it's tuesday, july 2nd, 2024 and "squawk box" begins right now. ♪ good morning, everybody. welcome to "squawk box" here on cnbc. we are live from the nasdaq market site in times square. i'm becky quick along with joe kernen and andrew ross sorkin. we're talking about what has been happening with the u.s. equity futures and yesterday in the markets. yesterday, you did see modest advances, but this morning, you see a pullback with the dow down 140 points. nasdaq is down triple digits with the decline of 100 from here and the s&p down almost 25. if you are looking at the treasury market this morning, the ten-year sitting at 4.45. the two-year at 4.76. a new suitor may be stepping

up for paramount global. barry diller exploring a bid to take control of the parent company of cbs, mtv and paramount global. he later tried to ak scquire th studio in the 1990s, but was outbid. the developments are moving the stock this morning, but it is still down more than 30% in the last year. of course, the big issue is not necessarily buying paramount global, but buying the national amusements business and it is always unclear what it will mean to the stock of paramount global. an interesting twist in the saga. we actually had barry here a bunch of times talking about hollywood and paramount.

>> back to the future. >> he has been down on his business, but talked about the ability to fix it. if you think about iac and one of the things they have done well is brought things inhouse and fixed them up and spun them out. that is the iac business model in some respects. maybe this is part of that. unclear where this whole situation stands. >> it is interesting to see the idea of barry doing this. >> he is the guy saying don't abandon all of the legacy media. >> it's kind of exisciting. >> in comparison, legacy is not too bad. short one and long on the other. streaming. >> yeah. >> we were talking to lazry. a and mark cuban.

>> yeah. these guys love having the team. if it is worth a lot -- even if they have $3 billion or $4 billion, i'm taking my billion. the boston celtics are up for sale weeks after winning the 18th title. the celtics ownership group plans to sell the team. the controlling family of the ownership group boston basketball partners said it intends to sell all of its shares in the team for estate and family planning consideration. the sale expected to be completed by the end of this year or early 2025. the remainder of the sale closing in 2028 according to the statement. the sceltics could fetch a recod price. the phoenix suns sold for $12 billion in 2023. the department of energy is

selling 1 million barrels of gas seen to lower the price of fuel before the fourth of july weekend. five companies are buying that gasoline with bp taking it at 500,000 barrels. the companies are paying $2.34 a ga gallon. 70 million americans are expected to travel this holiday. >> does this trouble you or not? >> this? not at all. >> gasoline sale? >> oh, i thought were -- >> gasoline sale ahead of the july 4th weekend, but also ahead of the election. >> andrew, i'm tired. the spr. my horoscope today said if one of your colleagues has a good

idea, don't reject it. they could have good ideas, too. that's going to be andrew and another thing like we started agreeing a couple of days ago on something. >> i need to get a hold of the horoscopes. >> i think it's another -- it's not surprising, but i like lower gasoline prices. everyone does. should we use this to do it at this point? >> let me pick up with do we really think the government is good at market forces and timing? >> no, they will buy high and sell low, typically, like most of the stuff they do. to a related item. the supreme court granting donald trump immunity for official acts in office. trump calling this a big win for the constitution and the

democracy. president biden speaking about the supreme court ruling last night. >> this nation was founded on the principle there are no kings in america. each, each of us is equal before the law. no one, no one is above the law. not even the president of the united states. >> the former president's legal team taking action sending a heard to the presiding judge in the hush money trial asking to postpone sentencing and toss out the verdict. we will take up this topic with former house speaker kevin mccarthy in the next hour. do you want to opine? i'm curious what you think. >> i think you will be fine with this. it's limited. it's not just about trump. it's about any president that orders a drone strike and kills someone abroad after office and not being able to have his

political opponent which we are seeing right now. for the trump case, it throws a wrench in the works, because it moves that trial past the election. it doesn't mean he's not going to be prosecuted if this has to go back to that court and they need to decide did the things he do, was that in running of the office of president? if not, he can be prosecuted for it if it was not in the normal business of what presidents do. i think it does put more of the onus on back to lower courts to decide what was presidential acts and what wasn't. it seems like the only way you could do this without really making it impossible for a president to -- >> let me read you a piece of the dissent. >> i know. that's totally ridiculous. >> they raise the prospects. could you order the navy ze

s.e.a.l. to assassinate? >> the stuff she said -- even chief justice roberts saying is ridiculous. you can't break the law or kill someone. that's not in the normal course. >> to hold the power or take a bribe in exchange for a pardon? these nightmare scenarios never play out. the damage has been done. the relationship with the president and the people -- >> what would your decision have been? no immunity? i think you would have come to the same decision. >> you need some form of immunity. >> that's what they said. >> the question is whether this is not too thin, but too broad of a measure. >> i don't think it is. >> a strike is a completely unfair deal. how do you not go after harry

truman for dropping the attomic bomb? >> the question is where does this land? you just said to me you don't think the assassination of a political rival. >> there are unintended consequences. >> aoc filed an impeachment provision for the supreme court. there is still impeachment. you can't just break an an american law unless it is part of the business of the president. sending navy s.e.a.l.s to kill your opponent is not -- it would never happen. >> it would be really difficult. >> it is an absurd argument. even chief justice roberts said this is ridiculous. >> one of the things roberts said in a footnote is concerning, too. the idea no sitting president

can have criminal proceedings brought out. that brings back this situation where if donald trump is theaga issues are up to an attorney general. >> the justice system doesn't work. >> no, it doesn't. it makes it more -- no one is going to be able to do anything to biden. you wouldn't want this if you are a president. you would want this if you are a president otherwise you could not be president. ever since the case back in 1982. you knew this was implied. you knew it was some implied immunity. >> it should be some implied immunity. the degree it should be allowed. >> how do you pars se it? the official business of the presidency and non-official business of the president? >> is he trying to apply it to

any situation today or beyond? >> in this case, anything related to an election, electioneering, politics, fundraising, all of it should be taken off the table. those are not in the context of the official. >> any of these things need interpretation again by the court because there is no hard and fast rule that you can do. >> i agree with you on that, too. >> you still need normal reasonable an djudication of th issues down the road. you know, i just think you can throw out very scary scenarios about everything. it is just not real. >> don't you think within the context of politics, political fundraising, elections and other things like that, that would not be considered in the official

duties of being president? >> it would not, no. >> where does this land? >> you can't -- you would be -- you could be prosecuted for what happened. >> those cases could go. >> you saw justice roberts say the way trump is interpreting this is way beyondimmunity on. >> most of the activities came out before he was president. >> the only thing that speaks to me is you will -- the actual interference on january 6th. if you think donald trump was behind that and is culpable for that. voters will not have that decision before november. okay. that makes it sort of a troublesome -- if you want to say that, fine. he's still libel. if he were to become president

again, he is libel because those actions were not covered. >> it could change the outcome of the election. >> it could. >> the last word. coming up, more data on the way for the fed to consider. we'll get good the june employment report on friday. we'll talk markets and what may come in just a moment. we will talk to the author taking the constitutions original meaning to heart. one of the great ones. a.j. jacobs, author of "the year of living constitutionally." he is hilarious. we will speak to him coming up. "squawk box" returning after this.

want to save on some of the biggest names in streaming on the network made for streaming? x marks the spot. now you can add the new xfinity streamsaver™ that includes netflix, peacock, and apple tv+. that's xfinity streamsaver™ for just $15 a month. all your favorites. all in one place. only from xfinity. for more watching and less spending... x marks the spot. do it all on the network made for streaming, and bring on the good stuff. rate sdratrategy with us. do the markets assume donald trump is going to be president? that is what you are stating in the notes. >> the price action after thursday was where the market is

looking or assigning a higher probability of a trump win. if you go back to 2016, the playbook says ten-year yields rose 80 basis points between november to mid-december and ten-year break even saw inflation expectations because the market started looking at the possibility of tariffs as well as tax cuts to decrease deficits. this time around, i would say that, you know, given the fact that we're already in a high inflation regime, the focus is on debt and deficits for the next several years. >> is that why it's different this time? that was the playbook in 2016 and when he exited the white house, i think inflation was 1.4%. he did see tax cuts. he did see tariffs. he didn't see 40-year highs in inflation until 14 months after

joe biden took office. in your view, is that totally pandemic related or supply chain or what is some of the excess stimulus and trillions of dollars responsible or a bit of both? >> there is definitely a combination of factors that led to the rise in inflation. remember the pandemic spending came before biden was elected and we had a little bit more with biden getting elected. it was goods inflation because of supply chain disruption. rents have been sticky and high and inflation is starting to slowly come down. i think the progress we've made in the last 12-to-24 months has been quite meaningful. that is part of the reason why the fed is looking toward easing policy. going forward, really, what the fed wants to see is that

disinflationary trend continue. they want to see core pce get to around 2.5% before they start thinking about rate cuts. so, there is still more work to be done. we're kind of watching the data to see how the fed will act on policy. >> given there is $33 trillion, we've already done that, and no relief in sight with either candidate, probably, why would you think inflation would continue to moderate? it seems like yields are going to be sticky, even if the fed does cut, a steeper yield curve or higher for longer. >> the general level of yields will probably be higher for longer. that is the debt and deficit story. if we have additional tariffs or other sdtimulative efforts. >> tax cuts or more of what we

saw with the inflation reduction act -- take your pick. there was one before then. $7 trillion of spending. >> you are absolutely right in pointing out that some are somewhat inflationary. >> we do -- corporations pay more in taxes now than before the tax cuts. >> president trump is thinking about -- >> the total level. down to 20%. >> that's not a meaningful change. really, the question for inflation is one of tariffs. the proposals that are currently in place from the trump administration is they decrease 60%. >> no one believes that. >> okay. what i'm saying is we don't have much on data. concrete information, i should say, from the trump administration. that is what the market is looking toward to suss out what the impact would be if the

proposals are actually passed. >> where is the ten-year for the next year? where are mortgage rates for the next year? >> so, we actually think the yields might start to decline a little bit as we head toward the remainder of the year because the fed will keep policy on hold. we don't think the fed will cut rates this year. that means a slowdown or weakness in the data. >> the fed won't cut at all? >> we don't have any fed cuts pen cilled in. >> one or two? >> the market is pricing in one or two. i'm keeping policy on hold. >> and mortgage rates. that is -- and rents. those are the scariest things. you can't really buy a house because prices are all-time highs and mortgage is 7.5%. rents have doubled. no relief? >> no. we expect yields to go back up

to 4.5% in the middle of next year. that is because of the debt and deficits. >> would that change with either candidate? >> it doesn't. >> stan druckenmiller made that point. >> i don't think either candidate has really the ability to rein in deficits. it has to come from congress. it has to be certain cuts in spending or it has to come from -- >> i don't think either candidate is pushing. >> exactly. and congress is not able to pass anything on that. that's part of the reason why i think yields stay higher for a lot longer than people anticipate. >> thank you. on set. >> thank you. when we come back, a potential executive to fill the ceo job at boeing is bngei taken off the table. we have that story next. "squawk box" will be right back.

power e*trade's easy-to-use tools, like dynamic charting and risk-reward analysis, help make trading feel effortless. and its customizable scans with social sentiment help you find and unlock opportunities in the market. e*trade from morgan stanley with powerful, easy-to-use tools, power e*trade makes complex trading easier. react to fast-moving markets with dynamic charting and a futures ladder that lets you place, flatten, or reverse orders so you won't miss an opportunity. e*trade from morgan stanley - i got the cabin for three days. it's gonna be sweet! or reverse orders so you won't miss an opportunity. what? i'm 12 hours short. - have a fun weekend. - ♪ unnecessary action hero! unnecessary. ♪

- was that necessary? - no. neither is a blown weekend. with paycom, employees do their own payroll so you can fix problems before they become problems. - hmm! get paycom and make the unnecessary, unnecessary. - see you down the line.

ge aerospace keeping larry culp as ceo through 2027. culp could help the company through 2028 if the board agrees. this removes him as the potential candidate to takeover boeing. people thought he would be great at this, but larry culp spent years what he thought was the best set up for ge and keeping ge aerospace, a company he has a great amount of faith in. check out shares of ge aerospace. they are up 810% in the last year. he is proud of that, too. coming up, our founding fathers did not count on many things, but one man took on the quest to follow the

constitution's original meeting and went all in with the tri-corner hat and fashions of the 1780s around the streets of new york and so much more. the author a.j. jacobs will join us in a very serious way right after this. >> announcer: executive edge is sponsored by at&t business. next level moments need the next level network. much i couldn't have done it without you. 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 that's probably not gonna happen can we handle that kind of traffic?

the network can handle it! i downloaded eight hours of true crime stories just during our last video call i'm learning a lot

♪ ♪ [newscaster in background] and as flood waters continue to rise, thousands are left destitute...

we already see major fires spreading... hundreds of homes have been destroyed by the wildfires, which continue to blaze... the storm barreled ashore overnight packing 130 mph winds... utter devastation... now search and rescue efforts... across the country, disasters have left many in need of emergency shelter... you can help those impacted by disasters big and small. give now. welcome back to "squawk box." we are days away from the july 4th holiday marking the start of this country nearly 250 years ago. many ways, we are talking about the supreme court ruling today. our next guest set to live out their example of it and wear the tri-corner hat and the fashion

of 1780s. a.j. j jj. jacobs. "one man's quest to follow the constitution's original meaning." i've been reading you nearly 20 years. >> not quite since 1780, but close. >> here you are walking around new york city with a quill pen living the way the founders lived. what were you trying to do? >> first of all, good morrow. secondly, i did this because as you have seen, the constitution has a huge impact on our lives. i realized a couple of years ago i never read it, not from start to finish. as a writer, i need to understand the 240-year old document is dive in and live them. i'll understand it using the tools of our founding fathers. that meant a musket on the streets of new york and a quill

pen. >> a method writer. >> excellent description. i was absurd at times, as you can see, but it was a serious point. >> what was the lesson? >> many big lessons. one is the founders were more flexible in their thinking. we are transit and tribal. ben franklin said that the older he gets, the less certain he is of his opinion. it's patriotic to change your mind. >> wow. that would actually be a big one. >> i know! can you imagine? they didn't see the two-party system coming. >> what would they think of this now? >> some parts they would love. ben franklin, i don't know, would love the internet. so much of america they would be shocked at. >> would you become an originalist or does it need to be interpreted in the way things

are viewed today? >> i think a bit of both. you need to look at the original meaning, but weigh in. >> okay. we don't have quills, but we walk around with pens. people in new york, it may not be a musket, but people are walking around with firearms in new york. they don't have a funny hat, but they have other funny chats. >> i would argue the past was a different place. it was a different country. you brought up guns. i had a musket and i fired a musket. that is a different machine. it takes 15 steps. you have to put in the gun powd powder. it is like building a desk from ikea. >> you can forget the ball and that's where the expression blow your wad comes from. the cotton. >> and flash in the pan comes from muskets. >> now you know that and we talk about guns and all sorts of

issues. do you have a new view on that or a different view? >> i believe that i do think there is a right to bare arms, but we have to take into account how different the technology is. in the book, i gave an example. if there is a law for the 1800s that said wheeled vehicles are fine on this little country lane and that meant carts and bicycles and then someone builds an 18-wheeler truck, that's a different machine. >> what do you think of the founding fathers would think of the way the supreme court ruled yesterday trying to be originalists, if you will, on this issue with the president? do you have any sense of that? >> i have a lot of thosughts. they would be shocked by the supreme court and the president. neither were supposed to be this powerful. it was congress. congress was first in the constitution.

the fact that before the ruling yesterday on immunity, the president, they would be appalled by how powerful the president has become. originally, george washington made eight executive orders. obama and trump both made over 200. >> more than the last three. >> yeah. it is unbelievable. when the idea of a single president came up in the convention, a lot of the delegates said are you jesting? we just fought a war to get rid of the king. why would you want another king? >> there's checks and balances. i would argue there's still checks and balances. >> i would argue not enough checks and balances. the supreme court has way too much power. we need to give -- >> the supreme court and the president have too much power? >> absolutely. congress is what the founders wanted. that's what the people wanted. >> back to switching your views

and things, congress is tr transigent. how different was it from then to today? >> the founders never wanted that. madison said there's going to be factions. he thought there would be lots of factions almost like a european country. >> no. we don't want that. we're just fine. >> you don't want that. >> no, i don't want that and i don't want to be like europe. i'm happy with the what our forefathers set up for us. the greatest system in the world. >> this was not the plan. >> whether or not you like it or not, my point is, this was not the plan. >> can i ask a human question of the idea of the flexibility? i agree we are not in a flexible world. i would have thought the idea of

h h hyp hyp hypocracy, many people would have called you out for that. the reason i'm asking is you are suggesting that would be normal and nobody would call you out for it. >> hypocrasy is different from changing your mind. ben franklin on the convention floor told a great story. he said there was this french lady who said to her sister, why am i who is the only person who is right on every single issue. his point is we all think we're that french lady and right on every issue. the founders were very good at looking at the evidence and weighing things. they did not like hot takes, they liked cold takes. let reason trump passion. >> they would be appalled by social media? >> oh, my goodness. they would not know what to make of it. the worst nightmare.

>> a.j. jacobs, "the year of living constitutionally." it's an education of where the country was and where it is today. thank you. >> thank you. >> i'd like to live past 30. oh, i have. coming up, the drama returns to paramount. barry diller ran it decades ago and even tried to buy it. what's old is new. now he is making another run at the company. remind, u eryocan follow "sidew"squawk pod" on your favorite podcast app and listen anytime. we'll be right back. (fisher investments) yes. and as a fiduciary, we always put their interests first. (other money manager) but you still sell commission -based products, right? (fisher investments) no. we have a simple management fee structured so we do better when our clients do better. (other money manager) huh, we're more different than i thought! (fisher investments) at fisher investments, we're clearly different.

the paramount global saga is far from over as a new bidder enters the mix. julia boorstin has the latest. good morning. >> joe, barry diller has expressed interest according to

sources close to the situation. iac has received nondisclosure agreements to review the confidential information. the paramount global shares shot higher on the news in after hours trading. that's when paramount's controlling shareholder, shari r redstone's national amusements did not move forward with skydance. barry diller has a long history with paramount global that goes back decades. he was named head of paramount pictures in the 1970s and built up the film and tv business. in 1993, when diller was chairman of qvc, he entered into a bidding war.

iac has a stake over why this makes sense for them. its ceo joe yi levin is looking for assets in various industries. it is worth pointing out that various sources have told me a lot has to be figured out for the iac deal to be happen and it is in early stages. it could certainly not happen here. >> is this another deal for national amusements and we don't know what it means for other share h shareholders? >> that could be the issue. they journust started this due j diligence process. it seems because of the unique structure of the deal, it is more likely to do a deal with the national amusements. >> here is the thing i still don't understand.

is whoever is going to buy national amusements take on the risk of what sharri was thinking about doing earlier on? down the road, there will be some plan to sell it again, but then the question is, you have to assume you are not going to get a super premium for the super premium shares? what is the calculus? >> this is a different potential buyer than skydance. that was a deal that almost happened. skydance had assets directly connected to the global paramount assets. they owned half of "top gun" and others essential to the future. they would acquire national amusements to merge with paramount global. iac has a huge stake in mgm

resorts and angi. they own all of the assets and what they traditionally do is expedia. they buy the assets, fix them up and spin them off again. this would be a different deal. the question as to whether they take paramount and improve the profitability to then sell it, from a regulatory standpoint, with media giants is very tough. >> julia, thank you. when we come back, hurricane beryl strengthens to a category five overnight. that is the strongest we have seen on record. how does this change the entire industry? we'll talk about that when "squawk box" returns.

what will you do when the power goes out? power outages can be unpredictable and inconvenient, but with a generac home standby generator, your life goes on uninterrupted. because when your generac detects a power outage, it automatically powers up, giving your family the security and peace of mind they deserve.

we don't have to worry about whether we lose power or not. if the utility company does not come through, our generac does. after the hurricane happened, we just want to be prepared for anything. 8 out of 10 home generators are generac, with thousands of satisfied customers. number one thing to prepare for is extended power outages. don't make it so hard on yourself, have a generac home standby generator. and owning a generator is easier than ever. special financing and low monthly payment options are available, and if you call now, you will also receive a free 5 year warranty valued at over $500. call or go online now to request your free quote.

hurricane beryl churning in the caribbean strengthening to a category five storm earliest wea cat 5 storm. joining us to talk about the potential impact on the insurance market on this is the ceo of the insurance ninstitute. >> thanks for having me. >> this seems to be playing out from what we have seen from hurricane beryl, and how is the insurance industry preparing for this? >> in short this is what the insurance industry is prepared

for. after writing policies to make sure the promises can get kept. what it boils down to is where the hurricanes will make landfall, and a state like florida where you are seeing extreme population growth, you can see a significant economic impact along with the legal system you see in that state, and the prices increase fairly significantly. louisiana being another, and texas being another here in the united states. it has been predicted to be active, and we encourage consumers to make themselves prepared in that way. >> when you say the legal system in florida, what are you referringing to? >> in the state of florida, you have 70% of all homeowners litigations resides in that state and it represents less than 10% of all the claims.

some of the things they called the assignment of benefits down there would allow contractors and lawyers to take over claims and exploit them 10 or 20 times what they should have been, so that takes -- puts an impact on the costs of losses. ian which hit a couple years ago was the costliest, and it does increase the cost of overall claims. on top of that, what we have seen through covid and what the industry has been able to catch up is inflation, and related to homeowners, for example, over three years it went up 55%. inflation is getting in a better place but is not going to contract to that level. a lot of the homeowners

insurance claims across the country, the industry, that's catching up with the inflation, and we are seeing trends in a certain place. certainly had a big impact on construction materials which you have to use when you are placing things. >> is there an area where you can't get insurance, and forget about how much it will cost? >> you do have states that do have characteristics that make it harder to do business. florida is getting better after they passed legal reform a couple years ago in 2022. and louisiana passed a significant amount of legal reform in that state so hopefully we will see things get better. the state of california is another one we hear about, and

that in large part is because simply insurers can't catch up in that state based on regulatory constraints and not being able to price reinsurance into its policies, and unfortunately, states -- let's be honest, these are growing economies and that's where insurance thrives, and they do have to make testifiy tougher d in different markets. >> thank you for the update today. >> thanks very much. coming up, are the celtics -- i shouldn't say are they. they are up for sale. they now could have a record price tag for an nba team. and kevin mccarthy on the

debate fallout and more as "squawk box" rolls on. -unnecessary action hero ... the nemesis. -it appears that despite my sinister efforts, employees are still managing their own hr and payroll. why would you think mere humans deserve to do their own payroll? because their livelihoods depend on it? because they have bills to pay? hear me now, paycom! return the world of hr and payroll to its rightful place of chaos or face a tsunami of unnecessary the likes of which you have never seen!

ameritrade is now part of schwab. bringing you an elevated experience, tailor-made for trader minds. ♪♪ go deeper with thinkorswim: our award-wining trading platforms ♪♪ unlock support from the schwab trade desk— our team of passionate traders who live and breathe trading. ♪♪ and sharpen your skills with an immersive online education crafted just for traders. ♪♪ all so you can trade brilliantly. ♪♪

it's just weeks after winning their 18th championship, the celtics are up for sale in what would likely be, pretty easily, i would think, a record-breaking nba action. dan, good to see you. the only thing we would have, i guess, we saw it happen, it was monetized, and that was last year for the suns at $4 billion, and some teams are valued at more than that and the celtics could be valued at twice that,

couldn't they? >> not sure twice that, but the celtics are a much more storied franchise. one tricky thing about the celtics, they don't own their arena and the owner of the boston bruins owns their arena, and that limits the amount of what they can can get for parking, and this is going to be the richest pro sports franchise ever. >> pretty amazing. it has been supposedly not a total surprise. the family has been thinking about this even before the championship, and for months. why do you think because of where the numbers are or for really it is for estate planning purposes? >> two things. this is the family that only owns a quarter of the team, and say the team is $4 billion, you are only putting up a billion

and don't need all four. i am told he has been talking about it for a few months and didn't make the final decision until after the championship. he has been spending a little more time in new york with his own interests over the last 20 years, and he would be the so-called governor through 2028. i think he has put in the time and enjoyed it and likes holding court at courtside and being in the fancy club during half-time. this is a way to provide for his family for generations. he's not really that wealthy outside of this. >> he is now. a couple hundred million back in 2002. we know there are other owners because they come on the show and they have big rings on, and who else -- i don't know how much those guys own. they act like they own it all,

but they don't. i think pagliuca, he's part of the original group. he has interest in trying to put together a group to out buy the stake. >> yeah, i would like to be part of that group. i would like those seats. what do you think i would need ph minimum. >> i will say on your network, i am good for a couple grand -- >> i can buy a courtside seat. >> for one game. >> yeah, for one game, and maybe we could switch. that's maybe all we could get, dan. >> i'm in. >> dan, it's fun to watch. it was a great year.

you know what? tatum put away a lot of the naysayers, did he not? >> can i add, joe, for a potential buyer, he also got the biggest nba contract yesterday, and it's an extraordinary amount of money you will pay the -- >> are these sorkin type of numbers? >> no, not sorkin numbers, but for basketball dollars. >> that would be in zimbabwe dollars. what was the total per year? five years, 3 -- 60 million a year? >> ballpark, yeah. >> yeah, thank you -- can you

say rememby three times fast. i am andrew ross sorkin along with becky quick and joe kernen. say that three times quick. meantime, lost a bidding war for the studio in the '90s, and his daughter now controls that company. shareholders at salesforce rejected the compensation plan for the ceo, and that raises concerns about the stock awards granted to beenoff.

and then selling 1 billion gallons of gasoline. the fuel will come from the northeast gasoline supply reserve. five oil companies buying that gasoline with bp taking the largest share at 50,000 -- 5 500,000 barrels, i apologize. >> i want in on that, too. i want to go in on the celtics and gas for 2.34 a gallon. >> you have to go and pick it up. >> you don't want to get any on your skin. it's nasty stuff. do you over fill -- >> yeah. >> and it speulills on you -- >> yeah, if it's on your car for the next half hour, you will have the fumes. >> is that how it works?

>> yeah. >> you don't smell the plug -- >> sometimes the driver, i can smell it out the window and then i tell them to raise the windows. >> you scream at them first. >> we are the ones that don't pump gas. we are in new jersey. >> i actually -- i don't mind, because i can do it. self checkout. do you do self checkout? >> yeah. >> i love self checkout. >> we're off topic. but some of the gas pumps, they have the little clip where it can do it by yourself, and some don't. is there a law -- >> sometimes there are ones that don't and you have to hold it. what is that about? >> lack of of progress. >> i think it's cool when it knows its full. i find that fascinating. why does that happen, steph? >> yeah, and --

>> i don't know how the clamp itself -- it's like a thermos, cold, hot. it's amazing. >> technology is great. quickly, take a look at the futures. futures down more than 150 points. let's check in with dom chu. he's taking a look at the mornings premarket movers. the dow is where we have seen additional weakness. >> dom -- >> this is about paris. >> on a break -- we have to record promos. you should see us try to say the french terms -- >> we're ugly americans. >> terrible. terrible. we could show it, maybe, but that would be -- no. >> you guys have to work on this. we have got a little -- we're getting less and less time before you guys have to go to paris for the whole olympics thing. get the french terms down. tesla shares down about 1 to

1.5% right now, and 8,000 shares of trading volume. tesla is set to report the second quarter delivery numbers later today. tesla is delivering 436,000 vehicles in the second quarter span, and that would be lower than the 466,000 from the same time a year ago. tesla stock has seen a rally, by the way, a strong one, trading against the average price, and keep an eye on tesla shares down about 1%. let's check on the intersection of weather and wall street. the cruise line operators are in focus as hurricane beryl factors into that. according to the world

meteorological association, they are down this morning, so we will watch that. lamar and dr horton, both stocks are down right now nearly 2% or so around 7,000 shares of volume for lennar. and analysts at citi group downgraded both from neutral grading to a buy. dr hortons target goes to 156 from 181. they are citing things like the housing market. now, for more on those and other top analyst calls of the day, head over tocnbc.com/pro.

becky, people pump my gas here. and it's cheaper than connecticut. >> yeah, they are begging us to move along. >> sometimes they squeegee -- >> if you pay them more. >> it's part of the full service. some of them, if you go to the some of them, if you go to the righ (grunting)t place. andinteresting in paramount global, but that's not him. at 88 years old, we still see the world with the wonder of new eyes, helping you discover untapped possibilities and relentlessly working with you to make them real.

old school grit. new world ideas. morgan stanley. (luke) this will be a gold mine of local intel. (marci) so, tell us about this corn festival. world ideas. (stylist) oooh you got your corn pudding... (marci) so...is it safe around here? (stylist) sometimes. [luke gasping] (marci) no eyebrows? (luke) think of how light it'll feel in the summer. we gotta run. eleven thousand more neighborhoods to go!

(vo) ding dong! homes-dot-com. dave's company just scored the comcast business 5-year price lock guarantee. high five! high five... -i'm on a call. it's 5 years of reliable, gig speed internet... five years of advanced security... five years of a great rate that won't change. yep, dave's feeling it. yes. but it's only for a limited time. five years? -five years.

introducing the comcast business 5-year price lock guarantee. powering 5 years of savings. powering possibilities. billionaire, barry diller,

exploring a bid to take over paramount. rich, i like what you tweeted today or posted on x, and basically every one of the vultures is coming out to take a look at this. >> think about how many people try to buy sports teams in america. these are van atee assets. if you think about paramount, sure, media has lots of problems but you can't fix what is happening in broadcast and the shift to streaming, and getting a studio, you know, there's not very many studio lots in the world, and there's only a few of them and paramount is available, and somewhere between 1.5 and $3 billion effectively, if you buy stake from the redstone family, if it's a large stake where you get a seat at the table or full control for 2.5 or $3 billion,

and this is what we thought the family would do is when they killed the skydance deal, they would open up to anybody else that would want to buy their stake versus the complicated transaction of buying all of paramount. >> i love your oint, this is cheaper than any sports teams we are talking about, can you get the whole studio for less than the sports teams, 4 to $5 billion at this point. barry diller, he has a long and rich history with hollywood and understanding what people want. how likely is that bid? do you see this happening? >> you have been diller get involved in many assets over the years, and most recently sports betting when they took an opportunity when the price point got to an interesting point for them. becky, you may have done these

interviews and he crapped all over the media legacy center, and he declared netflix, quote, unquote, the winner. i don't know how serious or not, and i know isc has looked at opportunities. look, the thing we should be talking about is what happened last week in the debate. forget about your political views. there's a greater likelihood of a trump presidency after last week, and the chilling regulatory operations we have been under could be lifted. if you control paramount, there's a lot more possibilities under trump than biden, and it could be why a person like diller is showing interests. >> we have heard barry diller,

and -- >> there's been speculation that former activision. there's a lot of people, and i am sure there are billionaires that we don't even know showing interest in this. full control, meaningful ownership, and that's probably a $3 billion check. if you want to own 49% and have a path to control, you could do that quickly for probably $1.5 billion. there's a lot of people that could write that type of check if they wanted to take control. >> you have been right on this, and what do you think the saga is, and that's having to understand sherry redstone's position, too. >> the only deal that can be

done quickly is if it's not for control. if you are buying control of paramount, and so if somebody is going to buy all of her stake, 75% of national amusements, that's a 12-month regulatory review, and that fcc might change in november depending on who wins the presidency. that could happen very happenidly over the course of the next few months. i think that's probably the most likely scenario. there's also this sort of, hey, did somebody take the entire thing and get the clock rolling. it probably gets approved quickly under a trump administration. maybe somebody does take a run at the whole thing. i think this is a pretty unique opportunity. you have got an asset, and she decided she wants to sell at least a meaningful chunk of

national amusements, and you have the potential, the regulatory shift that could open up not just for paramount. fox did a deal with disney under the last trump administration. there will be so muchurgency and rush to do m&a if we have a shift in the administration, everything will be in play in the sector. >> they are playing us out. talk to me, goose. is that the shirt? >> yeah, we have paramount action. >> thank you. the defamation league filing a lawsuit on more than 100 victims. former house speaker, kevin mccarthy, will be our special guest. we are coming right back. which wwe hall of fame

wrestler started his career as a professional baseball and top prospect for the st. louis cardinals? the answer, when "squawk box" returns. it really helped close that gap. (whisper) go, go, go! (group) yay! go aflac! go duck! get help with expenses health insurance doesn't cover. find an agent. get a quote at aflac.com. wish we had aflac on our team. you can! (♪♪) - so this is pickleball? - pickle! ah, these guys are intense. with e*trade from morgan stanley, we're ready for whatever gets served up. dude, you gotta work on your trash talk. i'd rather work on saving for retirement. or college, since you like to get schooled. that's a pretty good burn, right?

now the answer to today's

aflac trivia question. which wwe hall of fame wrestler started his career as a professional baseball player. the answer, randy "macho man" savage. and then a lawsuit against iran and syria, and the lawsuit seeking financial compensation for over 100 plaintiffs, many of whom are american. joining us, the national director. let's take a full stepback for a moment to explain how a lawsuit like this would even work. >> sure. >> given we are talking about suing countries and the ability to collect, if you will. >> yep. >> by its very nature is, i don't want to say, almost impossible but nearly so. >> 1976 the congress passes the

u.s. foreign saovereigns act, ad there's immunity except for those where there's state-sponsored terror. that list includes countries like -- it's included many over the years, and right now, iran, north korea, syria and cuba is on that list. in 2015, the u.s. government established a fund, the u.s. victims of state sponsored terror fund. it's comprised of moneys that has been seized assets and fines levied, and there's no u.s. taxpayers involved, and we filed in federal court a lawsuit on behalf of americans who were attacked, wounded or killed in the attack on 10/7. what we are going to prove is that iran, north korea and syria

were complicit in the attack because they provided something, training. >> what is the legal process? >> we filed in court. >> right. >> it's not easy to serve them. i can't just walk up and hand them papers. that takes a few months to do through channels. then we have to make our case in front of a judge. it's not a jury trial. it will be seen in front of a judge that will look at the evidence. and it's possible the ayatollah hominy will send a defense. not likely. but the judge will evaluate the materials, and i believe find in our favor. >> trying to get rid of the rest of the squad, and bowman is gone, and there are three or four other ones -- >> that's a different thing. >> he shifted that conversation.

>> are we going there eventually? >> go and do something you can do. >> we're representing 130 individuals or families, joe, all of whose lives -- >> well, from iran and syria -- >> from the seized assets. we will do that, number one. number two, we will demonstrate the complicity in iran, specifically. they are the single state sponsor of terror. we have the 10/7 deniers right now. people saying the attack didn't happen and women were not raped -- >> yeah, the ones in congress, yeah. >> i look forward to congressman bowman returning to his post as a fire marshal -- >> maybe he's trying out for that job. he knows how to do it. >> we have been talking about

the debate and the debate performance by former president trump and president biden, and how you think about both candidates in the context of anti-semitism here in the u.s. and around the world and in the context of what you think is happening in israel and gaza. >> it's complicated but not complicated. he has been clear again and again, and so have people like secretary blinken, et cetera. on the other hand, president biden has said things that have been positive in support of israel. >> why does netanyahu -- netanyahu would have a different viewpoint of joe biden? >> you would have to ask bibi netanyahu -- >> i don't have to ask him. i have seen his quotes, that

weapons are being held by joe biden. you are playing both sides. >> i think he's happy with a lot of what he's gotten from the president. the truth is i have talked to people around bibi, and -- >> maybe he is just posturing. >> maybe he's just posturing. >> do you think we should be be holding -- >> no, i do not. >> the pr is bad already without president biden fanning the flames that israel should not be allowed to do what it needs to do. >> israel should be able to do what it needs to do to bring the hostages home and end this reign -- >> there are jews trying to figure out if that's going to be the single issue --

>> the election. >> yeah, which candidate do you think will be the better candidate, if you will, right? i am just asking the question, and that's the question people are asking around the dinner table? >> i get that question, too. israel remains a bipartisan issue. this white house has been incredibly supportive. when trump was in office, he did the abraham accords, which was positive, and moved the embassy, which was the right thing to do. on the israel issue, it's bipartisan, and both sides have said and done the right things. >> and joe -- >> i hear you, joe, and understand what you are saying. >> nice to see you. we look forward to following the progress of the lawsuit. >> i am trying to throw my voice. you want to say it but you can't. trump.

trump. one of the criteria for top states of business -- just on the one issue, and i don't endorse. the cost and availability of insurance. we will hear from scott comb in a state where that's a big problem. the futures, not good. "squawk box" will be right back.

we are developing agents... with powers far beyond mortal men or you might just explode. ♪ ♪ [ laughing ]

we are just over a week away from unveiling our 2024 cnbc america's top states for business. a big factor this year is the cost and availability of insurance. our scott cohen is in a place where that's a huge problem. california. scott, we were talking about this earlier this morning and how big of an issue this is when we are talking about hurricanes working their way across the oceans. >> reporter: yeah, it's hurricanes and wildfires and floods. in california, as you say, it's a huge deal. don't think it can't be wherever you are where it's not already. we are in a little area called

bonny doon in the santa cruz mountains. most of the homes around me have been destroyed by fire. he here's the thing. that fire sparked by lightning was four years ago. today according to a new government report, only one-third of the homes have been rebuilt and the reason for that is insurance, and in many cases the payouts were not enough because of inflation or people were underinsured. if you do rebuild and try to get insurance, you can't get it at an affordable cost, it's impossible. it's not just in california or florida or texas or louisiana. the nonprofit, first street foundation, says nationwide a huge amount of properties are at risk of losing their insurance. everybody is at risk of some sort of climate impacts, but these are the properties at risk of losing their insurance. 4.4 million from fire, and 24 million from wind and 12 million

from flood outside of the fema flood zones. so insurance companies are doing what insurance companies do. >> the insurance companies are responding to the fact that we are seeing more frequent and severe climate events and the fact that they are paying out more than they are bringing in often times. >> it varies state to state. it affects property insurance, commercial insurance. we are factoring into this year's study, both in the cost of living category and the cost of doing business cat goree. can you read more about how we do that, how we are factoring that in and why insurance is becoming such a big issue, and also where homeowner's insurance is the cheapest in america. we will reveal that the top states for business on thursday. >> scott, we spoke with a

representative with the insurance agencies earlier this morning and one of the things he pointed out is you have more areas that has denser population or in areas more prone to wildfires, and those buildings have gotten more expensive and then the inflationary post covid cost of how much it is to rebuild, and that's a reason why insura insurance costs have gone up, too. >> yeah, it's more expensive for companies to get re-insurance. the regulations don't allow the insurance companies to raise rates to keep up with that. there are reforms going on here, and also litigation reform, and tort reform that went on in florida that could help things. there's a broader issue with the climate that everybody is dealing with in the risk here,

and it does, as i say, vary from state to state. >> scott, thank you. scott cohen. we are looking forward to the release of the rest of the list. we'll see it next week. >> okay. coming up after this, former house speaker, kevin mccarthy, will join us when "squawk box" rolls on in just a moment.

well, following backlash for telling "the wall street journal" that president biden was not the same person he was when he was vice president, our next guest says the president's debate performance proved he's slipping. joining us now, former house speaker, kevin mccarthy. i don't know if we need -- welcome, former speaker. i don't know if we need to go -- we have all saw and have been seeing for a while with our own eyes. i want to get to what republicans, since you are one, what should you be hoping for right now? do you want biden to stay or do you want his -- i don't know if there are people that can influence him, whether it's his wife or his sister or former president obama, i don't know who it would be.

do you want him out or in if you are a republican? >> i don't want to make a decision based on if i am a republican or dem, but what is the right thing to do. i believe it's about democracy. this decision was already made. this decision should have been made back before last labor day of whether he should run or not, and a lot of that holds with his staff and family. this is not something new. i have been talking about this for more than a year. i spoke about it with andrew, and we had the vice president come after me and denounced what i said. when "the wall street journal" did the story, they researched it for six months. i have watched this president decline mentally almost every single day, and i have not been shy about speaking that. the white house staff has done a poor job here. they tried to mix my words. when i credited the white house staff, they would eliminate the words that i said staff like i was praising the president's mental capacity. when i negotiated with him i learned early on he was not the

same person. i learned he has to speak from cards when we were doing the debt ceiling. i would disrupt the meeting and he couldn't go on. now that the whole country sees it, i mean, i think some people owe me an apology like morning joe. it's too late to change now. just as the other party, we made a decision hoot who the nominee and that's why you let individuals vote and decide who that nominee is. >> would you use as a negotiating tactic? i think about that from the position of what america's, you know, enemies are thinking right now? >> i said it on the show before. i have had world leaders to this day talk to me about where

president biden is. i went into an early meeting in the beginning, and i was the minority leader, and we sat down and he started reading from notes. i remember he started saying something politically, so i just shot back, no, we're not doing that. that's not the position i am at because i don't want to waste anybody's time. there's no cameras there and no reason to talk to notes. we can talk to individuals one-on-one. he's been in office more than 50 years. you have the other leaders there, too. you need to interject and make your position why you are sitting at the table. there's not a time to be overly formal. what i saw that day is he closed his notes and couldn't continue because i disrupted the train of thought about what he was going through on his notes. you have to be able to have a give and take in the negotiation, and if he was not going to be the individual, i wanted to be the person that

could. >> you think they will do the july 21st thing, where they may make it official to quiet any of the -- a lot of major democrats said he has to go. they will probably switch around and come back -- >> it's obvious the democrats knew of his situation long before. you had former obama's campaign manager out saying don't run, and you have carville going out and saying he shouldn't run. they did everything they could to try and get him not to run. i believe president biden believes he's the only person that could beat trump. he believed that when they jumped over him when he was vice president and hillary lost, that he knows best. he's the only person to take him off. think about the situation. could the money transfer if they put anybody else up there than harris? why will that unite them if the

dnc decides who the nominee will be. whoever you select will be younger and have two terms and this will be the man actle of t party. you didn't go through the battle. lots of times people look good on paper but cannot campaign well. >> i would argue that they didn't get to choose anyway, because they didn't know what they were voting for, necessarily. kevin -- >> becky, you raise a good point, because the dnc actually changed their primary so they couldn't choose. iowa and new hampshire were not the first states. they changed south carolina to give advantage to biden. they fought kennedy so he couldn't be on the ticket and the public never had an opportunity to literally make a decision who they wanted as their nominee. >> kevin, if you thought you were not negotiating with biden because he was not the one who could make the decisions, who

was ultimately the other person -- >> we all want to know. >> i want to be clear. he has good staff. there's staff in there that i have worked with. let me give you another example. biden still makes the decisions. the question is when afghanistan happened, when he made the decision to pull out in the manner he did without listening to the generals, he made a decision that he was going to leave on a date that the taliban wanted. we had thousands of americans still there. we had all these members of congress helping to pull the americans out. i picked up the phone and just called the white house operator and asked to speak to the president. he was not speaking to me at this time. he then called me back. when i had the conversation with him to delay the date, he said, no, there's not as many americans there that you think there are. i asked the president, how many americans do you think there are? he wouldn't give me a number.

he said the taliban would need us and i didn't quite understand it. he said he had to keep the date. i said the allies need more time to get their citizens out as well. then i remember having a discussion with him before the invasion of ukraine where he spoke to putin and he told me that he didn't think putin would invade because of these sanctions and i politely told him i disagreed. it was the 100 anniversary of the -- >> let's talk about -- >> yeah, but i -- >> i want to ask it this way. you saw the president last night, and that may be what they run on, and that is that, you know, if trump gets two more supreme court justices it will be like the end of the world as we know it. did you see any other decision yesterday that the supreme court could have come down with that would not have just pulled the rug out from all future presidents? >> no, i think the supreme court actually got this right. i think one of the challenges we

have is the miss characterization of a lot of the decisions. think about what the supreme court said in the decision. the president is not above the law. literally stated it in there. where they got it is, the president will have to make certain decisions. like president obama had to make a decision to take out americans in foreign land, and he was protecting america. president obama directed the intel community to falsify the hunter biden laptop to help biden, he wouldn't have immunity for that. the only people upset that are showing true colors that you will not be able to take president trump to court between now and the election, so if you want to use it for a political basis, you can't. but trump would still have to go to court but he's protected in doing his job. >> i don't disagree you want the

president to have some form of immunity for official acts, but certain acts that could be involved in politicking and campaigning -- >> that's excluded. >> but you just referenced part of the issue in this particular case is the timing of what that ultimately means, meaning he could be culpable in four years from now, maybe? we will see. but it would change the outcome of the way the american public thinks about these things. what do you think of that? >> andrew, i think it's wrong that you would use the courts right before an election. you know, even in congress itself, we can't come out and report, we can't do mailers or use the ethics committee prior to an election because you don't want to influence that. why would one party get up said when the supreme court said no president is not above the law but you can't take them to court

or sentence them before you have their national convention, and i think that's common sense and the supreme court got it right. >> let me ask you a slightly different question which is the issue that joe is raising, which is about the prospect about whoever is in the hospital in the next term may, in fact, have the opportunity to appoint as many as two more justices to the supreme court. we will see. maybe not. the question then becomes to the degree that you want to have a democracy where people believe in the courts and believe in the system and believe in the rule of law and i understand probably your views about the justices that are there today, but if the entire court virtually were of one political party, if you will, or appointed by one political party, what that would do to the legitimacy of the court in the mind's eye of the public, and does that matter in your phaoeupbt? >> what is interesting, if you

studied the court a short time before, the entire court was picked from two universities and two faiths in america. but i didn't hear people complaining about that. i think the court is more diverse now than it had been in the past. the other part that i would look at, and it's good to have three co equal mean, made this week was a astounding, the chevron deference. if you look how out of balance that congress has gotten, where they released their power. i don't have fear of that. in any natural places, the system will work in the end. >> we talked about this yesterday, are you troubled at all by the lack of disclosure around some of the money that was funneled to clarence thomas, for example? >> i think you can always improve. i mean, think of this. think of your congress before, that people said they have made all of these great decisions. you had no campaign financing

until the '70s. the one thing in federal politics, you can't give federal money. these justices are put on there for life when they go through, unless they want to evacuate. i think greater reporting is always helpful, in all of this. >> but it wasn't that they -- in this case, one individual was not reporting -- >> well, i think -- >> there was no system to effectively police that, frankly. >> but andrew, i think what you're finding is, no, you just got information on one justice. there was research done to go after one justice, to find everything possible there. was that same research done for every single justice that is currently serving? i would say, probably not. >> do you think all of them are taking money from all sorts of people? >> i hope not. >> listen, andrew, you just said "someone's taking," i don't think anyone is taking anything. i think they take their oaths very seriously and i think thomas takes his oath very

seriously. >> i'm not sure it's changed the decision making, per se. to me, the concern is more about the disclosure or the recusal over certain cases. as a journalist, if there were people, friend in my life, i would recuse myself from the work, or i would disclose the issue, right? >> andrew, i didn't see -- tell me what case was before the court that there was some influence with thomas. what happens to the justices, they travel around the world. i think that's probably healthy. i think they need to get out of the court and see what's happening in the world. but at the end of the day, the justice should make the decision based upon the constitution. and that's why they have the debates that they do. and even in these decisions, you see someone appointed by republicans putting with someone with democrats. there's a different mix in almost all of these decisions. it may not be perfect, but i think it is a more perfect union that we're striving to get it right. >> i just don't know the answer to, do we want a supreme court that looks like -- just, that's not the way it works. they're not elected.

it's not the way it works. they're elected -- >> three co-equal branches -- >> exactly, to interpret the constitution. i don't think any of them are necessarily just wearing a big republican or democrat -- >> they don't. >> they're to do as well as they can and they do a pretty good job. we just need 26 or 27 of them, just to even things out. thanks, former speaker. "squawk box" will be right bk.ac at morgan stanley, old school hard work meets bold new thinking. to help you see untapped possibilities and relentlessly work with you to make them real. 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.

the moment i met him i knew he was my soulmate. "soulmates." soulmate! [giggles] why do you need me? [laughs sarcastically] but then we switched to t-mobile 5g home internet. and now his attention is spent elsewhere. but i'm thinking of her the whole time. that's so much worse. why is that thing in bed with you? this is where it gets the best signal from the cell tower! i've tried everywhere else in the house! there's always a new excuse. well if we got xfinity you wouldn't have to mess around with the connection. therapy's tough, huh? -mmm. it's like a lot about me. [laughs] a home router should never be a home wrecker. oo this is a good book title.

chairman jay powell is set to speak in just a few hours at the ecb central summit of bankers taking place in portugal. that panel will be moderated by our very own sara eisen. you can watch that conversation with ecb pd lagarde, fed chair rng ll, and others live this moinon "squawk on the street." "squawk box" will be back after a quick break.

it is 8:00 a.m. on the east coast and you're watching "squawk box" here on cnbc. i'm pbecky quick. among today's stoirps, new fund-raising totals out from

president biden's 2024 campaign and democratic allies all told, they raised $264 million in the second quarter. that includes what they say were record grassroots donations that were immediately following the president's widely panned debate performance last week. salesforce shareholders voting down the company's compensation plan for ceo mark b benioff and other top executives. that result after shareholders raised concerns about equity awards to benioff, but those are non-binding votes. and executives from some of the company's biggest banks are expected to testify at a senate hearing later this month on fraud concerns around the zell payments platform. that's according to politico. zell is available in more than 2,000 banking apps, but it has struggled with fraud in the last several years. meantime, roaring kitty back in the headlines this week after an s.e.c. filing revealing that the meme stock trader keith gill had acquired a significant stake

in pet food retailer, chewy. and you'll understand the connection between gamestop and chewy, given the connection of its now lead chairman. joining us right now is tom sosnoff, tasty trade founder and ceo. tom, what do you make of this sort of cross-pollination here? >> it's definitely interesting, andrew. we're enjoying the -- i guess we're enjoying the ride the story. all the hype. i think from a retail perspective, it's kind of a fun story to follow. i don't know. what else is there -- you know, i'm not sure there's much else to it, but it's an incredible story. and i think retail investors are attracted to it, because there's not too many stories out there of an individual investor turning $50,000 into a few hundred million or whatever the number is. >> it's a remarkable story in that respect. but then the question, of course, becomes, who's the winner, who's the loser? and all of the folks who were

trying to jump on the roaring kitty train, are you always jumping on a little too late? >> sure. and, you know what, that is -- i think that's what happens, though, in every one of these situations. i mean, is this any different than bill ackman telling you what he's buying? is it any different than warren buffett saying what he's buying? i'm not sure that you can -- you know, that it's easy to separate one from the other. i think the interesting part of the story is that it's retail and it's a new approach, you know, using a very different method and vehicle to get there. >> but tom, the distinction i would like to make, and maybe you're telling methat he's made a farce of all of this, which maybe he has, is that the warren buffetts of the world or the bill ackman of the world "a," not only have track records, and i guess now you could argue that roaring kitty has a track record, too, but that the math, if you will, in terms of value, and value creation, and the kinds of investments that they're making look very, very

different from a speculative nature than the way that roaring kitty is approaching these things. and most of the movements in gamestop, for example, seem to be based on a euphoria of traders following a certain individual rather than looking at the underlying math of the business and saying, i understand how something could even grow into a valuation. >> i couldn't agree with you more. so, you have to realize, disruption has many different faces. and disruption is verier -- disruption from decade to decade and market-to-market looks very different. so what we thought, you know, was kind of the old-school method may be evolving se ing i something that is very different in 2024. >> tom, are we failing, them? look, my instinct. and andrew, you could say, your

instinct is totally wrong here. my instinct is to say to the viewers, when we discuss these things, caution, will robinson, caution. this is scary stuff, because we've seen this movie before. and i think i know the end of the movie. i think you know the end of the movie. but i think what you might be saying is maybe the end of the movie changes in new world, and that's the part maybe i don't know about. maybe i'm an old foggy at this point. >> i feel the same way. if anything, i'm inclined to be on the short side of game zstop and chewy. but the reality is, it hasn't necessarily paid and it's been a rocky side from the short side. i'm looking at it as this is an incredible story. and it's kind of almost d.b. cooperish. it's kind of, it's almost third world like. and i kind of feel like maybe we are witnessing something. maybe this person, you know,

whatever, discovered something, in kind of the history of retailer traders, we've never seen anything like this before. so we have to give it -- we have to give ate certain amount of respect. am i ready to call him the dp g.o.a.t. yet? no. but did he change the world of retail investing? man, from everything i've seen, and i've been in this business for a long time, going on over 40 years, i would say yeah. >> it would be nice if some of the stocks or any of the stocks that we're talking about, suddenly the fundamentals just took off. earnings per share started going up, revenues exploding, great new management is bringing in -- none of that's ever happened. and when andrew at the very top said chewy and gamestop, now we know what they have in common, i can't think of anything they have in common, other than the guy, but if the guy hasn't called anything correctly about the fundamentals of any of the companies yesterday, it's just been a big game. if that's okay, it's okay. fine. but i was trying to figure it

out. you come up with anything? gamestop and pet food? do you have pets if you like games? i don't see the connection other than the guy. chewy has a better chance at -- i don't want know, maybe not. but chewy seems like it has a better chance than gamestop, doesn't it? >> by the way, for those -- i don't think we've said it. ryan cohen, by the way, founded chewy and is now the chairman of the gamestop. that is the connection, but now the other connection is roaring kitty. tom, we have to run. is your office like a warehouse? because i like that whole -- or looks like a bar, maybe. >> it's a recording studio, but, yeah, sure. >> it looks cool. >> and it must do jonie mitchell, and you jonie mitchell are the same because of that hat. that's the connection there, i guess. i don't know. thank you, tom. let's get to dom chu with a

look at this morning's pre-market movers. hey, dom. >> hey, joe. >> prime-time. >> joe, becky, andrew, let's get you caught up on a few of the interesting analyst calls of the day so far. we'll start off with financial technology, where shares of paypal are on the rise by about a percent or so, over 100,000 shares of pre-market trading volume after the digital payment company behind its namesake platform, also the venmo peer-to-peer network dpget an upgrade. they deep target price at 71 bucks per share. watch paypal. next up, shares of lennar are lower by 2.5%. the home builder is facing headwinds due to a downgrade, cutting it to a market perform from a prior outperform. and we'll cap things off, over to piper at neutral with a $400 price target, citing a valuation call. watch those shares down 2.5%. and by the way, for more on that and other top analyst calls of the day, head over to cnbc.com/pro. subscribers there, andrew, get

full access to all the details and analysis of those calls. i'll accepted things back over to you. >> in the news this morning, par mount global could be getting a new suitor. media mogul barry dillard exploring a bid to take over nickelodeon. he ran paramount pictures in 1974, tried to acquire it in the late '90s. his daughter, shari, now controls the company. paramount is having some discussions with a number of companies to merge its struggling paramount plus, including warner uproar discovery. barry diller joined us on the show in early april and here's what he had to say just three months ago on this very topic. >> first of all, it's the worst time in the world to sell this thing. i mean, it couldn't be -- it is a perfect candidate for actually turning itself around, but the idea that you ought to sell it -- because whoever gets in

it, at whatever base they get in it for, there's an enormous amount of work that's going to have to take place. >> the development's moving the stock this morning, but still down more than 30% in the last year. we should also mention, isc has about $46 billion in cash and liquid securities. its ability to buy this is clear. >> i guess the real question, i'm trying to kind of figure out why they would do it now, is what rich greenfield is saying, this opportunistic price, where for less than $2, you can get control of a huge vanity issue that is way cheaper than any of the sports teams people buys and barry diller knows something about hollywood -- >> and the question is, can you turn that business around, could you take the risk that you're going to be able to figure out how to sell it later. >> the other risk is with the trump presidency, if you think that is likely to happen, maybe it changes the idea, the perspective of what it could do

to slice and dice it or sell it down the road, true. >> all very true. >> coming up, the roll that tariffs could play in the next white house administration depends on who wins the presidency. we have a debate lined up. a little later, investor mike gr novogratz will join us, cryptocurrencies and so much more. stupid, you're watching "squawk box" and this is cnbc.

♪ ♪ ♪ ♪ ♪ ♪ ♪ ♪

welcome back to "squawk box" this morning. take a look at futures right now. dow off about 143, 144 points. nasdaq off as well, looking down about 118 points. the s&p 500 looking to open down about 26 points. let's flip it around for one sec, show you where the treasures stand. you're looking right now at the ten-year note, sitting at about

4.440, the two-year at 4.743. former president trump has proposed a 10% tariff on all reported d ed goods, if he wins white house, and 60% levies on all chinese goods. he sees the tariffs as a potential way to pay for tax cuts. for his part, president biden has left in place many of the trump-era tariffs, but much of the time, they're seen as economists by taxes on regular people. let's welcome former biden administration official, kim clauding, and clint williams, a former economic council deputy director in the trump administration. now a partner at akin gump. let's just start -- let me start with you, clint. the stuff that trump says at the beginning, how likely is it that that actually is what would be proposed? you've worked with him. is that really was is going to

happen? are we really headed that way, or is it kind of loose talk? >> well, my advice is to take it seriously, but not necessarily, in all cases, to take everything literally. as you've indicated, president trump often likes to test out ideas in public, he likes to negotiate in public, and that's a little bit of what's going on here. as it pertains to this proposal about replacing income taxes with tariffs, the way that i think about it is that president trump is very serious about using tariffs to help counteract unfair trade practices. he's also very serious about reducing taxes and extending the tax cuts. i expect those to be part of the equation. i don't think you'll see a one-to-one replacement, necessarily. and i would remind everyone, even if the trrump administratin wanted to do that, you need the

u.s. congress to pass that. that's statutory. it's not something that any administration could just do. it's serious. it directionally shows where a trump administration could go. but i don't take all of it literally in that sense. >> kim, some people were surprised when the biden administration left a lot of the tariffs many place. and both sides seem to be able to say, well, we're doing it this way, targeted, whatever. but the fact remains that we were using tariffs now. and most, at least over the years, most economists would not be in favor of using tariffs to affect whatever you're trying to do globally. >> that's right. >> go ahead -- sorry. >> that was for kim. go ahead, kim. >> yeah, that's right. and there's a good reason economists aren't in favor of tariffs, as a good policy tool. first of all, they're a tax, and they should be best understood as a tax. despite a lot of confusion about

this issue in the trump campaign, tariffs are paid by consumers. this new proposal to put a 10% across the board tariff on absolutely everything that americans buy would be a huge tax that would disproportionately burden the poor and the middle class, and it would actually hurt our competitiveness by making it harder to make things in america, because we're dependent on global supply chains. and you can't buy something from canada or the uk or any trading partner without a big tax, that's going to raise taxes, fuel inflation, and be a huge shot to the american economy. >> okay, now,. >> thank you. i jumped the gun there. i was itching to get in. look, i would take exception to some of that. and i think if you look at the entire international trading system, it is well recognized that countries are allowed to take tariff actions to counteract unfair practices, including unfair decease, like chinese excess capacity. you're also allowed to take tariff action to try to change

bad behavior. and one key distinction, i think, that's been lost in this discussion, one key distinction between the trump and the biden administration is that the trump administration was actually using these tariffs to try to get more free trade around the world. and if you look at the china tariffs, when the trump administration put those in place, it was to try to change china's behavior on intes intell property theft, forced technology transfer, and i'll acknowledge we had a mixed record thereby with but they did make some changes. and if you look at what the biden folks have done, it's really just reaffirmed the entire tariff regime, but without any attempt to engage with china and to change china's behavior. and i hear from a lot of the businesses who maybe on one hand say, look, i don't want a bunch of new tariffs, but they say, what i really like about what the trump administration did, they used tariffs to fingt fair practices abroad, and right now we're doing nothing when other countries are trying to tax our

college companies. we've rolled back all the efforts to counteract digital services taxes. we're doing nothing to open markets abroad. and so i think you've got to look at this both from a perspective of inputs into the united states, but also using tariffs to fight bad behavior around the world. and that's something we just haven't seen out of the biden administration. >> we've got the definitive study on who pays for everything, because we constantly hear that, you know, we made this mufch money, then e immediately hear, well, that was just paid by u.s. taxpayers. do we know for sure exactly how much? i guess it's not 100%. >> we know for sure, actually. there have been a host of studies, and these studies are nearly a dozen now, and they're absolutely uniform in showing that all of the tariff was fully passed through to buyers of u.s. imports. it wasn't paid by china. it didn't change chinese behavior at all. and the idea that we would take

a policy that hasn't achieved its aim and spread it throughout the world, it's absolutely lunacy to think that this would help u.s. competitiveness, that this would help the u.s. economy, when it would really introduce shocks that are going to affect absolutely ever sector of the economy. threatening people like canada and the uk and australia and japan with 10% tariffs, when they've done absolutely nothing that's of concern when it comes to trade practices, it's going to alienate us from allies and partners that we need to solve problems. and there have been studies of the tariffs in the past, and they show they raise cost to u.s. households by hundreds of millions dollars. these tariffs are about five times the scale in terms of price impact, about ten times the tax base. it would be a tax increase for your typical american household of almost $2,000, right?

and this is dpgoing to be way larger than any tax cut the trump administration has proposed for typical americans. all of their tax cuts are concentrated for those at the top who are rich. >> is any of that not true, clete? >> first of all, i think if you look at the way that tariffs have been passed on or not passed on to consumers, it depends very much on the tariff in question. and the international trade commission did a study looking at this and they found that certain tariffs only led to a small price increase of 2 or 3% and led to a significant reduction of chinese imports into the united states, it was a 70% reduction. which is part of the reason that the biden administration actually reaffirmed and doubled this tariff, right? i don't think you can paint all of these things with a broad brush. but secondly, i would like to point out this concept of working with allies or threatening allies. i agree wholeheartedly, and many of us in the trump

administration agreed wholeheartedly that it's really important to coordinate with allies. but at the same time, when your allies and friends are taxing your most innovative companies and you're doing nothing about it, that's not, you know, that's just weakness. and i think you need to be able to tell your friends when they're doing something wrong. and i think the trump administration, unlike the biden administration, actually was negotiating ftas, free trade agreements with our partners and allies, usmca, u.s., and kenya. i would reject some of what was just said. >> well, it's amazing, i thought it was bipartisan, and here we've got a bunch of differing opinions on tariffs that both administrations are using. thanks, kim. appreciate it. thank you, clete. thanks for your time as well today. when we come back, billionaire investor mike novogratz will join us. plus, highlights from a first on cnbc interview with the new head of one of amazon's most critical businesses, its web services unit. stay tuned, you're watching

"squawk box" right here on cnbc. (♪♪) (♪♪) what took you so long? i'm sorry, there was a long line at the thai place. you get the sauce i like? of course! you're the man! i wish. the future isn't scary. not investing in it is. nasdaq-100 innovators. one etf. before investing, carefully read and consider fund investment objectives, risks, charges, expenses and more in prospectus at invesco.com (grunting) at morgan stanley, old school hard work meets bold new thinking. (laughter) at 88 years old, we still see the world

with the wonder of new eyes, helping you discover untapped possibilities and relentlessly working with you to make them real. old school grit. new world ideas. morgan stanley. it's time. yes, the time has come for a fresh approach to dog food. everyday, more dog people are deciding it's time to quit the kibble and feed their dogs fresh food from the farmer's dog. made by vets and delivered right to your door precisely portioned for your dog's needs. it's an idea whose time has come. ♪♪

right now, we want to bring in our own jon fortt. he spoke with the new ceo of amazon weapon services and joins us right now. >> i spoke yesterday with aws' matt garmin in his first interview since becoming ceo of amazon's cloud unit last month. he starts at another high-stakes moment for that business, which is arguably the main driver of amazon's $2 trillion market cap. a year ago, when garmin was still leading sales skmand marketing for aws, customers came to him and saying they needed to cut costs, and aws responded which hurt revenue growth in the short-term. now it's paying off. >> time and time again, customers came back and tell me, that just builds so much trust with me, that you would come in. like, i didn't think an i.t. vendor would ever come in and help me reduce my bill by 30%.

and the sales team, they were going to miss their commission numbers and there was a bunch of things in there, but the long-term view is we were going to build up that trust with customers. it permeates as not just a disaster, it's how do we actually help them do what's important for them? and i think you've seen the growth and aws has jumped back up again, as customers are now focused on, how do i go innovate, how do i go grow my revenue and my business? and they're more than happy to continue to lean in with us, because we helped them through some of those times where they were really focused more on optimization than growth. >> part of the benefit of the ai excitement is customers want to modernize their excitement in the cloud now. and this fall at reinvent, we got our first look at how garmin makes his pitch for aws, as that ideal ai partner versus microsoft and others. >> that's really interesting, the idea that -- i see how a company thinks long-term, when

you're the managers, you think, we need to be thinking longer term. we're going to look for a way to cut their bills by 30%, which definitely cuts into the sales team. how do you motivate your sales team to say, you're going to miss all of your commissions. is there some longer-term sort of way of making them whole? how do you motivate -- because using kmcompensation is a good y to motive. i just heard missing commissions -- >> they ended up missing those commissions, but it's an optimization team that can go in and say, actually, you're not quite using the product quite right. turn this dial here, you don't need to be using this instance. you can use this one instead, and helping them to tweak things. that ends up hurting sales, but you've got to go in as the leader and i, okay, now that they're optimized, when they grow, they'll grow more efficiently. >> that's nice, but help me out. i'm missing my big commissions for the year and i'm not going

to meet my personal budgets. >> sometimes you don't. >> you can get bit in the but the later on. you've seen from oracle, from salesforce at times leave when they change up the way those commission structures work. >> i could be wrong, but i'm under the impression that they had shifted the goalposts on purpose that year. >> maybe, maybe. >> meaning that the bar they had to jump over wasn't like it they increased it by 20 or 30%. >> i could be wrong, but i remember something about that. >> i think what the real issue was that a year ago, we had that big downturn in enterprise demand and we saw software companies suffering across the board and companies were going to their software vendors, asking for price cuts for optimizations. and it was a real hit that -- so, when you're in sales, when that happens, you don't still make the same amount of money. you're hurting a bit. and if it's just one company

that's going through that, okta had a sales issue, c3i had a sales issue. >> if it's one company, maybe people jump. if it's the whole industry, which largely it was about a year ago, then ordinarily, you can get people to stick around. fl now there's an upturn. those companies that were in the right position and did right by customers during that downturn -- >> probably right to poison out that andy jassy is the up with that built that business. >> and garmin started right offer business school when that business was first getting formed. he was one of the first employees, first product managers in that business. set the pricing for a lot. so when you're in that position, too, you're running sales, you have that credibility in new york to say, already, everybody take one for the team. >> pretty cool. thanks, john. coming up next, right after this, galaxy ceo mike novogratz will join us to talk crypto, stocks, rates, but first, check out shares of tesla, a nearly 6%

gain from yesterday. we'll talk more about tesla with former ford o,ce mark fields. stay tuned you're watching "squawk" and this is cnbc with. 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 that's probably not gonna happen can we handle that kind of traffic? the network can handle it! i downloaded eight hours of true crime stories just during our last video call i'm learning a lot

were you worried the wedding would be too much? nahhhh... (inner monologue) another destination wedding?? why can't they use my backyard!! with empower, we get all of our financial questions answered. so we don't have to worry. empower. what's next.

. welcome back to "squawk box" right here on cnbc. the future is under a little bit of pressure this morning. dow futures right now off by 130 points. nasdaq's down by close to 100 points. and the s&p down by close to 25 points. president biden and senator bernie sanders are calling on drugmaker novo nordisk to cut prices for its ozempic and wegovy weight loss drugs. that call comes in an editorial published today in "usa today." the editorial focuses on overall drug prices, and the president and sanders say that there's no political -- or no rational reason why americans should pay the highest prices in the world. the comments right now, you can see, are impacting shares of novo nordisk and eli lilly, which makes the weight loss drug zepbound. right now, eli lilly shares off by about 1.8%. novo nordisk shares down by 3%. >> meantime, i want to get to our next big guest this hour.

joins us to talk markets, crypto, and so much more. galaxy ceo, mike novogratz. mike, it's so good to see you. i want to talk about all of those things, but i want to start with something else, which is politics and this debate. you have been a backer of president biden and i've seen now a tweet that you put out, politicians are narcissists, you write. they even make hedge fund managers look humble. i guess given this lens, it's not that surprising that biden is still running, but damn, it's sad. tell me how you've been thinking over the past week? >> listen, over the last two years, i've literally been saying, we need to move on from this generation. i pledged at one point, no one should vote for anyone over 72. and listen, it was clear as can be in that debate joe biden is too old to run. and people have been saying that for a while. there's been a bunch of people behind the scenes, trying to get something to change. and i thought afterwards, it would be pretty clear, but it

looks like they're doubling down. frustrating. you know, we've got one candidate that lied halfway -- almost the whole way through the debate, and the other candidate had a really hard time making through the debate and that can want be the best that america has to offer. listen, the markets -- you know, the markets, the yield curve sold off pretty aggressively, it steepened. i think the markets see some certainty, but i think there's some certainty, becausew we'll see if biden actually lasts to the convention. >> you know, cnn, fact checked biden and there are at least 40 lies. that's a nice talking point, but -- >> both sides -- listen, it was the worst debate -- >> so it's presidential -- >> one guy who lied, another guy who has no idea but is still lying. >> it was the worst debate in presidential history. and you know, we're not in a good place. >> mike, let's go back -- you've been a donor, i believe, to

president biden, and came on the air a couple of months ago talked about going to lunch with a bunch folks, that was an effort to get people to replace biden. i don't recall exactly where things stood. my question is now, though, do you believe -- there seems to be a doubling down, and at least those folks around the biden camp are looking at the donations and the big headline that just came out last night and this morning about how many donations were made in the aftermath of the debate, and saying, this is our guy. my question to you is, from the donor class perspective, to the degree you think it has any influence over the future nominee, do you believe that there's a crowd of people that are going to this president and saying, we're not giving you money? we're not voting for you? what's going to happen here? >> i know there is. there is a bunch of donors that are furious, that are trying to use all of their levers of pressure they can. listen, you know, it's interesting. people isolate themselves, it's his wife, it's a small group of people around him. you know, it's time for hakim

jeffreys and chuck schumer and other senior departments to start speaking out and putting pressure on him. because, otherwise, we're going to lose. and, you know, it doesn't feel like a smart strategy, when 72% of the american public says, we think you're too old to run for president. that's not 72% of republicans, that's 72% of the electoral base. >> so were you just willing to go along with it before thursday -- >> no, joe -- >> you haven't wanteded him for while, but have been giving money to him. >> i have not given money to him. this term, i've given money to democrats and republicans. i need to support the crypto stwas well as the rest of my beliefs. >> as a guy in the crypto business, one of the things that's been fascinating is to see former president trump come out quite publicly as an

advocate for crypto, has that switched your view of him. >> get with the program! you're a businessman -- >> just let -- >> mike, i'm not a single-issue voter. and i do fundamentally believe crypto should be bipartisan and needs to be bipartisan. we can't have one party that likes us and the other party that doesn't. and i would tell you that most democrats outside of elizabeth warren and a small group of people, are pretty pro-innovation and pro-crypto. it's been unbelievably frustrating. that said, that's all shifting. listen, no matter who wins the next election, we're going to get positive crypto legislation, i know that. >> when you look at where things stand right now with bitcoin, with bitcoin etfs. we've shown now a video of peter thiel, an outspoken bull on bitcoin for quite some time, last week when i spoke to him in aspen, he suggested, maybe this is a range of where things are.

of course, he got in earlier, but i'm curious your reaction to that. >> i said this last time i was on your show. i think we were going to be in a 55/73 range until we got some new news. it takes a while for things to digest. it was a huge move up. but until the government actually stops spending like drunken sailors. and you know, i've never seen donald trump want to balance a budget. you know, he grew government spending just as wildly as joe biden. these have been the two worst presidents in terms of increasing debt in the history of our country, and we still have populism on both sides. until that changes, bitcoin as a core holding makes all the sense in the world to me. >> how's bo jangels doing? so many restaurant chains are closing. are wage pressures or inflation pressures getting to you yet? >> it hasn't. you know, covid was an

interesting time for restaurants, because so many people switched to drive-through and that's changed the dynamic of all of these quick-serve restaurants, but it's growing well. it's adding stores. sales were up, you know, ebitda is up. and so haven't seen the -- you know, again, where we are, you haven't seen the california minimum wage stuff, or north carolina, georgia, south carolina. so haven't seen the same impact. >> love fast food. >> mike, more broadly, in terms of how you think this market -- the sort of macro piece of it, where you think we really, where you think we're going. how the election will affect that. by the way, how have the elections in europe affect all of this? >> it's a scary time for the world. we literally lost the center in france. you know, we're losing the center everywhere. the -- i think the covid response was so powerful, and it created this inflation mix that has just people off-sites. and you're seeing that plus

immigration issues really rattling what had been a status quo for years. and it makes investing more difficult, right? most macro guys aren't having a great year. it's interesting. and you would have thought, there's so much happening in macro, there would be, right? the economy is staying stronger longer than people thought it would. in my mind, that's a lot because of all of the government money that keeps getting poured in. i do think we're starting to see the economy slow down, slowly, here in the u.s. the fed probably ends up cutting rates. i think the small leadership in stocks isn't over, right? that -- you know, great markets end with less and less and less leadership. and we're seeing that. and i don't know where it stops. it could go a lot further. that's how great markets end, right? and so the story around ai is so

powerful. you might see the next six months, nine months, the same five stocks you keep talking about. and so, it's a harder time to invest than most. equities look like a long -- the yield curve looks like it's finally starting to steepen. you know, currencies have been more difficult. and so, you know, sometimes there's easy -- there's clarity in what you see, and this is a world where there's not nearly as much clarity as we normally have. >> mike, it might not be age. i'm still thinking about your age as 72-year-old comment and thinking about a video i saw of mick jagger. he was just doing a concert, i think, over the weekend. he's the same age as biden. i'm telling you, he was doing "satisfaction," he was doing stuff that there was no -- my back -- i would be in traction -- >> i remember having lunch with alan greenspan when he left the fed the first day, he was 84

years old. i talked to stan drucker the next day, and he said, what was impress about that lunch, and he was like, he was smarter than all of us. so sharp at 84. >> it's not the -- what year it is, it's the odometer, i think, or something. i don't know. i don't know the analogy to use. >> the further you get -- the further away from the bulk of the young population. like, again, not trump nor biden mentioned ai in that debate. zw ai is the single most important technology shift for the next 20 years. to not be all over it, to understand how it works, to play with chatgpt or perplexity, makes no sense at all. we can't have a president that doesn't know how to use chatgpt. >> to be fair in the debate, they weren't asked about it. you have two minutes to answer a question on foreign relations, you may not actually talk about ai. >> do you think either of them is using chatgpt? >> no. but i don't think the debate is

the indication of that. >> fair point. >> they don't have -- which is all they're good for at this point. just garbage in, garbage out. identify tried to use it, it's useless. bah humbug! thanks, mike! coming up, how much -- >> is mike on a boat or an airplane? >> you never know with him. >> he's moving around a lot. the camera -- >> there was a lot of moving. >> sometimes if you're on a desk -- >> could have been an earthquake. >> or he could have been on a great big freaking yacht, if he wanted to. >> good for him. >> we're jealous. how much could that huge auto dealership skew important monthly auto data? we'll get into that and talk about what the industry needs to better protect itself with former ford ceo mark fields. stay tuned, you're watching "squawk box" on cnbc.

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.

some big story lines shaping up around june. phil lebeau joins us now with more and then we can talk to mark fields. >> let's talk about what's expected for q2 sales. when you look at june, you're looking at 15.8 to 16 million as a pace of sales. and we're giving you a bit of wade range here, 16.1 being on the high end. what's the cdk hack impact. some have said, it's really slowed down business. others say, this is wildly overstated. we'll see what kind of an impact it will have in terms of total sales. incentives are rising. when you look at overall pace of sales, we're likely going to be up close to that, up 3%, relative to last year, and back to that 2019 -- getting close to those 2019 sales numbers, those pre-pandemic sales numbers. and then for general motors, we will hear from them today. general motors, the sales are expected to be up 1.2%, versus

the second quarter of last year. and tesla, might be today, might be tomorrow. some time, we will get the q2 sales numbers from tesla. the estimate is for 436,000 vehicles to be delivered in the quarter. that would be a 6.5% you take tesla, remember, we usually find out once they report deliveries, when they'll be reporting their q2 financials which are expected later this month. and then, guys, the big reveal that everybody is focused on. august 8th is when we'll get details from elon musk regarding his plans for a robotaxi. i'll send it back to you. >> phil, thank you. for more on this we want to bring in mark fields, the former ford president and ceo, also a cnbc contributor and serves on the boards of both hertz and qualcomm. first of all, what do you think about the health of the consumer right now when it comes to the car business? >> i think the health of the

consumer is still relatively good. becky, what you're seeing is issues around high interest rates, issues around affordability. that's why, when we look at the first-half numbers of this year, it's going to be up slightly versus last year. yet you have to have some small impact from the cdk issue. if you step back and look at the broader market, it's slow growth for this year, as prices start coming down, as affordability increases, you'll see higher sales. i think the consumer right now, you're getting a normalization. the payments -- monthly payments for car payments are stabilizing. interest rates are -- sorry -- discount rates from the automakers are kind of normalizing post covid. so relatively okay, but the industry has slow growth, and that's not a bad thing when you think about the overall state of the industry. >> if interest rates don't come

down and you don't get any more flexibility in terms of those loan rates, will that be a problem for automakers that have been kind of counting on it? >> well, it will be a problem. as you heard in phil, if you look at inventory levels, they're up about 50% versus last year. they're about normal levels right now, becky, about 3 million units. that's about normal for this time of year. if you see consumers not really kind of stepping up, the automaker is going to face a very important decision. they're either going to have to layer in more discounts to move those units and keep their plants running, or they're going to have to take the difficult decision of maybe reducing production, taking some shifts off, et cetera, which has much bigger impact on the automakers and the economy. so i think this will play out over the next couple months to see what direction the consumers take, and then importantly, what directions and actions do the automakers take. >> hey, mark, the cdk issue, this software company that so

many of the auto sales companies use, how big of a deal is that just in terms -- i can't believe that they're still trying to get things back up and running. hopefully in the next few days that will happen. but the idea this could take down so many of them. >> well, this system -- it affects abilout 50% of the deals in the u.s. i saw a piece of data the other day that says the software that goes through cdk here in the u.s. represents about 2.6% of the gdp. you know the auto industry has a big impact on the gdp, but this system is the heart of these dealerships. it allows them to make their kaels, track their service, do their financials, and so we'll see as the numbers come out, but i think overall you'll see the impact in june probably in the neighborhood of plus or minus around 100,000 units. to put that in perspective, that's about 7% versus last

year's june numbers. so it will have an impact, but it will be rebounded very quickly in july as the dealers kind of catch up and record their past sales and their service. i think the interesting thing, becky, when you think about the federal reserve, this will have some impact on the gdp in the second quarter, not huge, but it will definitely have an impact in the june numbers. they're going to have to take that into account as they think about what they're going to do when and if they're going to move on interest rates, but it will have an impact, but will be quickly rebounded in july. >> that's interesting for the sfed to think about that, big enough for them to consider. mark, we saw tesla's numbers, phil pointed out, tesla sales numbers in china were down 2.2% on the month. what are you anticipating with tesla? we saw that stock up by about 6% ahead of this, and maybe down by about 1.8% this morning. >> as phil said, when you look at the china numbers, china is

the biggest market for tesla. when you're down 24% in one of the months of the quarter, it's just math which basically says versus last year, i think they're going to come in and show lower deliveries than yaft year. it will be up from the fourth quarter of 2023. i think the things everybody is going to be watching are not only those sales numbers, but also what's happening with the margins. overarching, i think phil nailed it. the whole investor base and potential investors in the market are looking towards that august 8th presentation on what are they going to do about the robotaxis and a much more affordable ev that musk has been talking about. i think they're all looking towards that. we'll get through earnings -- they'll get through earnings. there will be some kind of impact, but it's really about august 8th. >> mark, thanks for your time today. thanks, becky. >> up next, tough stocks to

watch ahead of the opening bell. we'll be right back.

chu back with morning

movers. >> eli lilly and know vo nor dift, calling out prices for both eli lilly's mounjaro and wegovy and ozempic being too expensive. both down this morning. also now shares of pure storage down 5%, about 30,000 shares of volume due in large part to analysts at ubs who have downgraded that stock. the data storage and management company to a celebrating saying after a big run in the stock, this year by about 83%, that the valuation isn't justified, gigive given increased competition in the industry. for more on that head over to cnbc.com/pro to get more detail and analysis of those top calls. i'll send things back over to you. >> final check on the markets right now, dow off about 118 points. nasdaq still about a half hour to go but would open down about

112 points. we'll show you treasurys, the ten-year sitting at 4.436, the two-year at 4.737. make sure you join us tomorrow, one day before the big day. >> "squawk on the street" begins right now. ♪ global markets paying close attention to the ecb central banking summit in portugal. don't miss fed chair powell, ecb president lagarde and brazil's central bank chief. they're all with our own -- we like to say right here -- sara eisen who will be conducting the affairs for that conversation. welcome to "squawk on the street." i'm david faber with lesli