futures pointing to a slight bounce after the s&p 500 suffered its first negative start to a year since 2016 politics and your money, georgians will vote for two senate seat today that will decide the balance of power in congress and new virus concerns, the faster spreading variant was discovered in new york state as the uk enters a national lockdown it is tuesday, january 5, 2021 and "squawk box" begins right now. >> welcome to "squawk box." i'm becky quick look with joe kernen and andrew ross sorkin. we'll start with the markets if you were watching yesterday, that was really something to see. stocks actually dropped to kick off the new year the dow was down by 382 points

at the end of the session. and that was the good news because at one point we were off by more than 700 points. on again, something to watch as we got into the final hour of trading, things firmed up a bit. rough start for the futures -- for the markets yesterday. it was the worth start that we've seen since 2016 for the three major averages taking a loolook this morning, w futures up about 54 points so not in the red. and s&p 500 up by about 7 and then the nasdaq up by close to 20 points. there is a healthy dose of fear to start off the year. the vix yesterday up by 20%. that was also something to watch this morning sitting just below 27 and the treasury market, you will see that it looks like the ten year note is yielding

0.933%, but again, guys, yesterday morning when we came in, futures were in positive territory, it wasn't until actual trading started taking place that you saw that big decline. >> straight down could see it wasn't going to hold on to the gains just watched it, 200, 300, 400, 500. everybody has an opinion as we know and the stock market is a err rorschach test but in my view, it had to do with it is not going to be divided government, that is what it looked like to me you keep hearing more and more about how in the last two weeks with whether it is president and the antics or whatever it is, but you saw the betting sites, some of the polls, and the complacency of divided government turned into holy -- what word can i use? holy shih tzu-like the dog and i have no idea

now draft kinkgs, i have not bet yet, but they are even weighing in >> good to hear. >> honestly i don't think that anybody knows about georgia. i don't think anybody knows who shows up today i checked the weather. and it is 60 and sunny in augusta. i don't know about the rest of the state. >> big turnout probably. but you also had like 38% of the registered voters who had already voted before yesterday so there was a big early vote in all of this. >> and we know who that is, democrats. that is usually democrats. >> that's right. >> and then you have the fourth revision of the second quarter -- i don't know. they really do call some early late and late early. so hard to figure. hard to figure nationally. and now we're micro analyzing

georgia. i say we'll see. anybody want too gue guess on wi will be obvious? >> you mean tonight, tomorrow? >> no, later this week by the end of the week, don't you think in. >>-like the presidential yeah >> it might be very well might be we'll be micro analyzing it the next three hours if not longer depending on the outcome but also some other news this morning, the new york stock exchange saying that it no longer plans to delist three chinese telecom giants the exchange initially planned to drop the listings for china telecom, also china mobile and china unicom, all that to comply with an executive order that president trump signed in november now, the white house alleged those companies aid the chinese military the new york stock exchange said it had dropped its plan to delist the stocks after

consulting with regulatory authorities in connect with the office of foreign asset controls so it will be very interesting to see and by the way, we're having this conversation this morning about china, tiktok has been on the list, are they going to get -- so i think that there is a lot of things that will move around over the next couple months in part because of maybe who is in the white house. >> and what else did we learn yesterday? remember w it's hard, it's hard, health care is hard to solve. health care. i don't care who you are i don't care if uyou are warren buffett, or jeff -- i just hope that it is not that we lost a couple million dollars here, we better shut this down. >> i think it was that all three of the companies were kind of

doing some of their own things >> a neat story. >> and it is a tapeworm that is really tough to shut down when you are talking about more than 17% of gchltsdp versus 5% in 190 jam jamie dimon, warren buffett, jeff bezezos saying we can't fix this problem >> yeah, it was going to be our problems are over. >> i talked to some people about this on the phone yesterday to try to understand what happened. and i think becky is right, i don't think that it was that they thshut it down entirely. i think that in many ways it was designed -- i don't want to say it was designed to fail, but it was designed in a challenging way which was that the big lesson of this was insurance is local. health systems are local and trying to do it on a national basis with employees in all different types of

localities with all kinds of differe different systems may be too hard i think a lot of the lessons that were learned are being implemented at jpmorgan in areas like new york, columbus, ohio for example. i think that you are seeing what amazon is doing remarkably actually in seattle. their program there for employees which also include warehouse workers, not just executive employees. so i think that there are some things that will come out of this, but obviously not the big headlines that had been expected three years ago when this began. >> amazon has rolled out a lot of different anybody differences over the last year or two. i was looking at a story that laid out some of the things, the idea of-oamazon health, and i tk they have thoughts of selling that to other companies too. so i don't think that we'll see the end of any of these

companies trying to get at health care costs. just a question of how you do that and you're right, it is local. you have to do it on a local basis. but health care costs are not going down they rise faster than inflation. it is a huge, huge issue more than 17% of gdp and we have to continue to try to find a way to tackle this >> let's see what kind of makeup congress will have for all these thing things we mentioned georgians will head to the polls to vote in the state's special senate election ylan mui is joining us with a look behind the races. >> hopefully we'll know by midnight >> so many georgia songs ray charles we could play later. a very good state for songs. >> it is and that is one thing that georgia has going for it for

sure as well as the peaches clearly this race is so important because it is going to determine whether or not democrats have any hope of enacting their address jen today a ed agenda so take a look at the money the candidates have raised themselves and in that case, the democrats are outpacing republicans. together ossoff and warnock have brought in $263 million compared to $181 million for perdue and loeffler but it is a very different set of businesses that are driving those numbers. the democrats have said that they will not take any money from corporate pacs, but tech industry workers have donated hundreds of thousands of dollars to their campaigns apple, michael, facebook and amazon, alphabet alone responsible for $1.7 million in donations. it is the top company associated with contributions to both democrats.

for republicans, employees at delta and home depot are two of the major companies where workers are donating to senator david perdue, not surprising given the way their headquarters are, and then enter continental exchange run by senator loeffler's husband, they are backing her campaign strongly as well but the outside money that is being spent on this company dwarfs the amount the candidates have raised themselves and most of that cash is being deployed on behalf of the republicans back over to you >> trying to keep all that straight so overall, you said there is more money, 263 versus 181 favoring democrats, but then at the end you say the bulk of the money outside has gone republicans. but that was just to make up the 183 that was still way below the -- is that really -- i have to read that again is that really that much >> yeah, it really is that much.

and i had it go over the numbers several times myself because they are just so large >> a quarter billion if i do a quarter, i can use a b, can't i >> that's right. and if you look at just the outside spending, the ad spending over just the past two months, it is almost $500 million, half a billion dollars if you will. in just two months and part of that is because the level of interest in both of these races, at this point in the game, the money has nowhere else to go but into tv ads you have already built your ground game, you have your door knockers, your phone banks set up so all of that money is being funneled into tv ads and that is what they are feeling, that last ditch effort to try to get voters out to the polls. this is in the not going to be determined by the independent

voter, it is about which party can get their side out to the ballot box >> and big trump event last night. i didn't see it, i read some of the postmortem, whatever you want to call it, a lot about the presidential election and you wonder how that plays into it. so if that is so rigged, you hope that republicans that feel a lot of a faffinity toward president trump saying we wnts show if it is all rigged anyway. i've heard every ad on tv down there is -- i think we need to look at netflix and peacock, i think that it spiked i think the subscribes descriptions spiked because they are like i can't do that and sometimes they run the same one over and over again in the same commercial break. it must be just torture for

about those poor georgians down there. but that is democracy they say >> getting back to more people watching peacock >> i did mention peacock net flikz a netflix and peacock. i won't mention that mickey mouse operation. thank you, elon. and when we return, vix spiking, we'll talk about the new investor fears and how to position your portfolio amidst all of it. and as we head to a break, check out the price of bitcoin after what has been now a wild week. we're standing at $31,506.

stocks started off the new year with a selloff, among the big concerns, fears of higher taxes if democrats take the senate virus spikes and uk now on total lockdown and iran getting aggressive and enriching more uranium and joining us to discuss the latest is yjulian emanuel and megan mo megan hornoman

good morning to you both julian, let me start here. what is on the table today in terms of the issues that i just mentioned are not that different than they were last week uk lockdown, yes, but i think that we saw this coming there or elsewhere. why has there been this turn in sentiment or do you think that this is just a one or two day blip >> it is unclear whether this is a true turn of sentiment, but if you think about it, coming to the end of the year, essentially institutional investors very fully positioned, very low cash levels, the retail public has been a very consistent buyer post the election. and so really when you combine it, both sentiment and valuations were at a high and often when the year turns, you do see a bit of i guess change of pace might be the best way to describe it. so really when you think about it, it is valuation and

sentiment meeting reasons for a potential pe pullback and actuam here it would be a healthy thing. it is a wonder that given all the potential catalysts that the market has held it as well as it has. >> and does that mean that you are holding cash right now, are you waiting for this pullback? and if everybody is waiting for a pullback, it means the pullback will never happen >> for us, it basically means a more balanced point of view. a little bit of cash is absolutely fine in this environment. the way that we think about it, if you look at the last three years, you've had massive rallies and then gut wrenching selloffs and what you have to ask yourself, am i prepared to be a buyer down 10%, 15% from here which has happened numerous times. if the answer is no, you do need to raise a little cash and if

the answer is yes, just ride out the volatility >> megan, are you waiting for a pullback >> absolutely. we came into this year holding a little overweight cash position. all of the events that we saw in november and december and the rally that we saw was really pricing in all of that good news but the question is now going into the next couple months, what is really the catalyst that will drive it significantly higher from here and some of the things that we see are actually horrific to the market aside from the obvious rise in coronavirus cases, the fact that we have the georgia runoff today, but also if you look being at seasonality, in three of the past four years where we've had the s&p 500 up more than 15% for the year, three of those januarys ended up being negative the only one that unit with a negative was 2018 and we all know what happened at the end of that january

and we think economic data is set up to disappoint in the first quarter. typically economists come into the year being more optimistic, you see increases in their economic forecasts but if you look at something like the citigroup economic surprise index, you can see that steadily come down in january, february and march so the fact of the matter -- >> so megan, give me your upside and downside from here at this moment >> so downside i think in the next six weeks or so, i think that you could see 5%, 10% correction long term still very optimistic about the global committee market >> but doesn't what you just say suggest that actually it will be very hard to have a real pullback right now i mean, i recognize what a pullback means and how it works,

but if everybody is anticipating one and if everybody is planning buy on it, it won't look like much of a pullback at all. >> if you have the economic situation that becomes much administer uncertain, that does tend to lead to people to hold off until they get clarity but if you get into the second half of next year and 2022, we're setting up for a very strong global economic resurgence remember we'll have much more full distribution of the vaccination by then and that is coupled with the fiscal policy we've seen and the monetary stimulus that you have seen globally so that should set up for a good environment going into 2022. but this economic environment and the rising covid cases and reasoning al lockdowns will handle per sentiment in the near term >> okay. we have to leave the conversation there thank you both still to come this morning,

airbnb was one of 2020's hot ipos, jumping by 113% just are on the first day of trading. more than 20% analysts initiated coverage of that stock and we'll show you where they stand next right now though as we head to a break, let's take a look at s e biggest plea market gainer in the s&p 500 micron is leading the way up 3% 6% remarket gainers i the s&p 500. micron is leading the way up 3% 6% for skin that never holds you back don't settle for silver

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coverage of the home sharing site to start the year, nine buys, 15 holds and two sells that stock you remember rocketed 113% higher just on its first day of trading back on december 10th it fell more than 5% in yesterday's sessioning and is now sitting at about 18% below the high you can see real time it is up about 1% and shares of foxconn higher today, they signed a deal with chinese electric carmaker to help produce its first vehicle which is an suv, expected by the first quarter of 2022. this move marks a big push by foxconn into auto manufacturing as it tries to diversify beyond its consumer electronic products business coming up, we will talk about china's crackdown on big tech companies and why jack ma hasn't been seen publicly in two months

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♪ georgia georgia welcome back to "squawk box. music makes sense today given the big runoff in georgia and of course we'll await the outcome of that runoff we don't know whether we'll hear something later tonight, tomorrow, the day after, but in the meantime, let's show you u.s. equity futures at this hour, right now the dow looks like it would open about 61 points higher, nasdaq about 27 and s&p 500 up about 10 points higher the chinese government cracking down on big tech

companies. and ali alibaba founder jack ma hasn't been seen in public for two months so that leads to questions about where he went and why he is silent joining us now is lee land miller, obviously just speculation, but it does can after clearly heightened tensions between jack ma, alibaba and chinese regulators >> yeah, the question right now is whether jack is managing a very low profile for his own good or whether he has been brought into a dark room and is having new terms dictated to him. nobody will know until the government comes out with a statement. but i think right now jack is just sort of miuttering to himself oops but the alibaba ecosystemle has been antagonizing state banks and state-run financial system for years and years. and so it is not all together

surprising that he has come under more pressure right now and he has a target on his back now that he is politically vulnerable >> you're not talking about the retail side of alibaba, you are talking about the financial side, what they have been doing. and why don't you explain that a little bit to people, why it is such a threat to the chinese banking system >> this is a point that i've made years ago when alibaba -- gefs xl guest commentator in 2014, everybody was talking about how spaectacular this company is. but it is actually two company, it is a retail firm which is a chinese national champion and i think that is what people think about most of the time but it is also a giant financial firm and it has been innovating behind the scenes for years. these are systems that have been beating the tar out of the state banking system and alibaba for a while was

allowed through its mutual fund to offer these high rates where the state banking system couldn't and over time, you can see that there has been migration from the state banks over to the alibaba system so jack has an enormous number of people who really dislike him inside the chinese banking system and this is a problem that happens, beijing would step in and they would regulate alibaba or force him to bring the rates down but this has been a tension for years. so this is jack finding himself vulnerable and having a lot of enemies on the inside. >> and for the chinese population, it is a good thing it has helped so many people in china who wouldn't have been able to get loans otherwise. so i have a hard time thinking that that in itself has been the biggest problem or why the com new mi communist party might crack down

on him but some of the things he'sed is are pretty antagonistic. >> right and one rule is you don't antagonize the chinese communist party and expect good things to happen but what alibaba has been doing is good for chinese consumers and households and the chinese economy. keep in mind the vested interests affected you have the technocrats, bureaucrats, the bankers who have watched their thiefdom become less and less important over time. so even if it is good for china at large, this is a real question mark to where the banking system falls in this new world order. you know, if jack had his way, he would sweep the banking system aside and replace it. so it may be good for china, but it is not good for a lot of part it i people who are at the top of the power chain which means that jack better tread carefully at this point. >> it has raised a lot of questions about what it means for international companies

trying to do business in china, whether they be tech he companies or something else. and we also have nyc announcing that it won't move forward with its plans to delist those three chinese companies. you have to think that it has more to do with who will be in the oval office come january 20th a biden administration versus a trump administration what does the setup for just in terms of the u.s. relationship with china >> i don't think biden particularly wants to touch this issue, but this is about inattention by the trump team. they put a rule in place and then they went off and paid no attention. you know, certain agencies like treasury behind the scenes hoping to weaken this and that is what they did so if you put out a bunch of rules and you don't follow through, you will have a lot of questions about how they should be interpreted and there is no little clarity

on what the executive orders called for and what executive orders might be in the pipeline that nyse and a bunch of other financial entities basically said we don't understand what is going on and they got softs backing behind the scenes not to implement them, and so here you are. everything is sort of falling apart in terms of some of the latest trump moves in the last days of the trump administration >> so bring that back to what investors might be looking for is this a situation where manufacturing companies, anybody who is making things that they are selling either from china or two china, how is this going to play out do you have any ideas in. >> i think that the biden administration is going to come in with severe restraintses in terms of what they can do. they want to use what political chips they have on domestic issues, they know that bide has had years and years of being called weak on china when he was vice president and so they are not going to be able to do any heavy lifting on

the china side primarily in the early days so from this standpoint, biden wants to -- he won't be able to pull anything back, he doesn't want to do a whole lot and so you will be in a glide path at least until he gets most of his staff in. but this really has to play out. the chai 23450inese will try toa honeymoon period with the biden administration the question is who are the policymakers in charge of chinese policy for the biden administration and will they have authority within his recommend in order to push back. congress will certainly be at their backs, but these are china issues that i think that biden would like to ignore for as long as possible in his first six months >> there are a lot of china hawks in congress that would probably make that pretty difficult task what should we be watching, what are the key events

>> a lot has to do with covid. that is issue number one but you're right on congress, you will have some very fired up republicans and also democrats who are quite animated on the china issue. there is a bipartisan agreement that china needs to be dealt with in a rather tough fashion so i think that you will have pressure from congress which is why i think biden wants nothing to do with it. he will want to avoid the issue as much as possible. it will become harder and harder as the beijing olympics comes into sight a year and a half from now there will be a lot of push domestically and internationally to boycott the olympics. and this is going to become an extremely hot topic not yet but later this year. and so i think he has a pass for a few months, but later this yeerk i thi year i think that it will get tougher on the environment in china again. >> i can't believe the olympics

in beijing are only a year and a half or so away. lela leland, good to talk to you. >> my pleasure we have to hope the olympics happen and then toek suppookyo supposes summer meantime, futures indicated slightly higher after yesterday's selloff. still to come, latest on the vaccine rollout, we'll talk to a member of president-elect biden's covid advisory board you can watch or listen to us live on the cnbc app we're carvana, the company who invented car vending machines and buying a car 100% online.

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coming up, a more contagious strain of coronavirus now made its way to new york. we'll talk about what it means for hospitals and the efforts of the vaccine distribution >> don't forget to subscribe to our podcast. you will get interviews, eniginal content, and behind the sces access. look for us on apple podcast or your favorite podcast app and subscribe to squawk pod today. use a single hr software? nope.

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welcome back additional news on the covid front. in the uk, boris johnson imposed a national lockdown on england to try to curb the spread of the new variant. >> our scientists have confirmed this new variant is between 50% and 70% more transmissible that means that you are much, much more are likely to catch the virus and to pass it on. in england, we must therefore go into a national lockdown which is tough enough to contain this variant. >> people in the uk can only leave their homes for essentials for work if they can't do it from home and for exercise they can also leave home to go

to the doctor or escape domestic abuse. most schools will move to remote learning including universities. here in the united states, the fda telling health officials not to change covid vaccine dosing schedules. people do need two full doses. some officials had suggested cutting doses in half or just giving one dose in an attempt to try to stretch supply. and the first case of the new covid variant was confirmed in new york state. the patient is a 60-year-old man from saratoga county who had no travel history that variant has also been found in california, florida and colorado an cr governor wcuomo plans to impos a law that would impose penalties for those who try to skip ahead it would add criminal penalties to that action the governor also pushed for hospitals to administer the

shots faster threatened fines for hospitals who don't use their allocated doses by the end of this week. joining us now is dr. kavita patel, a primary care physician also a brookings institution fellow and nbc news contributor. she formerly served in the obama administration dr. patel, if you were to try to chart this out, the new strain now that we know california, maybe some of the epidemic proportions we're seeing in southern california could be attributed to this strain, i don't know whether that is your opinion or not, but it is also in new york, what does it mean for both the vaccine rollouts we're trying and for whether we need additional measures to try to, i don't know, mandate social distancing again, lockdown >> yeah, joe, good morning those are all the right questions. we know that the variant that is under study in the uk and also

by the way some of the variants that are being picked up in about 20 other countries around the globe are probably in the united states. that is the global pattern just to kind of put it in a little bit of context however, i know it is incredibly important to stress that this is more thas more transmissible just as prime minister johnson said which means it can translate to more infections, more hospitalizations and more deaths unfortunately. it is key to remember that the vaccines currently available t moderna and pfizer vaccines are effective against this mutation. so i do feel like in terms of where this is, we know that this is certainly a big part of what scientists are looking at in united states labs unfortunately we only jebtically sample about less than a percent of our pcr specimens hopefully now we're on the lookout for this and do more of that and translates to really putting

the pressure not just on vaccine distribution and rollout but simultaneously, the same public health departments responsible for the vaccine rollout are the very same public health departments that are trying to stress the social distancing measures i'm not fan of lockdowns i think that the united states is fatigued in general, and i think lockdowns will only do what's happening in the uk and other parts where you are seeing protests that could actually make things worse. i do believe however that we need to continue to take a close look and be vigilant i argue this in california i still see shots of people all over on social media who are in parties, who are out and about we do need to have a little more enforcement for some of the current measures we know working, no household gatherings no parties none of these large events that people are still having. joe. we have to do both at the same time with incredibly strapped resources. >> all right unless you are on cnn or how we

know all these things. but we do anecdotal evidence that some emergency rooms are overflowing so people have been put into halls people have been transplanted to different hospitals where they are accommodated at this point, do you know whether anyone actually had been turned away that needs an icu or needs, really, serious medical attention? and if we're here without the new strain being prevalent, should we assume that if it does become prevalent that we will be overwhelmed in some of these areas? >> yeah, that's -- and i think you are hitting on exactly the right point. that this is going to come down to, kind of, looking at places region to region so let's talk about probably one of the most important regions right now, southern california it is where i trained at ucla. and joe, right now they are at 120% icu capacity. never been heard of before

people who need icu level care are not necessarily being turned away but what they are doing, they literally have balances stacked up with a 5-8 hour wait, joe, to get out of the balance so people are getting triaged, as we call it. but what it looks like right now is nothing short of what you would see in a time of war or time of disaster, where people are truly just getting triaged and what that means is if you need icu level care because you had a heart attack, it is probably going to be delayed and that will result to worse outcomes we actually did see trends like this in texas recently and we've also seen it in new york if you will recall as you know in the beginning of the pandemic so it is going to be incredibly regionel and local you have got about two-thirds of the country where you are seeing cases decline. and in parts of the country where it is accelerating -- and maybe it is due to this new variant. in those parts of the country you are seeing cases rising over

a seven day average in double figures. so we're certainly not flattening the curve evenly across the country and once again speaks to how in these regions, public health departments are literally on fumes and they need help to get the vaccines out, which is going to be one of several ways to get out of this pandemic >> right i don't know you can't decide, do we put all of our resources in trying to accommodate the people that are already sick or would that take away from the vaccine rollout? they are both essential, yet some of the same people, i guess part of the structure, public health infrastructure would be involved trying to do both at the same time. which seems difficult. >> yeah. and you have heard scott batali talk about and have he's been talking about really engaging retail pharmacies even more. i would add we've got lot of

doctors, community-based physicians whose practices are decreased in volume or shuttered and they have entire staff who understand how to do vaccine distribution we need to moeblsz the people that are trained and available and just crowd source. i hate to sea it in a regulated, refined manner but we can do it we can get to that goal of a hundred million shots in a hundred days we need to see quick actions in a very narrow window to get that done >> dr. patel there's been a lot of confusing signs coming from the states too. just if you take new york as an example. governor cuomo is talking about really going after anybody who is giving shots to somebody who doesn't confirm specifically with the healthcare workers and people over age 75 but then at the same time he's saying to hospitals if you don't get these doses out we're going to fine you too. it seems like there is a lot of roles set up to make it even more complicated than it needs to be. >> yeah, becky

look i'm a big believer in economic incentives when they are appropriate. i can tell you right now, friends of mine who are pharmacists in some of these pharmacies that are kind of now getting into the media because they are giving shots to people who are just showing up. i can tell you what they are doing is struggling with the fact that when you break open a vial you have to use the dose within a time window and i don't want to see any dose wasted. at the end of the day after people who had their appointments and shown up and healthcare workers and priority groups, i'm okay with making surely we don't waste a dose so in terms of penalties and fine, i don't want to send the wrong signal where you actually see people throwing away what might be left in the vial. in terms of hospitals, i think this has been a unfortunate situation where the same hospitals we just talked about who are trying to take patients off balances eight hours after an ambulance shows up, also are expected to set up kind of community-based vaccine makes the clinics. again, i will stress that this

is where we have the technology. we have the no e ho. we need to be able to help augment community hospitals w h these frooerzs and capacity to do these broad based vaccinations i know new york is being held as an example and other governors are looking at it. i would highly encourage them doing what you can to drawing down the national guard. do what you account to get resources to the place and make the communication clear. i think a lot of this is coming from the fact that if to you go to a website it is hard to tell if your group is ready, and if you are on social media you have got friends in louisiana or texas like i do whose parents are already getting vaccinated because they have moved through phase one a and they are moving on so it is very confusing and communication is essential in a timely fashion as well ed >> more communication for sure dr. patel. thank you. when we come back. georgia senate race in focus, we're going the talk about the

expectations for control of congress with former senators judd greg and heidi hide camp. straight had ♪ ♪ ♪ ♪ ♪ for every trip you've been dreaming of, expedia has millions of flexible booking options. because the best trip is wherever we go together. ♪

strox looking to bounce back after kicking off with a steep selloff. futures are higher this morning under the opening bell on wall

street and it is decision day in georgia. voters will heading to the polls to decide two key senate races that could impact your money what you can expect, as the second hour of "squawk box" begins right now ♪ >> good morning. take a look at u.s. equity futures on this morning as we -- there is a vote taking place in georgia, and we will see what the outcome of that is perhaps over the next several days we'll see how long it takes. in the meantime the dow looks open up about 16 points higher nasdaq up about 2 points and other headlines couple of

points the yooupgd now under lockheed b. prime minister trying to curb the spread of a new more infectious variant of the coronavirus. the exchange not to delist china telecom, china mobile and china unicome came after consultati cn and j.p. morgan saying the crypto currency could go as high as --. interesting the jpm is putting out $146,000 target. i've heard people say the winklevoss twins have talked about half a million dollars

a million dollars of bit coin. i don't know joe? >> i've seen some -- i've seen some really funny things there i've seen some funny things where people argue about it and say look there can only be 21 million. but why not just cut it into the bunch of fractions then there is no supply problem. you would have as much as you want and they say it with a straight face. and i've seen a lot of the hod lers list a lot of comments from people just to say, you know, math is hard it is hard work. it is hard to understand if you believe that, you know, the global financial system is really large and if you just do a small percentage that if it were to end up in some type of digital currency you are in the trillions and we're nowhere near there now but we're getting there. we're more in the half trillion at this point on bit coin. there is a stock to floe andrew they talked about a year and a half ago

the amount of time it takes to mine something a measure of how difficult it is to produce something and with the most recent halving in bit coin we saw last year it now could have a similar strong to floe of gold of 50 to 60 which would get to you that 140,000 number. >> 146 -- if 146 is the top, if that is the best it could ever be and i don't know if they are estimating 146,000 at 12 months or 12 years. >> it has every couple of years anyway so then the stock to flow doubles again. so anyway, it is all -- you know, we're way down in the weeds now. and you know who can take us even into the weeds about the market this santoli character a sharp selloff on wall street to kickoff 2021. i want to talk to you at the end of this mike >> yeah. >> i do. because i'm trying to figure out the consensus for the year and it makes me uncomfortable that everyone sort of feels the same

way, that we're going to be up mid to high single digits. has anyone said we're going to be down for this year after we already sort of got the reopening trade? paid forward and we're going to get stimulus so we're just guaranteed to go higher it just makes me uncan recall th uncomfortable that's so prevalent. >> right it is also not unusual at the beginning of a year to have everybody clustered in exactly that spot. so i don't know it is necessarily two bullish, two bearish or just the way it is that everybody kind of looks fur that high single digit or 10% gain, which almost never happens in a calendar year look at the one year of the s&p 500. after yesterday's little shakeout now it is hard to say if it was a change of character. not yet a change of trend but really just kept the index right where its been for a month december 4 we close at 3699.

yesterday we close at 3700 are we stalling? who knows. but lot of stuff going into the phase has come off a little bit. come off the boil. wrestle in the world things are still going on look at the six month after the s&p 500 against the emerging markets tetf. the emerging markets their own issues going on. so there is this refederationry expectation that you are going to have a quickening of the world economy. dollar been declining. animating what's happening i don't know if there is a lagging indicate for it it is tell i don't go thank you other stuff has to stall or other to catch our a phase with unstable global markets and have a give back but in terms of the consensus. i don't think there is much to take away except a lot of people are extrapolating what we got end of last year

got up 13% or something in the last couple of months and people felt like well that told us the market is sniffing out something good we'll see if there are gut checks along the way usually have. >> we reopen, selloff 10, 15% and then end higher, up mid to high single digits that could be. do you know who is on later today? another mike we have mike wilson on coming up in a half hour or so and i think he's still bullish even though he admitted that the risk/reward has we deerted a little bit but he dates the bull market it is much younger in his view >> and by the way the market acted exactly as it did in the 2009 in terms of the pace of gains.

the other thing strategist math says valuations are high positions are aggressive at this point. people are in. so you have to have some kind of account for that as you figure what can happen as earnings come back and things like that. so it is not surprising to me that people feel like more volatility, more selectivity, but yet still an upside bias because we have that early cycle recovery dynamic. >> any requests? georgia songs? we just did "the devil went down to georgia." and we almost played it over one of the two presidential types that were down there in -- and if we did it on the -- if we did it for one or the other inadvertently, i mean it would hit the fan like you can't believe. >> -- devil lost if that song so. >> he did. the other kid was a better fiddler. and he wasn't very gracious about it the devil. >> yeah. >> he really wanted that person's soul. anyway we're going keep doing this.

i think we got some more coming up andrew >> we do, joe. we got a lot more coming up. georgia on the minds of investors and many around the country. a look at the -- we're going talk about what it can mean for your portfolio. and shares of chinese telecom giants rallying in hong kong after the nyc saying it is no longer going to delist e them. a live report on that move in a moment when "squawk box" returns after this

question mark back everybody. -- hyde heitkamp. former u.s. senator and cnbc contributor. and jeff greg. for those who don't know and i don't know who that might be heidi of course is a democrat. and judd of course a republican. your take i think is a interesting. republicans and democrats have both been interested about this race but as the republican you think the democrats are going to win. why? >> well first off, i don't think the importance of this race can be overstated because as a practical matter, the entire government becomes controlled by democratic party all government

moves left under any circumstances but it is going to lurch radically left in my opinion. why do i think our candidates are in trouble two reasons. one, i think the democratic base is very motivated. and it is going to turn out in very large numbers and two, donald trump has thrown the republican party in disarray and disillusionment and confusion. and the ironic situation here is that none of these team are going to -- with donald trump. but he's become the issue in the campaign and so foolish this has been allowed to happen but of course with this president everything is about me and unfortunately these two candidates who are quality candidates, republican side are being lost in this dialogue that trump has created about himself. especially with the call of the secretary of state heidi, what do you think >> well it is kind of interesting the governor would say he thinks the democrats are going to win i think at this point the edge

is to the republicans. this is still a republican state. the senate race has become nationalized but i would not underestimate the kind of organization the democratic party has done in georgia and this is going a turnout election ao i think it is a toss up again lets not forget the dynamics georgia is still a republican state. certainly leaning purple but a lot of suburban voters across the country went out and they voted against the president because they didn't like his behavior and then turned around and voted for a republican senator you take iowa. i could go across the country and show where we thought we were going to win in 20 20 and w didn't i'm cautiously optimistic but i think this is definitely a toss up >> i love -- i like heidi's view. >> let's go back -- yeah not the take i would have

expected from either though you both make the point of voter turnout. >> -- tickets like a race like this this is going to be a wilbur take all event people don't go into a special election and vote and split their ticket >> i agree i think it is going to be either both democrats or both republicans. i don't think this is going to split. >> in terms of what this means though, what it means for the senate to be either run by the democrats or the republicans, lay out, judd why you are so concerned about that >> well because the issue is the filibuster obviously there are a large number of democrats including chuck schumer who have said they are willing to repeal the filibuster policy. if to you that the majority can override the miernt. and the senate was built on the idea the minority can have a voice and it would be a place

the majority could not overwhelm the minority first might be they make the district of columbia a state in order to create two permanent democratic seats in the senate and a permanent majority and lot of bad blood occur whence you don't have bipartisan participation and if you take away the filibuster, basically on policy you basically aren't going to have any bipartisanship anywhere in the government >> becky, i think it is important to note that when you look at what some of my colleagues former colleagues, said, he's not going vote to eliminate the filibuster so i think the senate with a democratic majority 50/50 that puts the moderates in control and puts an incredible amount of power among people like lisa murkowski and joe manchin and people that i used to spend a

lot of time with so i ho v a lot of hope that we're going to see some really good and probably more moderate policies coming out of the senate i think the balance is gonna have to be done with the house, where you see a tighter minority there, majority there for the democrats putting many maybe more of the progressive element in a better position to drive policy >> we have a couple of real seasoned pros here and i just want everyone just to take all this with a grain of salt here. so you have judd gregg saying oh yeah world is going to end and it looks like the democrats are going to win so just so you know that, georgia voters that's what happened and then heidi comes on and says, you know, i'm pretty sure the republicans are going to win. so don't go out or anything, democrats and vote since -- both of you are playing it. heidi you are trying to get the democrats out. judd you are scaring the crap out of o all the republicans you are both just trying to get the voter turnout up for your

own horse in the race. am i wrong >> you are wrong, at least in my case because i wouldn't do something like that joe. you know -- >> -- listen to me or the governor >> but more importantly joe. >> go ahead. >> -- this point this is not your average every day election. >> no. >> this is fundamentally changed the government. >> tell me about it. tell me about it >> so it's not being overly alarmist to say. >> i agree. >> -- democratic party controls the senate, the house and the presidency this country, all government moves left this country going to lurj left. you are going to have policies from bernie sanders basically being debated and poernl passed and it will fundamentally change us as a government not for two years but for probably a decade. and when you talk about things like the deficit, who the heck

is going to address the deficit? nobody >> preacher meet choir yeah i got you on that one i'm with you sorry heidi. you okay with that heidi you okay with bernie sanders running the country. >> -- always interesting when obama took over we were in the a great recession now a great pandemic and everybody screaming at debt and deficit. no one cared when we gave 1.5 trillion dollars away on a tax bill did very little to encourage business growth. so let's just get real about this we need to do what we need to do. and i believe that the spending that we're going to see, the big spending is going to be in infrastructure and i think that is going to grow the economy that is an important deficit issue because if you give your children failed infrastructure

that is just another way to pass on debt. >> -- debt to deficit structure over a 100%. you have stepped into greek-like territory and that is where this is going and the piper won't be paid this year, next year or the following. but at some point this country is going to face up to the fact that we've printed a heck of a lot more money and run a heck of a lot more debt than our economy can support. might be 2025, 2026. who knows when it is going to come and then we have a huge economic problem and nobody is talking about it and nobody is certainly going to talk about it if the whole government is controlled by one party and it is a liberal party. >> i would say this. >> heidi let me just ask you -- >> -- democrats debt/deficit the last twenty years against the republicans, and i think i win. >> heidi let me just ask you, in terms of the filibuster. i know you said joe manchin and others won't vote for it but would it be a problem if somehow it gets passed

if somehow the filibuster goes away >> well i'm not a fan of eliminating filibuster as a matter of fact a signed a letter with many of my democratic colleagues saying we would not do that. what you are really going to see is exactly what the republicans did which is using the reconciliation process that the governor as the former budget expert understands very well, using that process to drive some of the policy, especially in the tax area so if the real discussion here should be on what can happen in reconciliation in a 50/50 congress >> well that is a very good point. you can do tax reform. and if you raise enough taxes, you can spend a lot of money under it in regular silgs. but i do think that when push comes to shove the heat that would be on manchin to vote to

repeal the filibuster would be overwhelming what's at play is whether or not the district of columbia become a state. that is what's at play here really and there is a big move to make the district of columbia a state so you can get two more senators and puerto rico for that matter. that's really what's at play on the filibuster issue >> senator, why are you so convinced that is the issue? i understand that -- but don't you think that there is enough senators, i know you think there will be pressure on people but that the bigger issue is going to be over taxes and what happens to the rest of the country? it is not going to be these structural issues. and mind you by the way when it comes to structural issues, i don't think you had a problem, i don't think, when the supreme court clearly turned more conservative that. will have implications obviously for years if not decades, right? >> yeah but you got to remember

this -- a whole -- a huge difference between the appointment process being outside the filibuster rule, which was started of course by harry reed and the policy been outside the filibuster rule. once you move policy to a 51 vote majority you are essentially creating a parliamentary form of government when you only have one party in charge of all of the houses and the presidency and that changes the way a government moves it moves in leaps and bounds to whatever position the party that has control of the government has. and of course madison set our government up to be incremental. and the key to incrementalism in our government is compromise but on a bipartisan basis. and the only place that gets forced is in the senate. so if you lose the senate as a force forcompromise and bipartisanship which is exactly what will happen if you change

the rule, then --. >> if i can add. the problem with filibuster and the reason why you see it is bad faith. so if the immediate reaction to a 50/50 senate is we aren't going to work with anyone e we're just not going to work with the p incoming president. that is going to drive pressure top filibuster what. 's really important is for everybody to act in good faith like they did when my great friend ken conrad and the governor worked very closely together on deficit to try and make this government work. but i've been saying a long time if i'm joe biden, i don't try and make deals in washington d.c. i go out of washington, d.c. to make deals and -- pressure from the outside in so good faith would be a huge part of keeping the filibuster off the agenda >> yeah, i'll hold my breathe and hope that everyone behaves senators, thanks for both o your time great to see you all right. great. wonder what the temperature was where heidi is

that's for another discussion. i always like to know what's happening. north dakota snow, fargo. anyway first up cnbc interview. a plan to transform the industry as start-up auto makers and tech firms enter the ever growing ev market that interview is next coming right back. it was the age of wisdom... ♪ ooh la la by cherie the moxie showerhead speaker. only from kohler.

welcome back to "squawk box. new year bringing a new ceo. all about adapting to the increasingly high-tech auto market >> let's bring in the ceo of magna international. joining us from the company's headquarters in troy e michigan. i'm secures from your perspective. for decades, and you have been there. you have worked with auto makers around the world but not only supplying components and parts but as as they are building new models what do you make of this boom in start-ups and niche auto makers bringing new models to the

markets? >> good morning. and to start off, happy new year i've been in the auto industry for just over half my life and over 21 years in magna grew up in magna seen the out industry progress, and like you said we are right in the middle of transformation of an industry the way we design and use cars and mobility i think the is going to drastically change over the decade or two. and looking at different variants and how you actually address the situational experience demanded by the consumers. we are going to see a significant difference going forward. i think a company like magna and that is why we're so excited about it we look at the portfolio we have the balance sheet that we have and to top it all we have the

full manufacturing and engineering capable. so we're really the go-to supplier for the auto makers as we see today >> swamy you know there is speculation that magna international could be one of the companies that would work with apple. as apple is reportedly looking to develop an electric autonomous vehicles. let me tut put you on the spot have you had conversations with tim cooke or any executives at apple saying let's work towards building at least a prototype vehicle? >> like you said there are so many variants. so many new entrants even established oems looking at variants

>> one of those companies is fisker you are going to help them develop their first model. the ocean, an electric vehicle when you look at where fisker is at they have the capital to bring this to market and you are helping them with that how concerned as all of these new entries come into the electric vehicle that it has got to be hit or a miss, and if it is a miss it is not good for the future of a particular automaker. >> like you said, auto industry is really a complex high-tech industry and there is a lot more that goes on behind the scenes to be able to build a car and bring it in scale to the consumers. we looked at the plan that fisker has and the teams are working well and hitting milestones forwards the q 4 of '22. with magna's in-depth experience and manufacturing experience we are able to bring to table the

program management, the engineering experience, the integration. we build over 3.7 million vehicles in our facility over 30 models so this is the scale and production experience we're bringing at value and we are looking forward to the success. >> quick, swamy. we're up against a break here. but you have got the facility you mentioned in austria are you looking to build another final assembly plant here in north america in the united states >> we have a facility in gratis, we also have a joint venture in china. between the two facilities production capacity somewhere between 350 to 400,000 units a year if there is a case and there is interest, definitely yes in north america. >> swamy kotagiri. ceo of magna international as he mentioned andrew thank you swamy for joining us this morning andrew they are in the sweet spot they are the company that

start-ups, niche out makes and bleshd makers are going to do saying look we're working in this area. starting with evs, they are a company to watch and they have had a heck of a year with the stock close to a 52-week high. >> phil, thank you for bringing us that interview. and thank you for asking that question about apple we will see what happens in the meantime over to becky. >> thanks andrew still to come on "squawk box" this morning, morgue stanley's chief investment officer mike wilson will join us to talk about what to expect in 2021 and guggenheim downgrading coke to neutral from buy. a citing the pace of the covid recovery in the first half of 2021. we'll be right back. that stock right now down about 34 cents

2020 had more than its share of terrible news exceptionally good year for investors. here to lay out risks and opportunities into 2021 is mike wilson, chief equity strategist, cio at morgan stanley. the move is probably even now

well above your 2020 year end target, and i guess mid 2021 targets, mike. have you tempered your enthusiasm or at least dialed it back at all? >> yeah, well as you know we were kind of looking for this setup last year. and it was, you know, kind of out of consensus that we would have some sort of recession in 2020 of course we never predicted a pandemic and then of course the policy response has really been, you know, the big lever that everybody now is well aware of and so that policy response has caused asset prices to probably pull forward some of the great returns that, you know, we were expecting in this new bull market and that's fine. you know, we can digest that and that is what we expect we think the markets will digest some of that exuberance that we got particularly the end of last year and that's good. that is a normal process and a new bull market. so we haven't tempered our

enthusiasm for the new bull market itself. however we have temp earned in the short-term because things have gotten so extended. >> what do you view as the consensus right now? and do you ever consider that when you are -- i guess it would be off the do that in your business, mike but don't you think most people are looking for an extension of the games we saw in 2020 because of stimulus, i guess or because the fed stays accommodative and because of reopening? all the things that you might say are already reflected in the big move that we've seen, so far. >> no doubt. well first of all you have to remember the consensus is generally right 80% of the time. so i mean the reality is whether it is the policy response, some of the data has improved the reality is people are more bullish because stock prices are up we have to admit that to ourselves. you know, we're all price

momentum junkies and that actually is probably the most popular strategy out there. both for active and passive manager. we all chase price momentum up and we chase it down mainly for performance reasons and also because it works generally so right now people are extremely bullish because the price momentum has been tremendous and that's the main driver the second driver of course is as you said, policy response has been extraordinary and we just got incremental policy, you know, additional policy in the fiscal side, which is also going to help the storyline. and of course the fed is on hold indefinitely and other central banks are being supportive so that is a very potent cocktail for equity prices and, you know, but that doesn't mean you can't have a correction in the short-term because exuberance is extreme. >> if you were pressed to go out more than a couple years just about the burgeoning debt that we have. can you envision some type of roaring '20s followed by

something like a '29, a 1929 hangover of some kind, maybe not to that extent but could you see this later in the decade >> yeah i think it is becoming more of a popular narrative. it fits very nicely with sort of our view that we have made a major policy regime shift, you know, from dominate monetary policy alone, qe, whatever you want too call it, to now a more balanced fiscal and monetary cocktail and we call it helicopter money. that is not a new term or a novel term it is what it is right? we're now printing money and actually sending it into the real economy directly, as opposed to just filling holes. coming off the pandemic like in the 1920s, there is going to be a human aspect to this you could envision almost a party-like atmosphere at some point this year when we can fully reopen i don't think it will last ten years. i don't think it will last, you know, a roaring '20s situation

but it could last several years and absolutely there is going to be a hangover at some point. that's what big parties bring. way too early to worry about that hangover now. i think, you know, let's have the party first. >> yeah i've heard that before i think, mike. there's a -- did you -- you know, there is an election today? did that escape you. >> no i think it is pretty hard to ignore. seems like the election season that never ends. right? been going on for seems like years. so yeah, this is an important day and you all were talking about it i think in a significant earlier. it is important. this is a potential seat change if you get a democratic sweep, you are going to have control of government by one party and that is an unusual situation. i don't think it is, you know, catastrophic or wonderful either way. but i think it is different. and one thing that is for sure

in my view, whether the democrats sweep or we have a split or republicans win, is we are moving into this, you know, more fiscal support sort of agenda that the wealth redistribution, whatever you want too call it. income redistribution, which has been, you know, building for years. i think it could accelerate perhaps if you get a democratic sweep. and it just sort of turbo charging some of the themes we've been espousingwhich is things lever to inflation, things lever to higher rates probably just happens fast er. so that is what we're thinking about today. i don't think it changes our narrative much on the outcome but it could accelerate it potentially depending on the outcome. >> okay. mike do you have a monitor? are you okay with that picture i guess you are, huh is that senior year? what is that >> oh, you know. i mean, i guess time's been kind to me. all i can say. >> no analyst in this market can

look like that, obviously. maybe, i think people on tv can. really doesn't matter what we say so much. but you have got people that actually act on your advice. so that -- i know that's a couple years out daited. we may get a new one do you mind if we update it a little so people know who the hell is on right now because i don't think that day do, no i'm kieded kid. >> when we come back lot more on "squawk box. >> later, rush street gaming taking the route to the public markets and looking to take on draftkings head to head. is that how you hold a mirror?

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welcome back to "squawk box" this morning please watch shares of e-commerce giant jd.com. upgraded from buy to hold. and racing the price target to

$105 becky. >> thanks andrew the nyse deciding to cancel plans to delist shares of chinese telecom giants days after first announcing the move. shares of china telecom, china mobil and china unicom rallying in hong kong they talked to regulators and said never mind. i guess people there and here are reading a lot more into this >> yeah. absolutely here its being interpreted as a way for the nyse to be table to stay in china's good books and potentially preserve itself as an attractive place for chinese companies to list. you mentioned late on monday the exchange said it made the change in light of further consultation with relevant regulatory authorities in connection with the office of foreign assets control at the u.s. treasury this is understanding to me with the exchange doesn't necessarily have to go so far as to delist

chinese companies that potentially could have links to the chinese military even if u.s. investors cannot buy them so immediately after the decision the state media here was crowing about it and we saw the shares in china unicom, china mobil and china telecom rally in hong kong all three companies noted the change and interesting the official reaction that is the foreign ministry was much more muted cautiously saying the u.s. needed to continue to respect the rule of law and the market and i think that it really shows that there is still such a lack of clarity around the staying power of these trump administration executive orders, especially into the biden administration becky. >> yeah. we had a conversation earlier about this just the idea that biden may want to step away from a lot of those rules that were put in by

the trump administration but he's got pressure from congress too where there are a lot of china hawkes so he's going to be in difficult position and we'll watch and see what happens the first few months of his administration. >> yeah. and i think that is why the chinese are being much more cautious because there aren't a whole lot of people who are naive to think that the u.s. and china relationship is going to completely change. even though there have been several editorials calling for a restart. but, you know, overall, i think that the chinese are feeling that they, you know, really want to be able to have some sort of new relationship but not a lot of people think it could necessarily happen right away. >> thank you good to see you. coming up online sports gambling company rush street interactive going public through a spak and later, the uk under

lockdown, how long can it go on? and the latest on the rollout issues in the u.s. and much more we'll be right back. ke better decisions faster? workday. got to do something. workday! i think i got something. work... hey, rob, you're on mute. hello. [all] hey... there he is. workday, the finance, hr, and planning system for a changing world. ♪ch-ch-changes

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welcome back to "squawk box. online sports gambling company rush street interactive going public blue a spac now trading. company's co-founder and ceo good morning to you. i'm going to ask you the

question we ever ceo who goes public through a spac. why that way as opposed to an ipo? >> sure andrew, thanks very having me. very simply when we were looking to raise capital in march or april of 2020 as you can remember the markets were a little iffy and ipo market certainly wasn't open at the time and we were connected with the technologies and really hit it off with the principles and decided to go that route and ultimately got the transaction closed end of last year. >> draftkings did it in a similar way. do you think you are in an industry or a space where the scrutiny that would have been involved in an ipo on to itself would have actually been too challenging? >> no i don't think that is the case at all. if you look at the business itself online sports betting and online casino, it is really in its infancy. in 2020 you had roughly 1.3 billion of revenue and online

sports betting and about 1.6 billion in casino. and, you know, the projections if for industry are 15 billion for sports betting, 20 billion for casino so we're really early in the process and i think it is, you know, the spac route was the way to tell that story better. >> and how critical is it to be able to project out, publicly project out, what earnings and rv might look like in the future that's something you might get a benefit of in context of a spac something you can't do in ab ipo. >> that's correct. certainly one of many reasons why the spac route made sense for us. >> talk to us about the company itself and project out for us just so the audience understands how you see the future of this company and how you see the future of the company relative to draftkings or other players making inroads. >> we started the business back

in 2012. i think, you know, we were early. my background is the bricks and mortar casino industry so we got that in our dna which i think has been really helpful and important. and as i mentioned back in 2012, you know, we looked forward and thought casino business is going to digitize like other industries but it was slow to do so and we were able to develop our own technology and, you know, 2012 doesn't sound like that long ago but most of the companies in the industry are even newer than that i think we've built a great experience and platform and looking forward we're currently one of the leaders in online casinos and sports betting and looking forward we're going to continue to grow our business and successfully execute >> what do you make of the old school classic companies thinking of an mgm, for example,

and their ability to get in this space? how do you see that? >> if you look what's happened repeatedly, last six months. you see caesars, buying william hill mgm made an offer for -- penn bought bar stools we had launched an online platform so you are seeing a lot of traditional brick and mortar companies trying to figure out a digital strategy and again we've been at this for a while. so, you know, we're excited about that >> all right, i happen to be fascinated by your industry. but i have a co-host who happens to live this and he may have smarter questions than i do. given that he is -- i'm not going to call joe an addict, but

joe is there something we should know about this? this space >> just keep the bets -- i feel okay about it even though i lose by i only do five dollars. and that way, greg isn't that sort of okay if i can handle that? i mean there are other things -- i spend money on other things for entertainment. okay i don't want to go into specifics. but if that is what it cost me and i don't win. if i just don't go above $5 per game, is that okay >> absolutely. joe. the key is people should bet responsibly and have fun with it you know, we're a much more interested in having a long-term customer who plays within their bounds and, you know, spending. >> does anyone ever win? has anyone ever actually taken money out? >> of course with have people taking money out every day. we have depositors and withdrawers every day. >> greg we got to leave it there. talk to you soon >> thanks for having me.

>> when we return we've got frank luntz on georgia senate race what we can expect from the results is straight ahead.

. good morning future ticking lower and decision day georgia votes in two runoff elections to determine control of the u.s. senate and maybe joe biden's entire economic agenda and about face by the new york stock exchange now it won't delist three chinese telecom giants days after it is said it would. all the details as the final hour of "squawk box" begins right now. ♪ he's leaving ♪ leaving on that midnight train to energy ♪ ♪ leaving on the midnight train ♪ ♪ yeah ♪ said he's going back. >> that's one that can be played at the top of the show good morning and welcome to "squawk box" here an cnbc.

watching these equity futures. saw yesterday up like 150 in the morning and then nothing but down we were up for most of this session partly maybe up 15, maybe 60, 50 around there and all of a sudden we were down about 70 or 80 its gotten back to about up changed but still a little in the red. lot going on obviously down in georgia. major part of it i don't know how you can necessarily trade what you think the outcome is going to be the weather is nice. i know that much maybe people can get out and vote >> lot going to be there here too breaking news on qualcomm. david faber joins us. >> surprising news from the ceo suite qualcomm long time ceo stepping down as the company's ceo.

that will be effective next june and cristiano aman currently the coo is going to step into the ceo role somewhat surprising i say because chris monocough is 52 years old. and positioned qualcomm well last year. certainly the stock performed well seemed surprising he could do it now but team people who are familiar with his thinking on this matter simply say he's tired. he wants some time to relax to go finishing i don't know don ho, stepped down as ceo of ebay, only to come back at nike. but i'm told for mr. mollenkopf that's not necessarily in play here

that they just had a big wi whether it was a fight with apple. the fight with other customers on and on you can go the fight against broadcom to keep the company independent, the fight to try to win nxp only not to get there because of the chinese anti-trust authorities this guy has dealt with an enormous amount of adversity over his time period only to find of course over this last year sort of kweesance and becky now's decided he's had enough not the dpas of the company but certainly one of the key ones in

terms of product introductions in terms of dealing with investors. so there will be continuity there at least what they are saying at this point somewhat surprising. guys retiring far younger than we are that's kind of scary >> hey, speak for yourself >> we know steve good guy always said you can't get up and be on "squawk box. you are always on "squawk on the street." so he disappointed me a little bit there. not that there is any. >> no. >> i think it is the company, not the hours. >> maybe but good guy and, you know, i -- david a company like qualcomm. don't you -- i don't know. the guy's an engineer. like that is so much better than your run of the mill, you know, sort of bureaucrat when they actually might know what -- i probably shouldn't say that. because i have no idea how qualcomm works >> you are right, joe. i think it is important. and listen it's -- when we look at intel right now and the fight that company finds itself in

with third point bob swann former cfo not an engineer that is coming up. and i think that is important certainly for a company with the engineering culture qualcomm does i think it is an important point you raise and amon is as well an engineer so yeah. and you could -- you know, one conversation with the guy you know he's an engineer. thankfully i've had a lot of them through the years with him but again somewhat surprising given all he went through to sort of get what you would call just running the typical company. when we have an interview based on just, well, fundamentals and the earnings, as easy opposed to all of these other things he dealt with but i guess seven years for him was probably twenty for a lot of ceos. >> given what was going on and it is an old squawk name, isn't it, david? >> sure is. >> 20 years ago we said five,

six, seven, eight nine ten times per show qualcomm >> -- when it was hitting a thousand or whatever the number. >> qualcomm, qualcomm qualcomm. >> still got it. there's still a button somewhere if you press >> i'm sitting in the same damn sit. >> we're doing okay. seriously. i here people say that about you all the time here let me get my chin out of the way. one of them. >> unpack a couple of these bags and i'll be good. >> the hair is new for both of us the hair is young. you still got that going the dye stuff. >> i do not dye my hair. >> but you still get that from people. >> yes, all the time. >> like we're going sit there with tinfoil in our hair i get a ten minute haircut that's all i can handle. i'm not going sit there with tinfoil in my hair. >> i didn't even know you had to do that.

no no thank you >> oh diddive give that away i've seen people. >> tinfoil is for highlights, dummy. >> highlights, okay. >> i like highlights >> tinfoil is for highlights the color just they slap it on your head. >> -- i do i -- >> at least make it look good. >> plenty there. >> thanks david. and don't miss see, he's on again >> malin cough >>ollenkopf. >>. >> like i said it is not the hours, joe it is the company that he keeps. that's why he's going on "squawk box." >> going to be on "squawk on the street" at 10:00 eastern, time andrew >> okay. got a lot more to talk about big story today. major u.s. business groups including the u.s. chamber of commerce, and all urging

congress to certify joe biden's electoral college victory over president donald trump tom donahue saying effort bis some members of congress to disregard certified election results in an effort to change the election outcome or to try and make a long-term political point underminus our democracy and the rule of law and will only result in further division across our nation. congress will officially count electoral votes from last year's election, that happens tomorrow with some republican lawmakers expected -- and planning i should say not just expected, to raise objections all of this coming as we focus on a key political story for investors. control of the senate is up for grabs as georgia's two ruboff elections come down to the wire. the official vote is today but millions of ballots have already been cast and joining us to break this down is frank lutz. a politically strategist and pollster frank, let's get straight to it. what do the votes that you have seen come in so far and the

polls suggest to you will be the outcome? >> i came down to georgia, i'm still here but a i wanted to see it for myself i watched the biden rally yesterday and the trump rally last night and the democrats more energized. democrats are much more united and i want to raise this point donald trump in his first few seconds when he came out to speak to his rally did not talk about the two senate candidates. spoke about his own being robbed his own election several times he told that he won in a landslide and all this does is depress republican turnout in fact, i pass ad number of billboards yesterday on the way to the rally, about two hours from atlanta and a very good place for the gop. in the rural areas that it turned out very strongly for trump and several billboards up there telling republicans don't vote for either th republican candidates because they have not done enough for donald trump it is incredible to me that an election that is so important.

you have david perdue. he couldn't even show up at the rally because of covid concerns. that he had tested positive. at a time when you need every possible vote. and democrats are voting in record numbers over the last two, three weeks republicans are being told to stay home. and donald trump when he shows up to deliver that final rallying cry, he spends as much time talking about his own election as he does about the republicans. i would say to people watching, i think you should have sold your stock in late december knowing the impact that this election is going to have on the markets and on business. i'd be very nervous about what is going to happen tonight because i think the democrats do have, and i've looked at the early votes. i've looked at the absentee votes. i think the democrats have an advantage. and i think that that is is the reason why wall street had such a bad day yesterday. they are starting to figure out what also pollsters know that. the democrats have an advantage in today's election. >> frank, so you are calling it for the dems

how quick, one of the questions we've been asking, is how quick do you think we will know the outcome of this runoff >> you asked me the same question three weeks before the election and i gave you a tick-tock of hour by hour, day by day and in the end i thought it would be saturday i don't think we're going to know tonight i think it is going to be early a.m. tomorrow. i give thegeorgians credit they know how to run an election and count votes very quick and no they cannot find the 11,000 vote that donald trump asked the secretary of state and i was told several times yesterday i should go back home, get out of there because frankly it is my responsibility to tell you the truth. i don't think we're going know by midnight tonight. i think when we talk tomorrow morning is about the time we'll know who the next senators are from georgia. >> i mentioned, i should say actually hundreds of ceos came

out against this idea being brought by a number of senators and members of congress who plan to object to the certification of the election tomorrow how much do you think that plays in the voters minds in georgia today? >> i don't think it plays much in the minds of georgians but plays in the minds of republicans in washington. kevin mccarthy is so close to becoming speaker if you look at the elections over the last fifty years, when you are this close, only six votes from the majority. it gives mccarthy the chance to become speaker in the next election however there is greater divide. and i see you are showing ossof here there is a greater divide than the republican party than there is in the democratic party and i'm listening to the language as being used in washington over the last 48 hours. and it is significant. the parties in the process of tearing itself apart and you don't do that now when you are this close to the most

important senate election really in a lifetime. democrats have the advantage and in washington i think the next 48 hours are going to be among the worst for the gop. >> -- then for a ted cruz, for example? or for a hawley? >> what they are going to do and those are two senators who are thinking of running for president in 2024. see andrew, you have nowlearne to set up the comments i think they are going to have the biggest field but they are all going to be frozen in place. another thing donald trump did last night is come out against the governor imagine the republican president saying he's going to oppose the republican governor two years before his reelection. i think trump is not only going to stay involved i think he's going to be active over the next couple of years and that is going to be very difficult for the republican party because trump is already calling on primary challenges to incumbent republicans in the senate, in the house and for governor

and that spells a lot of chaos within the gop at a moment when the public is saying to both political parties just govern. please just govern. >> frank you said that you don't think we'll know tonight but you think we'll know tomorrow i just wonder if you think this vote is going to be so close that it will be contested again. >> i think it is going to be within 2%. so yes it is going to be extremely close. i think that we're going to have the same situation we had before that you are going to see republicans start with a lead. as the first votes come in and it is going to be misleading truth is i wouldn't be surprised if the gop wins. -- have the advantage but because of this system we've got right now and how votes are counted in a state like georgia. the republicans will start off head people like donald trump will claim they have won and when the numbers move the other direction

they will say the election is being stolen we need electoral reform to take a look at how we cast the votes and the process both for voting and counting because right now more americans than ever question the integrity of the election and believe every vote isn't counted properly that is not good for dplox -- >> frank i don't know whether to use polls or betting sites i have a lot of doubt about both i think all -- to frame the term, all bets are off anyway, the predicted betting site yesterday got very close. and i'm almost showed the dems favored to take control of the senate after this runoff now it is back to 5 57-45-republican so you are on record saying the dems win so we'll see again, i don't know why you do necessarily. but we'll see what happens after it just for what it is worth, it's back, it diverged again.

and for some reason, i don't know maybe because it is a nice day down there and people are going to be able to vote on the day of instead of before if it was raining, even harder wasn't it for republicans if it was raining or freezing down there? but it is a nice day sun's out. they can have a big northern georgia turnout. >> democrats are smart to bank all their votes early. gop is going to need roughly a 70-30 turnout today to balance in fact there is actually 120,000 more people who voted in this election that will vote in the presidential election. and that looks like it is happening in democratic areas. in the republican areas in those rural community, vote was actually down there. the early vote was down compared to november. and why do i do it joe because i want to try to provide insight to the viewers i will not be surprised if the republicans win.

but in terms of making that projection based on the interest level t unity level, the issues and how they are running in their campaigns. and one last point the democrats are running a much more personalized campaign what this means to you the republicans are running a nationwide ideological campaign what it means to the country what we've found by 3-2 voters tends to make the decisions base on how they are impacted versus how the nation is impacted i actually think the democratic campaign has been marginally better than the republican campaign down here >> perdue got, if you took out the independent, he made the point, i think, 52% vote did not vote for ossof in the last one so it was 50-49 i think. but there is a 2% for -- so if you get another 52% of georgians don't vote for ossof this time, then perdue is going to get elected. so i don't know if i'm saying i take the other side but i don't know time will tell we'll see. >> let me answer it.

the republicans had a 4% generic ballot margin, by 46-42 georgians wanted to vote republican and this was ten days after the november election. so if republicans lose they are going to look around and say what happened between then and now? and my answer in two words, donald trump >> okay. frank, we have to leave it there. we will see what happens over night. and i imagine we'll talk to you again in the next 24 hours appreciate it very very much talk to you soon becky? thanks andrew. when we come back, why are injections of the covid-19 vaccine lagging shipments so dramatically in this country and what are the best ideas we have tro try and fix the problem. as we head to a break let's get you caught up on some of the day's headlines a wells. haven the joint venture from amazon, berkshire hathawayway and j.p. morgan that was looking for days to try and lower cost and improve outcomes in healthcare is shutting down

after three years in operation and j.p. morgan says the bit coin gould as high as $146,000 onte the lg-rm this is based on the idea bit coin's popularity would eventually converge with that of gold stay tuned you are watching "squawk box" and cnbc

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coming up. it is that time of year. pyrene, wing, tyrannosaurus rex. he's back. 2021 predictions big platnsorimicio f your money. coming up. and low to fix the u.s. coronavirus vaccine rollout. we'll get into that next stay tuned you are watching "squawk box" on cnbc

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welcome back everybody new york's governor confirming the state's first case of that new highly contagious covid-19 strain that was first spotted in the united kingdom the news highlighting the need for a stepped up vaccination effort across the united states. and joining us to talk about the current bottle necks in distribution and what we can do about it is michael oscar -- director of the center for infectious disease research and policy at university of mini and member of president elect biden's covid-19 task force. thank you for being with us. let's talk first about the new strains that we're hearing we only assumed once we heard about them being in the uk they would eventually wind up here too. we've now seen it i think in four states. how big of a concern is this new strain >> it is a very big concern and

it is a strain that is obviously around the world and you are going to find over the days ahead it is in many locations in the united states. and it is the first of what will likely be a number of strains emerging >> in the uk they have gone a pretty tight lockdown as a result do you think something like that happens here >> i'm not sure. you already have a very serious challenge to what is going on in california, the southern sun belt states and in a sense we already have a great deal of measures put in place to try to limit transmission this is a challenge and it is one that as we are watching in european countries with this new variant strain have been made even more acute by the fact this virus, now the new strains are transmitting even more effectively than the ones before >> for a long time we thought getting enough production that the vaccine was going to be the big deal

but now we're finding out it is pretty hard to get it distributed and get it into people's arms as well. how do we fix it where are the bottle necks how do we fix it >> first we have to understand that the challenge we have right now should have been expected. and i've been talking about the last mile and the last inch for better part of several months. and we did is we invested in great deal of money in basic research and development, the licensing, approval, the actual manufacturing of the vaccine but we forgot about what will it take to actually get this vaccine into people's arms right now remember we're at the very earliest stages, primarily long-term care facilities and healthcare workers long-term care facilities are being handled by a private pharmacy company and they were not really ready to go healthcare workers have been slow in getting the vaccine to them because they are also in the middle of a crisis to try to do both vaccination and care for all these patients has been a challenge

i think though however as much as that's been a problem, where i'm very concerned is there's been a real lack of resources for state and local health departments who will be responsible for vaccinating largely the rest of the population and if we don't see that kind of change soon in terms of resources coming to departments to hire vaccinators, to hire the kind of people who can actually do the registration work to make sure people know where to go, when to go somewhere to get their vaccine, this problem could get worse. i'm optimistic that the biden/harris administration sees this, they are going to inherit a real problem on january 20th we can't assume it is going to be fixed overnight but i'm optimistic they get the challenge here and are going to do what it takes to improve the vaccine delivery. >> we talked about some of the restrictions governor cuomo was talking about that could almost stigmatize anyone feeling like they were getting the shot ahead of someone else or too early

could actually be penalties. but then we heard a lot of vaccine left in certain vials that theoretically if no one is there in the age group willing to get it it might not get used. is there any supply demand concerns right now they are not balanced are there times you have a supply available but you don't have the demand from the group willing to get it. if someone is willing to drive somewhere and i will be there if you will give it to me should we let that person get it and not sit on the shelf if they don't have the right population there at the time? >> you identified a very important problem. one of the challenges particularly with the pfizer vaccine is its very unique requirements for freezing and e rerefrigeration. and once you unthaw them, there is a limited time period and if it is not then they have to be

discarded. we need to make sure that when we go into locations trying to vaccinate those high risk people for either contracting the infection from providing care or being in a long-term care facility, becoming infected and dying. we have to actually be certain we're balancing out how many doses do we take to that location so that as you pointed out, at the end of the day we still don't have 150 left that otherwise would be tossed away and people are learning about that right now in a way we've never had to learn before. we've never had this challenge before so i think your point is a good one. we don't want to not waste vaccine. we want to use all of it but at the same time we want to target the highest risk people. >> michael would you advocate for employers ultimately distributing the vaccine to their employees and at what level would you advocate for or not mandating the vaccine by certain employers? >> well first of all, everything has to be on the table from a creative standpoint.

you know, however we can best get vaccine out to the population on the whole as vaccine becomes available should be on the table. and i know that the biden/harris incoming information is looking at all these different avenues and at this point that is going to be very important i think the issue of mandating is somewhat challenged and this is out of my league of expertise. because of this vaccine was proved using emergency use authorization as opposed to a licensed product there may actually be challenges a when it can be mandated either by government or private sector companies. i think as many people as we can get vaccinated as quick as we can. that is our goal and i'll support however we can make that work >> michael osterholm, thanks for your time. >> thank you >> coming up a "squawk box" tradition with a very special

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blackstone's byron wein is out with his top surprises for 2021 featuring everything from an embrace of monetary theory to trump tv and a -- with china and somehow just missing the top 10 as a prediction of tesla byron joins us now vice president of blackstone solutions. i don't even want to talk about 2020 the sofs black swannish and out of the rel of anything predicted that let's just forget about it and do this year's i know that joe's -- seydeled up to you and looked like his influence this year because some of these predictions this year are not as surprising as some that you have made in the past a lot of these i think are almost you know how you like to surprise us?

they are kind of like what i would think might happen >> well that is encouraging to hear but i don't know that too many people think the market could be down close to 20% in the first half and still close at 4,500. i think that would be pretty much of a surprise most people don't think the 10-year treasury is going to go to a 2% yield. most people don't believe that both the fed and the treasury will embrace monetary theory >> already have. >> yeah. they have on a defact basi facts but you are right, about seven of them are on the direction of consensus, just more extreme but there are three that are really surprises

the china surprise, having a favorable relationship with china. that's certainly one >> that's a a loaded one, wait a minute that's a loaded one. with prbd president biden. china's done a lot for the back nines. >> -- that would be a surprise and the justice department pulling back on google and facebook that would be a big surprise and the dollar being strong rather than weak would be a big surprise. >> that's true so those are three clear surprises. and the others are more extreme. so i'm pretty comfortable that they are not -- that for one reason or another they are not in the consensus >> yes, the dollar -- okay

so you got the u.s. economy and the financial markets are going to become very attractive again, postvaccine. so that would be a strong economy would boelser the dollar obviously. but one of the things we worry about is a lot of the markets cross the board reflect the notion that we will be coming back and it is already in a lot of the markets, right >> that's why we're going to have a correction in the first half and we'll probably be getting it now. >> i want to look at some of your ones that don't make the top 10 because those are always, those are the ones that might be kind of whacky, but that you don't really feel quite as strongly about. so you think tesla if we say tesla, people just turn on the tv set and say tesla tesla, tesla like something in the old days but what do you think tesla might do >> it might acquire a major

automobile company with cash and stock and pledge to stop making automobiles with internal combustion engines by the end of this decade. >> this is a good one. so you talk about trump tv not only do you talk about trump tv -- this is wild so trump might invite kim jong un on like the guest host? trump tv >> no. just as a guest. >> not a guest host. >> right and trump would interview him. before kim goes on, he says he has a long-range intercontinental ballistic missile armed with a nuclear war head that is capable of reaching los angeles. and trump spends the program trying to convince him not to test it. and kim agrees that he won't test it. and trump looks at the camera and says i'm the best negotiator

of all time. >> okay. we'll be watching for that remember the news cycle in the past year, byron, you could have predicted it would become less than 24 hours. that would have been a good prediction but remember the cyberattack when was that? how quick did we get off that? but one of your predictions is that could get -- and that's probably likely. that could get worse next year what -- this year. sorry. what could we possibly see >> we originally had a cyberattack in the ten surprises for 2021 but it isn't a surprise anymore. as the news item so that is why it wasn't included in the list >> what's -- i didn't do the math on that so you said 20% pullback so that would put us in -- that could count as a bear market and that would be a new bull market.

>> not quite i don't think we'll get quite to a baermt buear market bumll mar. >> the judd justice department in terms of big tech regardless what happens in georgia today there will be a softening in the regulation, regulatory cases against google and facebook this year why? >> because the public really benefits from these companies. and there is no evidence that -- in any way, in terms of pricing or service the public is disadvantaged by these companies being the size they are. and so i don't know what is going to be accomplished by breaking them up the same thing kind of happened with ibm and apple and microsoft earlier. and the justice department says

what are we trying to accomplish here because the companies themselves are going to resist being broken up i'm not saying they won't have increased surveillance, some restrictions and so forth. but i don't think they will be broken up. >> i like this lastdown. all right said tesla might buy a big auto maker and shut down the internal combustion manufacture of those types of cars, yet you think energy stocks could be the best perform ores of the year because industrial activity and mobility increase as we reopen so we see $65 oil. >> right that's this year the tesla one is for the decade. i thinkby the end of the decad we may be using less energy. but this year, i think the demand for oil is going to increase

>> right you got one that -- we got to go but you got one you thought of that even you would be too embarrassed to put down? but you can whisper to me and i won't tell anyone. you got anything really crazy? out landisch would have worked last year, right? >> well you can't believe how much anguish and energy goes into these things. i don't -- i'm really bone dry in terms of the -- >> all right did ziedal do anything did joe do anything? you were the heavy lifting. >> joe was my partner every step of the way and eventually when i'm no longer around joe will be carrying on the tradition. >> i don't see that happening any time soon. all right. byron. thanks >> okay. >> we just heard from byron about his top 10 predictions

i next we're going to talk to jim cramer albert the themselves he is watching, ten thes aeremft yesterday's zas rows start for the year for the markets you can watch us on listen live on the cnbc app. stay tuned you are watching "squawk box" and this is cnbc ♪ ♪ digital transformation has failed to take off. because it hasn't removed the endless mundane work we all hate. ♪ ♪ automation can solve that by taking on repetitive tasks for us.

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what i believe biden will do is come in with an olive branch that will produce a lot of orders for our companies of capital equipment and yes i think boeing i do believe that the relations can be better. now, is biden an appeaser? versus trump being an activist

well i would say this. i would say it doesn't matter for the stock market purposes. biden is just better because the surprises will end no more tweets, becky, which makes xi look like an idiot. you can't do that. it doesn't work. >> watching this morning we already heard from the nooiz saying they are not going delist those three major chinese telecom companies they threatened to do checked with regulators and oh they have clafrd things for uri us >> the better one to look at actually lot of people raising j.d. com and in light of what you said about the teleco-s, people are going to do that here is a good example a jack ma, where is he he took on the entrenched banking system that is not what the chinese communist party wants. that is the opposite he has to lay low because that

is the chinese communist party reasserting itself over the economy. that is not a good thing when it comes to trying to figure out freedom of expression. it is joe biden will care about that but joe biden is going work with the allies and work with the allies facetious people rely on chinese orders, they'll get the job done in terms of constraining china, but it gets the job done in terms of u.s. exports back to the old ways with a little bit more emphasis of let's say political freedom. >> jim, i know this is just a bit of a hint of what's to come today. you unveiled that last night i know the shows are going to be talking about your investment themes all day long. we'll be watching for that thank you for the sneak peek by the way, viewers can also go to cnbc.com to get more on this. when we come back, what could the georgia senate run jf obs the new strain of the coronavirus mean for investors

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join the world's leading companies in our mission to defend. cybereason. end cyber attacks. from endpoints to everywhere. welcome back to "squawk box. we have been talking all morning about the runoff senate elections in georgia just want to bring your attention to a column i wrote in

today's "new york times," and it talks about an issue that has come up in one of those races. last year senator kelly loeffler and david perdue and some other colleagues were investigated for insider trading claims and at the time she announced she and her family would no longer trade or hold individual stocks. and since then, i've been spending a lot of time talking to lawmakers, prosecutors, former heads of the s.e.c. and others about how to end this, how to do what kelly loeffler ultimately was publicly pressured to do, and how to do it frankly without legislation in a day and age where there has been so much gridlock and the chance that something like that could actually take place, meaning legislation could take place is almost impossible and came up with a novel idea that i wanted to just share with you all. and it is -- i think a pretty interesting one and one of the people i spoke with, harvey pitt, on this program many times, and it revolves around

actually the s.e.c., so the idea is that without any legislation needed, don't need new legislation, the s.e.c., if it wanted to, and we'll see who the next chairman of the s.e.c. is, could decide through its oversight of broker dealers, every trade has to go through a broker dealer, could say, to every broker dealer, you need to put this group of people, what are called politically exposed people, a term that is already used by financial institutions, into a different bucket. and every time that one of those politically exposed people trades a stock, that trade has to be sent directly to the s.e.c. and in addition to that, they could require that the broker dealer have a questionnaire for the politically exposed person so if a congressman or congresswoman is going to trade, they would fill out a questionnaire for every trade whether it is originated by them or financial adviser and the question could say, have you met with anybody over the last 28 days that has influenced your

trade? and that information could then be submitted to edgar, which is, of course, the computer system that the s.e.c. has, makes all of these things public and do it in real time and i think there is a view that if something like that were to take place, it could demonstrably change the dynamic. journali journalists, joe, becky and i can't trade stocks at the s.e.c., this is also the policy they can't trade stocks and in fact they have to technically authorize their own broker dealers who if they do trade any stocks to submit that information directly to the s.e.c. so it is a policy that could have a huge difference and i already started getting emails and calls and texts from a number of lawmakers in washington and people within the s.e.c. world talking about maybe trying to take this up and we will see what happens. meantime, today's georgia elections have huge implications for the markets and depending on who wins, we will see -- the

managing director, partner of douglas d. lane and associates and cnbc contributor, victoria fernandez at cross market -- cross mark global investments. good morning to both of you. serat, who do you set this up? frank luntz in the last hour effectively said he thinks the democrats are going to win do you think that's what the market thinks? >> i think right now it is very uncertain. and i think what the market is thinking is that interest rates are going to go up and that's going to cause the market to have a rotation. and if rates go up, this whole complacency that we have in this market about tech stocks only going up because interest rates will be low, i think it will be a wake-up call for a lot of investors. the real economy, the reopening economy is coming and, yeah, we have a bridge to it and will take a few months. when that happens, we're going to go back to where we were 18 months ago and a lot of new investors don't understand that and i think that rotation, that uncertainty that fragility will cause some turmoil in this

market >> are you expecting a pull back it would be a surprise, he thinks we can go not to a bear market per se, but a real pullback. >> i think maybe a 20% pullback. i'm not sure we would get that far. but we would see some pullback in the market, we expect that to happen you look at the georgia election, and, you know, the longer term, i think you get the traditional ideas of the market is more like of a divided government, so they wouldn't like a democratic sweep in this. but in the short-term, i think the markets would actually benefit from a democratic sweep here for the sheer fact they think it is going to be a larger stimulus package that is going to lead to higher rates. so we'll see that curve steepen a little bit you get a pullback and that's why we have been telling clients, don't go all in on the reopening trades

you'll get that whiplash we like to have that exposure to the growth side of the market, even though it had a good solid run because we think that is where the longer term trend is higher in the market are going to be. >> we're up against a hard break, the final word to you, what are you doing to set yourself up this morning, relative to what potentially is going on, including by the way, lockdowns in the uk and concerns that maybe we're going to start seeing more of that here or elsewhere around the world >> i would say a couple of things, stay diverse fiversifdi. don't try to time it people who tried to time it got hurt stay in your ale calocatioallocn >> okay. serat, victoria, we appreciate both of you joining us this morning, helping usthrough this we'll see what happens with this election we'll see what the market has baked in or not as we mentioned. we're now half an hour before

the market opens quick check on where things stand. dow right now looks like it would open down about 93 points. nasdaq about 65 points, down s&p around 15 points that's been a bit of a turn around where things stood, even when the show began. make sure you join us tomorrow there is going to be a lot to talk about, guys "squawk on the street" begins right now. good tuesday morning welcome to "squawk on the street." i'm carl quintanilla with david faber, jim cramer. futures have slid into the red as andrew said after the worst opening day of the year for the dow in several years watching the georgia senate runoff, of course, uk lockdowns, and a slew of analyst moves on names like uber, coke, micron, airbnb and more.