a hit job. they've been in contact with the sec. >> breaking overnight, the international energy agency warning of a treacherous half ahead. experts will break down the report tuesday, september 15, 2020. "squawk box" continues right now. good morning welcome to "squawk box" here andrew ross sorkin with joe kernen and becky is off today. as joe mentioned, things were looking up dow about 175 points s&p looking to open 23 points and nasdaq looking to open about

108 points hire. so good news all around. let's see if it can stay this way. treasury yields, you can look at a 10-year note at .681 we have so much going on the fed kicking off a two-day meeting. the first since it put new framework into place isn't expected to change interest rates fed chair powell planning to answer questions about the outlook during tomorrow's news conference then we have the data coming in today where we get august import and export prices. the latest productions numbers and the earnings, we have fedex and adobe. a lot of other news, joe

>> i can hear the bounce in your step i hear it in your voice. i think it might be the guests we have again today. i know you are excited for the hour >> we had great guests yesterday and great guests today we have bob from viea come cbs >> jared kushner coming up in the 7:00 hour. kevin mccarthy >> then i realize we miss becky whenever she's out but you like to talk and i guess i do too so it is 50/50, instead of 33, 33, 33 you don't have to admit that there is a pretty interesting story in the journal piece

do you know what they do they call president trump the ultimate decider you remember when bush said i'll be the decider they made one of him it turns out trump is the decider here he should not be under estimated. the treasury department said it would review an agreement with oracle and others to revamp u.s. operations to avoid a ban of the video sharing app or that would serve as the trusted technology provider it believes if a proposal set would resolve the security concerns i don't know why we'll have more on the story it's a far cry from an outright sale you've probably done some of your own reporting

we have jared kushner on if you outright ban it, young conservatives will not think that is a goodthing. it is the same old crap. i look at my fiend googled something. the air bnb's available. the phone. it does it it sends you videos you are interested in. i don't want to know anything about your personal taste there. not implying anything. i don't want anything to know about your personal taste but how does it do that?

it is like a therm os. >> it is taking all of your data the question is how does the algorithm work if it is being developed and living in china can you move that to the united states if you move it to the united states and it is still controlled by a company in china, does it change the dynamic? these are the questions. they are going to claim a win/win all around even though it is going to be very different from what was anticipated and the president administration laid out in the original terms maybe the terms will have changed or whatever oracle is offering is so very different from what anybody is anticipating about how this would work i don't know

>> what was your major do you wish you had taken more math >> i wish i was an engineering major like everybody else. >> if your life depended on it, you couldn't come up with an algorithm. >> my kids are doing this thing called subtraction algorithm it is very different i could maybe handle something in that regard have you seen this new math? the way we are supposed to teach the new math >> yes it is on a computer. >> what was your major big red, what was it >> talking talking. that was my major. i was a true comme

people who majored in media communications were called comme. communications, comme. >> little do they know >> i thought you'd appreciate that >> a report in the wall street journal this morning saying federal regulators are preparing to reprimand citigroup in issues to all of this the procedures to design and protect the actions the report said the expected rebuke expected for the planned retirement they believe the expensive overhaul was best left in the hands of its successor this confirms a lot of the reporting that his son had brought on our air and talked about just last week city stock closing down 5.5%

after the report came out. the city cfo also warning that the bank set aside more reserves to cover in the third quarter and is resuming job cuts starting this weekending the earlier pause. less than 1% of the global work force. their stock up quite a backstory there. >> is he going, whoa, this is a mess, i'll be out of here or as my successor is beginning this orderly transition and letting them work on it two or three years. what do you think? who needs it at this point

maybe he didn't take any math either >> i'll tell you, there were a lot of stories written last week where she was pointed about being the first woman to run a wall street firm now people are talking about the glass cliff. about how women begin leading companies at a time when they are in trouble talking about the time mary barra started at gm. she's not walked off the cliff but climbed that mountain. nonetheless for jane frazier, clearly there will be challenges

ahead. >> that comes from other examples ahead i was thinking, if we had joe an on, thinking a woman has to come in and clean up the man's mess there may be some truth to that. we hear that all the time about countries. it is probably politically incorrect to talk about. i'm surprised we haven't had joe an on. >> we'll have to call and get her on the news line >> we'll have to do that but that would take more time away from your appearance. shares of electric carmaker

nicola sinking the sec reportedly investigating the company over allegations from one wall street research shop that it deceived investors about the research prospect. saying on september 11, the legal koub sell contacted and briefed the sec regarding nicola's concerns pertaining to the hindenberg report. they've called nikola in their words, intricate fraud that they overstated the capabilities of the earlier test trucks they have a short position in nikola shares and that stock would continue to go lower andrew >> talking, by the way, mary barra, we asked her the

valuation because remember, they are taking a stake in this company. a $2 billion stake there are questions about the diligence gm did she said yesterday they had done diligence and felt quite comfortable about it what kind of value will they get out of it. i think they said they'll get $4 billion in the value $2 billion in the value of nikola that went up after that announcement that stock this morning down close to 6%. an additional $2 billion in fees and other revenue that would come in from manufacturing these things we'll keep our eyes on nikola and gm this morning. >> the hindenberg report doesn't sound good on the face of things >> they picked the right name for their short selling service.

>> when we come back, a new forecast warning of the path ahead for oil. we'll talk to the oil expert with us in a moment. a huge line up today, presidential advisor jared kushner. robert bakish and kevin mccarthy you don't want to miss any of it here on "squawk box. we'll be back after this our retirement plan with voya gives us confidence... ...so we can spend a bit today, knowing we're prepared for tomorrow. wow, do you think you overdid it maybe? overdid what? well planned, well invested, well protected. voya. be confident to and through retirement.

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hurricane sally wasdo down graded from category 2 to a category 1 the second storm in less than a month to threaten the gulf region and potentially slow or shut down energy production. hopefully the last one wasn't as bad as it could have been and hopefully the same story here. >> related to all of this. the international energy agency cutting the forecast for the oil command by more than 8 million

barrels a day. amid of weakening market sentiment. joining us on all of this and so much more, vice chairman and market of the new map, the climate and the clash of nations, which is out today. congratulations and thank you for joining us thankful for the opportunity >> i want to talk, if we could about the state of the oil markets and the expectations for the price of oil and what do you think that means for so many countries on the world right now f. we start with the price of oil as they are coming back and inventories are high the big things out there is the

resurgence of the virus. the only country doing well right now in terms of the virus is china our newspaper has been 92 million a day compared to over 100 million barrels a day last year in terms of where you think the price lands in terms of the power grab >> this is a lot of pressure on their budget and sets back their plans for the vision 2020. a lot of times, 40 to 50% of the budget

for oil and gas, it is tough going 40s to 50s, people seem to have a sigh of relief but now it is under 40 again reflecting its factors. >> the president was in california yesterday in the wake of these wildfires there was a clip going around and the conversation about science and climate change i wanted to ask you in this book of yours, there is an anecdote of the number of teslas on the street and the implications for oil. i'm curious if you think electric cars really are changing things and as fast as you thought it would the question i had was whether you think it is happening faster or slower? >> for the silicon valley it is happening faster

but in the view we have where we go from 1.4 billion cars in the world, 2 billion by 2015 maybe 600 to 700 million will be evs. under pressure, the eu, european governments will put pressures out unless they push out the evs. that is something that would accelerate it. >> what about the trucking industry we were talking nikola you would imagine, the trucking business would play a huge role. more than the conversations we were having several years ago? >> absolutely, with trucks, they need more power. the question is can you really do that. with trucking, it is going to be slower nikola is going to be out there

more than several years ago. it will be with the electric car and large electric truck >> i read your book. just had a question. i was watching the vice president talking about he went from wildfires to another hurricane and then talking about drought. saying it is obvious all of these things are due to carbon dioxide. hot winters, cold winters, drought, flooding, the fires does it even matter whether that has been demonstrated definitively for what governments will do with this matter it seems every event has been proven because of trace co 2

there is no reason to argue about it >> i was able to get in vice president biden's climate plan it is a $2 trillion climate plan obviously, you'll have fires and hurricanes and other things but it is trying to move in the direction of the europeans in terms of what they are trying to do at the same time, we had the vice president saying in pittsburgh, i'm not going to began fraking. he doesn't want to be the first president to have production go down in oil imports ever he's going to have to balance between the two of those, i think. >> it is tough >> dan, we want to thank you for joining us this morning. congratulations on the book. we look forward to talking to

you very soon. called "the new map" by daniel yergen coming up, new product offerings from pepsi and cinnebon to help you go to sleep and start your day that sounds like the opposite. i see. okay go to sleep the night before and start the next day probably the same thing. we can help you. the first on the break, a look at the bigstge pre-market gainers in the nasdaq 100.

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welcome back, pepsi is releasing a new sleep aid. enhanced water drink contains amino acids that row deuces the physical symptoms of stress. we'll have to try this it will come in one flavor blackberry lavender. you can caffeinate by day with a

regular pepsi and maybe take a driftwell on your way to sleep i try to layoff the caffeine after about 11:00 a.m. that helps i do these little meletonin gummies. especially on a sunday night to get to sleep. >> they don't have melenin gummies yet. just listening to that, amino acid you were a communication major you have no idea which amino acid we are talking about. i would venture to guess, when you have turkey and you want to go to sleep coma

triptophane. >> that is in another little -- dream water. you ever seen these little bottles at cvs or walmart. that is meletonin mixed with triptophane. >> it is l-pheline >> l is which isomer >> it is 200 mgs of l-phenine. i don't know if you tried this tart cherry juice. four ounces before you go to

sleep. puts you right to bed. all natural. >> i have no trouble i told you about my white claws. black cherry white claw that works well too that's regular alcohol i thought about you for this >> my favorite my favorite. this is like my heaven >> your hallow leg >> having the places in the airport, it is a mess. >> see you don't have any trouble. i can't do this. cinnabon hearty cinnamon rolls heading to the frozen food aisle. launching a breakfast line that includes products like a cinna

biscuit chicken sandwich a jalapeno cheddar sausage bites. all sound so good to me. i can't do it. i can't. the line is currently for sale at walmart with a wide release in the fall. you don't have a problem you are young. you are skinny you got the hallow leg i don't know if you could george on this stuff? >> no. this is tough. me and doughnuts, cinnabon, i can't watch it it is harder to consume carbs and meat together than just stuffing your face with doughnuts or cinnamon roles. >> people are writing in about

phenin phenine. you know what at the airport, you get those little cinnabites. it is sick how good they are. >> you get a couple. that's the problem a lot more when we come back on the other side of this break, we talk about yesterday's rally and whether it will continue today. it looks that way. dow looking to open up 150 points we'll talk strategy next as we head to that break, we'll show you yesterday's s&p 500's winners and losers

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good morning welcome back take a look at u.s. equity futures. the dow up about 150 points and nasdaq looking to open about 91 points and the s&p looking to open about 20 points higher. sony shares falling in japan on reports that it is cutting production targets for the coming playstation 5 due to issues they are having

with the console's custom designed chip. lennar reporting third quarter earnings and revenue on the back log of new homes the average sale price roughly flat from a year ago and expected to decline. then walmart's new membership program launching today. called walmart plus. everything something plus. plus, plus, plus costs $98 a year and benefits include unlimited free livery on orders over $35 and discounts on gas. members will be able to pay with their phone and skip the checkout line which will be itself worth $98 if you are in walmart.

those lines will belong. we'll see if this is the new amazon prime, joe. the narrative, it is very controversial on both sides of the aisle, can you find critics and boosters you look at the share holder value and the number of jobs and how convenient it has made everything it is such a modern day miracle and american dream story that's just the way i look at it you get the criticism they pay

no taxes change the laws that will allow people to cory if that's what you want to do. you think it makes more sense to have amazon pay what people say is their fair share. but don't discount the benefits, then a lot of mom and pop businesses are hurt. you think bezos is unbelievable, right? in the way this has happened >> on this, we can hold hands and be at 100% agreement we look at amazon and see the progress a lot of people don't think about that with the progress you think about the small business put out of business because of the competition that is the progress the idea that this is stuff we can get at home and people are creating jobs it is remarkable

stepping up their game i also agree on the tax front, we have to come up with some different law. i don't blame amazon -- whenever they look at a company or an individual to say they don't pay enough in taxes. there are people who legitimately or illegitimately dodge taxes. that's a problem >> let's talk philosophically. 10 or 15 years ago, if you found a way. a make them pay 30% in taxes that would have probably cut down on the amount of money they had to deploy.

would society have been better served to go back and squaunder and flow in the waist rather than to have amazon become what they are today what they would gouge their company for. it is nice we can talk things over like this going to ed, president and strategist i know ed loves talking. loving at those books. tell me he doesn't think and have a lot of thoughts on all of this >> you are a long-time market watcher. the s&p is probably subject to profit taking.

you've got a 35-year end target. i'm not sure you think it is all orchestrated i believe you see the underpinnings in the economy the positive side that justifies some of the valuations we live in an unprecedented time we seem to have had a two-month recession. the economic activity just shut down by the lockdown you look at all the major market regulators and in the recovery of may, june and july that is kind of the latest recovery we have that is enough fiscal stimulus and certainly the monetary stimulus around keeping the economy going maybe in a

v-shaped recovery continuing into the fall. and hopefully, we'll have a vaccine early next year and with employment gains that is one area we have seen a lag. that is unfortunate and a lot of people are seen suffering. we are still on the right source of a recovery from a unprecedented lockdown recession. >> a two-month recession just telling you now, you are an economist and not just playing one on tv. the economist we've had on, we have a survey. we have partners and survey, survey, survey >> they will say it will not be

a v-shaped recovery. saying as if you want to know what the v shape was they still argue that it is not because it can't be with so many businesses closed and 25% at best occupancy and restaurants how can it be v shaped with businesses still open. >> i'm a big fan of focusing on the data allowing me to come to my conclusions it has been a v-shaped recovery specifically in may, june and july the jury is always out and my view is that we have at least a couple of months where it will continue to be v shaped. i'm not going to dismiss the opportunity we leave the alphabet out of it and focus on sneakers the nike swish is a possibility.

to answer your question, the reason retail sales is at an all-time high for july, we have seen people develop cabin fever. they couldn't spend all the money they were making if they are able to work from home those receiving government support, even those weren't able to spend everything because we were locked down you saw the cash built up. personal savings shot up from an annual rate of $1 trillion before this all started to $6 trillion in the thick of all this basically in april you couldn't go spending there is still about $3 trillion in july at an annual rate. the government has never done anything like this providing so

much support it is the modern monetary theory on steroids. >> all right, ed we'll check back with you. i wanted to get your thoughts on this i've seen you on cnbc one other time going, wow, you are just calling it a v-shaped recovery it is nonconsensus that would explain some of the moves we've seen that so many people think are just -- you did gust used word on steroids, so there is something to it thank you. coming up when we return, a huge lineup ahead today that you can't afford to miss including senior white house advisor jared kushner. "squawk box" returns right after this

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welcome back among today's stocks to watch, camping world. the rv retailer raising its outlook with plans to launch a new peer-to-peer rv rental place by next spring which could help owners offset expenses and open it up -- you don't need to make the big commitment to owning one outright that stock up 8% nearly 165% year to date we'll go to break. we have another guest am coulding up. we can always talk about this. i don't see it for you or me do you the rv lifestyle i don't see it >> i don't know. the kids want to do a cross country trip

maybe we rent an rv for the week >> that's what you can do now. >> i don't want to see cousin eddie putting all the sewage down next to the house you saw what happened, everything blew up coming up, our next guest says a tiktok/oracle partner will challenge facebook. that is coming up next

welcome back to "squawk box. want to talk about the latest on tiktok the soap opera continues oracle agreed to be the, quote, trusted partner in the united states still unclear what this partnership means and how it will benefit oracle. joining us is a former oracle executive. good morning to you. >> good morning. >> try to help us understand what the parameters of this deal could look like given that the u.s. government and the administration in particular said that tiktok was a national security concern and that if the technology is not effectively transferred to the united states, how from a technological perspective they can solve this.

>> right i think in terms of the statement technology partner, there's a couple of elements it's basically where is the app posted where is the data from the app posted clearly that's indicating that all of that is going to move to the u.s. oracle has a cloud hosting business this will bolster that cloud hosting business the second part of this i think is not really well understood and i think we should talk about. oracle is actually a big player in the advertising business, and that's why -- one of the reasons this makes a lot of sense for oracle >> but just go back to just one moment because clearly the chinese government has said that bytedance can't effectively transfer their technology to the united states so that means the transfer of this algorithm, it raises a question. how could they transfer that algorithm and have that algorithm live in the united states, if you will? >> the aalgorithm itself isn't a

important. that's not particularly innovative you know, what -- it's where does the information -- i mean, ultimately the app has a microphone, it has a camera. it's like, do you want the data that's coming from those devices on your phone to be going to china is i think what the trump administration is concerned about. so it's normal when you have these apps to host them worldwide, and basically what's being said here is that the data from this app will be hosted in the united states and clearly it will be hosted by oracle so anyone using the app in the u.s. will know that the data flowing out of the app will remain in the u.s. and will remain in the hands of a large u.s. company >> maybe i've misunderstood it here typically you've hosted the, quote, unquote, algorithm in one place and the data that goes

with it because it's the data that keeps making the algorithm better. >> right. >> when it sees i'm flipping over certain videos, making certain videos, clicking certain ads that's improving the algorithm. what you're suggesting, am i wrong, two algorithms, one that lives in the united states and one that lives elsewhere >> right let's talk about the app tiktok. if you used instagram, i'm literally in london. when i'm using instagram in london i'm connecting to instagram servers hosted by facebook in the u.k. so that's completely normal. i think what's happening here is to have a u.s. -- another company involved, like oracle, that will provide some oversight on that and assurance that both the back end of the sas is hosted in the u.s. as well as all of the data. then again, going back to why does this make sense to oracle besides their -- the hosting side of this

oracle is the largest seller of advertising data in the world. they've made $4.2 billion in acquisitions over approximately the last seven years to become the largest player in that business, and as tiktok and oracle grow the ads business, oracle stands to gain huge benefits in that ad business in terms of the advertising data that comes from it that will make them bigger that's a very profitable business for oracle. >> i see mark, we'd love to have you back i'd love to continue this conversation as we watch what ultimately happens with this transaction and really dig into some of the implications thank you so much for joining us this morning >> thank you >> you bet joe? thanks, andrew. coming up, a huge lineup in the next two hours including presidential advisor jared kushner. social capital's chamath

palihapitiya, bob backish and representative kevin mccarthy. 200 on the dow, o25n the s&p and nasdaq up to 100 we'll be right back. where are you?! honey, did you hear about these new geico savings? mom? you'll get an extra 15% on top of what geico could already save you. can i call you back? your father's been researching our geneology. we're vikings! there's never been a better time to save with geico. switch by october seventh for an extra 15% on car and motorcycle insurance. hey, we lost the wifi password. do you remember what that is?

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futures are higher as the market looks to build on yesterday's gains. what you need to watch is straight ahead and the stimulus stalemate jobs and the economic recovery president trump's senior advisor, jared kushner, is going to join us for a news making interview. and apple preparing to lift the curtain on a slate of new gadgets, but with a new phone not likely, will anyone care what does it mean for investors? we'll discuss as the second hour of "squawk box" begins right now. good morning and welcome to "squawk box" right here on cnbc. i'm he andrew ross sorkin along with joe kernen. becky is off today take a look at u.s. equity

futures at this hour looks like things will open up higher after a great day yesterday. dow up 95 points nasdaq looking to open up 103 points higher and s&p 500 looking to open up 24 points higher joe? >> here's what's making headlines at this hour the u.s. treasury department said it would review an agreement for oracle and others to revamp tiktok's u.s. operations in order to avoid a ban of the popular video sharing app. oracle would serve as the trued technology provider. the proposal would resolve the national security concerns lennar has revenue to beat forecast on higher deliveries, orders, backlogs the average sale price was roughly flat from a year ago and expected to actually decline in the fourth quarter and walmart's new membership

program officially launches today. benefits include unlimited free deliveries on orders of over $35 and discounts on gas members can pay with their phone and skip the checkout line and the federal reserve is set to kick off a two-day fed meeting, and steve liesman joins us with the latest results of a cnbc fed survey. so that's today. they really sneak up on us, don't they, steve? >> they do every six weeks and then you blink and all of a sudden there's another one. we have some pretty profound results from the survey, joe, about just how long the federal reserve is going to be on hold we all can take a nap for a couple years now i'll show you the results here 92% expect the fed balance sheet to grow. that's the main action expected from the federal reserve it will grow to just about $10 trillion it's now about 7 trillion. add 3 trillion only 43% expectadditional

action from the fed, and the next fed rate hike on average is estimated to be in february 2023 that will be three years from the last fed rate hike -- rate cut that has been on hold. that's six months later than the prior survey, and that suggests that the new fed monetary policy strategy where it went to average inflation is having a pretty profound effect on the outlook and maybe also helping the stock market let's look at our first efforts to gauge how much tolerance the market thinks the fed will have for inflation. you can see 48% think the fed will allow inflation to overshoot the 2% target from 6 months to a year 41% think they'll allow it to overshoot for longer than a year these are big changes from what might have been expected from before we tried to figure out, how much inflation would the fed tolerate 39% say if inflation averaged 2.5 to 2.75% for three quarters,

the fed would hike if you are looking at greater than 3%, 60% think the fed would allow inflation before it hiked to average inflation of 6 months greater than 3%. that's a lot of tolerance out there. john ryding writes the fed's adoption of flexible average inflation targeting and rates will remain at the effective lower bound for several years. what makes this even more interesting here is all of this sort of more dovish outlook comes with an upgrade from the pandemic 69% of 37 respondents say it's growing faster than expected 69% say the monetary is inflationary and 53%, joe, say the inflation is over. for the record, the inflation is not over until they say it's over they'll do that later. guys are trying to figureout - forecasters, is it over or not

53% say it's over and it ended in may 2020. so big changes happening now in the outlook for the federal reserve, joe >> pretty cool, steve. we just had ardeni on. i was talking about the previous surveys, how many economists didn't think there would be a v-shaped v v-shaped recovery. 69% are saying, yeah, we're surprised at the resilience we've seen so far. who knows with the virus, you know, nothing's -- you know, you can't just assume that we're clear sailing now, but i think right there you can see that a lot of the guys in the survey probably underestimated how quickly we were going to be able to bounce back steve, wouldn't you -- do you believe that we can get to anywhere near 4% ever? i guess i've been lulled into a false sense of security from

japan, aging populations, low birth rates and everything else. i don't know i would almost welcome if we really could do it, if we could really get there because the worry has been for so long that we're going to get stuck in a low inflation or deflationary -- >> you mean inflation, joe 4% inflation >> yeah. >> 4% inflation? >> no, no, no. that was what your whole report was about. do you believe those numbers that we can actually do that >> i think it's going to be hard to get there in the context of the global competitive environment where, you know, joe, i don't know how you feel, but my theory on inflation is that most americans think that a higher than expected price will not stand, that somebody will step up. i think there's a limit. if we close the borders, yeah, it may be easier to get higher

inflation. joe, i'm interested in how this expected tolerance of the fed to inflation, what that means for the long term for stocks probably have much smarter people coming up on that issue, but if the fed is on hold for as much as 2 1/2 or 3 years from now, i think that creates a pretty interesting environment for revaluation in the coming year >> when you have -- that's the whole reason to buy a stock, right? a dividend that goes up over time >> exactly, yeah >> hey, steve, i was curious, you know, jay powell obviously has had a huge influence over where the fed is right now potentially even the mind set of people responding to this. given we have an election coming up, i was curious what you think the betting line is in a second

administration, if he were to win, if jay powell would remain in that role, if biden won if he would remain in that role and the type of person that might take that role and whether that would change any of these calculuses >> i think there's no particular reason for a second trump administration to fire powell. i think he's got pretty much the fed that he wants, especially with this new monetary policy strategy the fed's invested a lot of things for a whole bunch of reasons, but i think from a -- just a logical point of view there's no particular reason jay powell has profoundly changed the way the fed is orienting towards rates and inflation and unemployment he's basically changed the blueprint of the federal reserve to say that we are not going to react to low unemployment in a way that we had in the past, and

that's a big reason why this outlook for the federal reserve is so much more dovish than it had been before. i was really surprised, andrew, to see a change much six months ahead for the rate hikes given that the outlook for the economy has improved and also the outlook for inflation has gone up the president can make any choice he wants when that happens. it's a question, i suppose, we'll put on the next survey, but for right now the -- jay powell has oriented the federal reserve towards a much more dovish outcome than had previously been the case >> okay. steve, great to see you. thank you for the insight. look forward to talking to you all about this when we return on the other side of this break, the problem solvers caucus looking to salvage a stimulus deal josh gotheimmer is going to join us an interview with jared

kushner minutes away look at the names coming up in the 8 a.m. hour. chamath palihapitiya, bob backish is going to join us and congress is back in session and house minority leader kevin mccarthy will join us. let's get a quick look at the markets. green arrows across the board. s&p 500 looking to open up 24 points higher, dow jones up 182, nasdaq 108

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welcome back to "squawk box. with a stimulus stalemate, they're working to develop a covid relief plan. the group is made up of moderate republicans. josh is the caucus's co-chair. great to see you. >> good morning. thank you for having me. >> i think they're all very well intentioned and i know everybody is trying to come to some kind of agreement, but it feels like everybody is still so, so far apart. no

we're able to put out a plan we continue to face a very serious economic crisis. it's just a framework to get the negotiators back to the table and facing the toughest of differences in a place where we can agree. >> congressman though, let's talk about what's in that plan that you guys have agreed on thus far but also let's talk about the differences that are out there because i think right now the betting line is that nothing, unfortunately, is going to happen between now and election day >> sure. if you look at the major areas that are stumbling blocks, one, we are able to agree on

unemployment insurance, $600 and for a transition period to help states get that set up we've talked about another stimulus check of families to $1200 plus $500 per child. another big area is state and local resources and state and local governments which are critical to the holes they face. we've talked about $500 billion over the next year we really believe that would help our state and local governments. resources for testing which obviously is critical for child care, for another round of ppp for small businesses, a second round for small businesses because so many small businesses continue to hurt in new jersey where i live, 22% of independent restaurants are out of business already. we need to help our small businesses through this. we really -- and there's a ton of other areas where we've addressed. we feel like we've taken on the

toughest one and found bipartisan support, which is the key, and shown a pathway forward for the negotiators to find an agreement and we're asking people to get back to the table which is so important given what we're facing. >> congressman, isn't part of the problem that nobody wants to -- on one side you could argue democrats don't want to deal with it on a piece meal basis and on the other side republicans want to do this on a very piecemeal basis what i'm surprised by though is why the democrats on certain issues, for example, testing, which you think is as bipartisan as possible in this environment, you'd want to be able to create testing around the country on a regular basis, almost surveillance testing, and for some reason nobody wants to actually put their name down with a pen and sign it why not? >> i don't know about that i mean, all of my colleagues, we all want to do aggressive testing so, you know, i think actually the holdup is less about that i think the holdup, frankly, is

about we get into these fights about the overall price tag that we should begin with instead of talking about programs one by one and saying what do we need to take on what do we need to handle here the way we look at it is a shorter time frame to get us through the next inauguration, whoever is the president, instead of fighting about two years from now that's the holdup. everyone is fighting over long term yes, then you get into conversations about piecemeal, not piecemeal instead of saying what are the key things we have to tackle and just get them done >> what do you make of the pressure or lack of pressure that the stock market may be putting on this discussion and the reason i mention that is we've had a number of big, relatively famed investors coming on the air and saying, look, the economy is much stronger than you might think. we've had economists talking about the strength of the

economy and how that impacts the discussion that you're having right now. >> i think we all want the economy to be strong if the market does well, that's great. we still have to look at the underlying challenges. i can only speak for the community i represent. we have 16% unemployment in the state of new jersey. you have a lot of places that are facing real economic challenges people are out of work yes, the market might be doing better if you can explain that, i can't really explain it given how tough some of the underlying fundamentals are some people need help and will be facing tougher times come the fall so i would say, again, if the market and the economy right now seem to be disconnected and you have a lot of people who continue to hurt, that's why we really need to do this next package and help people through it again, it's an economic crisis and health crisis and i think we have to have both issues.

>> in terms of spending right now and in terms of who you need to bring over the line to get something across the finish line, who are you looking at how are you going to get there and i appreciate what you're trying to do it's not that i'm skeptical, i'm only skeptical because of what i understand is so many people on both sides of this aisle that don't, frankly, want to sign something like this. >> no, i mean, most folks look at this and think it's been months you can see why they're skeptical and frustrated at us and why many of us are frustrated why we can't get back to the table i think the key is to make sure that the negotiators understand there are a lot of pressure from rank and file members like us who want to get things done. i think they're hearing from folks that it's not just of course the house and senate, it's also the white house. everybody has to realize that they need to get something done. that's of cores the key here

i saw secretary mnuchin talking about the importance of getting something done our leadership recognizes people are hurting and we have to address everything from helping families to small businesses and making sure we get stronger testing and tracing out there. i think there's a deep recognition. the question is can we afford to wait until late january to do something zbhen and i don't think -- my opinion, we simply can't afford to wait that long i think there's a growing sense at least here and the house of representatives, democrats and republicans, that we can't move forward without anything >> congressman, we very much appreciate your time. >> thanks. >> thank you for joining us. we look forward to following this story and where it may and hopefully goes thanks so much >> any time. we'll get it done. thank you. >> joe >> all right, andrew thanks.

coming up, senior advisor to the president, jared kushner, will be our guest. we'll discuss the job picture. the fed's response to the economic crisis. we'll see what he knows about the behind the scenes maneuvering of the white house with tiktok and then at the top of the hour special guest host at the top of the hour, special guest host for the hour, social capital chamath palihapitiya we will be right back. ♪ i keep working my way back to you, babe ♪ ♪ with a burning love inside ♪ yeah i'm working my way back to you, babe ♪ ♪ and the happiness that died ♪ i let it get away servicenow. the smarter way to workflow.

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goodness >> more, i think >> yeah. oh, no way off. >> i don't even want to know. >> 70 billion. 70 >> no, i'm happy

i'm happy. i'm happy. i'm happy. this is america. wow. you know what -- >> 70 billion. >> -- look where microsoft is. >> makes steve cohen look like a pauper >> exactly when steve was there, he didn't get credit he's a heck of a dancer and motivator, but he set up microsoft. obviously i'm not discounting what the current management has done whew 70, huh? he's not happy. >> 70 billion. >> you know what, i wonder what he'd give for a ring and we'll see. still in the running i don't know i think celtics play tonight, too. winnowing it down. anyway go ahead >> it's going to be very interesting to see what steve cohen does ultimately with the mets and whether he can actually -- he may finally spend some real money because they haven't spent frankly enough money and whether cohen decides

to reach into his own pockets and arguably deficit finance, if you will, for a couple of years to get to -- to get to that place. so we'll see we'll see. >> we showed a picture of times square we should point out, we can't do anything about the delay i guess we could say stop or something. i'm going to be back in there on thursday, right there, that's where our cam is we're doing our best you're in connecticut. i'm in a basement. >> yeah. >> it is what it is. a lot of people say, geez, you guys -- why can't you just not talk -- it's like, it's not that easy because it's about five seconds, i think anyway, i'll be back in there on thursday hopefully for good some stocks to watch. >> we're looking forward to that we'll get you some stocks to watch. we'll do it right now. a couple ones to watch right now on your radar. simon property groups saying its malls will be closed on thanksgiving they will be open on black

friday, even before the pandemic more consumers were opting to shop holiday deals online. last year thanksgiving day online sales hit a record $4.2 billion. while we're on thanksgiving topic, i don't know if you saw, macy's and the famous macy's day parade, no spectators this year. it's going to be basically for tv only. that will be very interesting proposition but also the cost of that, we'll see what a macy's day parade looks like in a pandemic. meantime, sony shares falling in japan on reporting that it's cutting production on play station 5 by 20%. that's from issues on the custom chip sony is going to reveal the price and launch date of the ps5. that will happen tomorrow. shares of nikola sinking in the pre-market

being investigated over one research shop that it deceived investors about the business prospects, specifically, by the way, saying it basically fraudulently showed off some trucks that were basically inoperable when they were doing some of the demonstrations then on september 11th we should tell you nikola coming out with a statement, nikola's legal counsel proactively contacted and briefed the u.s. securities and exchange commission regarding nikola's concerns pertaining to the report they have called nikola an intricate fraud and overstated the capabilities of its earliest test trucks. they stand to benefit if the shares fall. and big questions also about gm given the deal that was just mary barra taking a big stake in

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our squawk newsmaker here to discuss the latest out of washington and much more, let's welcome jared kushner. he's a senior advisor to the president and also his son-in-law thanks for joining us.

as a senior advisor to the president, we figure you're in on a lot of things, jared. since you're on cnbc right now, you know what we probably can figure out what we want to talk about, and that is tiktok. the latest reporting is that there were two sides as there are on so many things involving china. there's the hawks that probably wanted to ban, i guess, tiktok outright, and there is in this reporting secretary mnuchin did not want to do that and he brought in wilbur ross to his side of things and, you know, lindsey graham's got some input. i figure you were pushing back against the hawks, too can you weigh in on whether you know what went on and what you urged the president to do and what actually happened >> so i think this president thrives by having a lot of differences of opinion around him. he's got to make a lot of tough decisions and he likes surrounding himself by smart people but not always people who agree with each other.

that's how he gets the right outcome. on this particular instance some people are pushing for an all out ban. president trump is pragmatic what he basically said is he was going to ban it because there was national security concerns but that if an appropriate deal would come up that would satisfy the national security concerns, then they would look at it again, there's a lot of voices around the president, but ultimately he's the one that makes the decision there's something that was submitted and i know it's being reviewed right now to make sure it qualifies on all the different criteria that are necessary. >> jared, were you in the room can you speak to the change in what the president was looking for in terms of an outright sale or some type of partnership and whether bytedance made these type of decisions in a vacuum in terms of not going with microsoft, which i guess wanted the algorithm. i know you're really smart and know all the intricacies of what's being discussed in the

meeting and what we're talking about on "squawk box." larry ellison, big supporter of the president. also in the transition team. you probably know her from 2016. how does all -- how did all of it work out? we know the president's a deal maker, "art of the deal. is all of that evident in what we've seen transpire >> well, speaking of "the art of the deal," the reason why we're here today is obviously the president is announcing signing two peace deals which i'm happy to talk about. those were truly art of the deals, historic deals to do. look, with regards to tiktok, america's interest is really national security. we want to make sure people's data is protected and that's really the interest. there are a lot of great american companies bidding on it a lot of them bidding on it. ultimately it was up to the company and then we have our role to make sure it protects american citizens.

>> you know, social meeting. the relationship. >> a different approach to a lot of things and he's achieving results in a lot of ways that people didn't anticipate he would. again, i know that that deal is obviously something where it looks like that company has an application in to become an american company, to create 20,000 jobs and to safeguard the data that american consumers will be protected. >> is that 20,000 jobs, is that the secret sauce that allows a

president not to insist that the algorithms actually come over here and aren't controlled by the chinese government anymore is that the concession that they're making to make this deal happen in the form in which it is now >> yeah. so my sense is that this is something that will be adjudicated on the merits. we have a process that will be brought to the president and i don't believe a final decision's been made yet as to whether it qualifies. >> okay. andrew, before we move on from tiktok, do you have additional -- i know you're -- this is a big -- this is a story you're very interested in as well >> as you know very well, back in june, july when microsoft was first talking to this company the option on the table was actually something very similar to this, a minority interest they would host it on their azure cloud and try to take some of the security -- national

security issues, trying to take them off the table as you know, the administration said that was not good enough. in fact, the president said you need to take -- somebody needs to take full control of the u.s. operation, and now it appears that oracle is doing something quite similar, frankly, to what was being proposed in july and june that was effectively rejected and sort of how to square that circle for people who are thinking about the national security implications and also what the president was saying then. >> yeah. so, like i said, the application just came in we're going to be reviewing it i spoke to secretary mnuchin this morning i know it will be presented to the president. hopefully it qualifies again, the status quo as it existed before was not something that obviously we were happy with and that's why the president took strong action and hopefully the application qualifies on the merits for what we're trying to accomplish from a national security point of view >> jared, as i said, we're cnbc,

but we would be remiss if we didn't talk to you about the mid east i didn't want to get you off that subject this is -- i mean, how long have we been trying to come up with some real tangible progress in that part of the world kudos. obviously you want to talk about that do you think that others -- are you in -- i don't want you to -- you don't have to show us your hand, but morocco, oman, kuwait, are others going to join with the uae and bahrain in the deal? are you working oen that are we going to see a sea change based on these green chutes? >> before august 18th there are a lot of things that haven't had a peace deal they said the world would go into chaos on august 13th he announced the

first peace deal that occurred in obviously the last 26 years between israel and the united arab emirates. and then seeing now is a significant warming of the relationship between israel and the arab countries you've had the arab/israeli conflict going on for decades. you've had america's intervention in the middle east which has cost us to have a lot of troops there, cost us to spend a lot of money there it's been warranted because we've had to fight against the threat of terror coming into america's shores by bringing peace and bringing these countries together, hopefully it eliminates the threat of terror or can significantly reduce it and allow us to focus on rebuilding our country as opposed to being focused on endless wars throughout the world you talk about president trump with "art of the deal," just this month he was nominated for the nobel peace prize twice for his efforts here and serbia/kosovo. this is good

not having war is good for business, good for american industry and it's good for the world and good for humanity. this is an incredible day that we're very, very proud of here at the white house. >> does the president think there's going to be any additional stimulus or is he looking at more executive orders for the economy? and do you and the president think that the economy overall needs it or do you need targeted help for groups in parts of the economy that are still struggling >> so we're very happy with the first round of stimulus that we did, and i think that, again, when you are in those very dark days you were shooting at targets through a cloud and you weren't sure how much lead you put on the target. it looks like the first stimulus put a lot of lead on the target. whereas, the economy looked like it could have unwound and could have been a major crisis people predicted that unemployment would rise to 20, 25%. seems like those interventions were very successful and we were

able to keep america's economy back on track. the goal is not to get it back to where it was, it's to get it where it was before and that we take all of the different vulnerabilities and reinforce them and eliminate them so that our country can have a much stronger position in the global economy coming out of this we think there's need for another intervention we've reached out to congress. as you know in all negotiations, everyone's at no before they get to yes there's some posturing the hope is that we'll still get to a deal. it may happen before we get to the election there are politics involved. this is washington president trump will continue to fight for what the american economy is and keep the consumer in a good place. >> two-day fed meeting starts today. chairman powell. i think we asked you this last time i think you implied the president is pretty happy with chairman powell. i don't know if we got all the way to, yes, he would be

renominated in a trump second term, but can you tell us if that would -- he probably would be the fed chairman in a second trump term >> like i said, in the world of politics things change every hour, every minute but i will say, again, over the last six months the job he has done has been absolutely fantastic along with secretary mnuchin and jay clayton and keeping our economy and financial system in great shape. we're very appreciative of the work he's done and think he's done a great job. >> jared, i want to -- >> hold on, andrew i want to return and talk prescription drug with you when we come back andrew may want to talk about some other part of health care i want to get to that at the end. go ahead, andrew >> it relates to health care and it relates to drugs and the like there's a headline crossing this morning, jared, that bill gates, as you know, has been financing

some of the vaccine efforts across the world is now raising questions about the credibility of the fda, which i think is concerning a lot of people i'm curious whether you have either concerns about the fda or more broadly how you can restore credibility to the fda to the degree that somebody like a bill gates would even publicly question the fda in this environment given how important it's going to be forpeople to hopefully trust the fda and what will come out soon. >> first of all, i think the fda is faced with a tremendous challenge. they want to get us to a place that have medications that show efficacy and results how do you get them approved in a speed that's not normal course of business. we are in a global pandemic and that requires us, you know, taking a more entrepreneurial approach and trying to figure out ways to get forward. a great example is convalescent plasma, right?

you have a treatment that's been used for a long time it shows no negative impact by and large when you use it and the initial data was showing it can reduce mortality i think it was between 350 to 50%. so obviously you have two pathways that the fda can do you can issue an emergency use authorization which allows people to make the decision on a case-by-case basis with their doctor whether they want to use it but you make it available or you say let's not allow it to be available to the people until you go through the belts and suspenders perfect trial that the professors at nih would like to see happen. i think they're making right decisions. they're fully independent. they're basing it on data and science. they've released data. if it wasn't for all of the euas that they've done, we wouldn't have the best testing system in the world. we have another 150 million fastests that we just bought from abbott which is a new system the fda has done a tremendous

job flew the crisis helping make treatments available with the vaccine, they're going to be doing the same thing i think it will be up to them to choose how do you balance saving lives with looking at the data we have to make the best decisions we can, but i don't think it's helpful for people to be questioning the fda they're doing a tremendous job >> okay. i know you've got to run we're running out of time. you look at our preeminence in developing these drugs and you just -- you just highlighted how well we do in this country there's a model in europe where you cap these drug prices and there's much less innovation and the evidence is fairly clear i don't understand why the president seems to be -- i understand there's an election there's an easy target, drug costs and pharmaceuticals.

the drugs from abroad and doing the same thing here. the industry over there. why adopt a policy it's a populus argument. you understand why drug prices are high can't you talk to the president and that may not be the way in terms of health care >> well, i actually agree with the policy that he's putting forward. if you think about it, all of these socialist medical systems are freeloading and so if you think about if the american unit costs a dollar for a drug and you get 50 different countries to increase by a penny, you could substantially reduce the cost of drugs to americans so we're not looking to say that we have to do it they can still make the same amount of revenue, they have to raise their prices on these other countries. so there's no reason why american consumers shouldn't be paying a disproportionate

amount. >> you're importing price controls that will hurt innovation in the long term if a company can't recoup how much it costs to develop a drug, we're not going to develop any drugs it costs money to develop drugs. >> i don't agree with that assumption though because at the end of the day they do have the ability to raise prices on other people right now there's a disproportionate burden so what president trump is doing is smart. if you're the largest customer from somebody you should be getting it we're not saying the same price as africa, but we are saying other developed countries like the u.k. and germany why should we be paying substantially more for our drugs. because they have a different system we're trying not to be stupid. i don't think this will reduce the ability because they should have the ability and so, again, america's great for our innovation and obviously we have

the best drug companies and pharmaceutical companies this is a hard medicine to swallow but i think it's something that once they do teen out they raise their price a little bit on everyone else. raise theirs by a lot. we have a much more fair and sustainable system here. >> jared kushner thanks know you have to run appreciate your time >> great to be with you. >> good to be with you as well. coming up, apple preparing to lift the curtain on a slate of new gadgets but when they move the stock, i think it was an ipad, watch, nothing big on the phone front, i guess we're going to find out. "squawk box" will be right back.

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coming up, chamath palihapitiya is going to join us plus congress is back and house minority leader kevin mccarthy is joining us. we're back wh atndoritth a me coming back.

♪

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apple hosting a major event today. they're going to make sure take a look at the apple versus the date chart or on the top that could not split it's perfectly logical by the way, apple has had this in the a nasdaq. you can imagine what apple has done valuation, race to a premium unlike what it's seen in years forward pe right around 30 what you see here is a 30, 40%

premium for the 500. apple couldn't get out of its own way valuation wise it was always seen as hit driven, still hardware focused every two years you had to catch lightning in a bottle. we're talking about services, the install base it raises the question how much juice you can get out of product introductions now if that is no longer really at the root of the story. it all works together but that seems like some of the questions now. >> all right, mike stick around that is crazy. for more on what apple means for investors and for the s&p, let's bring in sarat sethi, a cnbc contributor. do you need to tell us what apple means. it's the faangiest of the faang

stocks, isn't it >> it is it's over 6% of the s&p. if you look at a $2 trillion company and the growth rate prescribed to it, if you look at a 30 pe, to maintain that, that's a lot to do what mike was talking about, it's not going to be the hardware piece, it's going to be the margins on all of the services and can they maintain that the idea being that's recurring cash flow and then you get a premium multiple on it you're trying to get a software multiple moving away from the hardware side. the question is law of large numbers and can it maintain it history will tell you overtime when companies have dominated the s&p, they'll stay there. the exxons and ges, historically they will come down. eventually invest horse will find other areas of growth

especially in the covid days when people are hiding out in the faangs they're perfect stocks, low interest rates, great cash flow, growth ahead of it for the time being you're not going to see much of the stock in fact, you'll probably see more money coming to it. i think post covid and a reopening story there will be money coming out of the indexes, money coming out of the faang. investors are over indexed they might mention 1/6 of the index is apple if you're 10% apple, that's a huge amount. as a portfolio manager, it's prudent not to have that much in any stock even though it might be the best thing since sliced bread. >> you mentioned the law of large numbers and that probably is more -- has more to do with a time element than it does with whether this is a great company that's going to continue to go out. mike, you remember when apple

was at 500, 600 billion it was like, well, what's it going to double to a trillion it took three or four years before it did even with a low multiple then we went from one to two we're not going from two to four >> right >> i think there's going to be -- you have to have some digestion. >> it's gone up to 2 and surpassed 2 when really net income has been flat you can make a case where they're in a phase where they can compound earnings again. who knows if that grows into the valuation or if we can get a lift from here >> the other thing to watch for is -- >> we've got -- >> we've got to run. i'm sorry. i'm looking at the clock and they're yelling at me. we've got a break to hit thank you, sarat save you some time coming up, chamath palihapitiya is going to join us for an hour. you never know what he'll say.

andrew might have a problem with all of the spac stuff. i don't know if he's czyra about the spacs, chamath here we go when the world gets complicated,

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kevin mccarthy reacts. the final hour of "squawk box" begins right now good morning welcome back to "squawk box" right here i'm andrew ross sorkin joe kernen is here this hour we're going to strain the broadband. we're going to bring in a guest host for the entire hour no better person for that than chamath palihapitiya he's the chairman of virgin galactic and co-owner of golden state warriors very active in the realm of spac, special purpose acquisition companies. it's good to have you here, chamath. your breaking news on the air. i'll let you take it away. what's the news?

>> andrew, well, thanks for letting me do this with you guys the news is that ipob is merging with open door open door will be going public it is the largest online consumer real estate business in the united states. it's doing something really incredible and what i wanted to do was take an opportunity behind t skeehe scenes and co-investors i think it's important, first, i want wanted the silicon valley they're democratizing that and finding the icon mick businesses and help them get public

enable them to grow for long periods of time and help build a legacy business. if we as investors can be a part of that, we can basically share in those gains as well so the setup is that so what we did is we started to look across a whole bunch of industries everything that could be bought and sold online has moved online except that. this is a pillar of american dream. this is the largest undisrupted market this is $1.6 trillion. it's completely fragmented it's low trust and low nps

1/3 of the people need it. what they have done is something really incredible. they're building a burgeoning cycle. you as a consumer can now go to open door.com and within 24 hours they will give you an all cash offer for your home and if you choose to sell within three days you can sell your home. you can understand how they can build a competitive moat the more offers they make, the more homes they will buy and sell which means the more markets and the more value added services they can automate online which means morts, title, escrow

all of that drives more demand to the business. we asked it's the bottom line and relatively unimpeded there are five important trends that i think people need to understand the first is that coming out of the global financial crisis we've seen a massive under building the second is that because of the tax situation in america, the federal government eliminating the state and local tax deduction. the fourth, you have 75 million

americans digitally native millennials who want to do everything online. they're starting to have families they're looking for homes. as of a few weeks ago the federal reserve said they're going to keep interest rates effectively at zero for a very long time. we think that's going to drive an enormous amount of homeownership and the velocity there's a trend which is that the huge populus states like new jersey, new york, california are stagnating and starting to lose people these younger, cheaper, more dynamic cities are gaining enormous share these are the markets where open door has already launched and is achieving scale. so this is a business that we think is now very much proven and ready for primetime. they have 70% of the markets so these guys are the dominant

leader almost 4 1/2 times bigger than their next competitor. last year a lean they did $4.7 billion of revenue 2023 they will do almost $10 billion of revenue if you take the playbook that they have and you just apply it to the markets in which they can expand in the u.s., at 4% share this is a business that will do $50 billion of revenue and it's a merger that really creates an opportunity for investors. we priced this deal at one times 2019 revenue but it's also an opportunity for open door to raise the money they need, fortify their balance sheet and really create more value and scale. so the last thing i'll say is i want to take a step back and just remind folks of, you know, the times that i've come on i've really tried to find asymmetric up side opportunities and present them to you, andrew and joe, and the rest of the viewers. and i really believe in this business this to me feels like bitcoin in

2012, amazon in 2015, tesla there 2016, virgin in 2019 i think open door is going to build a huge, huge business. >> chamath, thank you. thanks for bringing it to us we have about 1 million questions. i want to bring them into this conversation now open door's co-founder and ceo of blue. eric, welcome. let me ask eric this first and then go to chamath why pursue a spac with chamath as opposed to an ipo because i think one of the big questions about this -- >> andrew, thank you for having me >> the thought process involved in that. >> andrew, first, thank you for having me. excited to announce we're

partnering with chamath to take the company public we always believed that one of our long-term goals was to be a successful, independent public company. initially spac wasn't the route we wanted to take. a couple of things that drew us to this path was speed to market we wanted to focus them on building the best product and business and distracting the company by taking them public. the second is chamath is fundamentally a builder and it aligned with our vision to build open door. >> let me ask you this i think it's a question for both eric and chamath the cost of doing it, the cost of doing it this way, meaning there's a promote that's going to go to chamath's group as part of this, what is that cost and how do you think about that?

i don't know if i have a negative view of spacs i have been skeptical because of the promote and the fees i remember years ago people would talk about spacs effectively as, you know, compensation strategies for the investor class mass gur raidmas. think about that how you think about it on the eric side and chamath side >> i think it's important to take a step back >> the same way i think of a spoon. you can use this it's something that's less than

delicious. these are instruments that in the hand the ingredients can generate a great outcome. in many cases it's cheaper than a traditional ipo. the fees are not what people need to chase here it was what happened in the past but i think what happened is the practitioners of this trade have turned over. you're seeing an entire new generation of people, myself and others who have the combination of public market investing experience as well as technology operating experience coming together to partner with great entrepreneurs like eric. and when you balance everything together, the cost of doing this versus the cost of an ipo versus the time, speed to market and lack of distraction for the team, it's an equation that makes sense. the last thing i'll say is that in every deal that i do, andrew, i put an enormous amount of my own capital at risk.

this by no means is an easy way out for me in this deal i invested $100 million of my own capital on top of everything else it takes a lot of time and care to underwrite these decisions. i take them very seriously i feel and i am a principal investor in one of the shareholders of this business now. i will be there beside eric, as he said, doing what i have done with other businesses in the past that i've been involved with, whether it's facebook, slack, some of these other big bets i've made >> chamath, just to put a fine point on it, and i appreciate that you're putting $100 million in this, you have that riding on this how much money does social capital make on this particular transaction? >> i think the total fees are tens of thousands? >> we -- go ahead. >> what's a specific number? what's a specific number you have a lot of details about

this transaction i can't imagine you don't know the specific number with which social capital is going to be paid for this. >> yeah. the -- andrew, the exact number is in the s4 we can tweet about it or you can talk about it. the cost of it goldman sachs there. we need to behave like a principal. the total blended amount of capital. in order to do that, if you're at a traditional bank doing a traditional ipo, i can tell you the amount of money they're putting at risk is zero. that i know for sure is exact.

>> right no no, chamath, i'm not trying to give you a hard time we're getting questions over twitter, email and whatnot if it's tens of millions of dollars and the fees are actually 80 or $90 million and you put $100 million at risk, you have effectively put $10 million at risk. i mean, we can go get the s4 right now if we need to but i would imagine you could tell us what the fees are. >> yeah, i think that that range is right i think it's sort of like in that range of what they talked about, but the specific number i don't know offhand >> what do you mean, specific range of what? i just said $90 million. are we talking -- tens of millions could be $20 million, could be $10 million if it's $90 million and you put up $100 million. you've now actually put up -- you have $10 million at risk, not $100 million at risk that's all we're trying to

understand. >> i think the fees are sort of in the 70, $80 million range i think myself and my partners, we put in almost $160 million of primary capital on top of that so that's -- that's the net net. so, yeah, maybe we're only 90 million at risk. >> okay. i apologize. before you said you had $100 million in and now you just said you have $160 million in what distinction are you making? i'm only trying to ask you these questions because we are getting so many viewers who are trying to understand how it works >> so i have a partner that i do these spacs with i put in 100 million of my own money. they put in 58 or 59 milli$59 mo together we put in $160 million.

the other question i have around spacs broadly, what kind of pressure is going to exist on the likes of you and so many others are doing spacs every other day it is a new spac being raised the question is 12months out, 18 months out whether you think there's going to be enormous pressure to buy companies that otherwise shouldn't be bought. how do you think we're going to look back at this vintage of spacs given that there's a bit of a frenzy? >> i don't think there is a bit of a frenzy when you take a step back and zoom out. in the year 2000 there was more than 8,000 public companies on american stock exchanges in the year 2020 there are about 4,000 so we've shrank the investable universe in half. at the same time you've had a 10x in the amount of money that's gone into the public markets and you've had a 10x in the number of people that

practice public markets. we have a real supply/demand imbalance. what we need to think about is there needs to be more and better ways for companies to be able to raise the capital they need if they can do that in the public markets, it not only creates opportunities for them but it also creates opportunities for folks like us who can help identify and partner with businesses and invest i think that's good for every investor, not just the few that work with the banks and have preferential access. i think what spacs do, direct listings do the same thing, we expand the aperture. we start to brake up the oligopoly that's existed and we democratize things everything will change the terms of how these deals are done will change the access to capital will change the cost of that capital will change and all of that will be better for investors and so over time i think what we want to see is the number of public companies go back to 8,000 or, frankly, be at 10,000

or 12,000. in that you'll see a lot of people being able to generate returns. otherwise, we'll be sitting here and like every sort of episode of cnbc we'll just be talking about faang over and over again. >> eric and chamath, you're talking about covid and this pandemic and how that's actually changed the environment for your company. i'm curious what you think happens after a vaccine. does that change the future to you at all when it comes to this issue? >> well, i think it's important to acknowledge what's happening today. one, consumers are choosing digital experiences first. that's happening at accelerating rates. two, chamath mentioned americans are on the move. people are moving to less dense areas. there's deurbanization happening for the first time in years. that's creating extremely strong tailwinds for the housing market

and in particular the markets we operate in post covid, the behavior is here to stay. i think people want digital first experiences. what we're trying to do is make the buying and selling of homes simple, instant, online. >> we had robert revkin on from compass. i'm curious long term whether you think for opendoor's sake that you would end up buying other businesses, i was thinking of compass because you have the same backer in softbank for both, but in terms of how you're thinking about what you do with this money, how you expand your business you end up rolling up other businesses what does that look like, eric >> well, we're using the capital to do two things one is to accelerate our market share. we want to demonstrate leadership in growth and the other is to invest in new products the vision for the company is to build a one stop shop that's

digital and online to buy and sell a home. those are the two areas we're going to invest in with our capital. it's not really a rollup strategy we want to be vertically indicated for the lowest cost. >> andrew, there's something else that's worth mentioning here it's really surprising to me as somebody that has been learning for the real estate market for the last six months, for how big it is, the amount of opportunity, there's really only a few leaders establishing these new behaviors. i think it's really important to know that i think that this market will look a lot like ecommerce. in ecommerce you have two huge players. you have google at the top of the funnel and then you have amazon at the bottom of the funnel they helpful fill all of the demand there's a lot of interesting media experiences.

you see where other people live, what the cost of their home is, what have you. but until open door there's been no way to transact they will be this compelling demand fulfillment it's a huge, huge, huge company. eric, congratulations. your progress. we also want to remind you that delivering alpha is done for its tenth year along with treasury secretary. kamala harris. chamath is with us the rest of this hour.

>> chamath. opendoor, you know, this is totally different. carbon neutral >> carbon neutral. >> once it -- once eric dominates earth, we will focus on mars. >> you're satisfying all of your stakeholders, too? there's like 20 of them. i want to make sure. you know, these are the questions that need to be answered here. anyway, coming up, i love chamath. i'm going to talk to you later about some other stuff viacom/cvs, ceo bob backish. backish has big news about

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coming up, an interview you will a see here on "squawk." viacom's bob backish with the newly rebranded service. tiktok and so much more. stay tuned, you're watching "squawk box" on cnbc you know your kid doesn't step around puddles.

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welcome back to "squawk box. futures indicated. on the dow, premarket session. nasdaq indicated up 126 points the s&p up about 24. tough on a short week. the technology stocks. >> thanks up, joe. the host this hour viacom joining us now on cnbc bob backish, tell us about the streaming service.

the landscape given that there tends to be so many streamers. >> great to be here. we'll relaunch it. it's an exciting chapter paramount, great content it's a brand that's always brought things in the experience cvs it has near universal. we will rebrand cvs all access for roughly the same time. in the nordics

we're talking about it as live sports >> bob, what's the pricing structure. what are the lessons of those launches been for your company >> yes i think there's a couple lessons there. they're in no particular order it will be a compelling price point. two is ubiquitous. we're very familiar with ubiquitous pretty much everywhere it's all access.

the largest fast service in the country. very broadly the content and the experience for the consumers. that's when it will be truly differentiated now we've added uefa nonessential smithsoni smithsonian. each of those brands will not only have a deep library but will have significant content slates today we announced three originals. we announced the off

the god father which is a tremendous franchise linus, which is a series from taylor sheridan who's behind yellowstone. those are joining camp coral which is sponge bob spinoff which we're dropping on the back of the u.s. exclusive premiere of the sponge bob movie sponge on the run so franchises figure very prominently in paramount plus. we have many more originals to come we see the service having very wide demographic appeal because of that. kids, millennials, adults. and real depth in key genres we look at a differentiated position we believe we raid our assets to make the most of it. >> bob, i think one of the questions is how many -- i mean, families or single people out there who are going to buy these

services, how many of these services do you think that any one family will ultimately buy? do you look at one as a replacement for the other? how do you look at this whole suite out there of competitive streamers. i think to some degree you're seeing that as people question what the launch of hbo max. >> yeah. look i'd say two things from that point. i'd say the first thing is all of the data suggests, we're still relatively early in the streaming world, overwhelmingly people will subscribe to more service.

the nfl. on this day. at the end of july low and behold august we really think it bob, you had said that you wanted it.

things like that to peacock it's pivoting. we've participated in it and it's the operating platform. creation capabilities through a set of studios, including paramount, cvs, et cetera as well as libraries. we've been in both businesses. as we've executed our content licensing business, the needs of our owned and operated streaming platforms have been central. that's why you see us working with franchises for our own platforms and over time it's quite likely that we'll lean more and more into that, but, again, we're in both businesses today and i feel exceptionally good about the lineup we have

coming for paramount plus. >> okay. bob backish, great to see you. appreciate it. >> great seeing you. >> look forward to seeing you hopefully soon in person. >> stay well. >> thanks, you too joe? thanks, andrew so, you know, chamath, one of the other things about the post pandemic world is we have not had a guest host we have not tried to do a virtual guest host so this is pretty special i think you understand how special it is for you to be with us. >> it feels great. >> yeah, i can tell. with great power comes great responsibility someone once said you want to start by weighing in on anything that you heard from bob backish? >> i want to hear you weigh in on the future on cable

>> he's doing everything that he's supposed to do. the problem is it's an incredibly hard market he's entering a market where the content assets are well known. nobody knows who viacomcbs is. netflix and disney+ are really the only twhauns have that at the end the ones that will win are google and they can figure out how to keep churn low. when you look at the data, netflix is just in a different galaxy from everybody else so it's not to say that it can't be done and i think that they're doing all the right things, it's just that there are a lot of headwinds in this market the winners, again, sort of back to how i framed opendoor the winners here, netflix, have created a huge moat.

it's a super durable company the longer time goes on the more there are advantages. >> before we get -- we've got to get eventually to the fed meeting today and just really -- and it's on steroids >> yeah. >> i know you have comments on that i've got to tell you that i have become a huge -- i used to watch just the college hoops all the time but ever since draft kings and ever since the pandemic and there was nothing else, i've watched almost every nba playoff game i love it and i love betting do you think that online betting will change the value of the golden state warriors, for example, and all the sports teams? i just think it will i'm so much more engaged for $5 on a game, i just think this is a trend that's going to last >> i've been looking at making some investments in online

sports in streaming. i think they're very exciting. my take away is exactly what you said, which is when you add the skill-based element around the content, you know, if you look at soccer in europe, if you look at esports, there's so much rich content and there's so many ways for you to monetize the user i do think sports is the next big category in streaming and i think that the people who figure out how to do that, draft kings may be one, but there are others that are trying and experimenting. the zone is yet another one. whoever wins that, i think, can build real value netflix has told you that they're going to stay away from that for at least the next three, four, five years. there is a window here where you can compete against netflix and acquire these rights cheaply it looks like a lot of the major came outlets are walking away from trying to buy the streaming rights, it cannily in europe as

i've seen it i think there's a big opportunity here i've spent time trying to figure it out i haven't come to an answer. i think there's a lot of up side and a lot of it will involve gaming and skill-based content >> it's a longer conversation to have about this world. you see steve liesman's report, three years before we get any type of movement off of zero still the fed balance is going to be huge i mean, i wonder what that means for assets and everything else, and just for life in general. >> joe, you know the answer. i mean, we know the answer because it's playing out in real time as we speak at first i think there was at least a sensibility that people had that they needed to manage their risk because there was the septor of rising rates theoretically the fed could step in it's a great new world we're in where they've essentially told

you they're going to step away and let this thing play itself out. so on balance marginally rates are going to stay the same or go down, not go up. and unfortunately for us the motivating factor to make all of this equal is inflation, and there is zero inflation on the horizon. the real reason why is that technology, which is a larger and larger part of gdp, it's a larger and larger part of the market cap of all of the stock markets we own, it's fundamentally deflationary tech businesses give you more and more and more for less and less and less. that is not an inflation driver and so unless something meaningfully changes, the fed's posture is just going to fuel money into all kinds of markets. asset markets particularly you have it and you have to kind of own it. >> all right, chamath. thanks you'll be with us for the rest of the hour. if you do decide to get into online gaming like you're

thinking, let me know. and i might be interested. but if it's a spac, could you lower your fees a little just saying. anyway, coming up, house minority leader kevin mccarthy weighs in on a new bipartisan stimulus effort in congress. we're coming right back.

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the focus in washington, d.c. is whether there will be any progress on a new covid stimulus measure and here is what president trump's senior

advisor jared kushner told us earlier this morning >> when all negotiations everyone said no before they get to yes, there is a lot of posturing, some differences of opinion, but the hope is that we will still get to a deal it may have to happen after the election because there obviously are politics involved, this is washington, but at the end of the day president trump will continue to fight for what he thinks the american economy needs to save american businesses and keep the consumer in a good place. >> let's bring in our next "squawk" news maker, house minority leader kevin mccarthy we are not necessarily an episodic tv series but it's starting to see like it when we have you on leader mccarthy, because we keep talking about this and this is going to be the latest episode in this drama, which, you know, if i was in charge i think i'd cancel this drama at this point because i don't know if anyone wants to watch this anymore but, okay, the latest thing and nancy pelosi is going to be on cnbc later so if you say something really good they might

play that for her, so keep that in mind for later and she can respond to that. but yesterday when i was talking with a democrat about what had happened in terms of, you know, just saying no to something that the senate passed, i mean, i thought something was better than nothing that's what i would think, but for whatever reasons they decided they didn't want to do that, but then i get a lot of flak, people saying, look, it's the republicans' fault because you won't help the states and the cities and the local municipalities you refuse to do that. you refuse to fund the firemen and the police, which i thought they didn't want to fund anyway. so i can't figure out what they want to do but is that really what the sticking point is? >> no, that's just not true. if you even check in the c.a.r.e.s. act, we've actually changed whether you can use that money for fire and police right now. there's more than $100 billion sitting there that we want to actually free up for states to use whatever they want

you've got to remember for every bill that we passed with about dealing with covid there was always a sticking point and a holdup there's always one person with a common denominator, the speaker. there's been something different in these negotiations than all the orts the others ones had all four leaders involved, this one speaker pelosi took the helm, speaker pelosi has been in charge the entire time it is a different structure and you're getting a different outcome. what you're getting is a political outcome where it's talk but no results at the end of the day she brought the entire congress back for an emergency meeting on the post office. we proposed during that meeting a covid bill that they could amend, they could take, they just voted it down so i really think what's unfortunate here is politics has overtaken. that i've been in these meetings i know her dislike for this presidency, but it should -- we should put the country first put that aside we are hurting through covid there are common ground things that we can find

you're even having problem solvers put forth an idea today. that shows even within the democrats that they are upset with this speaker by not finding common ground. >> well, it really does look like, leader, that the time is running out, the chances seem like they're going down. you just heard jared kushner say it could be after the election it's your contention that they didn't want the smaller skinny version of the bill so they are actually -- you're saying, you are accusing them of not trying to help the people that that small bill would help just so they can hurt president trump's reelection chances >> i know it. >> are you just saying that? >> i'm not just saying it, i hear it privately from them. remember this, speaker pelosi put red lines in the sand when her number two steny hoyer said, no, that was not -- when you talked about unemployment

insurance and it had to be $600. he said, no, that's not a red line no, republicans are actually correct on this. and nancy pelosi turns around and says it's a red line you have in the senate the rules that the minority controls that you have to have 60 votes even to bring a bill up so even though you start with a bill that isn't what you would finish with, but the democrats had denied the ability for that even to come up. even though a majority of the senators, more than 50, voted for it that's the arcane place. and if you're sitting back and you're chuck schumer and you are in the minority you're believing that if the economy is worse there is a better chance people would vote for a change. nancy pelosi believes that if she makes it tougher it's harder for president trump to get reelected. her own members are upset because they are going to get sacrificed in this election. they are getting beat up back home that's why they're willing to offer their own bill nancy pelosi is saying it's okay if you lose as long as we are able to defeat the president that is all wrong.

look, i'm an optimist, i always believe the cup is half full i am the first one willing to sit and let's find the answer for this why didn't we stay why didn't we get called back in an emergency meeting on covid? why didn't we get locked in into a room i know at the end of the day we would find an agreement. >> i've heard a couple gauntlets thrown down there. we'll see. stay tuned i think we will talk about it after this maybe the speaker will respond tomorrow so of the things you said there, leader mccarthy. thanks we have to keep it short today but you made your point. >> thank you. >> thank you andrew okay thanks so much want to get over to cnbc's headquarters where jim cramer joins us this morning. jim, you've been listening to all of these various conversations, the markets do look like they're going to open up higher today. what are you thinking about? >> well, i think that leader mccarthy has based some charges

that actually we have to put to the speaker when we speak to her later today because he's basically saying she doesn't have the support of her own party. i'm not sure, i'd liking to be able to get a rebuttal what i would say, andrew, is that tyler matheson said yesterday, i wish people would go back over what he was saying, which is everybody who is big is doing great and what we're seeing are stocks, particularly retail, by the way, where if you're big, you're a survivor and so people keep saying america is hurting but it's not the america that we trade. the america that we trade is coming back and that's a lot of reason why you see nothing but green again. >> jim, we are looking forward to that interview you got with pelosi later and we will, i'm sure, talk about it again with you hopefully tomorrow, but in the meantime we will see you in just a couple of minutes. >> thank you. >> i will send it back to joe. thank you. who is with chamath on a big

news day. >> a remote guest host,it's th first time we tried it and it's been a roaring success, let's get back to chamath chairman of virgin galactic. you've weighed it on the strength of the rebound and economy in the past. given that that's what we were just talking about do we need more stimulus? is the economy -- was it a two-month recession with a v-shaped recovery or is this all fed and mmt? >> look, unlike other recessions where you don't know where the bottom was, this recession was actually pretty easy where the bottom was the first few months because literally everything was shut down so we went to zero so now we are in the slow grind back to normalcy but the reality is the economy is not in a great place. we saw that first phase of stimulus frankly was, you know, quite honestly wasted. a lot of this money got sent to companies, those companies

didn't allocate it properly, they still ended up laying off tens if not hundreds of thousands of employees just literally the day after the stimulus said that they could. so the money wasn't functionally useful i've really maintained that the right way to think about this is so increase the amount of stimulus that we send to direct americans. i think that we know this economy is always consumer led, it's consumption that drives growth in the united states, it drives jobs and capital allocation and the more money in individuals' hands the better they can be to support businesses, buy different products and that's how we grow ourselves out. the long we wait to realize that and the more money we waste and give to zombie companies we're going to push the can down the road and it's all unnecessary. >> right chamath, thank you for spending the hour do you have plans for tomorrow at this time maybe we'll take a day off, let's talk again maybe next week

we'll see. but thank you for being with us and spending so much time with us this morning. we appreciate it andrew, thank you. are we going to do it again tomorrow no way it can be this good anyway, we'll try. >> make sure you join us "squawk on the street" it next. >> we'll do it tomorrow. ♪ good tuesday morning, welcome to "squawk on the street," i'm carl quintanilla with jim cramer and david faber. futures are solid on some pretty good eco data out of europe and china this morning the two-day fomc meeting begins, apple's product launch this afternoon, adobe and fedex tonight, it's a busy tuesday big morning on tap as well we have an exclusive with lowe's marvin ellison in just a few moments and then as joe and jim were just saying speaker pelosi on news of some new efforts, jim, to build a compromise