, given the pullback, there are names i want to be focused on. it is an area of the market that's been beat up and an area of the market that hasn't come to fruition with the business. >> adobe is full scale with the options and not stealing content to teach their language model. >> yeah. i agree with you on adobe. i'm looking more at salesforce

in this particular situation. salesforce is software used by every major bank and financial institution, furniture companies, things like this. i don't think a.i. works that well for lack of a better word. when they use that fully, it will benefit the stock price. >> sylvia, we focus of how the eu could come up with a fine of 10% of global revenue, not global earnings or earnings within the eu. to come up with fines like that, you are talking tens and tens and tens of billions of dollars. we think china is a big risk, but what if the eu is just as big, if not bigger risk? >> that is big. we think china is a risk factor with the tech companies and we see this fine for apple. i think these tech companies will have to find a way to work

with regulators and work within the parameters of the rules and shift and readjust. that could lead to potential losses, you know, if they actually end up getting hit with these fines and have to separate different parts of the business. it is a risk out there. i don't think it necessarily affects all of the mag seven, but impact apple and we look and see what happens with meta. it is something for investors to be aware of. >> sylvia, thank you for joining us early on a monday morning. good way to kickoff the week. >> thank you. have a good day. >> yeah. >> red day. it's red day. coming up, we are learning more about the layoffs at tesla. details after the break. "squawk box" will be right back. ♪ ♪

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tesla's layoffs have reduced the company's head count by 14% so far this year according to the count of the people on tesla's company wide email distribution list which was viewed by cnbc. in april, musk told employees the company would be cutting more than 10% of the staff and reports at the time said musk was aiming for up to 20%. musk recently reinstated performance based stock options for, in his words, for exc

exceptional employees as a way to boost morale. i think he had another kid. did you see that? >> no, i did not see that. >> makes it an even dozen. not a baker's dozen. he has a regular dozen. that's something, isn't it? >> cheaper by the dozen. >> that's getting it done, though. getting it done. if he worries about population growth. >> he's doing his part. >> he is not just talking the talk. he's doing something. walking the walk, if you will. >> yeah. a new piece in the financial times says that ex-ceo linda yaccarino is firing her right-hand man of business and communications earlier this month. that report cites a senior ex-staffer that yaccarino is increasingly nervous as musk

piled pressure on her to lower her expenses, including cutting staff from sales team and reducing travel. when we come back, the prosecutors are recommending the doj file criminal charges against boeing. we will talk about the latest on that story with phil lebeau right after this break. later, the head of the detroit auto dealers association will join us on the cyberattack that shutdown the software systems that dleears rely on for many parts of their business. we'll be right back. >> announcer: executive edge is sponsored by at&t business. next level moments need the next level network. honestly, i don't do a whole lot here. i'm really just here for the at&t internet, it's super-fast so, any pre-launch concerns? what if nobody buys them? that's mean or, what if everybody buys them? oh, i hadn't thought of that

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good morning. welcome back to "squawk box" live from the nasdaq market site in times square. apparently there was a weekend -- >> lost that glow already? >> -- that we supposedly had. it was nice. it was hot. it was fast. >> fleeting. >> look at the futures. up 98on the dow.

nasdaq down 15. s&p up 4. it's a four-day workweek. i'm against it. >> last week. >> i'm against it. should we talk about it? >> how nice it would be? >> whether we should do it, yeah? i'm starting to think as quick as these weeks are going, we should do something. >> four-day workweek? >> people are talking about it. >> working from home on fridays. >> like everybody else. "work from home." >> i did see something really funny about an i.t. guy who was told he had to work in the office. not allowed to work from home. he removed teams and email from his phone. he did not answer the phone when the boss called. he said what happened to you. he said i'm not allowed to work from home. >> there are ways to get around it. >> you can get caught on that.

they have cameras. >> the idea you need to monitor it and people can cheat shows you what it's all about. >> if we want to goof around, we definitely have to be at home, not here. >> you can't goof around -- it's only three hours. we're laying ourselves out there on the line and risking everything based on some inadvertent cancellation from ad libbing, are we not? >> that is true. >> it is. >> tread lightly. all right. reuters is reporting that prosecutors are recommending that criminal charges be brought against boeing related to the settlement violation surrounding two fatal crashes. let's bring in phil lebeau to talk more about this. phil, this is out there swirling around that the department of justice might bring the criminal charges. you want to explain the back story on this and what is

happening on this? >> right. remember, the two original crashes, which happened in '17 and '18, or '18 and '19, they led to the doj doing an investigation as part of the original max investigation and in 2021, there was a deferred prosecution agreement between boeing and the justice department. there was a $2.5 billion fine in there. as part of the agreement and stipulations as part of the agreement, boeing had to essentially keep its nose clean for the next three years, live up to all expectations. when you had the alaska airlines door plug blowout in january, that was right before the end of that deferred prosecution agreement. it allowed the doj to reopen that agreement and take a look at the terms. a lot of people have been saying, look, somebody needs to hold their foeet to the fire.

one way to do that is have the doj extend the deferred prosecution agreement and perhaps put a corporate monitor in place to ensure they are doing the quality controls that they should have been doing all along and maybe there's an increased fine here. that's what we're talking about, becky. it really is taking that original deferred prosecution agreement and potentially extending it. >> when you say criminal charges, i think people automatically think criminal charges, there is a potential for jail time. >> yes. >> what are the potential ramifications? what would this mean if there were criminal charges brought? >> well, it would not be criminal charges against a particular individual, as i understand it. i think most people look at this and they say -- and i know the families of the victims of the original crashes have said dennis mullenberg should have been held criminally responsible. the doj believed it was not a case that should have been won.

>> the case in 2017. >> he was in charge of boeing when the two original crashes happened. this is not going to be charges against a particular individual or individuals at boeing, but it will be holding the company responsible, and, as a result, they will recommend a deferred prosecution agreement. if you are boeing, you are looking at this saying it is the most ex-peditious way to correc the issues with the department of justice. if you are the doj, you can look at this and say we can have scrutiny over boeing. if they recommend a corporate monitor, that would be one of the doj's people in place to work with boeing and to say to boeing management, wait a second, you need to do x, y and z and you are not doing x, y and

z. this is a way to move forward from here. >> the families of the victims of the two original crashes were last week pushing prosecutors to impose a $25 billion fine. that was ten times the amount that was originally dropped on the company. how likely do you think a $25 billion fine is? that's a big number and that's something a lot of people are watching, too. >> that would be a huge number. i get no sense that is gaining traction, becky, but i'm not inside the doj and i don't know what the ultimate recommendation would be. the original fine that boeing paid back from the original deferred prosecution agreement came out to $2.5 billion. will it be something similar to that this time around? hard to know. cle clearly, the families want to see greater -- not pain -- but they want to see boeing pay.

this is one way that the doj can say to the families, look, we cannot prosecute somebody individually because for a variety of reasons. it is not a winnable case, et cetera, but we can force the company to pay up even more. so, $25 billion, it would be hard to imagine they would impose that fine given the original was $2.5 billion. >> phil, thank you. phil lebeau. >> you bet. coming up, president biden and former president trump will f face-off on thursday in the planned presidential debate. we will get the latest. you can follow squawk pod on your favorite podcast app and listen anytime. we'll be right back. your shipping manager left to “find themself.” leaving you lost.

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and i'm big finance. you look really tired. just calling it a day. but it's 4 p.m. yeah, and i've been working nonstop since 9:30 this morning, so. 9:30. you don't say? yep. you'd want a little shut-eye too if you'd been moving billions around the world. well, actually, i do. you know, stablecoins, nfts, loans.

people can access me 24/7. what? but look, everyone's different. you should get your rest. you'll get after it tomorrow. tomorrow's saturday. [ethereum] monday. you'll get after it again on monday. president biden is lagging in the polls in some key states

and democrats question whether they can fix the lack of enthusiasm for the current president. polls are very close with the debate now three days away. president biden will need to convince voters why he should be reelected over former president donald trump. joining us now is the capitol hill reporter for axios. is it a debate, julie grace, if both mics are turned off after questions? it just seems way too civilized. not that we want it to go off the rails, but isn't part of it give and take and interrupting and responding immediately to thin things? can they really do it this way? >> that is what they are trying to do here. we saw that chaos the last time around. biden's came wants to avoid interruptions from trump.

we will see how it pans out. both of them are taking different strategies for preparing for thursday's debate now. >> something i'm trying to figure out, juliegrace, the ending comments or which podium. that is something you would really want. can you tell me what about podium position caused the biden campaign to favor that over giving the closing remarks at the end? >> that i'll have to speak with sources on it. i have been chatting with sources on preparation and we know president biden has been at camp david with top advisers and trump has been speaking with j.d.v vance. both will spend the next few days to prep in advance to bring their best foot forward and set expec expectations. >> and, um, i guess the biden

campaign thinks this is the beginning of the campaign season in earnest -- in earnest, i was reading. there is a lot on the line for both candidates. we have to wait and see. i would ask you for predictions of what wite can expect. it is just a wild card. >> there's a lot to lose at this point. it could change the whole narrative of the election. we could see trump hit biden. we heard him calling him sleepy joe. he is sleeping over at camp david and resting and he's ready to come at him strong. we have seen trump surrogates looking to set the bar higher. burgum talking about his worthy debating opponent. trump should come in full throttle ready to go. >> juliegrace, there has also been scuttlebutt in the inner

circle of the biden campaign there are three kind of insolar advisers of hammering january 6th and the felony convictions. there are others that say you need to, you know, talk about inflation and you need to shift what your emphasis has been at this point. trump raised $141 million, the campaign did, after the convictions. what is the winning strategy in your view? >> he did. i think after the convictions, it definitely rallied the base there. that being said, it did hurt him a little bit with swing voters. i think we will hear a lot from biden hammering on that trying to show trump is the worst alternative and show him as t potentially dangerous to the

country. i think there will be policy things. you will hear abortion and women's rights topic coming up. it has been a winning topic for democrats and women in the country. you will see personal insults on both sides. trump has been working on with senators with his discussions on the policy narrative there. >> do you think that those swing state polls are -- are they accurate now? i guess they could change. the other polls, national polls, show a tighter race in swing states. do you believe them? >> i think a lot of people vote with their wallets. we still have a long time to go brf the election. a lot can change between now and november. we will have to see where the economy is at with other major world events to move the needle moving forward with the election season coming closer there. >> it is a long time. i don't know. i don't know. >> politics is a lot.

we'll see. >> i know. i know. juliegrace, thank you. when we come back, the price of bitcoin tumbling this morning. we will talk to anthony pampliano. that's our next conversation. later this morning, chicago fed president austan goolsbee will be with us to talk about the inflation data that is due this friday. "squawk box" will be right back. ♪exciting music.♪ [mud splat.]

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crypto prices tumbling this morning. joining us now is anthony pampliano.

when do you look at what's happening with crypto and decide there needs to be a reason for what's happening. moves back this to 61 and watching bitcoin for the last five or ten years, moves like this happen all the time. do you have three reasons why bitcoin has come down from above 70 to where it is now? >> it is important to put it in context. in terms of volatility, this is expected. what we have seen in previous bull markets, there are four or five draw ydowns of 30% or more. this is within the band you would expect. what occurs is when the asset goes up, people take profit. we see the explosive rally to start the year and people naturally take the profit. we are seeing the people doing the basis trade and long on the spot and shorting futures. it is dampening futures. lastly, we get to the

summertime. you see this and a lot of people in public markets say invest until may and go away. you are starting to see some of that here where people are seeing the explosive moves at the beginning of the year and q theq4 is a big quarter as well. >> we noted it has decoupled a little bit from the risk-on trade and nasdaq trade. you know, stocks have held u up better than bitcoin although the prospect of rate cuts is five, four, three, two and now we're at one for the year. that's what bitcoin needed for the fed. >> what is really interesting is a couple of years ago, it was all about crypto and bitcoin. now people are talking about a.i. people are missing these are part of the same trend. we are going to the ought automated world and bitcoin will protect that wealth. when you see the technologies

coming together, an easy way to see the intersection is what money are the machines going to use? >> why is it difficult verging? >> you see people putting capital outlay into bitcoin and crypto and go to a.i. and invest there. it is not like bitcoin is to bi now move to a.i. pompliano it's not like bitcoin is falling50%. >> not yet. >> as a.i. continues to get larger, more wealth generated there, people are going to look to protect the wealth and go back to bitcoin so my guess is a.i. and bitcoin are a ten-year trend here pompliano and the good news, there's potential that gdp will increase because of the productivity from a.i. and bitcoin being able to protect the wealth i think people looking at this as what's going to happen day-to-day or week-to-week are missing the tailwind for the next decade. >> you get profit taking.

>> we've seen a run up on the halving -- >> this is the first time you had a spot etf though. >> correct pompliano. >> do you have as much bitcoin as they need to satisfy clients. >> about 80% of the flows are retail re retail. they have to go to the investment committees make a case, if you're a financial adviser the number one job is don't get fired. so make sure you're doing the work, risk mitigating pompliano and the thing about bitcoin that cracks me up, people get upset pompliano if you have true conviction, when the price goes down, get excited to buy more. >> is that what you're doing? >> i'm saying i'm going to the office and buying more. you're getting it at a cheaper price, dollar cost afternooning

down p -- averaging down. >> if you bought at 8000 and still have cash, where else are you putting it? if you want to protect your wealth and you're paid a salary every year, where do you put that net capital? in the stock market or bitcoin, what is beating inflation? gold is a great example. if you held gold you lost purchasing power and bitcoin is a solution that people are picking. >> anthony, thanks. >> of course. thanks for having me. when we come back the head of the detroit auto dealers pasociation will join us on the imct of the cyber attack that shutdown the software that dealers rely on for their businesses. that conversation is next. "squawk box" will be right back.

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cdk, a software company that the auto makers use was hacked last week crippling the functions at 15,000 auto dealerships that rely on the software. they're in the process of restoring systems but did not say if they paid a ransom. joining us is todd szott, he runs the szott auto group partner and also the autodealers association president. thank you for being with us. i had not heard of cdk before this entire situation happened last week, what are they? what do they do? >> thanks, becky.

thanks for having me on. so cdk provides different software programs for care dealers mostly and the biggest thing affected is the dealer management system, and that system basically, you know, makes us more productive, helps us with paperwork, accounting, writes repair orders electr electronically, helps us bill out deals and type deals electronically. so it's a major incon vvenience when this is down. we're a resilient bunch and find solutions to difficult problems and work arounds for this type of thing. we have systems that are up and running, including our e contract system and's in a what we're using in sales. also with using pdf and as was

reported pen and paper. a little bit of catch up to do once the system comes back online, but yeah, it's -- we're open for business, we're selling cars. sold a lot of cars the last five days and we'll be open selling cars today. >> not only were they the software system that a lot of dealerships used but the entire michigan state is kind of set up using this too so it means you have to do what? you have to physically drive paperwork to the state to get new sales approved? >> yeah. so michigan cbr system is run by cdk, so that is down. so that's affecting every dealer in michigan at this point. so yes, it wasn't that long ago -- >> what is the cbr system? >> it's basically a computerized vehicle registration system. it allows us dealers to process, license plates, registrations at our dealerships as opposed to going into the office. it's more productive for us, the

secretary of state of michigan and more convenient for the customer because we can typically hand them a plate that day but now we have to go to the office and do it like we used to before the cbr system was around. >> what does that mean just in terms of man hours? less efficient process? i guess you're working around it, how long can you continue to do that? as long as need be? >> we can do it as long as need be. the thing that i'm a little concerned about is we're piling up a bunch of paperwork that's going to need to be put in the system when it comes up. the good news over the weekend, that cdk is in the process of restoring the system and they're telling us it's going to be days and not weeks. so that's good news for us. we can handle this, certainly for a few more days. >> the company that owns this, this is a company that was taken private by a canadian company, that parent company has seen 10%

of its stock shaved off as a result of this over the last week and it's $3 billion canadian company so you're talking about hundreds of millions of dollars canadian. there is word that there was potentially ransom that the hackers were looking for, maybe tens of millions of dollars. maybe it's something they're willing to pay when you see that kind of damage to the stock. is this situation where you're looking for a new system or is this the system no matter what happens to it? >> typically a system changeover in our industry, it's a six-month process so it's not anything reasonable to be switching this week. that just won't work. so, you know, i think we're going to watch and find out, you know, they're still investigating exactly what happened. and, you know, we're going to wait to see those results. certainly it'll be on our minds when we go to -- you know, every five years we take a look at this. so it'll be on our minds

certainly, but it's kind of the -- you know, the environment we all live in with these -- you know, these cyber attacks and who's to say we don't switch to another provider and there's a problem there. >> good point. todd, thank you for explaining this to us and good luck hanging in there with everything this means. todd szott who runs dealerships in michigan. we appreciate it, sir. >> thanks, becky. it's just after 7:00 a.m., i'm joe kernen with becky quick, andrew is at the aspen ideas festival and will be joining us in a bit. u.s. prosecutors are recommending that the justice department does bring criminal charges against boeing after finding they violated agreements. last month officials determined

that the company breached an agreement from 2021 that shielded it from criminal prosecution in two crashes as long as it overhauled the compliance practices. bite dans dance is reportedly working with broad com on a chip. sources say it would be outsourced to taiwan semiconductor. and another big weekend for" inside out ii" clegting another $100 million, a record for an animated movie in the follow-up weekend. the previous best was 92 million for the super mario movie last year. and dow furthers continue to climb, looks like it would open close to 130 points. the nasdaq indicated off by just under 4 points.

let's get to dom chu looking at the individual premarket movers. good morning. >> good morning. let's start with one of the members of the $3 trillion club, the second most valuable company in the s&p, apple. those moving between marginal gains and losses. a couple of headlines in focus, european union regulators are accusing the iphone maker of br breaching the digital markets app but not allowing customers to find alternative context. also, apple reportedly looking into a tie up with meta platforms according to a report from "wall street journal," meta discussed integrate of the artificial intelligence model into the a.i. system for ip iphones. and unanalyst calls this mornin

check out humana and unite health both are thinly traded. humana has an equal weight rating. and naming united health as the top pick in the sector replacing cigna by morgan stanley. and ending with shares of ab inbev, around 7,000 shares of volume. the beer brewing giant is getting upgraded by analysts at ubs from a buy rating to a prior neutral. and also getting upgraded to 72 euros, it was 63 1/2 prior. they think the company is at an inflection point so watch those anheuser-busch shares. for more on those and other analyst calls of the day head to cnbc.com/pro and get more details and analysis of those

reports. back to you. >> thank you, dom. coming up, key phase three data about a heart condition drug. the stock of alnylam pharma unchanged. and then gene munster of deep water asset management joins us to set up the week for tech stocks. "squawk box" will be right back.

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get the fastest connection to paris with xfinity. pharma company alnylam in -- the reason it's unchanged is it was halted at 655, specializes

in interference therapeutics and there are highly anticipated phase 3 results for its heart condition drug. i don't know how many people have it, it sounds terrible. am la i do sis with cardiomyopathy. angelica joins us with more. all i know it says it's fatal. >> it's succeeding in a phase 3 trial it cut the risk of death in recurrent cardiovascular events by 30% and showed a benefit on its own and when taken with another dprug from pfizer. it's hard to overstate how important this read out is for alnylam, this drug is approved for a related nerve disorder but the heart indication is ten

times bigger this should help alnylam turn a profit they're planning to apply to the fda this year. bridgebio has a drug under review right now. and we're watching that and right now alnylam is still halted but bridge is down and ionis is up. they're all attp cardiomyopathy. >> how many people have it? >> they think 300,000 people around the world have it. thought it was rare but it's more common than we thought. >> how does it work? >> it's an interference so if it's a bad gene, it blocks the gene. >> this is a disease, it's interesting. it starts in your liver and it produces -- you have this protein that's misfolded and those proteins deposit in your

heart or your nerves so that's why this same drug can work for both. >> it blocks the -- >> and then your heart can't pump and leads to heart failure. >> something wrong with one of your genes. >> there's hereditary and wild type. >> if it's rna interference one a way or another your dna is bad so you want to suppress the bad. alnylam has proven this technology works with other drugs. >> they have a few on the market -- >> this is not a proof of technology? >> no. >> >> it's already proven. it's actual market size for how many people have this, so it could be profitable for them? >> exactly. they have other drugs but those are smaller indications. this drug is approved for the nerve condition that is associated with this disease but that's a much smaller market so for them the company did about

1.2 billion in revenue last year. so they're saying this is the thing to make it bigger. i saw analyst investments about 2 billion. so that's why this is a big deal for them. >> this is interesting. you have the messenger rna companies that put mrna in there and then it's expressed into something, like a vaccine and this is turning off, this is interference. >> exactly. >> this is putting in something which actually turns off the gene. thanks. >> by the way, welcome back i don't think i've seen you since you came back from maternity leave. >> thank you, great to be back. up next gene munster will talk text and then how american business leaders are feeling ahead of this week's debate. "squawk box" will be right back. hold on, guys! [car honk] first.

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the tech and chip stocks started a retreat from record highs for more we want to bring

in gene munster. gene, any of this surprise you or what are you thinking about what we've seen? >> becky, it was a little bit of a surprise given i think that all the fundamentals suggested the a.i. trade is in grade shape. of course, the tradeoff the past week has been down 10% for the bigger chip companies, tsm is up there, down 5%. i think it speaks to investor concern. we're already jumping forward, thinking about how the june quarter is going to play out so that's kind of the third week in july. so i think that's the reason why they've been spooked. it is a surprise to me just given i think all the fundamentals are pointing in the right direction recently deep water and our titan fund we purchased micron, they're reporting this wednesday which sets up for the bellwether in

a.i. for the next two months. nvidia is not going to report until the third week in august. so, becky, i think i'm surprised about some of the concern. i guess it's warranted given part of the run and i think this is going to be a great week for a.i. investors because ultimately i think micron is going to exceed that 87% revenue target that they have out there and investors are going to be more confident in the 50% growth that they have for next year. so feeling very good about a.i., the a.i. trade here. >> i was going to say, gene, it seems less surprising looking at 6 months or a one year chart. the pullback is barely noticed looking over a longer term chart it doesn't even register. not everything grows to the moon even when the fundamentals are in their favor. >> fair. that's true. as you said, let's take nvidia out of the picture and loo at the other big chip players

they're up 70% year-to-date even with the pullback. when you have runs like this it begs the question, can it continue? as we go into micron on wednesday, i think investors should be asking themselves a fundamental question, how disruptive do you think a.i. will be? in the camp that the substance is going to exceed the hype, the camp i'm in, even though we've had big runs here, there's further asset appreciation in the horizon the next one to three years. >> you can be in the camp that thinks things are disruptive but wonder what are the real winners that come through and wonder if you have big players like we have to this point, big companies willing to spend a lot on a.i., does that translate down to mid level and smaller companies before you see actual benefits? like there could be a pause before you see everybody else taking this on?

>> definitely we will see those move forwards so those step back and the way we see it playing out is that there's this opportunity on the chip side, the hardware side. of course that's been playing out. i think will continue to play out the next one to two years. and then there's a huge gap. i think most excited pieces in a.i. are the private markets, companies that don't get talked about as much. companies that i believe are going to be leaders along with open a.i. and x a.i. in what will be a enough class of public companies coming out next year and 2026. and so, i do believe that we are in the early stages of a bull market. still early stages of a bull market in the nasdaq. hard to believe, but i don't think that will be created equally, i think some come from ipos that will come out that will be the first a.i., first

companies, which will be really exciting on the software side which really hasn't participated yet. >> gene i know you personally own apple. i want to ask you about breaking news from early this morning. the eu regulators are saying that apple is in breach of what they call sweeping new tech rules because it doesn't allow customers of the app store to be steered to alternatives. the potential fines are huge when you start looking at this. you could be talking about 10% of global revenue they're allowed to fine up to. we were talking earlier this morning that's how many billion dollars was it? in. >> 38. >> 40 plus. >> 38, $40 billion, as an owner of apple what do you see when you see european regulators talking like this, we worried what china might do but what about europe? >> first thing i look at the facts here. they said on the last earnings call they gave details you can back into, it's about 1% of revenue we're talking about.

so that's first and foremost these are preliminary findings we'll get the ultimate findings in march. this is a chess game between apple and the eu. apple won't want to give anything. they came out with a three point plan earlier in the year in terms of the regulation but ultimately i think as this plays out, they will make some modest changes. it's going to likely have a neutral to slightly negativism pact on that 1% of their business. the biggest question you ask like how do i think about this? what's on my mind is what's going to happen in the u.s. and there's another set of regulations going there. that's a much bigger deal now we're talking about 6, 7% of revenue when you look at the u.s. and the app store. i ultimately believe that apple is in a great position in terms of where they're at with regulators and i think you're going to see a lot of negative

headlines but this news today won't keep me up at night tonight. >> gene munster, thank you, gene. >> thank you. coming up, tiktok showing off the a.i. products and its power among young consumers, and out last week asthe u.s. ban approaches. ben smith joins us to discuss the cultural role of the platform in the face of that ban. and then later in the program chicago fed president austan goolsbee will be our guest. "squawk box" coming right back.

welcome back to "squawk box," everybody. let's look at the futures this morning. dow futures up by just over 90 points, s&p up by 4, nasdaq down by about 10 points. look at what's happening with the treasury market, ten year at 426 this morning but two year at 474. and crypto facing some pressure. we have seen bitcoin down by just over 4%, in fact, almost 5% right now, sitting just below 61000, at 60,914, pressure across the entire crypto complex

at this point. >> amc entertainment is holding confidential talks with lenders about lowering the debt load and extending near term maturities. negotiations are ongoing and no decisions have been made. as of march 31st, amc had more than $2.8 billion of maturities due. he's previously said the company was working with lenders to refinance debt last month. you might recall amc capitalized on the brief meme stock frenzy reaching a private deal to swap about $164 million of debt for some newly issued stock. and under armor said it agreed to pay $434 million to settle a years long lawsuit that claimed the co-founder mislead investors about the company's health. federal authorities launched a probe in 2017 as to whether the company shifted sales from

quarter to quarter to mask declining demand. under arm under armour said it was not an admission of wrong doing. kevin plank returned as ceo in march and the company named mohamed as its cfo. coming up, jeff sonnenfeld on what corporate america is expecting to hear at this week's first presidential debate. we'll be right back. book in p to find your perfect somewhere. hello. i'm ethereum. and i'm big finance. you look really tired. just calling it a day. but it's 4 p.m. yeah, and i've been working nonstop since 9:30 this morning, so. 9:30. you don't say? yep. you'd want a little shut-eye too if you'd been moving billions around the world.

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good morning this morning from aspen, colorado. i'm here at the aspen idea festival. we'll bring you interviews throughout the week. becky and joe, so many folks getting here the past 24 hours, bill maher was here yesterday. we'll see sam altman and brian chesky among others. we'll also talk to the new head of a.i. at microsoft, someone we

know pretty well. we'll see mustafa. we'll bring you david reuben stein in a bit. character actor griffin done. i'll speak with larry summers also and on thursday, billionaire peter thiel where we talk about just about everything. so a lot on tap from aspen and one of the big issues is the presidential debate, doing a big watch party here, john kerry and a bunch of politicians have been here and will be coming in and out all week. i know we'll be talking about that. which is a nice segue to where we go next. an interesting article in "the new york times" yesterday ahead of the first presidential debate which is happening on thursday. this was written by somebody we know very well. and joining us right now to

discuss, ceo sentiment on the 2024 election is jeffrey sonenfeld. his op-ed, he said former president donald trump continues to sump ffer from the lowest le of corporate support in the republican party and makes the case ceos are not for trump. we want to talk about this, we heard things and you say you hear things anecdotally. we're all trying to make sense of where things really are. what do you say? >> thanks, andrew, and thanks for blazing the trail in getting the record straight last weekend coming off the business round table meetings where some press wrongly reported as if the ceos had gathered coming to see him. and president biden had been invited but was at the g 7

meetings in italy but his chief of staff went and they found it confusing. certainly no rounds of applause and your reporting is corroborated from what we picked up, myself talking with three specific ceos who were there, two of them are rather hostile to biden, one uncommitted and they walked away pretty confused about president trump. but we look back into the data and looking at this now for the last four months we've been pointing out there are no fortune 500 ceos who are su supportingsup supporting former president trump and that's a break from taft and reagan and the bushes and everything. it's been anywhere from 40 to 60% public and financial support. it's zero now and it was zero in 2016. >> jeffly, rey, let me ask you ,

i was looking at those numbers myself and thinking about steve schwartzman of blackstone would he not be on the list of the top fortune 500. >> no. i'm glad you raised that. steve schwartzman has been a friend of mine for a half a century, we had split level homes in in the same community going up, same high school and hopefully after this high school we're still -- after this broadcast we're still friends. and steve is a smart guy but blackstone is 429, so he's not a fortune 500 company. there's none b-- >> that's my second question how we're determining support. the reason i ask, i'm thinking about when jamie dimon was speaking at the deal book

conference last year he told people to say go vote for nikki haley. he never gave a dollar to nikki haley but he clearly, at least at that moment was supportive at least of her. whether he was going to support her ultimately for president we'll never know but a lot of these people can use their bully pulpit publicly without spending money or more importantly doing something privately, meaning talking to folks, whispering to folks in an environment right now where nobody wants to come out publically for either side. >> that may well be the case but that's not what the headlines were. the headlines were ceos are rebounding, racing back to support him. they never did in the beginning. i had him come to a ceo summit in 2005 and people we talk about on this show, including names you've already mentioned, walked out of the waldorf when he walked in.

they said they were going to walk out and they did. and they've walked out on him consistently after august 2017 with charlottesville, the ceo community walked out en masse, the first time in american history they refused to answer a call to action by the commander in chief after the charlottesville equivocation of the white supremacists peaceful demonstrators and that led to the disillusion of the business advisory councils and after january 6, 2021, they voted unanimously in favor of the impeachment. they were never there for from the beginning. they hate his style. and ceos are not protectionists, they're not isolationists, and as steve schwartzman himself

said we believe in investing where there's the rule of law and not the law of rulers, they take that seriously. >> if you were to poll your ceos, i know you do an event which i've been to many times if you poll them and ask them, what do you think the numbers look like today? >> i think there would not be a lot of support. a lot would have liked nikki haley, mark warner, jon tester, but unfortunately these aren't the candidates before the public that made it through primary. so i think right now what we would find is what we found when they enthusiastically or more likely reluctantly voted for president biden and for secretary clinton previously. this group, which again is 70% republican, once peter navarro

walked in the room and asked how many are republican, it was about 75% and he was angry and walked out because he thought it was going to be 100%. it's a strongly republican group but they don't vote that way when it comes to the presidential election. that's the break when trump came along. and the trump economic package frightens them. it's inflationary. the task force 10% across the board, it leads to an increase in inflation for sure. >> a plunging of gdp and that's before retaliatory gestures. the increase in deficit he wants to cut $5 trillion of taxes with no cut in expenditures. so these are problems. >> but jeffrey, what do you say to the ceos, there's a lot watching now, probably watching you speaking saying i don't like the biden administration, what comes to the regulatory regime right now. i worry about the tax policy and what's going to happen if the

tax -- if the trump taxes roll off in 2025 and what that debate looks like. there are folks, as you said 70% of the ceo community republicans. do they turn out to be reluctant biden voters? do they not vote at all? where do you think they land? >> they'll be reluctant biden voters they don't want the fabric of society pulled apart. it was public trust that makes the united states different and what matters, he calls it social capital, a lot of them don't like biden. i have issues with the anti-trust policies i believe including you who have done a magnificent job on multiple occasions interviewing lina khan from the federal trade commission i believe i'm the only guest on the show condemned by her in tweets and elsewhere. i've been critical of her positions. i think there are many positions

of the biden administration that are inperfect. there were questions by becky on friday on tax policies and taxing on realized wealth. that probably won't pass, by the way. there are so many democrat senators opposed to this like mark warner and jon tester to name a few that it has no chance of passing. but there are some things that are not thrilling about the biden economic proposals. but they're not anywhere near as frightening as devaluing the dollar -- >> we have to go it's unfair for me to ask you a question because you don't like the short answer. i'll give you 20 seconds to answer. a lot of ceos like to go with who they think is going to win and they like to support the winner in part because they want to be able to, i don't want to say curry favor but potentially curry favor later. if you look at the polls today, where president trump is, you

would say he is on track potentially to win. how do you think ceos respond to that? . >> that's a nuanced question which, of course, i don't have time to answer. if you look at the polls today, if biden is ahead. you could come back and say look at the swing states it doesn't look as good for biden but the polls overall, whether or not it's fox news or abc had one out this morning as they walk by the studio is biden is ahead on average on all the polls biden is ahead but there are swing state issues that support your question. i must say my daughter at a sports game always roots for whoever is going to win too. i understand the sentiment. >> jeff, it's fascinating to talk to you about it. congratulations on the piece over the weekend. i'm sure we'll talk a lot more about it. it was the talk of the town, i should say, here in aspen where we'll bring you a lot more news in a bit from the aspen ideas conference and we'll talk to this man about some of your

comments as well, david rubenstein is going to be here. look at the premarket winners and losers in the p 0 s&50as we head to break. we're coming right back.

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impossible and so it makes heart failure fatal. at a conference last week, tiktok kept a presence. while in washington, debates intensified over the future of the chinese owned app amid concerns of espionage and propaganda. joining us is ben smith, editor and chief. i don't know where we stand right now on tiktok. i can debate myself on what i think should be done. do you have an answer? >> i think the reality is the wheels are in motion in washington. the president signed the ban, probably won't happen before the election. what's strange is everyone forgot about it, particularly in the advertising business where they love tiktok and tiktok is happy to show up and not talk

about it. felt like a split screen where they're selling fun a.i. avatars in france to american companies. >> it's both parties, it's not a partisan sort of issue. >> it's both parties with the possible exception of donald trump who said he doesn't like the ban. it's a tricky situation he doesn't have to like the ban it's in place. >> and mnuchin explained to him why he thinks the purchase is better, his former treasury secretary. >> and an incredible deal for somebody who gets tiktok if the chinese decide to sell it. but the company remains one of the great advertising vehicles in the united states right now. you know, hundreds of millions dollars being spent by big american companies and the suspension of disbelief that something is going to happen. >> what should we be angry and

afraid of about tiktok? what do we hang our hat on for why we want to clean it up? i want to clean up all of them. they send like porn to 13-year-olds and if they watch to the end they send better or worse porn, however you want to view it. >> i think basically a lot of this is -- of the momentum is people who think all social media is bad, particularly for kids. tiktok by being the best at serving you the thing you want maybe is the worst. and then there's, you know, a lot of basically pretty hazy talk about why it's a security threat. the notion the chinese could be finding data out about the users and using it to push propaganda, neither of those things have been proven at all but there's a sense of latent threat. you wouldn't let a foreign hostile government owned nbc or abc, and the information to a huge media platform like this is owned abroad bothers people.

>> there are still rules and we've been talking about it with cbs and sony. the idea you're not allowed foreign ownership of any mass media where you have broadcasting and something else and you have something with 100 million subscribers, what's the difference? >> you buy something small and you do a great job and it gets big, and the moment the government could have intervened was when it was a tiny app. now the question is, can you put the genie back in the bottle? >> andrew? >> ben, i wanted to p get your reaction. i was leaving cann when it was taking place, but elon musk speaking there. i know you were reporting on it, but how do advertisers think about that? how do you think they think about advertising on x today versus advertising on a platform in tiktok that people are

describing as a national security threat? >> first to take your second question first they love advertising on tiktok they think it's the home of youth culture and can move product and they're deeply skeptical of advertising on went after the advertising conference to kiss the ring tell advertisers they love them, but couldn't quite do it. given an opportunity by the ceo to apologize. did it begrudgingly. schmooze with advertisers made him feel big but didn't come with any particular plan to bring them back to the platform? >> is that platform effective and the dick tok platform effective? meta, instagram even classic facebook. repeatedly say for them most

effective of platforms? >> meta and google have so much experience in pulling people in with marketing and then converting them to whatever they want to buy and measuring it carefully. tiktok is a younger, much messier technically platform, but i think -- so maybe less of a must-buy than those two but certainly is in the mix. a big part of musk's pitch for twitter for x, not that you can reach everybody in the world. it's the only place you can reach certain powerful people. notably, elon musk. if you want to sell something to elon musk, buying an ad on x is basically the only way. basically part of his pitch. >> and what would be smoking gun be for us to know definitively that tiktok is a security risk, do you think? how would we really -- because it's almost enough for me. watching china's intentions, if they had access, there's no way they wouldn't use it to try

20 -- to in some way undermine u.s. culture. if they can do it, it's like murphy's law. possible to do it they would. otherwise it's just another social media site in and of itself is probably bad for our kids but no different than all the other ones? >> what you said is exactly the argument. they could do it. if you were them, probably would. >> i can almost guarantee you they are. >> a a moment in the future. >> they have it they can use it in the future. >> that idea is worrisome and the basic argument but it leads into, i don't know a conspiracy theory, but claims the chinese government is making the youth -- >> all the conspiracy theories have all been true. you've noticed that? >> is that the conclusion of this show? >> that's my conclusion. pick one. >> i will not. >> okay.

>> and as they go into court with this, the argument is, okay. tell us what the secret briefings are, and then we can decide as the court. is that going to happen either? >> i think they clearly -- intelligence clearly got congress worked up about this. >> right. >> told them something that came out voted unanimously bipartisan for this ban. intelligence also a history of making claims like this that then don't always hold up under scrutiny. the alternative to this, then, a lot of people in the technology world would like to see, some kind of regulation tells all social media companies they can't take data to scale. be transparent how they're manipulating content. tiktok isn't that different from the others. >> china has never allowed ours to operate there? >> true. they're authoritarian. >> right, but if you're in the community worried about --

>> not yet. >> not yet. suggestive system. thank you. >> thanks for having me on. when we come back, later in the program, chicago fed president austin goolsbee our special guest. "squawk box" will be right back.

while i am a paid actor,

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joining us with what he's watching in the stock market chart, chief equity strategist and securities. can you explain the lack of volatility, eve an 2% down draft in, move or how long it's been? what do you really think is happening behind the scenes or underneath the surface? >> well, markets in the midst of a summer rally. bullish seasonality. so i think when you look at seasonality for july through august it's quite strong on average and even stronger in presidential election years. the other factor i think that might be driving this, there's still a lot of cash on sidelines. look at ici, total money market fund, net assets over $6 trillion there. i think the market is continuing to run up because not enough are

onboard with it. >> it's almost a continuation of last year's sort of rally that no one really was loving it. this year we loved it for a while, i think, but then the skepticism was rekindled. because of all the normal caveats and it's all stocks or it's all -- sort of based on a.i. sort of the hype around that. >> right. >> whether it comes true or not. so there's -- it's almost like not unloved rally again, i guess. is that rekindled enough skepticism, or wrung out enough complacency to keep it going? >> sure. i mean, when you look at technical setups here, we're still positive on the seasonality obviously. also cup in handle you pleaded late last year. thinking hit 5,600 on a summer rally. getting close to that level. also in an overbought market. >> right. >> that sounds bearish on the surface but it's not.

when overbrought you grind higher. we use an indicator calls it's williams r, momentum. the reason why i as a technical analyst, securities, use that, because i know one of my weaknesses in the past, getting out of markets too early. i found an indicator that pins that overbought. when you run higher. and the way they're doing that and daily timeline, weekly and monthly. stayed on that entire year, could have, like, a 20% rally this year. on the s&p. so far that's what we've been doing. staying overbought. people hate chasing overbought markets. i think that's the reason why overbought markets continue to grind higher. >> also heard, referenced it earlier, it's a lot of the move is concentrated in a few names. we've heard off and on. >> right. >> oh, it's broadening out. broadening out. >> right. >> then seems it really hasn't broadened out. seems we're back to a few names.

does that matter or is it going to broaden out eventually? >> we could actually -- we saw a little broadening last week. several sectors actually outperformed s&p last week versus one week prior, which was tech. i do think the next, if we are to get the summer rally, we do want to see the small cap index break out on an absolute basis and see the equal-weighted s&p break out on absolute basis. industrials break out also on absolute basis. nyse. these other indices laggards all year longer believeare 0 not have bullish absolute technical chart patterns mean should go um in a summer rally. if they do that confirms the marketen is broadening more. if they don't we'll have another story to tell. maybe the summer rally is not as "healthy" as it could be. the other factor is a lot of people do complain about, oh, yeah. seven stocks. m

magnificent seven looked like the magnificent four now actually. s&p actually there's 120-some odd names that have beaten the s&p here to date. not just seven stocks beating the index. more like 125, 128, somewhere in that range. should probably be closer to 250. right? still it's not seven. >> okay. all right. have you done, like, 23 and me? if they identify, like, a technical analysis, like from your dad, richard, right? >> that's right. you know, richard just turned 80 yesterday. yeah. he's my dad. turned 80 yesterday. >> you have a double comp? maybe it's a dominant stovall? you know? >> no, i don't. >> something gets passed down. seeing a lot of father/son, the guy at that investors -- diary we used to get.

his dad. very weird. all right. >> right, stock trader's almanac. you got it. >> real weird. >> yeah. >> happy birthday to your dad. >> thank you. thanks. >> he's young. 80! depends. right? it is just after 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, who is at the aspen ideas festival in colorado. among top stories this morning, european union regulators say apple is in breach of sweeping new tech rules, because the company doesn't allow app store customers to be freely stored to alternatives. cnbc reached out to apple for comment. also on apple the company held talks with meta platforms an integrating into apple's a.i. known at apple intelligence. and u.s. prosecutors recommending the department of

justice file criminal charges against boeing according to reuters saying prosecutors concluded boeing breached a 2021 settlement over the two fatal 737 max crashes that took place in 2018 and 2019. the doj declined to comment. former company alnylam, specializes in rna interference therapeutics released a highly anticipate result for its heart condition drug. joining us now, jared holtz, health care equity strategist and mizuho. good to see you. 300,000 people globally? what would you estimate? is it topossible to penetrate tt market? >> hey, great to see you, too. i appreciate it. that number sounds roughly right. what a lot of models are kicking out and just after the company at this point, to penetrate as many patients as possible. pfizer is already on the market. i think some data we saw this morning indicates that the

alnylam drug works on top of pfizer. capture those patients as well as those who haven't taken the drug. numbers sound roughly right to me. >> how much do you expect it will cost, and is it -- how does it -- didn't get into it in so much detail that we know how often you take it, how long you take it. what are the metrics there? >> yeah. these patients are basically on the drug chronically. this is a couple hundred thousand dollar treatment per year. numbers add up quickly and why the company this morning in its press release basically commented this is a multibillion dollar opportunity. i think most models are kicking out at least $4 billion to $6 billion in peak sales based on memory. maybe that goes up today because of totality of data.

stock has been terrible most of the year. basically on the fact that this was such an overhang. we needed to get past it. finally here. so shares are up a lot, and i think they'll probably continue to trade pretty well. >> and it's expensive. could you see hms, whoever decides these types of things, if it's fatal, could you see them not covering it? if it saves peoples lives, could they say, no. it's too expensive? >> i would doubt it. i mean, these are -- it's somewhat of a rare disease. not by definition anymore. patients have kind of come out of the woodwork over the past few years. kind of making this less rare. that being said, i think to your point. fatal disease, heart failure, very serious ailment. i don't think there's going to be a lot of pricing pressure at least initially. investors are more curious an, is the fact that pfizer's drug loses patent protection sometime

in the early 2030s and biotech terms not so far away. so i think that's the bigger issue here. that the patent profile of competitive drugs leads to pricing erosion maybe over the next five to seven years, but certainly near-term i don't think that's a major issue for the company. >> how does pfizer -- pfizer's drug removes the amyloid? and this one prevents it? what's the difference? it's not the same mechanism, is it. >> not the same mechanism. the data is actually fairly similar. you know? i think when you look at the al n alnylam one of the bigger success story the company is able to share today. used concurrently. a more competitive landscape obviously with two players and others in the wings as well. >> never heard of it. sounds awful, though, and another thing for me to worry

about, i guess. thank you. about 300,000. hopefully dodge that bullet. thanks. >> you bet. >> good to have you on. >> you bet. thank you. coming up, when we return, getting into all the latest a.i. headlines with vc investors joe lonsdale. later in the hour, the can't-miss interviews. austan goolsbee and carlyle group's co-founder david rubenstein live from aspen at the ideas festival. stay tuned. you're watching "squawk box" and this is cnbc. you know what's brilliant? boring. think about it. boring is the unsung catalyst for bold. what straps bold to a rocket and hurtles it into space? boring does. boring makes vacations happen, early retirements possible, and startups start up. because it's smart, dependable, and steady.

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box." live in aspen, colorado this morning at the aspen ideas festival. joining us to talk about big tech pushback against dei. suggests chattered about here. the partner and co-founder of palantir. good morning to you, joe. we're going to see your oh co-founder, by the way, later this week right here. peter thiel will join us.

start with the news of the morning and ask what's happening in europe as relates to apple. you saw that apple's now been accused of using its app store improperly claiming a regulatory problem. it's the first time that a u.s. company like this has been charged. i'm curious how you think about that news, but how in a more broad context, what the implications are for u.s. businesses doing business in europe? tech companies specifically. >> good morning, andrew. you know, i am wary of giving european regulators any power whatsoever because they're pretty crazy people. in this case probably making a good point. apple is a bully. they have attacked a lot of things randomly, they change their minds. probably too much power in the market. overall, even though on the tech side side on on innovation side not the big bully side. >> interesting, though. i haven't heard you pub luckily come out against apple at least like that before. you think they are a monopoly?

have too much power in the app store? what's your take and what's your solution to it? >> i can only speak to my personal experience but you start building things that are important on top of apple when covid started. smart people, what can we build on top of this for detecting who's tested orb not. important right where covid started. didn't know it would work and they kept changing rules on us. get a mayor to support. now need three mayors, now a governor. spent months working on it and not allow it anymore. at the very least something that powerful in our society needs standards and not just bully everyone. >> what's the level of power, though? if i said to you, for example, i wanted to start a new app and i wanted you at palantir to allow me to operate, to effectively operate on toppin palantir or tap into your apis, you'd say,

andrew, you're crazy. >> if something is used by a large percentage of your society i think in the modern republic and democracy it's okay to have some standards to vote for. something used by tens of hundreds of millions's people, some consistency. it's a tough trade-off to decide at the level. i'd rather not regulators but voters are deciding. >> the idea that the regulators, eu regulators, now can say we are taking 10% of your global revenue if you don't apply by these standards is crazy. it's like $88 billion they're going to say? >> exactly. like i said at the start. i think european regulators are arbitrary and not the people that should be running things and we should push back on them. our society needs to figure out what the rules will be for users that dominant. >> there is some -- fear and

loathing when trump went out to silicon valley and had people show up and then you had schwartzman comes back, lacheman maybe, cathie wood. no fortune 100 ceos are actually giving any money. it's a quiet group we're talking about. anyone in their right mind say i'm giving money to trump at this point? do you see a shift at this point? >> joe, switching us to trump, and andrew, listen, i think a lot of people are fed up with a lot of the policy wee searwe're. chats in silicon valley, omni cost, breaking everything. i don't think people are rallying around the person in silicon valley so much as this is insane. the broken stuff. >> you can see it. i was in los angeles recently. i'm not outing anyone or imply i talked to a lot of people, but a couple people told me that, and i was, like, shocked at who they

were. >> a huge number of friends in the technology world who are going to be on the trump side this time and against biden. again, i think it's not as much as choosing between the two men or two personalities. it's you're seeing all of this stuff break things in the country. seeing us try to pass a chips act. a pretty bipartisan thing and nothing is done because over a dozen ridiculous dei things and can't find construction workers. the country is stalled because a crazy people in charge. >> anyone talk about two-tiered justice or a way of defeating your opponent? >> silicon valley voted against trump, most i well admit not felonies misdemeanors upgraded for the sake of politics. i think a lot of people are disgusted and pushing back on what we're seeing right now. >> joe, to the point, though, we had this conversation earlier in the broadcast with jeffrey sonnenfeld.

how many between now and the election come out publicly give money that goes to trump or remain as quiet support you're talking about? >> a lot of people waiting to see, make sure it really is going to be trump versus biden. a lot of them closer to august come out in public more than likely. people attacked by the ftc and by every agency there is. all of this stuff we're trying to build and the current can't build anything because of stupid rules in place. yeah. a lot of people are furious waiting for the right time. frankly safety in numbers. waiting to come out together, because they saw when peter came out by himself how much he gos attacked. unfairly i think. >> what do you make of the arguments around the former president being either polarizing, and/or the larger worry that we hear about a lot, about democracy? about the rule of law? and what that ultimately portends?

>> the former president is certainly polarizing. certainly harmful to people overall to come out and support him. that's the thing we've seen. people are waiting to do it together. in terms of rule of law, the rule is law is clear in this country. judges put in mostly regi regionalists. the only really controversial thing the abortion thing. a lot of originalists it argue push to the states. that's a reasonable disagreement in terms of a constitutional framework. scary is the activist law faire not judges from the other side. >> classic. a rorshach test. one man's rule of law. one side looks at rule of law, trump says january 6th. the other side look at the way law fare is waged against trump? look at the judges put in. >> the federal society judges believe in the constitution. >> if a city judge or if a city prosecutor can decide to bring a case against the, a federal case against a former president every

municipality or local -- i mean tshs can happen anywhere to anyone. >> the personnel matters here. you want to see personnel. yesterday synagogue attacked jews not allowed in the synagogue. same day announcing biden's hiring these, like, anti-capitalists, like just really scary junior personnel. >> ask you on the personnel side. two questions. one is, if you look at the heritage groups, 2025 plan, really is an effort to effectively rout a lot of staff that have been inside government. you may not like all of those people, but it does create questions about the ability to hire people with talent and expertise and experience over the years. that's on one end. hear your views on that. second, though, is you heard president biden say last week that he thinks actually there could be as many as two judges up for grabs on the supreme court, whoever becomes the president for the next four years. if trump.

to win, and put the two new judges in place, would you be happy as an american -- actually very curious about this -- no. no, no. as an american citizen. >> use that line again. as a human being, don't you think that would be a bad thing? >> no, no, no. but to the extent you have, you'd like to think that you would want a supreme court i imagine that represents, what representative of the country. somewhat representative of the country, how would you feel, joe, if there were two more conservative judges on the supreme court? so you would actually get close to, close to the, not just majority. majority in but entirety of it obviously for potentially a generation or month? >> yeah. protect our country for a generation to have originalist judges who believe in the constitution, andrew. ruled 9-0 to support the aboogs drug. not activists. trying to interpret the constitution making us safe. stop unrealized taxes. destroy the sector and stop the

nonsense. jackson only person biden put on the only one to clearly say she wants a wealth tax. destroy the sector then. in terms of protecting america we neat originalist justices. >> could stand a couple more originalists. >> that would be great. >> god bless you, a longer conversation, and it is. joe lonsdale thank you for joining us. >> don't need to say anything else after that. >> thanks. still to come this hour, chicago fed president austan goolsbee and co-founder and baltimore orioles owner david bete. runsin and another question, what's next for nvidia? get to that question next when "squawk box" comes right back. hello. i'm ethereum.

and i'm big finance. you look really tired. just calling it a day. but it's 4 p.m. yeah, and i've been working nonstop since 9:30 this morning, so. 9:30. you don't say? yep. you'd want a little shut-eye too if you'd been moving billions around the world. well, actually, i do. you know, stablecoins, nfts, loans. people can access me 24/7. what? but look, everyone's different. you should get your rest. you'll get after it tomorrow. tomorrow's saturday. [ethereum] monday. you'll get after it again on monday.

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investors cooling on the a.i. giant in the latter part of last week. this morning you see the stock off by about 1.8%. still month to date stock's up 18% and much bigger looking year to date or the last year. joining us, constellation research founder chairman and principle analyst. hi, ray. >> good morning. >> you've got a $200 price target and say there's an entire list of seven reasons why you are convinced this stock is going to get there. lay out the broad argument. >> seven notes important why the stock will hit 200. first, visionary-led ceo. very, very important. you've seen in the valley, the ones led like the ellisons of the world, mark zuckerbergs. second, high entry. few competitors can come into the chip market. it takes a long time to get a chip 0 to market, get the right

chip and succeed a very hard thing to do. third, high switch and costs. once in, locked in. software and the stack, locked in for quite some time. quite a lead doing that and, of course, nvidia had dominant market share making a big difference. been in the market for some time and competitors are behind like 24 homonths. and only seeing 0.1 pain 0.01 of the product out there. exciting for insight what's next. more than just chips and more than just what's happening in software. that ability to the go from silicon all the way to the end side is where we're going to see a lot of innovation and, of course, the ecosystem made the gpu a default standard. the standard everyone looking to for a.i. from inference and testing. of course, the numbers don't lie. we're seeing amazing growth here that actually matches the pe ratio. that's what everyone's looking

at trying to figure how it will continue. grows margins, 262% growth compared to a year ago. this is going to continue for at least the next 18 to 24 months. >> how do you describe the pullback over the last week? >> the pullback is coming out of macro levels. people worried about the consumer side. worried where the economy's going to head and doing profit-taking before the summer. i think it's a good time to buy the dip. >> there are people who look at this and say, okay. this is the equivalent of what we saw with cisco. back when the internet phenomenon was taking off, late 1990s. how is this different? >> i think this is different, because when we're looking at cisco, looking at intel, where intel was and microsoft was, that era ras really built on those three companies. i think nvidia learned from lessons and realized they have to go much broader than just being a separate company building just chips.

what nvidia has done, build partnerships lasting into the next era. a.i. begins and ernds with nvidia we believe because they've actually built out a road map much more encompasses where networking and software was. they soos the end vision and we see that with jensen's overall vision. >> today the stock's at 124. your price tagrget $200 the nex 12 months? >> yes. >> thank you. happy monday. and david rubenstein joins us coming up. and next in-depth discussion on the economy interest rates and federal reserve with the president of the chicago f.ed austan goolsbee. "squawk box" will be right back.

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cuts? are we, is it 3-2? what's the score here? >> well, who's on which team? you know i'm not allowed to talk for anyone else on the fomc. i know you're not asking me that. >> in your assessment. >> look, my assessment is -- we've been laying out-didn't i've been laying out for more than a year what are the t criteria? somewhat historic restrictiveness. the real fed funds rate highest in decades. when you want to be that restrictive, is when you feel like there's danger of overheating, or as we did in the u.s., if you get the inflation rate up too high. second half of last year, we had outstanding dual mandate

performance's that is, inflation came down almost as much as we've seen in any year and we do not have the a recession. start of the year saw inflation kicking back up and trying to figure out and determine from the data, is that a sign of reoverheating, or is that just a blip? i think if we get more months like what we have just seen in the last month on inflation, coupled with slowing conditions in some of the other parts of the real economy, then you would have to start questioning, should we remain as restrictive as we've been? >> right. and i get that. the question i know, i'm wondering where you stand in terms of having that confidence to cut? when i said 3-2. i mentally bad months, and i don't know if you described it this way, but two good months of inflation. especially the last one we had, and i'm looking at the cleveland fed now casting for inflation. it looks pretty good for the

month of june so far. obviously, it's just a forecast, but where are you in your confidence to cut? >> look, i'm -- the closet optimistic that we're going to see improvement. if you break down the housing services goods, you started to see the progress that we had been expecting on housing beginning. hopefully that continues. and on services and on goods, there's still a decent run rate. so even the three bad months. we really had one awful month in january. and then it's been improving since then, and that was preceded by seven outstanding months. so i'm hopeful that we're going to get a little bit of, a little bit more confidence that on the inflation side we're heading back to 2, and on the real side, you can't, you can't describe this as traditional overheating

at the least. a couple warning signs. if you look at rising ui claims, if you look at rising delinquencies and a cooling of consumer spending. i just think taken in the context of how all the other advanced economies are doing, it's worth wondering about where we are on our restrictiveness scale. >> well, you know, i wanted to get to that, because there's a chart up right now, austan, that shows the inflation rate. the blue line declining. and the unemployment rate actually inching up. i know it's still at a very low level. you talked last week, austan, about pain in the economy. how much concern do you have about a slowdown, and tell us where we are on the golden path? are we back on the golden path? are we potentially veering off it to the other side? which was the side of greater economic weakness. >> yeah. that's always the danger. i'm always going to be concerned. you know i say, several bankers

jobs are concerned about everything. that said, you've got a couple of warning signals coming from the real side of the economy. the golden path was my description for 2023 that we could get inflation down a lot without having recession. now, let's hope we still get a little more of the golden magic coming here into 2024. and as i say, i'm closet optimist. i think it is possible, but you cannot help but look at the real side economy and conclude, i think, this is not overheating. the reason to be extra restrictive, as we have been, is because you're trying to guard against overheating. if unemployment claims are going up the unemployment rate ais inching up. many other measures cooled down some something like they were before the pandemic and you start to see weakness on

consumer spending. i think then you've got to have what we call a balance in the mandate that we got two sides of the dual mandate, and if you're going to be extra restrictive too long you have to worry what's happening in the real economy. >> when you talk about confidence to cut rates, austan, do you agree with chair powell, who has talked about cuts being a process? or is it possible to do what christine lagarde did in europe. do one and not promise additional ones and just by way of background, the fed did that back in '96, which is something vice chair jefferson brought forward as a potential analog. do a cut, see how it works. tell the market and country you're doing a process or a series of cuts? >> this sounds like an abstract

hypothetical and you know i hate abstract hypotheticals. i usually -- >> well, no. i disagree. i -- >> yeah. >> austan, i disagree. it's knot abstract. chair powell sees it as a process. on one hand why do one cut if you're not doing a series of cuts. it's not a -- >> i gotcha. i'm not going to weigh in on, that's going to break my fomc communications policy on two grounds. i'm going to start talking about thoughts in jay powell's head and the future about what the rate cuts are going to be. i don't like tying our hands, even partially. i do like the idea that as we make movements, we're not willy-nilly surprising people. what i like is for the public to understand our reaction

function, and i like that over the last year, year and a half, we've laid down criteria for, here's what we're looking for in the economy that we're going to actually look in the data and that's what's going to determine whether we're able to make cuts. whether we're going to hold where we are's whether we're going to increase rates. all along that way i feel we've been pretty clear about that reaction function, and that, i take, is a good sign that the markets reactions often are biggest when the data come out. not when we make statements. to me, that's kind of an indicator that we're doing the commune cication the right way. >> talk about one piece of data which is really interesting. i admit. i can't get my head around this, which is how is fed policy affecting the housing market? a report last week, data, housing prices were rising again. i think about high interest rates right now and for the record, folks before austan was

at the fed or even when he was in the government it was, you could talk to him about theoretical concepts like this and he would help explain or give his opinion on it. austan, trying to get my brain around this. you have high interest rates, at least on one level makes it more difficult to build housing. there's a housing shortage in the country, so how is it that keeping interest rates high is helping housing prices decline and helping the overall inflation index? >> yeah. now, the only thing i'll say as a historical matter housing is one of the main transitions mechanisms for policy. this dynamic when rates go up it suppresses also the supply of housing, because nobody wants to leave their low mortgage rate. that's always true. that's always true. so the question is, what makes this moment different than previous cycles? i think there is one element that makes this different, which

is, this increase in rates followed a historically low rates for a long time. so in a way you've got more lock-in to those low rates than you would have had in previous cycles. i do think there is some dynamic explaining part of the puzzle why house price inflation remained higher than it was. and i might alsoexplain why new construction was a little stronger than you would have anticipated it would be given what happened to rates, because in a way it's filling in for the existing homes that aren't being put on the market. now, that said, it's worth remembering. this is just a temporary phenomenon, as it's only in this interim period where you're going to see that supply component, and it's totally separate from the second puzzle of housing, which has been the market rents normally come in to

the actual inflation series with a bit of a lag, and that lag just mechanical lag, has been larger than what we thought it should be. so i still think regardless what's happening in the resale single-family housing price part of the market, there's still wide availability that housing inflation can come down and that we will start to see in the official statistics the reflection of what's happening in the markets rents data where the prices, where the inflation rate has come down pretty significantly. >> yep. steve, are you going to -- you want me to go, steve? are you, i thought you'd say hi or something. >> you go, joe. >> i would have been offended if you didn't say something, joe. joe, please. >> mr. president, and by the way, i like calling you -- >> please, call me austan. >> i liked new austan, i like

the new apolitical austan. a new and improved version. trying to get something political out of you, anyway. >> oh, no. >> no, but, no. you've seen all of these scary numbers about deficit is a purse of gdp, where we are, what we're running in a good economy, and debt is a percentage of gdp, where we are right now and where it's going to go by 2030. these numbers are frightening. i know it's your job to be worried about those things. in the past the fed has been accused of enabling some of this. most recently, staying at zero and, you know, while all of these programs are passed. it was after the pandemic, obviously. a lot of maybe good reason, justification for it, but would you be part of a fed that tried to put the brakes on any real crazy profit spending in the future, austan? see, the old austan would have said, never any profit -- i like

everything. the new austan -- >> the fomc communications guidelines for joe. you can't speak for what's in my head and don't speak for me. >> say something more reasonable? the new mr. president. >> what i say, i say two things. number one, as you know, when you join the fed it's like joining the night's watch. you're not in the elections business anymore and the fed is not in the fiscal policy business. i always tell our own people here at chicago fed. our motto is the midwest motto. there is no bad weather. there is only bad clothing. we prepare. you give us the conditions, and we react. it's not appropriate for us to go tell congress that they're spending too much or they should invest in whatever -- it is -- they make those decisions and then if they affect the unem fo employment we have to react.

clear as possible, what's my reaction function and people can decide how they think conditions are going to generate. >> some day you might not be able to sell anymore bonds. got to start thinking that way or pay 12% on them or something. better start thinking about this, mr. president. >> wow. joe wants the fed to be thinking about fiscal policy! i'm still wrapping my head around that. >> could become your problem. couldn't it, steve? couldn't it become their problem when they can't sell any bonds? >> absolutely. it could. they've chosen, joe, seems to me, not to deal with the, before it happens, but deal with the aftermath, if that happens. >> oh, great. >> austan, we got to say good-bye, austan. any reason, because there's an election in november, you wouldn't cut in september? >> we look at economic conditions. when the transcript comes out year going to see. we're not in the elections business. >> okay. thanks a lot, austan. thanks for joining us today.

>> okay. coming up in a moment. live from aspen, colorado another interview, co-founder david rubenstein and joining him in just a moment rhtig here in aspen when with come back on "squawk box." book in the hotels.com app to find your perfect somewhere. ♪ ♪ ♪ ♪ book in the hotels.com app ♪ ♪ ♪ ♪

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welcome back to "squawk box." i'm here at the aspen ideas festival. the fed's rate path and much more getting into politics as well. david rubenstein now owner a major league baseball's baltimore orioles. talk about baseball as well. start, talking off-camera, just did an interview with president biden and former president trump and we've been having conversations all morning, both joe lonsdale supporting president trump, also jeff sonfield in the "new york times"

yesterday about ceos and what he believes is not support for trump. what was your lesson from interviewing both of these gentlemen recently? >> a book coming out in september and i said highest calling of mankind equity but started to call the book "the highest calling" being president is more important than private equity. the book called "highest calling" a book about presidents. the last two, spent an hour with president biden in the oval office and an our with trump. >> what was the revolution for you personally? >> the characterization of both is not accurate. i mean, president biden could do the interview quite well. answered every question and the interviewbe public. president trump during the trial he was doing, did it before the trial one morning, and seemed to be focused on it. there's no revelations i think are startling. >> you've been a democrat for most of your life? >> i'm an independent now. >> okay. >> yes.

>> do you want to tell us who you plan to support? >> i don't get involved in politics. >> but you're, you're a friend of the current friend of the president? he stayed as your your house, i am a friend. i don't support any publicly. >> i don't support anybody publicly. i vote the way i want to vote privately. because i'm the chairman of the kennedy center, the national gallery of art, it's better for me to be apolitical because i need to get appropriations. >> what do you make of the jeff sonnenfeld piece in "the new york times" yesterday that effectively was saying that he didn't believe that the presidents of major companies in america were going to support president trump? we then had an interview with joe lawnsdale who made the argument that he believes there is a quiet support for president trump but it is much larger than is appreciated or known. >> i think that ceos generally want to be with a winner.

as a general rule of thumb, most ceos of big publicly traded companies are more republican than democrat, as a general rule of thumb, and they have had some resistance to president trump, but now that they think president trump has a reasonably good chance of winning, i think they're drifting and coming home. >> how should we think about that, though? >> well, business people generally like to be with a winner. they want to what's going to help their company and they think their company will be helped by the policies of trump, rightly or wrongly. >> let's switch to business if we could here on cnbc. we talked to austin goolsbee about the path of the fed. you're in the equity business. the path of the fed has a huge impact on your ability to borrow money and how much you pay for it. where do you think we really are? >> i think the federal reserve is very reluctant. i'm going to interview jay powell publicly on july 15th in a public setting in washington and maybe he'll give us some

insights then, but i think generally the fed wants to stay out of politics, so i've always said that i think the fed is not likely to cut rates before the election because it would just cause too much political turmoil. >> you don't believe austin goolsbee, at the end of that interview, when i believe he was asked, specifically, whether the presidential race has an impact on their decision? >> i know that that is the traditional line that the fed has, and they should have that line, but i just think generally, they're human, and they recognize that they'll be heavily criticized by president trump, i suspects, if all of a sudden they were to cut rates right before the election. therefore, i suspect the market is probably more right than wrong when it says the rate cuts are likely to come after the election. >> let me ask you just a washington political question about the fed. the fed has talked about its independence for a long time, and yet, when you go back even in the voluker times and other days, there has been some pressure applied by presidents, increasingly when it was former president trump, publicly. we've seen that heritage 2025

report and others that have suggested that if he were president, at least some people that are around him want to have a lot more control of the fed. do you think that's in the cards? >> i think that's unrealistic, because i think trying to control the fed now, given the way the country's evolved and the history of the fed, would be damaging to the economy. i don't think that would actually happen. i don't believe republicans or democrats on capitol hill would really support that, and i think the american people wouldn't support that. the fed has operated as the best central bank in the world for a long time, and i think destroying that would be a big mistake. >> how would you grade this economy today? >> i think the economynow is a b-plus. we're not "a," but nobody's an "a" in the world right now, but we're doing well. we have had high interest rates for quite some time, yet the economy is going to grow probably 2.5% this year. that's pretty good. we've been predicting a recession. it hasn't happened yet. the economy is in reasonably good shape. >> you have been a prolific

fund-raiser beyond some of the nonprofit work you've done, but a prolific fund-raiser at carlisle from pension funds and sovereign wealth funds around the world. there is a conundrum in private equity, which is there have been very question exits. private equity has sold very few companies, a lot of pension funds have not gotten cash back, which means you can't really go to them and say, hey, send me more money, because they say, i don't have money, you need to send me the money. a lot of folks have gone to the middle east to say, we'll go after that money. now in the middle east, it appears they're saying, we were sending you a lot of money, we need to spend some of that money here in the middle east instead of in america. as a fund-raiser, what do you think of what's happening? >> it's obviously tougher to raise money than it was years ago because we haven't had as many exits, but there's a new thing called private credit and there's a fair amount of money for that because interest rates have been high. most of the large private equity

firms are doing large amounts of private credit, and there's other things they raise money for. the large private equity firms are not suffering. they could always do better, but i think you shouldn't cry for them. >> how do you think about the marks, though, on all these private equity investments? they have gone up and up and up, and yet we haven't seen the realized sale of them yet. >> historically, when you raise money, you're worried about the internal rate of return that you had and also the multiple on investment capital. now the investors want dpi, which is, how much cash have you given me back? don't tell me what the mark is or what it's going to be. so that's made it more difficult to raise money. but generally, i think as the economy gets better, and it will get better, because when interest rates come down, i suspect you'll see a loosening of asset sales and more things will get sold. >> what do you think of this new phenomenon where private equity firms ware leveraging the leverage? to get cash out, they're taking a loan on top of a loan. >> these are continuation funds

or things like that. i don't think it's any calamity has yet had because of it. i don't think it's the worst thing in the world. we've done it. other firms have done it. i think it's not a terrible thing. i don't see any big crises that have happened because of it. >> any big investment theme that we need to know about before we let you go? >> i think sports. >> how do you feel as an owner of the orioles now? had a bunch of losses and some wins, including against the yankees. >> we won the yankees -- we beat the yankees two out of three recently and five out of seven so far this year. so, we just lost three games to the houston astros, in a row, which we didn't anticipate, of course. sports is a very attractive area to invest. a lot of private equity people got into sports, and very few people have lost money. >> how much of this is an investment and how much is fun? >> this is mostly a philanthropic thing. i want to make money, and i have investors, but i'm from baltimore, and i wanted to do something for baltimore.

>> david rubenstein, great to seyou e here. "squawk box" is coming right back after this.

hello. i'm ethereum. and i'm big finance. you look really tired. just calling it a day. but it's 4 p.m. yeah, and i've been working nonstop since 9:30 this morning, so. 9:30. you don't say? yep. you'd want a little shut-eye too if you'd been moving billions around the world. well, actually, i do. you know, stablecoins, nfts, loans. people can access me 24/7. what? but look, everyone's different. you should get your rest. you'll get after it tomorrow. tomorrow's saturday. [ethereum] monday. you'll get after it again on monday.

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the markets this morning. s&p futures have turned negative, only by about two points. and the nasdaq continues to see a little bit of pressure on the downside. right now, off by about 45 points. treasurys right now, 4.26% for the ten-year and that does it for us today. join us back here tomorrow. right now, it's time for "squawk on the street." ♪ good monday morning, welcome to "squawk on the street," i'm carl quintanilla. jim cramer is back at post nine of the new york stock exchange. david faber has the morning off. final week of q2 as the s&p's coming off three weeks of gains, up nearly 4% for the month. busy week. pce, the presidential debates, micron earnings, nike, carnival, fedex, and more. our road map begins with the final trading week of the first half. gdp, pce coming, a lot of fed speak on deck. while high-flying nvidia does look on trac